All posts by Bruce Schneier

NFC Flaws in POS Devices and ATMs

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/06/nfc-flaws-in-pos-devices-and-atms.html

It’s a series of vulnerabilities:

Josep Rodriguez, a researcher and consultant at security firm IOActive, has spent the last year digging up and reporting vulnerabilities in the so-called near-field communications reader chips used in millions of ATMs and point-of-sale systems worldwide. NFC systems are what let you wave a credit card over a reader — rather than swipe or insert it — to make a payment or extract money from a cash machine. You can find them on countless retail store and restaurant counters, vending machines, taxis, and parking meters around the globe.

Now Rodriguez has built an Android app that allows his smartphone to mimic those credit card radio communications and exploit flaws in the NFC systems’ firmware. With a wave of his phone, he can exploit a variety of bugs to crash point-of-sale devices, hack them to collect and transmit credit card data, invisibly change the value of transactions, and even lock the devices while displaying a ransomware message. Rodriguez says he can even force at least one brand of ATMs to dispense cash­though that “jackpotting” hack only works in combination with additional bugs he says he’s found in the ATMs’ software. He declined to specify or disclose those flaws publicly due to nondisclosure agreements with the ATM vendors.

AI-Piloted Fighter Jets

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/06/ai-piloted-fighter-jets.html

News from Georgetown’s Center for Security and Emerging Technology:

China Claims Its AI Can Beat Human Pilots in Battle: Chinese state media reported that an AI system had successfully defeated human pilots during simulated dogfights. According to the Global Times report, the system had shot down several PLA pilots during a handful of virtual exercises in recent years. Observers outside China noted that while reports coming out of state-controlled media outlets should be taken with a grain of salt, the capabilities described in the report are not outside the realm of possibility. Last year, for example, an AI agent defeated a U.S. Air Force F-16 pilot five times out of five as part of DARPA’s AlphaDogfight Trial (which we covered at the time). While the Global Times report indicated plans to incorporate AI into future fighter planes, it is not clear how far away the system is from real-world testing. At the moment, the system appears to be used only for training human pilots. DARPA, for its part, is aiming to test dogfights with AI-piloted subscale jets later this year and with full-scale jets in 2023 and 2024.

Banning Surveillance-Based Advertising

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/06/banning-surveillance-based-advertising.html

The Norwegian Consumer Council just published a fantastic new report: “Time to Ban Surveillance-Based Advertising.” From the Introduction:

The challenges caused and entrenched by surveillance-based advertising include, but are not limited to:

  • privacy and data protection infringements
  • opaque business models
  • manipulation and discrimination at scale
  • fraud and other criminal activity
  • serious security risks

In the following chapters, we describe various aspects of these challenges and point out how today’s dominant model of online advertising is a threat to consumers, democratic societies, the media, and even to advertisers themselves. These issues are significant and serious enough that we believe that it is time to ban these detrimental practices.

A ban on surveillance-based practices should be complemented by stronger enforcement of existing legislation, including the General Data Protection Regulation, competition regulation, and the Unfair Commercial Practices Directive. However, enforcement currently consumes significant time and resources, and usually happens after the damage has already been done. Banning surveillance-based advertising in general will force structural changes to the advertising industry and alleviate a number of significant harms to consumers and to society at large.

A ban on surveillance-based advertising does not mean that one can no longer finance digital content using advertising. To illustrate this, we describe some possible ways forward for advertising-funded digital content, and point to alternative advertising technologies that may contribute to a safer and healthier digital economy for both consumers and businesses.

Press release. Press coverage.

I signed their open letter.

Mollitiam Industries is the Newest Cyberweapons Arms Manufacturer

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/06/mollitiam-industries-is-the-newest-cyberweapons-arms-manufacturer.html

Wired is reporting on a company called Mollitiam Industries:

Marketing materials left exposed online by a third-party claim Mollitiam’s interception products, dubbed “Invisible Man” and “Night Crawler,” are capable of remotely accessing a target’s files, location, and covertly turning on a device’s camera and microphone. Its spyware is also said to be equipped with a keylogger, which means every keystroke made on an infected device — including passwords, search queries and messages sent via encrypted messaging apps — can be tracked and monitored.

To evade detection, the malware makes use of the company’s so-called “invisible low stealth technology” and its Android product is advertised as having “low data and battery consumption” to prevent people from suspecting their phone or tablet has been infected. Mollitiam is also currently marketing a tool that it claims enables “mass surveillance of digital profiles and identities” across social media and the dark web.

Apple Will Offer Onion Routing for iCloud/Safari Users

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/06/apple-will-offer-onion-routing-for-icloud-safari-users.html

At this year’s Apple Worldwide Developer Conference, Apple announced something called “iCloud Private Relay.” That’s basically its private version of onion routing, which is what Tor does.

Privacy Relay is built into both the forthcoming iOS and MacOS versions, but it will only work if you’re an iCloud Plus subscriber and you have it enabled from within your iCloud settings.

Once it’s enabled and you open Safari to browse, Private Relay splits up two pieces of information that — when delivered to websites together as normal — could quickly identify you. Those are your IP address (who and exactly where you are) and your DNS request (the address of the website you want, in numeric form).

Once the two pieces of information are split, Private Relay encrypts your DNS request and sends both the IP address and now-encrypted DNS request to an Apple proxy server. This is the first of two stops your traffic will make before you see a website. At this point, Apple has already handed over the encryption keys to the third party running the second of the two stops, so Apple can’t see what website you’re trying to access with your encrypted DNS request. All Apple can see is your IP address.

Although it has received both your IP address and encrypted DNS request, Apple’s server doesn’t send your original IP address to the second stop. Instead, it gives you an anonymous IP address that is approximately associated with your general region or city.

Not available in China, of course — and also Belarus, Colombia, Egypt, Kazakhstan, Saudi Arabia, South Africa, Turkmenistan, Uganda, and the Philippines.

The Future of Machine Learning and Cybersecurity

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/06/the-future-of-machine-learning-and-cybersecurity.html

The Center for Security and Emerging Technology has a new report: “Machine Learning and Cybersecurity: Hype and Reality.” Here’s the bottom line:

The report offers four conclusions:

  • Machine learning can help defenders more accurately detect and triage potential attacks. However, in many cases these technologies are elaborations on long-standing methods — not fundamentally new approaches — that bring new attack surfaces of their own.
  • A wide range of specific tasks could be fully or partially automated with the use of machine learning, including some forms of vulnerability discovery, deception, and attack disruption. But many of the most transformative of these possibilities still require significant machine learning breakthroughs.
  • Overall, we anticipate that machine learning will provide incremental advances to cyber defenders, but it is unlikely to fundamentally transform the industry barring additional breakthroughs. Some of the most transformative impacts may come from making previously un- or under-utilized defensive strategies available to more organizations.
  • Although machine learning will be neither predominantly offense-biased nor defense-biased, it may subtly alter the threat landscape by making certain types of strategies more appealing to attackers or defenders.

Friday Squid Blogging: Video of Giant Squid Hunting Prey

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/06/friday-squid-blogging-video-of-giant-squid-hunting-prey.html

Fantastic video of a giant squid hunting at depths between 1,827 and 3,117 feet.

This is a follow-on from this post.

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Read my blog posting guidelines here.

No, RSA Is Not Broken

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/03/no-rsa-is-not-broken.html

I have been seeing this paper by cryptographer Peter Schnorr making the rounds: “Fast Factoring Integers by SVP Algorithms.” It describes a new factoring method, and its abstract ends with the provocative sentence: “This destroys the RSA cryptosystem.”

It does not. At best, it’s an improvement in factoring — and I’m not sure it’s even that. The paper is a preprint: it hasn’t been peer reviewed. Be careful taking its claims at face value.

Some discussion here.

I’ll append more analysis links to this post when I find them.

Chinese Hackers Stole an NSA Windows Exploit in 2014

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/03/chinese-hackers-stole-an-nsa-windows-exploit-in-2014.html

Check Point has evidence that (probably government affiliated) Chinese hackers stole and cloned an NSA Windows hacking tool years before (probably government affiliated) Russian hackers stole and then published the same tool. Here’s the timeline:

The timeline basically seems to be, according to Check Point:

  • 2013: NSA’s Equation Group developed a set of exploits including one called EpMe that elevates one’s privileges on a vulnerable Windows system to system-administrator level, granting full control. This allows someone with a foothold on a machine to commandeer the whole box.
  • 2014-2015: China’s hacking team code-named APT31, aka Zirconium, developed Jian by, one way or another, cloning EpMe.
  • Early 2017: The Equation Group’s tools were teased and then leaked online by a team calling itself the Shadow Brokers. Around that time, Microsoft cancelled its February Patch Tuesday, identified the vulnerability exploited by EpMe (CVE-2017-0005), and fixed it in a bumper March update. Interestingly enough, Lockheed Martin was credited as alerting Microsoft to the flaw, suggesting it was perhaps used against an American target.
  • Mid 2017: Microsoft quietly fixed the vulnerability exploited by the leaked EpMo exploit.

Lots of news articles about this.

Mysterious Macintosh Malware

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/03/mysterious-macintosh-malware.html

This is weird:

Once an hour, infected Macs check a control server to see if there are any new commands the malware should run or binaries to execute. So far, however, researchers have yet to observe delivery of any payload on any of the infected 30,000 machines, leaving the malware’s ultimate goal unknown. The lack of a final payload suggests that the malware may spring into action once an unknown condition is met.

Also curious, the malware comes with a mechanism to completely remove itself, a capability that’s typically reserved for high-stealth operations. So far, though, there are no signs the self-destruct feature has been used, raising the question of why the mechanism exists.

Besides those questions, the malware is notable for a version that runs natively on the M1 chip that Apple introduced in November, making it only the second known piece of macOS malware to do so. The malicious binary is more mysterious still because it uses the macOS Installer JavaScript API to execute commands. That makes it hard to analyze installation package contents or the way that package uses the JavaScript commands.

The malware has been found in 153 countries with detections concentrated in the US, UK, Canada, France, and Germany. Its use of Amazon Web Services and the Akamai content delivery network ensures the command infrastructure works reliably and also makes blocking the servers harder. Researchers from Red Canary, the security firm that discovered the malware, are calling the malware Silver Sparrow.

Feels government-designed, rather than criminal or hacker.

Another article. And the Red Canary analysis.

National Security Risks of Late-Stage Capitalism

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/03/national-security-risks-of-late-stage-capitalism.html

Early in 2020, cyberspace attackers apparently working for the Russian government compromised a piece of widely used network management software made by a company called SolarWinds. The hack gave the attackers access to the computer networks of some 18,000 of SolarWinds’s customers, including US government agencies such as the Homeland Security Department and State Department, American nuclear research labs, government contractors, IT companies and nongovernmental agencies around the world.

It was a huge attack, with major implications for US national security. The Senate Intelligence Committee is scheduled to hold a hearing on the breach on Tuesday. Who is at fault?

The US government deserves considerable blame, of course, for its inadequate cyberdefense. But to see the problem only as a technical shortcoming is to miss the bigger picture. The modern market economy, which aggressively rewards corporations for short-term profits and aggressive cost-cutting, is also part of the problem: Its incentive structure all but ensures that successful tech companies will end up selling insecure products and services.

Like all for-profit corporations, SolarWinds aims to increase shareholder value by minimizing costs and maximizing profit. The company is owned in large part by Silver Lake and Thoma Bravo, private-equity firms known for extreme cost-cutting.

SolarWinds certainly seems to have underspent on security. The company outsourced much of its software engineering to cheaper programmers overseas, even though that typically increases the risk of security vulnerabilities. For a while, in 2019, the update server’s password for SolarWinds’s network management software was reported to be “solarwinds123.” Russian hackers were able to breach SolarWinds’s own email system and lurk there for months. Chinese hackers appear to have exploited a separate vulnerability in the company’s products to break into US government computers. A cybersecurity adviser for the company said that he quit after his recommendations to strengthen security were ignored.

There is no good reason to underspend on security other than to save money — especially when your clients include government agencies around the world and when the technology experts that you pay to advise you are telling you to do more.

As the economics writer Matt Stoller has suggested, cybersecurity is a natural area for a technology company to cut costs because its customers won’t notice unless they are hacked ­– and if they are, they will have already paid for the product. In other words, the risk of a cyberattack can be transferred to the customers. Doesn’t this strategy jeopardize the possibility of long-term, repeat customers? Sure, there’s a danger there –­ but investors are so focused on short-term gains that they’re too often willing to take that risk.

The market loves to reward corporations for risk-taking when those risks are largely borne by other parties, like taxpayers. This is known as “privatizing profits and socializing losses.” Standard examples include companies that are deemed “too big to fail,” which means that society as a whole pays for their bad luck or poor business decisions. When national security is compromised by high-flying technology companies that fob off cybersecurity risks onto their customers, something similar is at work.

Similar misaligned incentives affect your everyday cybersecurity, too. Your smartphone is vulnerable to something called SIM-swap fraud because phone companies want to make it easy for you to frequently get a new phone — and they know that the cost of fraud is largely borne by customers. Data brokers and credit bureaus that collect, use, and sell your personal data don’t spend a lot of money securing it because it’s your problem if someone hacks them and steals it. Social media companies too easily let hate speech and misinformation flourish on their platforms because it’s expensive and complicated to remove it, and they don’t suffer the immediate costs ­– indeed, they tend to profit from user engagement regardless of its nature.

There are two problems to solve. The first is information asymmetry: buyers can’t adequately judge the security of software products or company practices. The second is a perverse incentive structure: the market encourages companies to make decisions in their private interest, even if that imperils the broader interests of society. Together these two problems result in companies that save money by taking on greater risk and then pass off that risk to the rest of us, as individuals and as a nation.

The only way to force companies to provide safety and security features for customers and users is with government intervention. Companies need to pay the true costs of their insecurities, through a combination of laws, regulations, and legal liability. Governments routinely legislate safety — pollution standards, automobile seat belts, lead-free gasoline, food service regulations. We need to do the same with cybersecurity: the federal government should set minimum security standards for software and software development.

In today’s underregulated markets, it’s just too easy for software companies like SolarWinds to save money by skimping on security and to hope for the best. That’s a rational decision in today’s free-market world, and the only way to change that is to change the economic incentives.

This essay previously appeared in the New York Times.

The Problem with Treating Data as a Commodity

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/the-problem-with-treating-data-as-a-commodity.html

Excellent Brookings paper: “Why data ownership is the wrong approach to protecting privacy.”

From the introduction:

Treating data like it is property fails to recognize either the value that varieties of personal information serve or the abiding interest that individuals have in their personal information even if they choose to “sell” it. Data is not a commodity. It is information. Any system of information rights­ — whether patents, copyrights, and other intellectual property, or privacy rights — ­presents some tension with strong interest in the free flow of information that is reflected by the First Amendment. Our personal information is in demand precisely because it has value to others and to society across a myriad of uses.

From the conclusion:

Privacy legislation should empower individuals through more layered and meaningful transparency and individual rights to know, correct, and delete personal information in databases held by others. But relying entirely on individual control will not do enough to change a system that is failing individuals, and trying to reinforce control with a property interest is likely to fail society as well. Rather than trying to resolve whether personal information belongs to individuals or to the companies that collect it, a baseline federal privacy law should directly protect the abiding interest that individuals have in that information and also enable the social benefits that flow from sharing information.

On Chinese-Owned Technology Platforms

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/on-chinese-owned-technology-platforms.html

I am a co-author on a report published by the Hoover Institution: “Chinese Technology Platforms Operating in the United States.” From a blog post:

The report suggests a comprehensive framework for understanding and assessing the risks posed by Chinese technology platforms in the United States and developing tailored responses. It starts from the common view of the signatories — one reflected in numerous publicly available threat assessments — that China’s power is growing, that a large part of that power is in the digital sphere, and that China can and will wield that power in ways that adversely affect our national security. However, the specific threats and risks posed by different Chinese technologies vary, and effective policies must start with a targeted understanding of the nature of risks and an assessment of the impact US measures will have on national security and competitiveness. The goal of the paper is not to specifically quantify the risk of any particular technology, but rather to analyze the various threats, put them into context, and offer a framework for assessing proposed responses in ways that the signatories hope can aid those doing the risk analysis in individual cases.

Twelve-Year-Old Vulnerability Found in Windows Defender

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/twelve-year-old-vulnerability-found-in-windows-defender.html

Researchers found, and Microsoft has patched, a vulnerability in Windows Defender that has been around for twelve years. There is no evidence that anyone has used the vulnerability during that time.

The flaw, discovered by researchers at the security firm SentinelOne, showed up in a driver that Windows Defender — renamed Microsoft Defender last year — uses to delete the invasive files and infrastructure that malware can create. When the driver removes a malicious file, it replaces it with a new, benign one as a sort of placeholder during remediation. But the researchers discovered that the system doesn’t specifically verify that new file. As a result, an attacker could insert strategic system links that direct the driver to overwrite the wrong file or even run malicious code.

It isn’t unusual that vulnerabilities lie around for this long. They can’t be fixed until someone finds them, and people aren’t always looking.