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Subject:

[CSL]: CRYPTO-GRAM, May 15, 2006

From:

J Armitage <[log in to unmask]>

Reply-To:

Interdisciplinary academic study of Cyber Society <[log in to unmask]>

Date:

Mon, 15 May 2006 13:38:59 +0100

Content-Type:

text/plain

Parts/Attachments:

Parts/Attachments

text/plain (1206 lines)

From: Bruce Schneier [mailto:[log in to unmask]] 
Sent: 15 May 2006 08:58
To: [log in to unmask]
Subject: CRYPTO-GRAM, May 15, 2006

                  CRYPTO-GRAM

                 May 15, 2006

               by Bruce Schneier
                Founder and CTO
       Counterpane Internet Security, Inc.
            [log in to unmask]
             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-0604.html>.  These same essays 
appear in the "Schneier on Security" blog: 
<http://www.schneier.com/blog>.  An RSS feed is available.


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

In this issue:
      Movie Plot Threat Contest: Status Report
      Who Owns Your Computer?
      Crypto-Gram Reprints
      Identity-Theft Disclosure Laws
      When "Off" Doesn't Mean Off
      News
      RFID Cards and Man-in-the-Middle Attacks
      Software Failure Causes Airport Evacuation
      Counterpane News
      Microsoft's BitLocker
      The Security Risk of Special Cases
      Comments from Readers


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

      Movie Plot Threat Contest: Status Report



On the first of last month, I announced my (possibly First) Movie-Plot 
Threat Contest.

"Entrants are invited to submit the most unlikely, yet still plausible, 
terrorist attack scenarios they can come up with.

"Your goal: cause terror. Make the American people notice. Inflict 
lasting damage on the U.S. economy. Change the political landscape, or 
the culture. The more grandiose the goal, the better.

"Assume an attacker profile on the order of 9/11: 20 to 30 unskilled 
people, and about $500,000 with which to buy skills, equipment, etc."

As of the end of the month, the blog post has 782 comments.  I expected 
a lot of submissions, but the response has blown me away.

Looking over the different terrorist plots, they seem to fall into 
several broad categories.  The first category consists of attacks 
against our infrastructure: the food supply, the water supply, the 
power infrastructure, the telephone system, etc.  The idea is to 
cripple the country by targeting one of the basic systems that make it 
work.

The second category consists of big-ticket plots.  Either they have 
very public targets -- blowing up the Super Bowl, the Oscars, etc. -- 
or they have high-tech components: nuclear waste, anthrax, chlorine 
gas, a full oil tanker, etc.  And they are often complex and hard to 
pull off.  This is the 9/11 idea: a single huge event that affects the 
entire nation.

The third category consists of low-tech attacks that go on and 
on.  Several people imagined a version of the DC sniper scenario, but 
with multiple teams.  The teams would slowly move around the country, 
perhaps each team starting up after the previous one was captured or 
killed.  Other people suggested a variant of this with small bombs in 
random public locations around the country.

(There's a fourth category: actual movie plots.  Some entries are 
comical, unrealistic, have science fiction premises, etc.  I'm not even 
considering those.)

The better ideas tap directly into public fears.  In my book, Beyond 
Fear, I discussed five different tendencies people have to exaggerate 
risks: to believe that something is more risky than it actually is.

1. People exaggerate spectacular but rare risks and downplay common risks.

2. People have trouble estimating risks for anything not exactly like 
their normal situation.

3. Personified risks are perceived to be greater than anonymous risks.

4. People underestimate risks they willingly take and overestimate 
risks in situations they can't control.

5. People overestimate risks that are being talked about and remain an 
object of public scrutiny.

The best plot ideas leverage one or more of those 
tendencies.  Big-ticket attacks leverage the first.  Infrastructure and 
low-tech attacks leverage the fourth.  And every attack tries to 
leverage the fifth, especially those attacks that go on and on.  I'm 
willing to bet that when I find a winner, it will be the plot that 
leverages the greatest number of those tendencies to the best possible 
advantage.

I also got a bunch of e-mails from people with ideas they thought too 
terrifying to post publicly.  Some of them wouldn't even tell them to 
me.  I also received e-mails from people accusing me of helping the 
terrorists by giving them ideas.

But if there's one thing this contest demonstrates, it's that good 
terrorist ideas are a dime a dozen.  Anyone can figure out how to cause 
terror.  The hard part is execution.

Some of the submitted plots require minimal skill and 
equipment.  Twenty guys with cars and guns -- that sort of 
thing.  Reading through them, you have to wonder why there have been no 
terrorist attacks in the U.S. since 9/11.  I don't believe the 
"flypaper theory" that the terrorists are all in Iraq instead of in the 
U.S.  And despite all the ineffectual security we've put in place since 
9/11, I'm sure we have had some successes in intelligence and 
investigation -- and have made it harder for terrorists to operate both 
in the U.S. and abroad.

But mostly, I think terrorist attacks are much harder than most of us 
think.  It's harder to find willing recruits than we think.  It's 
harder to coordinate plans.  It's harder to execute those 
plans.  Terrorism is rare, and for all we've heard about 9/11 changing 
the world, it's still rare.

The submission deadline was the end of April month, but please keep 
posting plots if you think of them.  And please read through some of 
the others and comment on them; I'm curious as to what other people 
think are the most interesting, compelling, realistic, or effective 
scenarios.

I'm reading through them, and will have a winner by the next Crypto-Gram.

Contest:
http://www.schneier.com/blog/archives/2006/04/announcing_movi.html

Flypaper theory:
http://en.wikipedia.org/wiki/Flypaper_theory_%28strategy%29

The contest made The New York Times:
http://www.nytimes.com/2006/04/23/movies/23peterson.html?ex=1303444800&e 
n=c7ccc8d756fc98e7&ei=5090&partner=rssuserland&emc=rss or 
http://tinyurl.com/qyh3b


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

      Who Owns Your Computer?



When technology serves its owners, it is liberating. When it is 
designed to serve others, over the owner's objection, it is oppressive. 
There's a battle raging on your computer right now -- one that pits you 
against worms and viruses, Trojans, spyware, automatic update features 
and digital rights management technologies. It's the battle to 
determine who owns your computer.

You own your computer, of course. You bought it. You paid for it. But 
how much control do you really have over what happens on your machine? 
Technically you might have bought the hardware and software, but you 
have less control over what it's doing behind the scenes.

Using the hacker sense of the term, your computer is "owned" by other 
people.

It used to be that only malicious hackers were trying to own your 
computers. Whether through worms, viruses, Trojans or other means, they 
would try to install some kind of remote-control program onto your 
system. Then they'd use your computers to sniff passwords, make 
fraudulent bank transactions, send spam, initiate phishing attacks and 
so on. Estimates are that somewhere between hundreds of thousands and 
millions of computers are members of remotely controlled "bot" 
networks. Owned.

Now, things are not so simple. There are all sorts of interests vying 
for control of your computer. There are media companies that want to 
control what you can do with the music and videos they sell you. There 
are companies that use software as a conduit to collect marketing 
information, deliver advertising or do whatever it is their real owners 
require. And there are software companies that are trying to make money 
by pleasing not only their customers, but other companies they ally 
themselves with. All these companies want to own your computer.

Some examples:

1. Entertainment software: In October 2005, it emerged that Sony had 
distributed a rootkit with several music CDs -- the same kind of 
software that crackers use to own people's computers. This rootkit 
secretly installed itself when the music CD was played on a computer. 
Its purpose was to prevent people from doing things with the music that 
Sony didn't approve of: It was a DRM system. If the exact same piece of 
software had been installed secretly by a hacker, this would have been 
an illegal act. But Sony believed that it had legitimate reasons for 
wanting to own its customers' machines.

2. Antivirus: You might have expected your antivirus software to detect 
Sony's rootkit. After all, that's why you bought it. But initially, the 
security programs sold by Symantec and others did not detect it, 
because Sony had asked them not to. You might have thought that the 
software you bought was working for you, but you would have been wrong.

3. Internet services: Hotmail allows you to blacklist certain e-mail 
addresses, so that mail from them automatically goes into your spam 
trap. Have you ever tried blocking all that incessant marketing e-mail 
from Microsoft? You can't.

4. Application software: Internet Explorer users might have expected 
the program to incorporate easy-to-use cookie handling and pop-up 
blockers. After all, other browsers do, and users have found them 
useful in defending against Internet annoyances. But Microsoft isn't 
just selling software to you; it sells Internet advertising as well. It 
isn't in the company's best interest to offer users features that would 
adversely affect its business partners.

5. Spyware: Spyware is nothing but someone else trying to own your 
computer. These programs eavesdrop on your behavior and report back to 
their real owners -- sometimes without your knowledge or consent -- 
about your behavior.

6. Update: Automatic update features are another way software companies 
try to own your computer. While they can be useful for improving 
security, they also require you to trust your software vendor not to 
disable your computer for nonpayment, breach of contract or other 
presumed infractions.

Adware, software-as-a-service and Google Desktop search are all 
examples of some other company trying to own your computer. And Trusted 
Computing will only make the problem worse.

There is an inherent insecurity to technologies that try to own 
people's computers: They allow individuals other than the computers' 
legitimate owners to enforce policy on those machines. These systems 
invite attackers to assume the role of the third party and turn a 
user's device against him.

Remember the Sony story: The most insecure feature in that DRM system 
was a cloaking mechanism that gave the rootkit control over whether you 
could see it executing or spot its files on your hard disk. By taking 
ownership away from you, it reduced your security.

If left to grow, these external control systems will fundamentally 
change your relationship with your computer. They will make your 
computer much less useful by letting corporations limit what you can do 
with it. They will make your computer much less reliable because you 
will no longer have control of what is running on your machine, what it 
does, and how the various software components interact. At the extreme, 
they will transform your computer into a glorified boob tube.

You can fight back against this trend by only using software that 
respects your boundaries. Boycott companies that don't honestly serve 
their customers, that don't disclose their alliances, that treat users 
like marketing assets. Use open-source software -- software created and 
owned by users, with no hidden agendas, no secret alliances and no 
back-room marketing deals.

Just because computers were a liberating force in the past doesn't mean 
they will be in the future. There is enormous political and economic 
power behind the idea that you shouldn't truly own your computer or 
your software, despite having paid for it.

This essay originally appeared on Wired.com.
http://www.wired.com/news/columns/1,70802-0.html

Trusted computing:
http://www.schneier.com/crypto-gram-0208.html#1


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

      Crypto-Gram Reprints



Crypto-Gram is currently in its ninth year of publication.  Back issues 
cover a variety of security-related topics, and can all be found on 
<http://www.schneier.com/crypto-gram-back.html>.  These are a selection 
of articles that appeared in this calendar month in other years.

REAL-ID
http://www.schneier.com/crypto-gram-0505.html#2

Should Terrorism be Reported in the News?
http://www.schneier.com/crypto-gram-0505.html#3

Combating Spam
http://www.schneier.com/crypto-gram-0505.html#15

Warrants as a Security Countermeasure
http://www.schneier.com/crypto-gram-0405.html#1

National Security Consumers
http://www.schneier.com/crypto-gram-0405.html#9

Encryption and Wiretapping
http://www.schneier.com/crypto-gram-0305.html#1

Unique E-Mail Addresses and Spam
http://www.schneier.com/crypto-gram-0305.html#6

Secrecy, Security, and Obscurity
http://www.schneier.com./crypto-gram-0205.html#1

Fun with Fingerprint Readers
http://www.schneier.com./crypto-gram-0205.html#5

What Military History Can Teach Network Security, Part 2
http://www.schneier.com/crypto-gram-0105.html#1

The Futility of Digital Copy Protection
http://www.schneier.com/crypto-gram-0105.html#3

Security Standards
http://www.schneier.com/crypto-gram-0105.html#7

Safe Personal Computing
http://www.schneier.com/crypto-gram-0105.html#8

Computer Security: Will we Ever Learn?
http://www.schneier.com/crypto-gram-0005.html#1

Trusted Client Software
http://www.schneier.com/crypto-gram-0005.html#6

The IL*VEYOU Virus (Title bowdlerized to foil automatic e-mail filters.)
http://www.schneier.com/crypto-gram-0005.html#ilyvirus

The Internationalization of Cryptography
http://www.schneier.com/crypto-gram-9905.html#international

The British discovery of public-key cryptography
http://www.schneier.com/crypto-gram-9805.html#nonsecret


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

      Identity-Theft Disclosure Laws



California was the first state to pass a law requiring companies that 
keep personal data to disclose when that data is lost or stolen. Since 
then, many states have followed suit. Now Congress is debating federal 
legislation that would do the same thing nationwide.

Except that it won't do the same thing: The federal bill has become so 
watered down that it won't be very effective. I would still be in favor 
of it -- a poor federal law is better than none -- if it didn't also 
pre-empt more-effective state laws, which makes it a net loss.

Identity theft is the fastest-growing area of crime. It's badly named 
-- your identity is the one thing that cannot be stolen -- and is 
better thought of as fraud by impersonation. A criminal collects enough 
personal information about you to be able to impersonate you to banks, 
credit card companies, brokerage houses, etc. Posing as you, he steals 
your money, or takes a destructive joyride on your good credit.

Many companies keep large databases of personal data that is useful to 
these fraudsters. But because the companies don't shoulder the cost of 
the fraud, they're not economically motivated to secure those databases 
very well. In fact, if your personal data is stolen from their 
databases, they would much rather not even tell you: Why deal with the 
bad publicity?

Disclosure laws force companies to make these security breaches public. 
This is a good idea for three reasons. One, it is good security 
practice to notify potential identity theft victims that their personal 
information has been lost or stolen. Two, statistics on actual data 
thefts are valuable for research purposes. And three, the potential 
cost of the notification and the associated bad publicity naturally 
leads companies to spend more money on protecting personal information 
-- or to refrain from collecting it in the first place.

Think of it as public shaming. Companies will spend money to avoid the 
PR costs of this shaming, and security will improve. In economic terms, 
the law reduces the externalities and forces companies to deal with the 
true costs of these data breaches.

This public shaming needs the cooperation of the press and, 
unfortunately, there's an attenuation effect going on. The first major 
breach after California passed its disclosure law -- SB1386 -- was in 
February 2005, when ChoicePoint sold personal data on 145,000 people to 
criminals. The event was all over the news, and ChoicePoint was shamed 
into improving its security.

Then LexisNexis exposed personal data on 300,000 individuals. And 
Citigroup lost data on 3.9 million individuals. SB1386 worked; the only 
reason we knew about these security breaches was because of the law. 
But the breaches came in increasing numbers, and in larger quantities. 
After a while, it was no longer news. And when the press stopped 
reporting, the "cost" of these breaches to the companies declined.

Today, the only real cost that remains is the cost of notifying 
customers and issuing replacement cards. It costs banks about $10 to 
issue a new card, and that's money they would much rather not have to 
spend. This is the agenda they brought to the federal bill, cleverly 
titled the Data Accountability and Trust Act, or DATA.

Lobbyists attacked the legislation in two ways. First, they went after 
the definition of personal information. Only the exposure of very 
specific information requires disclosure. For example, the theft of a 
database that contained people's first *initial*, middle name, last 
name, Social Security number, bank account number, address, phone 
number, date of birth, mother's maiden name and password would not have 
to be disclosed, because "personal information" is defined as "an 
individual's first and last name in combination with ..." certain other 
personal data.

Second, lobbyists went after the definition of "breach of security." 
The latest version of the bill reads: "The term 'breach of security' 
means the unauthorized acquisition of data in electronic form 
containing personal information that establishes a reasonable basis to 
conclude that there is a significant risk of identity theft to the 
individuals to whom the personal information relates."

Get that? If a company loses a backup tape containing millions of 
individuals' personal information, it doesn't have to disclose if it 
believes there is no "significant risk of identity theft." If it leaves 
a database exposed, and has absolutely no audit logs of who accessed 
that database, it could claim it has no "reasonable basis" to conclude 
there is a significant risk. Actually, the company could point to a ID 
Analytics study that showed the probability of fraud to someone who has 
been the victim of this kind of data loss to be less than 1 in 1,000 -- 
which is not a "significant risk" -- and then not disclose the data 
breach at all.

Even worse, this federal law pre-empts the 23 existing state laws -- 
and others being considered -- many of which contain stronger 
individual protections. So while DATA might look like a law protecting 
consumers nationwide, it is actually a law protecting companies with 
large databases *from* state laws protecting consumers.

So in its current form, this legislation would make things worse, not 
better.

Of course, things are in flux. They're *always* in flux. The language 
of the bill has changed regularly over the past year, as various 
committees got their hands on it. There's also another bill, HR3997, 
which is even worse. And even if something passes, it has to be 
reconciled with whatever the Senate passes, and then voted on again. So 
no one really knows what the final language will look like.

But the devil is in the details, and the only way to protect us from 
lobbyists tinkering with the details is to ensure that the federal bill 
does not pre-empt any state bills: that the federal law is a minimum, 
but that states can require more.

That said, disclosure is important, but it's not going to solve 
identity theft. As I've written previously, the reason theft of 
personal information is so common is that the data is so valuable. The 
way to mitigate the risk of fraud due to impersonation is not to make 
personal information harder to steal, it's to make it harder to use.

Disclosure laws only deal with the economic externality of data brokers 
protecting your personal information. What we really need are laws 
prohibiting credit card companies and other financial institutions from 
granting credit to someone using your name with only a minimum of 
authentication.

But until that happens, we can at least hope that Congress will refrain 
from passing bad bills that override good state laws -- and helping 
criminals in the process.

California's SB 1386:
http://info.sen.ca.gov/pub/01-02/bill/sen/sb_1351-1400/sb_1386_bill_2002 
0926_chaptered.html or http://tinyurl.com/dgh0

Existing state disclosure laws:
http://www.pirg.org/consumer/credit/statelaws.htm
http://www.cwalsh.org/cgi-bin/blosxom.cgi/2006/04/20#breachlaws

HR 4127 - Data Accountability and Trust Act:
http://thomas.loc.gov/cgi-bin/query/C?c109:./temp/~c109XvxF76

HR 3997:
http://thomas.loc.gov/cgi-bin/query/C?c109:./temp/~c109gnLQGA

ID Analytics study:
http://www.idanalytics.com/news_and_events/20051208.htm

My essay on identity theft:
http://www.schneier.com/blog/archives/2005/04/mitigating_iden.html

A version of this essay originally appeared on Wired.com:
http://www.wired.com/news/columns/0,70690-0.html


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

      When "Off" Doesn't Mean Off



According to the specs of the new Nintendo Wii (its new game machine), 
"Wii can communicate with the Internet even when the power is turned 
off."  Nintendo accentuates the positive: "This WiiConnect24 service 
delivers a new surprise or game update, even if users do not play with 
Wii," while ignoring the possibility that Nintendo can deactivate a 
game if it chooses to do so, or that someone else can deliver a 
different -- not so wanted -- surprise.

We all know that, but what's interesting here is that Nintendo is 
changing the meaning of the word "off."  We are all conditioned to 
believe that "off" means off, and therefore safe.  But in Nintendo's 
case, "off" really means something like "on standby."  If users expect 
the Nintendo Wii to be truly off, they need to pull the power plug -- 
assuming there isn't a battery foiling that tactic.  There seems to be 
no way to disconnect the Internet, as the Nintendo Wii is wireless only.

Maybe there is no way to turn the Nintendo Wii off.

There's a serious security problem here, made worse by a bad user 
interface.  "Off" should mean off.

http://wii.nintendo.com/hardware.html


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

      News



It's a provocative headline: "Triple DES Upgrades May Introduce New ATM 
Vulnerabilities."  Basically, at the same time ATM machine owners 
upgrading their encryption to triple-DES, they're also moving the 
communications links from dedicated lines to the Internet.  And while 
the protocol encrypts PINs, it doesn't encrypt any of the other 
information, such as card numbers and expiration dates.  So it's the 
move from dedicated lines to the Internet that's adding the 
insecurities, not the triple-DES upgrades.
http://www.paymentsnews.com/2006/04/redspin_triple_.html

Someone filed change-of-address forms with the post office to divert 
other people's mail to himself.  170 times.  "Postal Service 
spokeswoman Patricia Licata said a credit card is required for security 
reasons. 'We have systems in place to prevent this type of occurrence,' 
she said, but declined further comment on the specific case until 
officials have time to analyze what happened."  Sounds like those 
systems don't work very well.
http://www.wvec.com/news/local/stories/wvec_local_041306_mail_scam.31210 
0f4.html

A deniable file system:
http://www.schneier.com/blog/archives/2006/04/deniable_file_s.html

Great hoax video: graffiti on Air Force One:
http://www.stillfree.com/
http://abcnews.go.com/Technology/wireStory?id=1875386

The Department of Homeland Security has released a Request for Proposal 
-- that's the document asking industry if anyone can do what it wants 
-- for the Secure Border Initiative.
http://www.washingtontechnology.com/news/1_1/daily_news/28381-1.html

Stuntz and Solove Debate Privacy and Transparency
http://www.tnr.com/user/nregi.mhtml?i=20060417&s=stuntz041706
http://www.concurringopinions.com/archives/2006/04/william_stuntzs.html# 
more or http://tinyurl.com/o4jte
http://www.tnr.com/user/nregi.mhtml?i=20060417&s=stuntz041706
http://www.concurringopinions.com/archives/2006/04/stuntz_responds.html 
or http://tinyurl.com/mqrzt

Terrorist travel advisory:  "My son and I woke up Sunday morning and 
drove a rented truck to New York City to move his worldly goods into an 
apartment there. As we made it to the Holland Tunnel, after traveling 
the Tony Soprano portion of the Jersey Turnpike with a blue moon in our 
eyes, the woman in the tollbooth informed us that, since 9/11, trucks 
were not allowed in the tunnel; we'd have to use the Lincoln Tunnel, 
she said. So if you are a terrorist trying to get into New York from 
Jersey, be advised that you're going to have to use the Lincoln Tunnel."
http://www.post-gazette.com/pg/06110/683563-294.stm

The Kryptos Sculpture is located in the center of the CIA Headquarters 
in Langley, VA.  It was designed in 1990, and contains a four-part 
encrypted puzzle.  The first three parts have been solved, but now 
we've learned that the second-part solution was wrong and has been 
re-solved:
http://www.elonka.com/kryptos/CorrectedK2Announcement.html
http://www.wired.com/news/technology/0,70701-0.html
More on the sculpture:
http://en.wikipedia.org/wiki/Kryptos
http://www.elonka.com/kryptos/
Blog entry URL:
http://www.schneier.com/blog/archives/2006/04/the_kryptos_scu.html

Mafia boss secures his data with Caesar cipher.
http://dsc.discovery.com/news/briefs/20060417/mafiaboss_tec.html

Microsoft Vista's endless security warnings:
http://www.winsupersite.com/reviews/winvista_5308_05.asp
The problem with lots of warning dialog boxes is that they don't 
provide security.  Users stop reading them.  They think of them as 
annoyances, as an extra click required to get a feature to 
work.  Clicking through gets embedded into muscle memory, and when it 
actually matters the user won't even realize it.
http://www.codinghorror.com/blog/archives/000571.html
http://west-wind.com/weblog/posts/4678.aspx
These dialog boxes are not security for the user, they're CYA security 
*from* the user. When some piece of malware trashes your system, 
Microsoft can say: "You gave the program permission to do that; it's 
not our fault."  Warning dialog boxes are only effective if the user 
has the ability to make intelligent decisions about the warnings.  If 
the user cannot do that, they're just annoyances.  And they're 
annoyances that don't improve security.
http://blogs.zdnet.com/Ou/?p=209

Digital cameras have unique fingerprints:
http://www.eurekalert.org/pub_releases/2006-04/bu-bur041806.php
Interesting research, but there's one important aspect of this 
fingerprint that the article did not talk about: how easy is it to 
forge?  Can someone analyze 100 images from a given camera, and then 
doctor a pre-existing picture so that it appeared to come from that 
camera?  My guess is that it can be done relatively easily.

Kaspersky Labs reports on extortion scams using malware:
http://www.viruslist.com/en/analysis?pubid=184012401#crypto
Among other worms, the article discusses the GpCode.ac worm, which 
encrypts data using 56-bit RSA (no, that's not a typo).  The whole 
article is interesting reading.

Larry Beinhart makes an interesting case for the elimination of most 
government secrecy.
http://www.buzzflash.com/contributors/06/04/con06131.html
He has a good argument, although I think the issue is a bit more 
complicated.
http://www.schneier.com/crypto-gram-0205.html#1

"Security Myths and Passwords," by Gene Spafford:
http://www.cerias.purdue.edu/weblogs/spaf/general/post-30

There was a code in the judge's ruling on the Da Vinci Code plagiarism 
case.  It was solved way too quickly after it was discovered, because 
the judge gave out some really obvious hints.  But you can read about 
it here:
http://www.schneier.com/blog/archives/2006/04/da_vinci_code_r.html

As an aside, I am mentioned in Da Vinci Code.  No, really.  Page 199 of 
the American hardcover edition.  "Da Vinci had been a cryptography 
pioneer, Sophie knew, although he was seldom given credit.  Sophie's 
university instructors, while presenting computer encryption methods 
for securing data, praised modern cryptologists like Zimmermann and 
Schneier but failed to mention that it was Leonardo who had invented 
one of the first rudimentary forms of public key encryption centuries 
ago."  That's right.  I am a realistic background detail.
http://fishbowl.pastiche.org/2004/07/06/house_of_cards

Technology Review has an interesting article discussing some of the 
technologies used by the NSA in its warrantless wiretapping program, 
some of them from the killed Total Information Awareness (TIA) program.
http://www.technologyreview.com/read_article.aspx?ch=infotech&sc=&id=167 
41&pg=1 or http://tinyurl.com/ruafx

John Dvorak argues that Internet Explorer was Microsoft's greatest 
mistake ever.  Certainly its decision to tightly integrate IE with the 
operating system -- done as an anti-competitive maneuver against 
Netscape during the Browser Wars -- has resulted in some enormous 
security problems that Microsoft has still not recovered from.  Not 
even with the introduction of IE7.
http://www.pcmag.com/print_article2/0,1217,a=176507,00.asp

Security in comics: attackers are adaptable:
http://www.comics.com/comics/hedge/archive/hedge-20060423.html

We've talked about counterfeit money, counterfeit concert tickets, 
counterfeit police credentials, and counterfeit police 
departments.  Here's a story about a counterfeit company.
http://www.iht.com/articles/2006/04/27/business/nec.php

Verizon has announced that it has activated the Access Overload Control 
(ACCOLC) system, allowing some cell phones to have priority access to 
the network, even when the network is overloaded.  Sounds like you're 
going to have to enter some sort of code into your handset.  I wonder 
how long before someone hacks that system.
http://www.pcsintel.com/content/view/1293/0/

An arson squad blows up a news rack, mistaking a promotion for Tom 
Cruise's new movie for a bomb.  Really; you can't make this kind of 
stuff up.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con 
tent_id=1002425411 or http://tinyurl.com/n3286

Assault weapon that passes through X-ray machines.
http://www.promoinnovations.com/xray.htm

A man sues Compaq for false advertising.  He bought the computer 
because it was advertised as totally secure.  But after he committed 
some crimes and the FBI got his computer, they were able to recover his 
data.  This is what I said in the article: "Unfortunately, this 
probably isn't a great case.  Here's a man who's not going to get much 
sympathy. You want a defendant who bought the Compaq computer, and 
then, you know, his competitor, or a rogue employee, or someone who 
broke into his office, got the data. That's a much more sympathetic 
defendant."
http://hartfordadvocate.com/gbase/News/content?oid=oid:153106

Infant identity theft victim:
http://www.abcnews.go.com/US/story?id=155878&page=1

An improv group in New York dressed up like Best Buy employees and went 
into a store, secretly videotaping the results.  My favorite 
part:  "Security guards and managers started talking to each other 
frantically on their walkie-talkies and headsets. 'Thomas Crown Affair! 
Thomas Crown Affair!,' one employee shouted. They were worried that we 
were using our fake uniforms to stage some type of elaborate heist. 'I 
want every available employee out on the floor RIGHT NOW!'"
http://www.improveverywhere.com/mission_view.php?mission_id=57

Stealing cars with laptops:
http://www.leftlanenews.com/2006/05/03/gone-in-20-minutes-using-laptops- 
to-steal-cars/ or http://tinyurl.com/mkr9s
http://slashdot.org/articles/06/05/03/1928256.shtml

The rapper MC Plus+ has written a song about cryptography, "Alice and 
Bob."  It mentions DES, AES, Blowfish, RSA, SHA-1, and more.  And me!
http://www.cs.purdue.edu/homes/anavabi/mp3/MC%20Plus+%20-%20Algorhythms% 
20-%20Alice%20and%20Bob.mp3 or http://tinyurl.com/8jov2
Here's an article about "geeksta rap."
http://www.wired.com/news/culture/0,1284,67970,00.html

The DHS secretly shares European air passenger data in violation of 
agreement:
http://www.aclu.org/privacy/spying/25335prs20060425.html

Shell has suspended its chip-and-pin payment system in the UK, after 
fraudsters stole over one million pounds.  Lots of details on my blog:
http://www.schneier.com/blog/archives/2006/05/shell_suspends.html

According to this article, the ultimate terrorist threat is flying 
robot drones.  The article really pegs the movie-plot threat hype-meter.
http://www.physorg.com/news66197469.html

A reporter finds an old British Airways boarding pass, and proceeds to 
use it to find everything else about the person.
http://www.guardian.co.uk/g2/story/0,,1766138,00.html
Notice the economic pressures:  "'The problem here is that a commercial 
organisation is being given the task of collecting data on behalf of a 
foreign government, for which it gets no financial reward, and which 
offers no business benefit in return,' says Laurie. 'Naturally, in such 
a case, they will seek to minimise their costs, which they do by 
handing the problem off to the passengers themselves. This has the neat 
side-effect of also handing off liability for data errors.'"

Five stories of RFID hacking:
http://www.wired.com/wired/archive/14.05/rfid.html

And IBM thinks it has a solution: a removable tag that reduces the 
range of the RFID chip:
http://wired.com/news/technology/0,70793-0.html
Why not disable it entirely?

Serious computer problems inside the NSA:
http://www.baltimoresun.com/news/custom/attack/bal-te.nsa26feb26,0,63111 
75.story or http://tinyurl.com/rgrso

Meanwhile, the NSA is building a massive traffic-analysis database on 
Americans' calling patterns:
http://www.usatoday.com/news/washington/2006-05-10-nsa_x.htm
http://www.prospect.org/weblog/2006/05/post_336.html#002317
http://glenngreenwald.blogspot.com/2006/05/no-need-for-congress-no-need- 
for.html
http://www.orinkerr.com/2006/05/11/thoughts-on-the-legality-of-the-lates 
t-nsa-surveillance-program/
http://www.orinkerr.com/2006/05/12/more-thoughts-on-the-legality-of-the- 
nsa-call-records-program/

Major vulnerability found in Diebold election machines.  This one is a 
big deal.
http://www.insidebayarea.com/ci_3805089
http://www.blackboxvoting.org/BBVtsxstudy.pdf

Comparing the security of election machines with the security of slot 
machines:
http://www.washingtonpost.com/wp-dyn/content/graphic/2006/03/16/GR200603 
1600213.html or http://tinyurl.com/gda98

Thief disguises himself as a museum guard and tricks employees into 
giving him 200,000 euros:
http://today.reuters.com/news/articlenews.aspx?type=oddlyEnoughNews&stor 
yid=2006-05-03T204308Z_01_L02306327_RTRUKOC_0_US-ITALY-THIEF.xml or 
http://tinyurl.com/j3q6k

Fascinating first-person account of being on the TSA's watch list:
http://arstechnica.com/news.ars/post/20060506-6767.html

Reconceptualizing national intelligence:
http://www.fas.org/blog/secrecy/2006/05/curing_analytic_pathologies.html 
  or http://tinyurl.com/lc2of

Public-key cryptography for digital notarization in Pennsylvania.
http://www.nationalnotary.org/news/index.cfm?Text=newsNotary&newsID=851 
or http://tinyurl.com/r9z4w
http://www.eweek.com/article2/0,1895,1955701,00.asp


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

      RFID Cards and Man-in-the-Middle Attacks



Recent articles about a proposed US-Canada and US-Mexico travel 
document (kind of like a passport, but less useful), with an embedded 
RFID chip that can be read up to 25 feet away, have once again made 
RFID security newsworthy.

My views have not changed.  The most secure solution is a smart card 
that only works in contact with a reader; RFID is much more risky.  But 
if we're stuck with RFID, the combination of shielding for the chip, 
basic access control security measures, and some positive action by the 
user to get the chip to operate is a good one.  The devil is in the 
details, of course, but those are good starting points.

And when you start proposing chips with a 25-foot read range, you need 
to worry about man-in-the-middle attacks.  An attacker could 
potentially impersonate the card of a nearby person to an official 
reader, just by relaying messages to and from that nearby person's card.

Here's how the attack would work.  In this scenario, customs Agent 
Alice has the official card reader.  Bob is the innocent traveler, in 
line at some border crossing.  Mallory is the malicious attacker, ahead 
of Bob in line at the same border crossing, who is going to impersonate 
Bob to Alice.  Mallory's equipment includes an RFID reader and transmitter.

Assume that the card has to be activated in some way.  Maybe the cover 
has to be opened, or the card taken out of a sleeve.  Maybe the card 
has a button to push in order to activate it.  Also assume the card has 
come challenge-reply security protocol and an encrypted key exchange 
protocol of some sort.

1. Alice's reader sends a message to Mallory's RFID chip.

2. Mallory's reader/transmitter receives the message, and rebroadcasts 
it to Bob's chip.  (Bob is somewhere else, out of Alice's range.)

3. Bob's chip responds normally to a valid message from Alice's 
reader.  He has no way of knowing that Mallory relayed the message.

4. Mallory's reader transmitter receives Bob's message and rebroadcasts 
it to Alice.  Alice has no way of knowing that the message was relayed.

5. Mallory continues to relay messages back and forth between Alice and 
Bob.

Defending against this attack is hard.  (I talk more about the attack 
in Applied Cryptography, Second Edition, page 109.)  Time stamps don't 
help.  Encryption doesn't help.  It works because Mallory is simply 
acting as an amplifier.  Mallory might not be able to read the 
messages.  He might not even know who Bob is.  But he doesn't 
care.  All he knows is that Alice thinks he's Bob.

Precise timing can catch this attack, because of the extra delay that 
Mallory's relay introduces.  But I don't think this is part of the spec.

The attack can be easily countered if Alice looks at Mallory's card and 
compares the information printed on it with what she's receiving over 
the RFID link.  But near as I can tell, the point of the 25-foot read 
distance is so cards can be authenticated in bulk, from a distance.

According to the news.com article: "Homeland Security has said, in a 
government procurement notice posted in September, that "read ranges 
shall extend to a minimum of 25 feet" in RFID-equipped identification 
cards used for border crossings. For people crossing on a bus, the 
proposal says, 'the solution must sense up to 55 tokens.'"

If Mallory is on that bus, he can impersonate any nearby Bob who 
activates his RFID card early.  And at a crowded border crossing, the 
odds of some Bob doing that are pretty good.

 From the Federal Computer Week article: "If that were done, the PASS 
system would automatically screen the cardbearers against criminal 
watch lists and put the information on the border guard's screen by the 
time the vehicle got to the station, Williams said."

And would predispose the guard to think that everything's okay, even if 
it isn't.

I don't think people are thinking this one through.

http://news.com.com/New+RFID+travel+cards+could+pose+privacy+threat/2100 
-1028_3-6062574.html or http://tinyurl.com/le82d
http://www.fcw.com/article94113-04-18-06-Web

My views on RFID identity cards:
http://www.schneier.com/blog/archives/2005/08/rfid_passport_s_1.html


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

      Software Failure Causes Airport Evacuation



Last month I wrote about airport passenger screening, and mentioned 
that the X-ray equipment inserts "test" bags into the stream in order 
to keep screeners more alert.  That system failed pretty badly earlier 
this week at Atlanta's Hartsfield-Jackson Airport, when a false alarm 
resulted in a two-hour evacuation of the entire airport.

The screening system injects test images onto the screen.  Normally the 
software flashes the words "This is a test" on the screen after a brief 
delay, but this time the software failed to indicate that.  The 
screener noticed the image (of a "suspicious device," according to CNN) 
and, per procedure, screeners manually checked the bags on the conveyor 
belt for it.  They couldn't find it, of course, but they evacuated the 
airport and spent two hours vainly searching for it.

Hartsfield-Jackson is the country's busiest passenger airport.  It's 
Delta's hub city.  The delays were felt across the country for the rest 
of the day.

Okay, so what went wrong here?  Clearly the software failed.  Just as 
clearly the screener procedures didn't fail -- everyone did what they 
were supposed to do.

What is less obvious is that the system failed.  It failed, because it 
was not designed to fail well.  A small failure -- in this case, a 
software glitch in a single X-ray machine -- cascaded in such a way as 
to shut down the entire airport.  This kind of failure magnification is 
common in poorly designed security systems.  Better would be for there 
to be individual X-ray machines at the gates -- I've seen this design 
at several European airports -- so that when there's a problem the 
effects are restricted to that gate.

Of course, this distributed security solution would be more 
expensive.  But I'm willing to bet it would be cheaper overall, taking 
into account the cost of occasionally clearing out an airport.

http://www.cnn.com/2006/US/04/20/atlanta.airport/index.html

What I wrote last month:
http://www.schneier.com/blog/archives/2006/03/airport_passeng.html


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

      Counterpane News



On May 23, Schneier will be opening a new speaking series by the ACLU 
with a talk on "The Future of Privacy."
http://www.aclu.org/privacy/25551res20060512.html

Schneier will be speaking at the Gartner IT Security Summit in 
Washington DC, June 5-7:
http://www.gartner.com/2_events/conferences/sec12.jsp

Schneier will be speaking at the ACLU New Jersey Membership Conference:
https://www.aclu-nj.org/events/aclunjmembershipconference

Schneier will be speaking at the ACLU Vermont Privacy Conference:
http://www.acluvt.org/news/display.php?sid=1145047166&PHPSESSID=31bdcefa 
418904b0caab1ffbde1f8a64 or http://tinyurl.com/pdzyy

Tipping Point is offering Managed Security Services through an alliance 
with Counterpane:
http://www.counterpane.com/pr-20060501.html


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

      Microsoft's BitLocker



BitLocker Drive Encryption is a new security feature in Windows Vista, 
designed to work with the Trusted Platform Module (TPM).  Basically, it 
encrypts the C drive with a computer-generated key.  In its basic mode, 
an attacker can still access the data on the drive by guessing the 
user's password, but would not be able to get at the drive by booting 
the disk up using another operating system, or removing the drive and 
attaching it to another computer.

There are several modes for BitLocker.  In the simplest mode, the TPM 
stores the key and the whole thing happens completely invisibly.  The 
user does nothing differently, and notices nothing different.

The BitLocker key can also be stored on a USB drive.  Here, the user 
has to insert the USB drive into the computer during boot.  Then 
there's a mode that uses a key stored in the TPM and a key stored on a 
USB drive.  And finally, there's a mode that uses a key stored in the 
TPM and a four-digit PIN that the user types into the computer.  This 
happens early in the boot process, when there's still ASCII text on the 
screen.

Note that if you configure BitLocker with a USB key or a PIN, password 
guessing doesn't work.  BitLocker doesn't even let you get to a 
password screen to try.

For most people, basic mode is the best.  People will keep their USB 
key in their computer bag with their laptop, so it won't add much 
security.  But if you can force users to attach it to their key chains 
-- remember that you only need the key to boot the computer, not to 
operate the computer -- and convince them to go through the trouble of 
sticking it in their computer every time they boot, then you'll get a 
higher level of security.

There is a recovery key: optional but strongly encouraged.  It is 
automatically generated by BitLocker, and it can be sent to some 
administrator or printed out and stored in some secure location.  There 
are ways for an administrator to set group policy settings mandating 
this key.

There aren't any back doors for the police, though.

You can get BitLocker to work in systems without a TPM, but it's 
kludgy.  You can only configure it for a USB key.  And it only will 
work on some hardware: because BitLocker starts running before any 
device drivers are loaded, the BIOS must recognize USB drives in order 
for BitLocker to work.

Encryption particulars:  The default data encryption algorithm is 
AES-128-CBC with an additional diffuser. The diffuser is designed to 
protect against ciphertext-manipulation attacks, and is independently 
keyed from AES-CBC so that it cannot damage the security you get from 
AES-CBC.   Administrators can select the disk encryption algorithm 
through group policy.  Choices are 128-bit AES-CBC plus the diffuser, 
256-bit AES-CBC plus the diffuser, 128-bit AES-CBC, and 256-bit 
AES-CBC.  (My advice: stick with the default.)  The key management 
system uses 256-bit keys wherever possible. The only place where a 
128-bit key limit is hard-coded is the recovery key, which is 48 digits 
(including checksums).  It's shorter because it has to be typed in 
manually; typing in 96 digits will piss off a lot of people -- even if 
it is only for data recovery.

So, does this destroy dual-boot systems?  Not really.  If you have 
Vista running, then set up a dual boot system, BitLocker will consider 
this sort of change to be an attack and refuse to run.  But then you 
can use the recovery key to boot into Windows, then tell BitLocker to 
take the current configuration -- with the dual boot code -- as 
correct.  After that, your dual boot system will work just fine, or so 
I've been told.  You still won't be able to share any files on your C 
drive between operating systems, but you will be able to share files on 
any other drive.

The problem is that it's impossible to distinguish between a legitimate 
dual boot system and an attacker trying to use another OS -- whether 
Linux or another instance of Vista -- to get at the volume.

BitLocker is not a DRM system.  However, it is straightforward to turn 
it into a DRM system.  Simply give programs the ability to require that 
files be stored only on BitLocker-enabled drives, and then only be 
transferable to other BitLocker-enabled drives.  How easy this would be 
to implement, and how hard it would be to subvert, depends on the 
details of the system.

BitLocker is also not a panacea.  But it does mitigate a specific but 
significant risk: the risk of attackers getting at data on drives 
directly.  It allows people to throw away or sell old drives without 
worry.  It allows people to stop worrying about their drives getting 
lost or stolen.  It stops a particular attack against data.

Right now BitLocker is only in the Ultimate and Enterprise editions of 
Vista.  It's a feature that is turned off by default.  It is also 
Microsoft's first TPM application.  Presumably it will be enhanced in 
the future: allowing the encryption of other drives would be a good 
next step, for example.

http://www.microsoft.com/technet/windowsvista/library/help/b7931dd8-3152 
-4d3a-a9b5-84621660c5f5.mspx?mfr=true or http://tinyurl.com/fywd7
http://www.microsoft.com/technet/windowsvista/library/c61f2a12-8ae6-4957 
-b031-97b4d762cf31.mspx or http://tinyurl.com/h4nc8

Niels Ferguson on back doors:
http://blogs.msdn.com/si_team/archive/2006/03/02/542590.aspx

BitLocker and dual boot systems:
http://www.theregister.co.uk/2006/04/27/schneier_infosec/
http://arstechnica.com/journals/microsoft.ars/2006/4/28/3782


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

      The Security Risk of Special Cases



In Beyond Fear, I wrote about the inherent security risks of exceptions 
to a security policy.  Here's an example, from airport security in Ireland.

Police officers are permitted to bypass airport security at the Dublin 
Airport.  They flash their ID, and walk around the checkpoints.

"A female member of the airport search unit is undergoing re-training 
after the incident in which a Department of Transport inspector passed 
unchecked through security screening.

"It is understood that the department official was waved through 
security checks having flashed an official badge. The inspector 
immediately notified airport authorities of a failure in vetting 
procedures. Only gardai are permitted to pass unchecked through security."

There are two ways this failure could have happened.  One, security 
person could have thought that Department of Transportation officials 
have the same privileges as police officers.  And two, the security 
person could have thought she was being shown a police ID.

This could have just as easily been a bad guy showing a fake police 
ID.  My guess is that the security people don't check them all that 
carefully.

The meta-point is that exceptions to security are themselves security 
vulnerabilities.  As soon as you create a system by which some people 
can bypass airport security checkpoints, you invite the bad guys to try 
and use that system.  There are reasons why you might want to create 
those alternate paths through security, of course, but the trade-offs 
should be well thought out.

http://archives.tcm.ie/businesspost/2006/04/16/story13502.asp


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

      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, 
insights, and commentaries on security: computer and otherwise.  You 
can subscribe, unsubscribe, or change your address on the Web at 
<http://www.schneier.com/crypto-gram.html>.  Back issues are also 
available at that URL.

Comments on CRYPTO-GRAM should be sent to 
[log in to unmask]  Permission to print comments is assumed 
unless otherwise stated.  Comments may be edited for length and clarity.

Please feel free to forward CRYPTO-GRAM to colleagues and friends who 
will find it valuable.  Permission is granted to reprint CRYPTO-GRAM, 
as long as it is reprinted in its entirety.

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 Counterpane Internet Security 
Inc., and is a member of the Advisory Board of the Electronic Privacy 
Information Center (EPIC).  He is a frequent writer and lecturer on 
security topics.  See <http://www.schneier.com>.

Counterpane is the world's leading protector of networked information - 
the inventor of outsourced security monitoring and the foremost 
authority on effective mitigation of emerging IT threats. Counterpane 
protects networks for Fortune 1000 companies and governments 
world-wide.  See <http://www.counterpane.com>.

Crypto-Gram is a personal newsletter.  Opinions expressed are not 
necessarily those of Counterpane Internet Security, Inc.

Copyright (c) 2006 by Bruce Schneier.

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