[info] CRYPTO-GRAM, October 15, 2007

Eugen Leitl <eugen at leitl.org> on Mon Oct 15 07:33:36 UTC 2007

----- Forwarded message from Bruce Schneier <schneier at SCHNEIER.COM> -----

From: Bruce Schneier <schneier at SCHNEIER.COM>
Date:         Sun, 14 Oct 2007 23:08:13 -0500
To: CRYPTO-GRAM-LIST at LISTSERV.MODWEST.COM
Subject: CRYPTO-GRAM, October 15, 2007
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Reply-To: Bruce Schneier <schneier at SCHNEIER.COM>

                 CRYPTO-GRAM

               October 15, 2007

              by Bruce Schneier
               Founder and CTO
                BT Counterpane
             schneier at schneier.com
            http://www.schneier.com
           http://www.counterpane.com


A free monthly newsletter providing summaries, analyses, insights, and 
commentaries on security: computer and otherwise.

For back issues, or to subscribe, visit 
<http://www.schneier.com/crypto-gram.html>.

You can read this issue on the web at 
<http://www.schneier.com/crypto-gram-0710.html>.  These same essays 
appear in the "Schneier on Security" blog: 
<http://www.schneier.com/blog>.  An RSS feed is available.


** *** ***** ******* *********** *************

In this issue:
     The Storm Worm
     Fraudulent Amber Alerts
     UK Police Can Now Demand Encryption Keys
     News
     Anonymity and the Tor Network
     Remote-Controlled Toys and the TSA
     Schneier/BT Counterpane News
     Staged Attack Causes Generator to Self-Destruct
     Comments from Readers


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     The Storm Worm



The Storm worm first appeared at the beginning of the year, hiding in 
e-mail attachments with the subject line: "230 dead as storm batters 
Europe." Those who opened the attachment became infected, their 
computers joining an ever-growing botnet.

Although it's most commonly called a worm, Storm is really more: a worm, 
a Trojan horse and a bot all rolled into one. It's also the most 
successful example we have of a new breed of worm, and I've seen 
estimates that between 1 million and 50 million computers have been 
infected worldwide.

Old-style worms -- Sasser, Slammer, Nimda -- were written by hackers 
looking for fame. They spread as quickly as possible (Slammer infected 
75,000 computers in 10 minutes) and garnered a lot of notice in the 
process. The onslaught made it easier for security experts to detect the 
attack, but required a quick response by antivirus companies, sysadmins, 
and users hoping to contain it. Think of this type of worm as an 
infectious disease that shows immediate symptoms.

Worms like Storm are written by hackers looking for profit, and they're 
different. These worms spread more subtly, without making noise. 
Symptoms don't appear immediately, and an infected computer can sit 
dormant for a long time. If it were a disease, it would be more like 
syphilis, whose symptoms may be mild or disappear altogether, but which 
will eventually come back years later and eat your brain.

Storm represents the future of malware. Let's look at its behavior:

1. Storm is patient. A worm that attacks all the time is much easier to 
detect; a worm that attacks and then shuts off for a while hides much 
more easily.

2. Storm is designed like an ant colony, with separation of duties. Only 
a small fraction of infected hosts spread the worm. A much smaller 
fraction are C2: command-and-control servers.  The rest stand by to 
receive orders. By only allowing a small number of hosts to propagate 
the virus and act as command-and-control servers, Storm is resilient 
against attack. Even if those hosts shut down, the network remains 
largely intact, and other hosts can take over those duties.

3. Storm doesn't cause any damage, or noticeable performance impact, to 
the hosts. Like a parasite, it needs its host to be intact and healthy 
for its own survival. This makes it harder to detect, because users and 
network administrators won't notice any abnormal behavior most of the time.

4. Rather than having all hosts communicate to a central server or set 
of servers, Storm uses a peer-to-peer network for C2. This makes the 
Storm botnet much harder to disable. The most common way to disable a 
botnet is to shut down the centralized control point. Storm doesn't have 
a centralized control point, and thus can't be shut down that way.

This technique has other advantages, too. Companies that monitor net 
activity can detect traffic anomalies with a centralized C2 point, but 
distributed C2 doesn't show up as a spike. Communications are much 
harder to detect.

One standard method of tracking root C2 servers is to put an infected 
host through a memory debugger and figure out where its orders are 
coming from. This won't work with Storm: An infected host may only know 
about a small fraction of infected hosts -- 25-30 at a time -- and those 
hosts are an unknown number of hops away from the primary C2 servers.

And even if a C2 node is taken down, the system doesn't suffer. Like a 
hydra with many heads, Storm's C2 structure is distributed.

5. Not only are the C2 servers distributed, but they also hide behind a 
constantly changing DNS technique called "fast flux." So even if a 
compromised host is isolated and debugged, and a C2 server identified 
through the cloud, by that time it may no longer be active.

6. Storm's payload -- the code it uses to spread -- morphs every 30 
minutes or so, making typical AV (antivirus) and IDS techniques less 
effective.

7. Storm's delivery mechanism also changes regularly. Storm started out 
as PDF spam, then its programmers started using e-cards and YouTube 
invites -- anything to entice users to click on a phony link. Storm also 
started posting blog-comment spam, again trying to trick viewers into 
clicking infected links. While these sorts of things are pretty standard 
worm tactics, it does highlight how Storm is constantly shifting at all 
levels.

8. The Storm e-mail also changes all the time, leveraging social 
engineering techniques. There are always new subject lines and new 
enticing text: "A killer at 11, he's free at 21 and ...," "football 
tracking program" on NFL opening weekend, and major storm and hurricane 
warnings. Storm's programmers are very good at preying on human nature.

9. Last month, Storm began attacking anti-spam sites focused on 
identifying it -- spamhaus.org, 419eater and so on -- and the personal 
website of Joe Stewart, who published an analysis of Storm. I am 
reminded of a basic theory of war: Take out your enemy's reconnaissance. 
Or a basic theory of urban gangs and some governments: Make sure others 
know not to mess with you.

Not that we really have any idea how to mess with Storm. Storm has been 
around for almost a year, and the antivirus companies are pretty much 
powerless to do anything about it. Inoculating infected machines 
individually is simply not going to work, and I can't imagine forcing 
ISPs to quarantine infected hosts. A quarantine wouldn't work in any 
case: Storm's creators could easily design another worm -- and we know 
that users can't keep themselves from clicking on enticing attachments 
and links.

Redesigning the Microsoft Windows operating system would work, but 
that's ridiculous to even suggest. Creating a counterworm would make a 
great piece of fiction, but it's a really bad idea in real life. We 
simply don't know how to stop Storm, except to find the people 
controlling it and arrest them.

Unfortunately, we have no idea who controls Storm, although there's some 
speculation that they're Russian. The programmers are obviously very 
skilled, and they're continuing to work on their creation.

Oddly enough, Storm isn't doing much, so far, except gathering strength. 
Aside from continuing to infect other Windows machines and attacking 
particular sites that are attacking it, Storm has only been implicated 
in some pump-and-dump stock scams. There are rumors that Storm is leased 
out to other criminal groups. Other than that, nothing.

Personally, I'm worried about what Storm's creators are planning for 
Phase II.

This essay originally appeared on Wired.com.
http://www.wired.com/politics/security/commentary/securitymatters/2007/10/securitymatters_1004 
or http://tinyurl.com/2xevsm

http://www.informationweek.com/news/showArticle.jhtml?articleID=201804528 
or http://tinyurl.com/3ae6gt
http://www.informationweek.com/showArticle.jhtml;jsessionid=SNSXKAZRQ04MMQSNDLRSKHSCJUNN2JVN?articleID=201803920 
or http://tinyurl.com/2lq3xt
http://www.informationweek.com/showArticle.jhtml;jsessionid=SNSXKAZRQ04MMQSNDLRSKHSCJUNN2JVN?articleID=201805274 
or http://tinyurl.com/3bb4f5
http://www.scmagazineus.com/Storm-Worm-uses-e-cards-to-push-spam-near-all-time-high/article/35321/ 
or http://tinyurl.com/33chht
http://www.usatoday.com/tech/news/computersecurity/wormsviruses/2007-08-02-storm-spam_N.htm 
or http://tinyurl.com/2c6te7

Fast flux:
http://ddanchev.blogspot.com/2007/09/storm-worms-fast-flux-networks.html 
or http://tinyurl.com/2xwgln

Storm's attacks:
http://www.spamnation.info/blog/archives/2007/09/419eater_ddosd.html
http://ddanchev.blogspot.com/2007/09/storm-worms-ddos-attitude.html
http://www.disog.org/2007/09/opps-guess-i-pissed-off-storm.html

Stewart's analysis:
http://www.secureworks.com/research/threats/storm-worm/

Counterworms:
http://www.schneier.com/crypto-gram-0309.html#8


** *** ***** ******* *********** *************

     Fraudulent Amber Alerts



Amber Alerts are general notifications in the first few hours after a 
child has been abducted.  The idea is that if you get the word out 
quickly, you have a better chance of recovering the child.

There's an interesting social dynamic here, though.  If you issue too 
many of these, the public starts ignoring them.  This is doubly true if 
the alerts turn out to be false.

That's why two hoax Amber Alerts in September (one in Miami and the 
other in North Carolina) are a big deal.  And it's a disturbing trend. 
Here's data from 2004:

"Out of 233 Amber Alerts issued last year, at least 46 were made for 
children who were lost, had run away or were the subjects of hoaxes and 
misunderstandings, according to the Scripps Howard study, which used 
records from the National Center for Missing and Exploited Children.

"Police also violated federal and state guidelines by issuing dozens of 
vague alerts with little information upon which the public can act. The 
study found that 23 alerts were issued last year even though police 
didn't know the name of the child who supposedly had been abducted. 
Twenty-five alerts were issued without complete details about the 
suspect or a description of the vehicle used in the abduction."

Think of it as a denial-of-service attack against the real world.

Amber Alerts:
http://en.wikipedia.org/wiki/Amber_alert

September hoaxes:
http://missingchildprevention.wordpress.com/2007/09/21/ft-lauderdale-false-amber-alert/ 
or http://tinyurl.com/2nm34r
http://news14.com/content/headlines/586728/amber-alert-said-to-be-false/Default.aspx 
or http://tinyurl.com/2lf4v8

2004 data:
http://www.shns.com/shns/g_index2.cfm?action=detail&pk=MISSING-AMBER-07-05-05 
or http://tinyurl.com/2mbar9


** *** ***** ******* *********** *************

     UK Police Can Now Demand Encryption Keys



Under a new law that went into effect this month, it is now a crime to 
refuse to turn a decryption key over to the police.

I'm not sure of the point of this law.  Certainly it will have the 
effect of spooking businesses, who now have to worry about the police 
demanding their encryption keys and exposing their entire operations.

>From the ArsTechnica article:

"Cambridge University security expert Richard Clayton said in May of 
2006 that such laws would only encourage businesses to house their 
cryptography operations out of the reach of UK investigators, 
potentially harming the country's economy. 'The controversy here [lies 
in] seizing keys, not in forcing people to decrypt. The power to seize 
encryption keys is spooking big business, ' Clayton said.

"'The notion that international bankers would be wary of bringing master 
keys into UK if they could be seized as part of legitimate police 
operations, or by a corrupt chief constable, has quite a lot of 
traction,' he added. 'With the appropriate paperwork, keys can be 
seized. If you're an international banker you'll plonk your headquarters 
in Zurich.'"

But if you're guilty of something that can only be proved by the 
decrypted data, you might be better off refusing to divulge the key (and 
facing the maximum five-year penalty the statue provides) instead of 
being convicted for whatever more serious charge you're actually guilty of.

I think this is just another skirmish in the "war on encryption" that 
has been going on for the past fifteen years.  (Anyone remember the 
Clipper chip?)  The police have long maintained that encryption is an 
insurmountable obstacle to law and order:

"The Home Office has steadfastly proclaimed that the law is aimed at 
catching terrorists, pedophiles, and hardened criminals -- all parties 
which the UK government contents are rather adept at using encryption to 
cover up their activities."

We heard the same thing from FBI Director Louis Freeh in 1993.  I called 
them "The Four Horsemen of the Information Apocalypse" --  terrorists, 
drug dealers, kidnappers, and child pornographers -- and they have been 
used to justify all sorts of new police powers.

http://arstechnica.com/news.ars/post/20071001-uk-can-now-demand-data-decryption-on-penalty-of-jail-time.html 
or http://tinyurl.com/3btatf
http://ct.techrepublic.com.com/clicks?t=40345835-0f1945960a0400a9a01bdf730f084221-bf&s=5&fs=0 
or http://tinyurl.com/2o9545
http://www.theregister.co.uk/2007/10/03/ripa-decryption_keys_power/


** *** ***** ******* *********** *************

     News



Microsoft updates both XP and Vista without user permission or 
notification.  Microsoft can do this; that's just stupid company stuff. 
 But what's to stop anyone else from using Microsoft's stealth remote 
install capability to put anything onto anyone's computer?  How long 
before some smart hacker exploits this, and then writes a program that 
will allow all the dumb hackers to do it?  When you build a capability 
like this into your system, you decrease your overall security.
http://www.informationweek.com/news/showArticle.jhtml?articleID=201806263 
or http://tinyurl.com/ytzz7l
http://blogs.zdnet.com/hardware/?p=779

Yet another sports spying scandal, this one from Formula One racing:
http://www.iht.com/articles/2007/09/13/sports/prix.php
http://today.reuters.co.uk/news/newsArticle.aspx?type=motoringMotorSportsNews&storyID=2007-09-14T141001Z_01_L14841488_RTRIDST_0_MOTOR-RACING-PRIX-MCLAREN-EVIDENCE-UPDATE-1.XML 
or http://tinyurl.com/3xb7l7
http://sport.guardian.co.uk/motorsport/story/0,,2168805,00.html

The Norwegian Ministry of Transportation asked the EU to lift the liquid 
ban on airplanes.
http://nyheter.vg.no/nyheter/artikkel.php?artid=162926
http://www.aftenposten.no/reise/article1994056.ece
And the European Parliament agreed.
http://www.europarl.europa.eu/news/expert/infopress_page/062-10003-246-09-36-910-20070823IPR09766-03-09-2007-2007-false/default_en.htm 
or http://tinyurl.com/37x6yt
Unfortunately the European Parliament is powerless; their decisions are 
regularly ignored. In this case, the European Commission has the real power.

MediaDefender is a P2P poisoning company. Last week, company e-mail, 
phone calls, and source code were leaked.
http://www.schneier.com/blog/archives/2007/09/leaked_media_de.html
http://arstechnica.com/news.ars/post/20070916-leaked-media-defender-e-mails-reveal-secret-government-project.html 
or http://tinyurl.com/ywcwf2
http://torrentfreak.com/mediadefender-emails-leaked-070915/
http://thepiratebay.org/tor/3809004/MediaDefender.Phonecall-MDD
http://torrentfreak.com/mediadefender-anti-piracy-tools-leaked-070920/

The Chinese are accused of spying on the Danish Women's Cup soccer team:
http://afp.google.com/article/ALeqM5gt5-xvFoitZl191Ynd2iPrjyOm7w
http://www.nytimes.com/2007/09/14/sports/soccer/14cup.html
http://canadianpress.google.com/article/ALeqM5iwKeRtUUnGMyKc0HDyyrEqDPfDaA 
or http://tinyurl.com/3ad4d6
http://www.iht.com/articles/2007/09/16/news/soccer.php

Multics was an operating system from the 1960s, and had better security 
than a lot of operating systems today.  This article from 2002 talks 
about Multics security, and the lessons learned that are still relevant 
today.
http://www.acsac.org/2002/papers/classic-multics.pdf

A Pakistani Army officer becomes a suicide bomber.  There probably isn't 
any practicable way to prevent these sorts of attacks by trusted insiders.
http://in.rediff.com/news/2007/sep/14raman.htm

London's 10,000 security cameras don't reduce crime:
http://www.thisislondon.co.uk/news/article-23412867-details/Tens+of+thousands+of+CCTV+cameras%2C+yet+80%25+of+crime+unsolved/article.do 
or http://tinyurl.com/286pab
This is a follow-up to a 2005 article:
http://www.thisislondon.co.uk/news/article-16856213-details/CCTV+'does+not+stop+crime'/article.do 
or http://tinyurl.com/2tfjyf

This article is a detailed write-up of the actual investigation that led 
to the recent terrorism arrests Germany. While it seems that intercepted 
e-mails were instrumental at several points during the investigation, 
the article doesn't explain whether the intercepts were the result of 
some of the wholesale eavesdropping programs or specifically obtained 
for this case.
http://www.spiegel.de/international/germany/0,1518,504837,00.html

Another "terrorism arrest" based on fear and overreaction.  A 
19-year-old named Star Simpson went to the Boston airport with an 
electronic badge and was arrested on terrorism charges:
http://www.guardian.co.uk/worldlatest/story/0,,-6938913,00.html
http://afp.google.com/article/ALeqM5i_pDxEAYSiWgBNlLs8ALAyGID7Lw
http://www.abcnews.go.com/US/wireStory?id=3634458
http://ap.google.com/article/ALeqM5g2-8Em1L5oDKpru3KXghmCB32tCw
http://www.boston.com/news/globe/city_region/breaking_news/2007/09/mit_student_arr.html?p1=MEWell_Pos3 
or http://tinyurl.com/2bcka7
http://wbztv.com/topstories/local_story_264104114.html
http://wbztv.com/topstories/local_story_264172648.html
Really good information on the incident here:
http://www.jerrypournelle.com/mail/mail485.html#Shepherd
Best photo of the device:
http://machinist.salon.com/blog/2007/09/21/star_simpson/

Mysterious refrigerators appear and disappear in Toronto.  Imagine that 
happening in Boston.
http://www.thestar.com/News/GTA/article/259100
http://www.newswire.ca/en/releases/archive/September2007/21/c3698.html

Homeland security blanket:
http://badbanana.typepad.com/weblog/2007/09/homeland-securi.html

Weird story of psychoecology and the DHS:
http://www.wired.com/politics/security/news/2007/09/mind_reading

Idiotic cryptography reporting:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/12/cndsei212.xml 
or http://tinyurl.com/ysg2a5
Of what seems to be a good product:
http://www.schneier.com/blog/archives/2007/09/idiotic_cryptog_1.html

It's easy to eavesdrop on a copper cable; fiber optic cable is much 
harder.  Here's how to eavesdrop on a fiber optic cable. Total hardware 
cost: less than $1,000.
http://blogs.techrepublic.com.com/security/?p=222&tag=nl.e036

Chlorine and cholera in Iraq.  Basically, we're interdicting chlorine in 
Iraq, because of attacks against chlorine tankers.  As a result, cholera 
is on the rise.
http://www.ericumansky.com/2007/09/chlorine-and-ch.html
http://thinkprogress.org/2007/09/22/cholera-iraq/
http://www.usatoday.com/news/world/iraq/2007-02-22-chlorine-iraq_x.htm

Reuters has an article on future security technologies.  I've already 
talked about automatic license-plate-capture cameras and aerial 
surveillance (drones and satellites), but there's some new stuff.  Most 
impressive is the claim of a technology that can read fingerprints at a 
distance of five meters.
http://news.yahoo.com/s/nm/20070921/tc_nm/homeland_technology_dc_2

Security considerations in prison food.  For example, the corn dogs 
don't have sticks in them.
http://www.slatev.com/player.html?id=1182700684

An NASA paper from the 1960s that talks about using cryptanalysis 
techniques.  Well, sort of.  "NiCd Space Battery Test Data Analysis 
Project, Phase 2 Quarterly Report, 1 Jan. - 30 Apr. 1967," uses 
"cryptanalytic techniques" -- some sort of tri-gram frequency analysis, 
I think -- to ferret out hidden clues about battery failures.  It's hard 
to imagine non-NSA cryptography in the U.S. from the 1960s.  Basically, 
it was all alphabetic stuff.  Even rotor machines were highly 
classified, and absolutely nothing was being done in binary.
http://ntrs.nasa.gov/archive/nasa/casi.ntrs.nasa.gov/19670029657_1967029657.pdf 
or http://tinyurl.com/2lwun5

Neal Koblitz publishes what is, honestly, a rant about the cryptography 
field.  The interesting part to me is when he talks about the uneasy 
relationship between mathematicians and cryptographers.  Cryptographers, 
he says, toss the term "provable security" around much too often, 
publish inconsequential papers far too often, and are generally sloppy 
about their research.  I can't say I disagree with any of that. 
Cryptographers come either from mathematics or computer science.  The 
former -- like Koblitz -- are far more rigorous than the latter, but the 
latter tend to come up with much more practical systems.
http://www.ams.org/notices/200708/tx070800972p.pdf
Lots of rebuttals:
http://www.wisdom.weizmann.ac.il/~oded/X/pmc-ltr.txt
http://www.ee.technion.ac.il/~hugo/ams-letter/koblet.pdf
http://www.cs.umd.edu/~gasarch/BLOGPAPERS/koblitz.pdf
http://in-theory.blogspot.com/2007/08/swift-boating-of-modern-cryptography.html 
or http://tinyurl.com/393o73
http://in-theory.blogspot.com/2007/08/swift-boating-of-modern-cryptography.html#c123324347271040959 
or http://tinyurl.com/3488ce
http://www.sigcrap.org/?p=21

Oracle 11g password algorithm revealed.  It's based on SHA-1.
http://www.petefinnigan.com/weblog/archives/00001097.htm

The U.S. has a patchwork of deposit laws on soft drink bottles and cans. 
 Most states don't have deposits, but some states -- Michigan, for 
example -- do.  The cans are the same, so you can make ten cents by 
buying a can in one state and then returning it for the deposit in 
Michigan.  Ten people have been arrested for making more than $500,000 
doing this; they ran grocery stores in Michigan, and as such were 
semi-insiders.
http://www.clickondetroit.com/news/14214576/detail.html

This is an excellent series of blog posts by Microsoft's Larry Osterman 
about threat modeling, using the PlaySound API as an example.  Long, 
detailed, and complicated, but well worth reading.  The last post is 
particularly good.
http://blogs.msdn.com/larryosterman/archive/2007/08/30/threat-modeling-once-again.aspx 
or http://tinyurl.com/3648gc
http://blogs.msdn.com/larryosterman/archive/2007/08/31/threat-modeling-again-drawing-the-diagram.aspx 
or http://tinyurl.com/2wvxb5
http://blogs.msdn.com/larryosterman/archive/2007/09/04/threat-modeling-again-stride.aspx 
or http://tinyurl.com/2jrqmh
http://blogs.msdn.com/larryosterman/archive/2007/09/05/threat-modeling-again-stride-mitigations.aspx 
or http://tinyurl.com/3dc52e
http://blogs.msdn.com/larryosterman/archive/2007/09/07/threat-modeling-again-what-does-stride-have-to-do-with-threat-modeling.aspx 
or http://tinyurl.com/2k9d4y
http://blogs.msdn.com/larryosterman/archive/2007/09/10/threat-modeling-again-stride-per-element.aspx 
or http://tinyurl.com/33sg3s
http://blogs.msdn.com/larryosterman/archive/2007/09/11/threat-modeling-again-threat-modeling-playsound.aspx 
or http://tinyurl.com/34olwt
http://blogs.msdn.com/larryosterman/archive/2007/09/13/threat-modeling-again-analyzing-the-threats-to-playsound.aspx 
or http://tinyurl.com/3xpcy8
http://blogs.msdn.com/larryosterman/archive/2007/09/14/threat-modeling-again-pulling-the-threat-model-together.aspx 
or http://tinyurl.com/3ylhu9
http://blogs.msdn.com/larryosterman/archive/2007/09/17/threat-modeling-again-presenting-the-playsound-threat-model.aspx 
or http://tinyurl.com/2pqp3w
http://blogs.msdn.com/larryosterman/archive/2007/09/18/threat-modeling-again-threat-modeling-in-practice.aspx 
or http://tinyurl.com/32slsv
http://blogs.msdn.com/larryosterman/archive/2007/09/19/threat-modeling-again-threat-modeling-and-the-firefoxurl-issue.aspx 
or http://tinyurl.com/3acmbn
http://blogs.msdn.com/larryosterman/archive/2007/09/21/threat-modeling-again-threat-modeling-rules-of-thumb.aspx 
or http://tinyurl.com/2mr9d8

Remember the TJX hack from May 2007?   Seems that the credit card 
information was stolen by eavesdropping on wireless traffic at two 
Marshalls stores in Miami.  More details from the Canadian privacy 
commissioner:
http://www.boston.com/business/technology/articles/2007/09/25/wireless_systems_faulted_in_tjx_theft/ 
or http://tinyurl.com/2wz82j

Great article from "The Economist" on data collection, privacy, 
surveillance, and the future.
http://economist.com/world/international/displaystory.cfm?story_id=9867324 
or http://tinyurl.com/2tvacd

Really interesting series about improvised explosive devices (IEDs) in 
Iraq, specifically about the arms race between the U.S. military and 
jihadi IED makers.  Sometimes more technology isn't always an effective 
security solution.
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/29/AR2007092900750.html 
or http://tinyurl.com/3ak7ur
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/29/AR2007092900751.html 
or http://tinyurl.com/ypl3gv
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/30/AR2007093001675.html 
or http://tinyurl.com/yp9phk
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/01/AR2007100101760.html 
or http://tinyurl.com/2398jo
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/02/AR2007100202366.html 
or http://tinyurl.com/2twbxn

Unisys was hired by the U.S. Department of Homeland Security to manage 
and monitor the department's network security.  After data breaches were 
discovered, DHS blamed Unisys -- and I figured that everyone would be in 
serious CYA mode and that we'd never know what really happened.  But it 
seems there was a cover-up at Unisys, and that's a big deal.
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/23/AR2007092301471_pf.html 
or http://tinyurl.com/yruoa2

Latest terrorist false alarm: a pot of chili peppers:
http://www.guardian.co.uk/uk_news/story/0,,2182525,00.html
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/03/AR2007100300179.html 
or http://tinyurl.com/26ekbc
Rare display of common sense:  "The police spokesman said no arrests 
were made in the case.  'As far as I'm aware it's not a criminal offense 
to cook very strong chili,' he said."
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20071003/spicy_chili_071003/20071003?hub=Health 
or http://tinyurl.com/2waykw
The BBC has a recipe, in case you need to create your own chemical 
weapon scare.
http://news.bbc.co.uk/2/hi/uk_news/england/london/7025782.stm

A high school bans backpacks as a security measure.  This also includes 
purses, which inconveniences girls who need to carry menstrual supplies. 
So now, girls who are carrying purses get asked by police: "Are you on 
your period?"  The predictable uproar follows.
http://www.recordonline.com/apps/pbcs.dll/article?AID=/20070928/NEWS/709280342 
or http://tinyurl.com/yp9j83
http://pixelfish.livejournal.com/676250.html?nc=1
Maybe they should try transparent backpacks or bulletproof backpacks. 
(If only someone would invent a transparent bulletproof backpack.  Then 
our children would finally be safe!)
http://www.schneier.com/blog/archives/2007/07/seethrough_back.html
http://www.schneier.com/blog/archives/2007/08/bulletproof_bac.html

Government employee uses DHS database to track ex-girlfriend.
http://www.techdirt.com/articles/20070924/035849.shtml
What I want to know is how he got caught.  It can be very hard to catch 
insiders like this; good audit systems are essential, but often 
overlooked in the design process.

You can no longer buy a police uniform in California unless you can 
prove you're a policeman:
http://www.sacbee.com/capolitics/story/401565.html
I've written a lot about the problem of authenticating uniforms.  This 
isn't going to solve that problem.  But it's probably a good idea all 
the same.
http://www.schneier.com/blog/archives/2006/05/people_trusting.html
http://www.schneier.com/blog/archives/2006/10/new_hardertocou_1.html
http://www.schneier.com/blog/archives/2006/01/forged_credenti.html
http://www.schneier.com/blog/archives/2005/08/actors_playing.html
http://www.schneier.com/blog/archives/2006/05/thief_disguises.html

NSA's public relations campaign targets reporters:
http://www.nysun.com/article/63465

Randomness in airport security.  Seems like a good idea to me.
http://www.msnbc.msn.com/id/21035785/site/newsweek/page/0

A 200-meter tunnel was discovered in a Sri Lankan prison, complete with 
electricity and light bulbs.  How did they get rid of the dirt?  "We 
also suspect that they would have daubed their bodies with soil and had 
later washed it away to prevent detection of their clandestine project." 
 I don't see that method being able to dispose of 200 meters worth of 
dirt over the course of a year, even assuming a small tunnel.
http://lankasun.com:8000/index.php?option=com_content&task=view&id=1468&Itemid=26 
or http://tinyurl.com/33numx

Hacking security cameras by redirecting the video output to remote 
monitoring stations:
http://www.wired.com/politics/security/news/2007/10/camera_hack

Weird terrorist threat story from the Raleigh Airport:
http://www.schneier.com/blog/archives/2007/10/weird_terrorist.html

Methanol fuel cells are now allowed on airplanes.  This paragraph sums 
up the inconsistency nicely:  "So now, innocuous gels/liquids/shampoos 
are deemed too hazardous to bring inside the airplane cabin, but a known 
volatile liquid (however safe it may be) is required to be stored inside 
your carryon baggage? I'm not criticizing the technology here, but I 
have a feeling that that this DOT logic is going to be questioned 
repeatedly by frazzled flyers."
http://www.gearlog.com/2007/09/methanol_fuel_cells_cleared_fo.php

The Burmese government is seizing UN hard drives, looking for 
information to identify dissidents.  Another reason law enforcement's 
demands that e-mails be traceable is a bad idea.
http://timesonline.co.uk/tol/news/world/asia/article2609683.ece

Meanwhile, Mesa Airlines destroys evidence in a court case, and then 
blames the data loss on pornography:
http://www.bizjournals.com/pacific/stories/2007/09/24/daily33.html
http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=2007709260410 
or http://tinyurl.com/34k3zy

This $166 cell phone jammer is the size of a cell phone, has a 5-10 
meter range, and blocks GSM 850, 900, 1800, and 1900 MHz.
http://gadget.brando.com.hk/prod_detail.php?prod_id=00493
Here's an even cheaper model. I've been told that Deal Extreme ships the 
unit with a label that says it's a LED flashlight -- with a value of HKD 
45 -- so it will just slip through customs.
http://www.dealextreme.com/details.dx/sku.4355
I want one.  Pity they're illegal to use in the U.S.:
http://electronics.howstuffworks.com/cell-phone-jammer5.htm

Directed acyclic graphs for analyzing crypto algorithms:
http://cr.yp.to/cipherdag/cipherdag-20070630.pdf

I flew through Orlando last week, and saw an automatic shoe-scanner in 
the lane for Clear passengers.  Poking around on the TSA website, I 
found this undated page.  It seems the scanners didn't pass the TSA 
tests, and will be discontinued.
http://www.tsa.gov/press/happenings/ge_koisk.shtm
Clear:
http://www.schneier.com/blog/archives/2007/01/clear_registere.html

The police will be able to remotely stop cars with the OnStar navigation 
system:
http://news.yahoo.com/s/ap/stop_thief;_ylt=AlNjXOI5dx9LXeysKSZpRdqs0NUE 
or http://tinyurl.com/345h3h
I'm not sure this is a good idea.  This is a tough trade-off. Giving the 
good guys the ability to disable a car, as long as it can be done 
safely, is a good idea. But giving the bad guys the same ability is a 
really bad idea. Can we do the former without also doing the latter?

Latest idiotic movie-plot threat: poisoned gumball machines.  Terrorists 
might target our children!
http://www.newsday.com/news/local/newyork/am-gumball1011,0,7667810.story 
or http://tinyurl.com/2reze6

Master forger sentenced in the UK:
http://www.timesonline.co.uk/tol/news/uk/crime/article2578281.ece

Funny SQL injection attack cartoon:
http://xkcd.com/327/

I've seen several articles about this behavioral profiling research.  I 
am generally in favor of funding all sorts of research, no matter how 
outlandish -- you never know when you'll discover something really good 
-- and I am generally in favor of this sort of behavioral assessment 
profiling.  But I wish reporters would approach these topics with 
something resembling skepticism.  The false-positive rate matters far 
more than the false-negative rate, and I doubt something like this will 
be ready for fielding any time soon.
http://www.sciencedaily.com/releases/2007/10/071005185129.htm
http://in.rediff.com/news/2007/oct/08terror.htm
http://www.eurekalert.org/pub_releases/2007-10/uab-twh100507.php
http://www.educatedguesswork.org/movabletype/archives/2007/10/automatic_terro.html

The Palisades Medical Center has suspended 27 people for looking at 
George Clooney's medical data. This is great news, and I wish places 
would take the same kind of action when the personal data of 
non-celebrities is exposed.
http://www.cnn.com/2007/SHOWBIZ/10/10/clooney.records/index.html

Perhaps merchants should not store credit-card data: that way it can't 
be lost or stolen:
http://www.securityfocus.com/news/11491


** *** ***** ******* *********** *************

     Anonymity and the Tor Network



As the name implies, Alcoholics Anonymous meetings are anonymous. You 
don't have to sign anything, show ID or even reveal your real name. But 
the meetings are not private. Anyone is free to attend. And anyone is 
free to recognize you: by your face, by your voice, by the stories you 
tell. Anonymity is not the same as privacy.

That's obvious and uninteresting, but many of us seem to forget it when 
we're on a computer.  We think "it's secure," and forget that "secure" 
can mean many different things.

Tor is a free tool that allows people to use the Internet anonymously. 
Basically, by joining Tor you join a network of computers around the 
world that pass Internet traffic randomly amongst each other before 
sending it out to wherever it is going.  Imagine a tight huddle of 
people passing letters around. Once in a while a letter leaves the 
huddle, sent off to some destination. If you can't see what's going on 
inside the huddle, you can't tell who sent what letter based on watching 
letters leave the huddle.

I've left out a lot of details, but that's basically how Tor works. It's 
called "onion routing," and it was first developed at the Naval Research 
Laboratory. The communications between Tor nodes are encrypted in a 
layered protocol -- hence the onion analogy -- but the traffic that 
leaves the Tor network is in the clear.  It has to be.

If you want your Tor traffic to be private, you need to encrypt it. If 
you want it to be authenticated, you need to sign it as well. The Tor 
website even says:  "Yes, the guy running the exit node can read the 
bytes that come in and out there. Tor anonymizes the origin of your 
traffic, and it makes sure to encrypt everything inside the Tor network, 
but it does not magically encrypt all traffic throughout the Internet."

Tor anonymizes, nothing more.

Dan Egerstad is a Swedish security researcher; he ran five Tor nodes. 
Last month, he posted a list of 100 e-mail credentials -- server IP 
addresses, e-mail accounts and the corresponding passwords -- for 
embassies and government ministries around the globe, all obtained by 
sniffing exit traffic for usernames and passwords of e-mail servers.

The list contains mostly third-world embassies: Kazakhstan, Uzbekistan, 
Tajikistan, India, Iran, Mongolia -- but there's a Japanese embassy on 
the list, as well as the UK Visa Application Center in Nepal, the 
Russian Embassy in Sweden, the Office of the Dalai Lama and several Hong 
Kong Human Rights Groups. And this is just the tip of the iceberg; 
Egerstad sniffed more than 1,000 corporate accounts this way, too. Scary 
stuff, indeed.

Presumably, most of these organizations are using Tor to hide their 
network traffic from their host countries' spies. But because anyone can 
join the Tor network, Tor users necessarily pass their traffic to 
organizations they might not trust: various intelligence agencies, 
hacker groups, criminal organizations and so on.

It's simply inconceivable that Egerstad is the first person to do this 
sort of eavesdropping; Len Sassaman published a paper on this attack 
earlier this year. The price you pay for anonymity is exposing your 
traffic to shady people.

We don't really know whether the Tor users were the accounts' legitimate 
owners, or if they were hackers who had broken into the accounts by 
other means and were now using Tor to avoid being caught. But certainly 
most of these users didn't realize that anonymity doesn't mean privacy. 
The fact that most of the accounts listed by Egerstad were from small 
nations is no surprise; that's where you'd expect weaker security practices.

True anonymity is hard. Just as you could be recognized at an AA 
meeting, you can be recognized on the Internet as well. There's a lot of 
research on breaking anonymity in general -- and Tor specifically -- but 
sometimes it doesn't even take much. Last year, AOL made 20,000 
anonymous search queries public as a research tool. It wasn't very hard 
to identify people from the data.

A research project called Dark Web, funded by the National Science 
Foundation, even tried to identify anonymous writers by their style: 
"One of the tools developed by Dark Web is a technique called 
Writeprint, which automatically extracts thousands of multilingual, 
structural, and semantic features to determine who is creating 
'anonymous' content online. Writeprint can look at a posting on an 
online bulletin board, for example, and compare it with writings found 
elsewhere on the Internet. By analyzing these certain features, it can 
determine with more than 95 percent accuracy if the author has produced 
other content in the past."

And if your name or other identifying information is in just one of 
those writings, you can be identified.

Like all security tools, Tor is used by both good guys and bad guys. And 
perversely, the very fact that something is on the Tor network means 
that someone -- for some reason -- wants to hide the fact he's doing it.

As long as Tor is a magnet for "interesting" traffic, Tor will also be a 
magnet for those who want to eavesdrop on that traffic -- especially 
because more than 90 percent of Tor users don't encrypt.

This essay previously appeared on Wired.com.
http://www.wired.com/politics/security/commentary/securitymatters/2007/09/security_matters_0920 
or http://tinyurl.com/2ux6ae

Tor:
https://tor.eff.org/
http://tor.eff.org/overview.html.en
http://wiki.noreply.org/noreply/TheOnionRouter/TorFAQ#ExitEavesdroppers 
or http://tinyurl.com/2ozo2b

Onion routing:
http://www.onion-router.net/

Egerstad's work:
http://www.derangedsecurity.com/deranged-gives-you-100-passwords-to-governments-embassies/ 
or http://tinyurl.com/28ya72
http://www.heise-security.co.uk/news/95778
http://www.securityfocus.com/news/11486
http://www.derangedsecurity.com/time-to-reveal%e2%80%a6/
http://www.wired.com/politics/security/news/2007/09/embassy_hacks

Sassaman's paper:
http://www.cosic.esat.kuleuven.be/publications/article-896.pdf

Anonymity research:
http://www.cs.utexas.edu/~shmat/abstracts.html#netflix
http://www.nd.edu/~netsci/TALKS/Kleinberg.pdf
http://citeseer.ist.psu.edu/novak04antialiasing.html
http://www.cl.cam.ac.uk/~sjm217/papers/oakland05torta.pdf
http://www.nytimes.com/2006/08/09/technology/09aol.html

Dark Web:
http://www.nsf.gov/news/news_summ.jsp?cntn_id=110040

Tor users:
http://advocacy.globalvoicesonline.org/wp-content/plugins/wp-downloadMonitor/user_uploads/Anonymous_Blogging.pdf 
or http://tinyurl.com/2szyxw
http://blog.wired.com/27bstroke6/2007/07/cyber-jihadists.html

Tor server operator shuts down after police raid:
http://www.heise.de/english/newsticker/news/96107

Tools for identifying the source of Tor data:
http://www.securityfocus.com/news/11447


** *** ***** ******* *********** *************

     Remote-Controlled Toys and the TSA



Remote-controlled toys are getting more scrutiny at airports, because 
they might be used to trigger bombs.

Okay, let's think this through.  The one place where you *don't* need a 
modified remote-controlled toy is in the passenger cabin, because you 
have your hands available to push any required buttons.  But a 
remote-controlled toy in checked luggage, now that's a clever idea.  I 
put my modified remote-controlled toy bomb in my checked suitcase, and 
use the controller to detonate it once I'm in the air.

So maybe we want the remote-controlled toy in carry-on luggage, where 
there's a greater chance of detecting it (at the security checkpoint). 
And maybe we want to require the remote controller to be in checked luggage.

Or maybe....

In any case, it's a great movie plot.

http://www.cnn.com/2007/TRAVEL/10/01/tsa.toys/index.html
http://www.nytimes.com/2007/10/02/us/nationalspecial3/02tsa.html
http://news.yahoo.com/s/ap/20071001/ap_on_go_ot/airports_toy_screening

DHS press release
http://www.tsa.gov/press/happenings/remote_control_vehicles.shtm


** *** ***** ******* *********** *************

     Schneier/BT Counterpane News



Schneier is delivering the keynote at InfoSecurity Mexico, in Mexico 
City, on Oct 15:
http://ws2.tecnofin.com.mx/p_320.asp?pro=3&sec=2&sub=0

Schneier is speaking at the University of Rochester, in Rochester NY, on 
Oct 20:
http://www.rochester.edu/alumni/melioraweekend/

Schneier is delivering the keynote at RSA Europe, in London, on Oct 23:
http://www.rsaconference.com/2007/europe/

Schneier is speaking at the Educause 2007 Annual Conference, in Seattle, 
on Oct 26:
http://www.educause.edu/content.asp?SECTION_ID=223&bhcp=1

Schneier is delivering the keynote at the ICE Technology Conference, in 
Alberta, on Nov 5:
http://www.iceconference.com/

Schneier is speaking at Information Security Decisions, in Chicago, on 
Nov 6:
http://infosecurityconference.techtarget.com/

A video of Schneier's talk at Defcon 15:
http://video.google.com/videoplay?docid=-1672905904171732325


** *** ***** ******* *********** *************

     Staged Attack Causes Generator to Self-Destruct



It made a pretty big news splash last month.  It was a video, produced 
for the DHS by the Idaho National Laboratory, showing an industrial 
turbine spinning out of control and eventually destructing, supposedly 
caused by a simulated hacker attack.

I haven't written much about SCADA security, except to say that I think 
the risk is overblown today but is getting more serious all the time -- 
and we need to deal with the security before it's too late.  I didn't 
know quite what to make of the Idaho National Laboratory video; it 
seemed like hype, but I couldn't find any details.  (The CNN headline, 
"Mouse click could plunge city into darkness, experts say," was 
definitely hype.)

Then I received this anonymous e-mail:

"I was one of the industry technical folks the DHS consulted in 
developing the 'immediate and required' mitigation strategies for this 
problem.

"They talked to several industry groups (mostly management not tech 
folks): electric, refining, chemical, and water. They ignored most of 
what we said but attached our names to the technical parts of the report 
to make it look credible.  We softened or eliminated quite a few 
sections that may have had relevance 20 years ago, such as war dialing 
attacks against modems.

"The end product is a work order document from DHS which requires such 
things as background checks on people who have access to modems and 
logging their visits to sites with datacom equipment or control systems.

"By the way -- they were unable to hurt the generator you see in the 
video but did destroy the shaft that drives it and the power unit.  They 
triggered the event from 30 miles away!  Then they extrapolated the 
theory that a malfunctioning generator can destroy not only generators 
at the power company but the power glitches on the grid would destroy 
motors many miles away on the electric grid that pump water or gasoline 
(through pipelines).

"They kept everything very secret (all emails and reports encrypted, 
high security meetings in DC) until they produced a video and press 
release for CNN.  There was huge concern by DHS that this vulnerability 
would become known to the bad guys -- yet now they release it to the 
world for their own career reasons.  Beyond shameful.

"Oh, and they did use a contractor for all the heavy lifting that went 
into writing/revising the required mitigations document.  Could not even 
produce this work product on their own.

"By the way, the vulnerability they hypothesize is completely bogus but 
I won't say more about the details.  Gitmo is still too hot for me this 
time of year."

http://www.cnn.com/2007/US/09/27/power.at.risk/index.html
http://apnews.myway.com/article/20070927/D8RTQDL80.html
http://it.slashdot.org/it/07/09/27/1229230.shtml

SCADA security:
http://www.schneier.com/blog/archives/2007/05/scada_security.html


** *** ***** ******* *********** *************

     Comments from Readers



There are hundreds of comments -- many of them interesting -- on these 
topics on my blog. Search for the story you want to comment on, and join 
in.

http://www.schneier.com/blog


** *** ***** ******* *********** *************

CRYPTO-GRAM is a free monthly newsletter providing summaries, analyses, 
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Please feel free to forward CRYPTO-GRAM, in whole or in part, to 
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CRYPTO-GRAM is written by Bruce Schneier.  Schneier is the author of the 
best sellers "Beyond Fear," "Secrets and Lies," and "Applied 
Cryptography," and an inventor of the Blowfish and Twofish algorithms. 
He is founder and CTO of BT Counterpane, and is a member of the Board of 
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<http://www.schneier.com>.

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- the inventor of outsourced security monitoring and the foremost 
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Crypto-Gram is a personal newsletter.  Opinions expressed are not 
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Copyright (c) 2007 by Bruce Schneier.

----- End forwarded message -----
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______________________________________________________________
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