Tag Archives: extortion

Reasonably Clever Extortion E-mail Based on Password Theft

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/07/reasonably_clev.html

Imagine you’ve gotten your hands on a file of e-mail addresses and passwords. You want to monetize it, but the site it’s for isn’t very valuable. How do you use it? You convince the owners of the password to send you money.

I recently saw a spam e-mail that ties the password to a porn site. The e-mail title contains the password, which is sure to get the recipient’s attention.

I do know, yhhaabor, is your password. You may not know me and you’re most likely thinking why you’re getting this email, right?

actually, I actually setup a malware on the adult video clips (pornographic material) web site and you know what, you visited this web site to have fun (you know what I mean). While you were watching videos, your web browser began operating as a RDP (Remote Desktop) having a key logger which provided me accessibility to your display and web camera. after that, my software obtained your entire contacts from your Messenger, social networks, and email.

What exactly did I do?

I created a double-screen video. First part shows the video you were viewing (you’ve got a fine taste ; )), and 2nd part displays the recording of your webcam.

What should you do?

Well, I believe, $2900 is a reasonable price for our little secret. You will make the payment through Bitcoin (if you don’t know this, search “how to buy bitcoin” in Google).

This is clever. The valid password establishes legitimacy. There’s a decent chance the recipient has visited porn sites, and maybe set up an account for which they can’t remember the password. The RDP attack is plausible, as is turning on the camera and downloading the contacts file.

Of course, it all fails because there isn’t enough detail. If the attacker actually did all of this, they would include the name of the porn site and attached the video file.

But it’s a clever attack, and one I have not seen before. If the attacker asked for an order of magnitude less money, I think they would make more.

EDITED TO ADD: Brian Krebs has written about this, too.

Police Arrest Suspected Member of TheDarkOverlord Hacking Group

Post Syndicated from Andy original https://torrentfreak.com/police-arrest-suspected-member-of-the-dark-overlord-hacking-group-180517/

In April 2017, the first episode of the brand new season of Netflix’s Orange is the New Black was uploaded to The Pirate Bay, months ahead of its official release date.

The leak was the work of a hacking entity calling itself TheDarkOverlord (TDO). One of its members had contacted TorrentFreak months earlier claiming that the content was in its hands but until the public upload, nothing could be confirmed.

TDO told us it had obtained the episodes after hacking the systems of Hollywood-based Larson Studios, an ADR (additional dialogue recorded) studio, back in 2016. TDO had attempted to blackmail the company into paying a bitcoin ransom but when it wasn’t forthcoming, TDO pressed the nuclear button.

Netflix responded by issuing a wave of takedown notices but soon TDO moved onto a new target. In June 2017, TDO followed up on an earlier threat to leak content owned by ABC.

But while TDO was perhaps best known for its video-leaking exploits, the group’s core ‘business’ was hacking what many perceived to be softer targets. TDO ruthlessly slurped confidential data from weakly protected computer systems at medical facilities, private practices, and businesses large and small.

In each case, the group demanded ransoms in exchange for silence and leaked sensitive data to the public if none were paid. With dozens of known targets, TDO found itself at the center of an international investigation, led by the FBI. That now appears to have borne some fruit, with the arrest of an individual in Serbia.

Serbian police say that members of its Ministry of Internal Affairs, Criminal Police Directorate (UCC), in coordination with the Special Prosecution for High-Tech Crime, have taken action against a suspected member of TheDarkOverlord group.

Police say they tracked down a Belgrade resident, who was arrested and taken into custody. Identified only by the initials “S.S”, police say the individual was born in 1980 but have released no further personal details. A search of his apartment and other locations led to the seizure of items of digital equipment.

“According to the order of the Special Prosecutor’s Office for High-Tech Crime, criminal charges will be brought against him because of the suspicion that he committed the criminal offense of unauthorized access to a protected computer, computer networks and electronic processing, and the criminal offense of extortion,” a police statement reads.

In earlier correspondence with TF, the TDO member always gave the impression of working as part of a team but we only had a single contact point which appeared to be the same person. However, Serbian authorities say the larger investigation is aimed at uncovering “a large number of people” who operate under the banner of “TheDarkOverlord”.

Since June 2016, the group is said to have targeted at least 50 victims while demanding bitcoin ransoms to avoid disclosure of their content. Serbian authorities say that on the basis of available data, TDO received payments of more than $275,000.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN reviews, discounts, offers and coupons.

Cybersecurity Insurance

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/04/cybersecurity_i_1.html

Good article about how difficult it is to insure an organization against Internet attacks, and how expensive the insurance is.

Companies like retailers, banks, and healthcare providers began seeking out cyberinsurance in the early 2000s, when states first passed data breach notification laws. But even with 20 years’ worth of experience and claims data in cyberinsurance, underwriters still struggle with how to model and quantify a unique type of risk.

“Typically in insurance we use the past as prediction for the future, and in cyber that’s very difficult to do because no two incidents are alike,” said Lori Bailey, global head of cyberrisk for the Zurich Insurance Group. Twenty years ago, policies dealt primarily with data breaches and third-party liability coverage, like the costs associated with breach class-action lawsuits or settlements. But more recent policies tend to accommodate first-party liability coverage, including costs like online extortion payments, renting temporary facilities during an attack, and lost business due to systems failures, cloud or web hosting provider outages, or even IT configuration errors.

In my new book — out in September — I write:

There are challenges to creating these new insurance products. There are two basic models for insurance. There’s the fire model, where individual houses catch on fire at a fairly steady rate, and the insurance industry can calculate premiums based on that rate. And there’s the flood model, where an infrequent large-scale event affects large numbers of people — but again at a fairly steady rate. Internet+ insurance is complicated because it follows neither of those models but instead has aspects of both: individuals are hacked at a steady (albeit increasing) rate, while class breaks and massive data breaches affect lots of people at once. Also, the constantly changing technology landscape makes it difficult to gather and analyze the historical data necessary to calculate premiums.

BoingBoing article.

Setting up bug bounties for success

Post Syndicated from Michal Zalewski original https://lcamtuf.blogspot.com/2018/03/setting-up-bug-bounties-for-success.html

Bug bounties end up in the news with some regularity, usually for the wrong reasons. I’ve been itching to write
about that for a while – but instead of dwelling on the mistakes of the bygone days, I figured it may be better to
talk about some of the ways to get vulnerability rewards right.

What do you get out of bug bounties?

There’s plenty of differing views, but I like to think of such programs
simply as a bid on researchers’ time. In the most basic sense, you get three benefits:

  • Improved ability to detect bugs in production before they become major incidents.
  • A comparatively unbiased feedback loop to help you prioritize and measure other security work.
  • A robust talent pipeline for when you need to hire.

What bug bounties don’t offer?

You don’t get anything resembling a comprehensive security program or a systematic assessment of your platforms.
Researchers end up looking for bugs that offer favorable effort-to-payoff ratios for their skills and given the
very imperfect information they have about your enterprise. In other words, you may end up with a hundred
people looking for XSS and just one person looking for RCE.

Your reward structure can steer them toward the targets and bugs you care about, but it’s difficult to fully
eliminate this inherent skew. There’s only so far you can jack up your top-tier rewards, and only so far you can
go lowering the bottom-tier ones.

Don’t you have to outcompete the black market to get all the “good” bugs?

There is a free market price discovery component to it all: if you’re not getting the engagement you
were hoping for, you should probably consider paying more.

That said, there are going to be researchers who’d rather hurt you than work for you, no matter how much you pay;
you don’t have to win them over, and you don’t have to outspend every authoritarian government or
every crime syndicate. A bug bounty is effective simply if it attracts enough eyeballs to make bugs statistically
harder to find, and reduces the useful lifespan of any zero-days in black market trade. Plus, most
researchers don’t want their work to be used to crack down on dissidents in Egypt or Vietnam.

Another factor is that you’re paying for different things: a black market buyer probably wants a reliable exploit
capable of delivering payloads, and then demands silence for months or years to come; a vendor-run
bug bounty program is usually perfectly happy with a reproducible crash and doesn’t mind a researcher blogging
about their work.

In fact, while money is important, you will probably find out that it’s not enough to retain your top talent;
many folks want bug bounties to be more than a business transaction, and find a lot of value in having a close
relationship with your security team, comparing notes, and growing together. Fostering that partnership can
be more important than adding another $10,000 to your top reward.

How do I prevent it all from going horribly wrong?

Bug bounties are an unfamiliar beast to most lawyers and PR folks, so it’s a natural to be wary and try to plan
for every eventuality with pages and pages of impenetrable rules and fine-print legalese.

This is generally unnecessary: there is a strong self-selection bias, and almost every participant in a
vulnerability reward program will be coming to you in good faith. The more friendly, forthcoming, and
approachable you seem, and the more you treat them like peers, the more likely it is for your relationship to stay
positive. On the flip side, there is no faster way to make enemies than to make a security researcher feel that they
are now talking to a lawyer or to the PR dept.

Most people have strong opinions on disclosure policies; instead of imposing your own views, strive to patch reported bugs
reasonably quickly, and almost every reporter will play along. Demand researchers to cancel conference appearances,
take down blog posts, or sign NDAs, and you will sooner or later end up in the news.

But what if that’s not enough?

As with any business endeavor, mistakes will happen; total risk avoidance is seldom the answer. Learn to sincerely
apologize for mishaps; it’s not a sign of weakness to say “sorry, we messed up”. And you will almost certainly not end
up in the courtroom for doing so.

It’s good to foster a healthy and productive relationship with the community, so that they come to your defense when
something goes wrong. Encouraging people to disclose bugs and talk about their experiences is one way of accomplishing that.

What about extortion?

You should structure your program to naturally discourage bad behavior and make it stand out like a sore thumb.
Require bona fide reports with complete technical details before any reward decision is made by a panel of named peers;
and make it clear that you never demand non-disclosure as a condition of getting a reward.

To avoid researchers accidentally putting themselves in awkward situations, have clear rules around data exfiltration
and lateral movement: assure them that you will always pay based on the worst-case impact of their findings; in exchange,
ask them to stop as soon as they get a shell and never access any data that isn’t their own.

So… are there any downsides?

Yep. Other than souring up your relationship with the community if you implement your program wrong, the other consideration
is that bug bounties tend to generate a lot of noise from well-meaning but less-skilled researchers.

When this happens, do not get frustrated and do not penalize such participants; instead, help them grow. Consider
publishing educational articles, giving advice on how to investigate and structure reports, or
offering free workshops every now and then.

The other downside is cost; although bug bounties tend to offer far more bang for your buck than your average penetration
test, they are more random. The annual expenses tend to be fairly predictable, but there is always
some possibility of having to pay multiple top-tier rewards in rapid succession. This is the kind of uncertainty that
many mid-level budget planners react badly to.

Finally, you need to be able to fix the bugs you receive. It would be nuts to prefer to not know about the
vulnerabilities in the first place – but once you invite the research, the clock starts ticking and you need to
ship fixes reasonably fast.

So… should I try it?

There are folks who enthusiastically advocate for bug bounties in every conceivable situation, and people who dislike them
with fierce passion; both sentiments are usually strongly correlated with the line of business they are in.

In reality, bug bounties are not a cure-all, and there are some ways to make them ineffectual or even dangerous.
But they are not as risky or expensive as most people suspect, and when done right, they can actually be fun for your
team, too. You won’t know for sure until you try.

Top 10 Most Obvious Hacks of All Time (v0.9)

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/07/top-10-most-obvious-hacks-of-all-time.html

For teaching hacking/cybersecurity, I thought I’d create of the most obvious hacks of all time. Not the best hacks, the most sophisticated hacks, or the hacks with the biggest impact, but the most obvious hacks — ones that even the least knowledgeable among us should be able to understand. Below I propose some hacks that fit this bill, though in no particular order.

The reason I’m writing this is that my niece wants me to teach her some hacking. I thought I’d start with the obvious stuff first.

Shared Passwords

If you use the same password for every website, and one of those websites gets hacked, then the hacker has your password for all your websites. The reason your Facebook account got hacked wasn’t because of anything Facebook did, but because you used the same email-address and password when creating an account on “beagleforums.com”, which got hacked last year.

I’ve heard people say “I’m sure, because I choose a complex password and use it everywhere”. No, this is the very worst thing you can do. Sure, you can the use the same password on all sites you don’t care much about, but for Facebook, your email account, and your bank, you should have a unique password, so that when other sites get hacked, your important sites are secure.

And yes, it’s okay to write down your passwords on paper.

Tools: HaveIBeenPwned.com

PIN encrypted PDFs

My accountant emails PDF statements encrypted with the last 4 digits of my Social Security Number. This is not encryption — a 4 digit number has only 10,000 combinations, and a hacker can guess all of them in seconds.
PIN numbers for ATM cards work because ATM machines are online, and the machine can reject your card after four guesses. PIN numbers don’t work for documents, because they are offline — the hacker has a copy of the document on their own machine, disconnected from the Internet, and can continue making bad guesses with no restrictions.
Passwords protecting documents must be long enough that even trillion upon trillion guesses are insufficient to guess.

Tools: Hashcat, John the Ripper

SQL and other injection

The lazy way of combining websites with databases is to combine user input with an SQL statement. This combines code with data, so the obvious consequence is that hackers can craft data to mess with the code.
No, this isn’t obvious to the general public, but it should be obvious to programmers. The moment you write code that adds unfiltered user-input to an SQL statement, the consequence should be obvious. Yet, “SQL injection” has remained one of the most effective hacks for the last 15 years because somehow programmers don’t understand the consequence.
CGI shell injection is a similar issue. Back in early days, when “CGI scripts” were a thing, it was really important, but these days, not so much, so I just included it with SQL. The consequence of executing shell code should’ve been obvious, but weirdly, it wasn’t. The IT guy at the company I worked for back in the late 1990s came to me and asked “this guy says we have a vulnerability, is he full of shit?”, and I had to answer “no, he’s right — obviously so”.

XSS (“Cross Site Scripting”) [*] is another injection issue, but this time at somebody’s web browser rather than a server. It works because websites will echo back what is sent to them. For example, if you search for Cross Site Scripting with the URL https://www.google.com/search?q=cross+site+scripting, then you’ll get a page back from the server that contains that string. If the string is JavaScript code rather than text, then some servers (thought not Google) send back the code in the page in a way that it’ll be executed. This is most often used to hack somebody’s account: you send them an email or tweet a link, and when they click on it, the JavaScript gives control of the account to the hacker.

Cross site injection issues like this should probably be their own category, but I’m including it here for now.

More: Wikipedia on SQL injection, Wikipedia on cross site scripting.
Tools: Burpsuite, SQLmap

Buffer overflows

In the C programming language, programmers first create a buffer, then read input into it. If input is long than the buffer, then it overflows. The extra bytes overwrite other parts of the program, letting the hacker run code.
Again, it’s not a thing the general public is expected to know about, but is instead something C programmers should be expected to understand. They should know that it’s up to them to check the length and stop reading input before it overflows the buffer, that there’s no language feature that takes care of this for them.
We are three decades after the first major buffer overflow exploits, so there is no excuse for C programmers not to understand this issue.

What makes particular obvious is the way they are wrapped in exploits, like in Metasploit. While the bug itself is obvious that it’s a bug, actually exploiting it can take some very non-obvious skill. However, once that exploit is written, any trained monkey can press a button and run the exploit. That’s where we get the insult “script kiddie” from — referring to wannabe-hackers who never learn enough to write their own exploits, but who spend a lot of time running the exploit scripts written by better hackers than they.

More: Wikipedia on buffer overflow, Wikipedia on script kiddie,  “Smashing The Stack For Fun And Profit” — Phrack (1996)
Tools: bash, Metasploit

SendMail DEBUG command (historical)

The first popular email server in the 1980s was called “SendMail”. It had a feature whereby if you send a “DEBUG” command to it, it would execute any code following the command. The consequence of this was obvious — hackers could (and did) upload code to take control of the server. This was used in the Morris Worm of 1988. Most Internet machines of the day ran SendMail, so the worm spread fast infecting most machines.
This bug was mostly ignored at the time. It was thought of as a theoretical problem, that might only rarely be used to hack a system. Part of the motivation of the Morris Worm was to demonstrate that such problems was to demonstrate the consequences — consequences that should’ve been obvious but somehow were rejected by everyone.

More: Wikipedia on Morris Worm

Email Attachments/Links

I’m conflicted whether I should add this or not, because here’s the deal: you are supposed to click on attachments and links within emails. That’s what they are there for. The difference between good and bad attachments/links is not obvious. Indeed, easy-to-use email systems makes detecting the difference harder.
On the other hand, the consequences of bad attachments/links is obvious. That worms like ILOVEYOU spread so easily is because people trusted attachments coming from their friends, and ran them.
We have no solution to the problem of bad email attachments and links. Viruses and phishing are pervasive problems. Yet, we know why they exist.

Default and backdoor passwords

The Mirai botnet was caused by surveillance-cameras having default and backdoor passwords, and being exposed to the Internet without a firewall. The consequence should be obvious: people will discover the passwords and use them to take control of the bots.
Surveillance-cameras have the problem that they are usually exposed to the public, and can’t be reached without a ladder — often a really tall ladder. Therefore, you don’t want a button consumers can press to reset to factory defaults. You want a remote way to reset them. Therefore, they put backdoor passwords to do the reset. Such passwords are easy for hackers to reverse-engineer, and hence, take control of millions of cameras across the Internet.
The same reasoning applies to “default” passwords. Many users will not change the defaults, leaving a ton of devices hackers can hack.

Masscan and background radiation of the Internet

I’ve written a tool that can easily scan the entire Internet in a short period of time. It surprises people that this possible, but it obvious from the numbers. Internet addresses are only 32-bits long, or roughly 4 billion combinations. A fast Internet link can easily handle 1 million packets-per-second, so the entire Internet can be scanned in 4000 seconds, little more than an hour. It’s basic math.
Because it’s so easy, many people do it. If you monitor your Internet link, you’ll see a steady trickle of packets coming in from all over the Internet, especially Russia and China, from hackers scanning the Internet for things they can hack.
People’s reaction to this scanning is weirdly emotional, taking is personally, such as:
  1. Why are they hacking me? What did I do to them?
  2. Great! They are hacking me! That must mean I’m important!
  3. Grrr! How dare they?! How can I hack them back for some retribution!?

I find this odd, because obviously such scanning isn’t personal, the hackers have no idea who you are.

Tools: masscan, firewalls

Packet-sniffing, sidejacking

If you connect to the Starbucks WiFi, a hacker nearby can easily eavesdrop on your network traffic, because it’s not encrypted. Windows even warns you about this, in case you weren’t sure.

At DefCon, they have a “Wall of Sheep”, where they show passwords from people who logged onto stuff using the insecure “DefCon-Open” network. Calling them “sheep” for not grasping this basic fact that unencrypted traffic is unencrypted.

To be fair, it’s actually non-obvious to many people. Even if the WiFi itself is not encrypted, SSL traffic is. They expect their services to be encrypted, without them having to worry about it. And in fact, most are, especially Google, Facebook, Twitter, Apple, and other major services that won’t allow you to log in anymore without encryption.

But many services (especially old ones) may not be encrypted. Unless users check and verify them carefully, they’ll happily expose passwords.

What’s interesting about this was 10 years ago, when most services which only used SSL to encrypt the passwords, but then used unencrypted connections after that, using “cookies”. This allowed the cookies to be sniffed and stolen, allowing other people to share the login session. I used this on stage at BlackHat to connect to somebody’s GMail session. Google, and other major websites, fixed this soon after. But it should never have been a problem — because the sidejacking of cookies should have been obvious.

Tools: Wireshark, dsniff

Stuxnet LNK vulnerability

Again, this issue isn’t obvious to the public, but it should’ve been obvious to anybody who knew how Windows works.
When Windows loads a .dll, it first calls the function DllMain(). A Windows link file (.lnk) can load icons/graphics from the resources in a .dll file. It does this by loading the .dll file, thus calling DllMain. Thus, a hacker could put on a USB drive a .lnk file pointing to a .dll file, and thus, cause arbitrary code execution as soon as a user inserted a drive.
I say this is obvious because I did this, created .lnks that pointed to .dlls, but without hostile DllMain code. The consequence should’ve been obvious to me, but I totally missed the connection. We all missed the connection, for decades.

Social Engineering and Tech Support [* * *]

After posting this, many people have pointed out “social engineering”, especially of “tech support”. This probably should be up near #1 in terms of obviousness.

The classic example of social engineering is when you call tech support and tell them you’ve lost your password, and they reset it for you with minimum of questions proving who you are. For example, you set the volume on your computer really loud and play the sound of a crying baby in the background and appear to be a bit frazzled and incoherent, which explains why you aren’t answering the questions they are asking. They, understanding your predicament as a new parent, will go the extra mile in helping you, resetting “your” password.

One of the interesting consequences is how it affects domain names (DNS). It’s quite easy in many cases to call up the registrar and convince them to transfer a domain name. This has been used in lots of hacks. It’s really hard to defend against. If a registrar charges only $9/year for a domain name, then it really can’t afford to provide very good tech support — or very secure tech support — to prevent this sort of hack.

Social engineering is such a huge problem, and obvious problem, that it’s outside the scope of this document. Just google it to find example after example.

A related issue that perhaps deserves it’s own section is OSINT [*], or “open-source intelligence”, where you gather public information about a target. For example, on the day the bank manager is out on vacation (which you got from their Facebook post) you show up and claim to be a bank auditor, and are shown into their office where you grab their backup tapes. (We’ve actually done this).

More: Wikipedia on Social Engineering, Wikipedia on OSINT, “How I Won the Defcon Social Engineering CTF” — blogpost (2011), “Questioning 42: Where’s the Engineering in Social Engineering of Namespace Compromises” — BSidesLV talk (2016)

Blue-boxes (historical) [*]

Telephones historically used what we call “in-band signaling”. That’s why when you dial on an old phone, it makes sounds — those sounds are sent no differently than the way your voice is sent. Thus, it was possible to make tone generators to do things other than simply dial calls. Early hackers (in the 1970s) would make tone-generators called “blue-boxes” and “black-boxes” to make free long distance calls, for example.

These days, “signaling” and “voice” are digitized, then sent as separate channels or “bands”. This is call “out-of-band signaling”. You can’t trick the phone system by generating tones. When your iPhone makes sounds when you dial, it’s entirely for you benefit and has nothing to do with how it signals the cell tower to make a call.

Early hackers, like the founders of Apple, are famous for having started their careers making such “boxes” for tricking the phone system. The problem was obvious back in the day, which is why as the phone system moves from analog to digital, the problem was fixed.

More: Wikipedia on blue box, Wikipedia article on Steve Wozniak.

Thumb drives in parking lots [*]

A simple trick is to put a virus on a USB flash drive, and drop it in a parking lot. Somebody is bound to notice it, stick it in their computer, and open the file.

This can be extended with tricks. For example, you can put a file labeled “third-quarter-salaries.xlsx” on the drive that required macros to be run in order to open. It’s irresistible to other employees who want to know what their peers are being paid, so they’ll bypass any warning prompts in order to see the data.

Another example is to go online and get custom USB sticks made printed with the logo of the target company, making them seem more trustworthy.

We also did a trick of taking an Adobe Flash game “Punch the Monkey” and replaced the monkey with a logo of a competitor of our target. They now only played the game (infecting themselves with our virus), but gave to others inside the company to play, infecting others, including the CEO.

Thumb drives like this have been used in many incidents, such as Russians hacking military headquarters in Afghanistan. It’s really hard to defend against.

More: “Computer Virus Hits U.S. Military Base in Afghanistan” — USNews (2008), “The Return of the Worm That Ate The Pentagon” — Wired (2011), DoD Bans Flash Drives — Stripes (2008)

Googling [*]

Search engines like Google will index your website — your entire website. Frequently companies put things on their website without much protection because they are nearly impossible for users to find. But Google finds them, then indexes them, causing them to pop up with innocent searches.
There are books written on “Google hacking” explaining what search terms to look for, like “not for public release”, in order to find such documents.

More: Wikipedia entry on Google Hacking, “Google Hacking” book.

URL editing [*]

At the top of every browser is what’s called the “URL”. You can change it. Thus, if you see a URL that looks like this:

http://www.example.com/documents?id=138493

Then you can edit it to see the next document on the server:

http://www.example.com/documents?id=138494

The owner of the website may think they are secure, because nothing points to this document, so the Google search won’t find it. But that doesn’t stop a user from manually editing the URL.
An example of this is a big Fortune 500 company that posts the quarterly results to the website an hour before the official announcement. Simply editing the URL from previous financial announcements allows hackers to find the document, then buy/sell the stock as appropriate in order to make a lot of money.
Another example is the classic case of Andrew “Weev” Auernheimer who did this trick in order to download the account email addresses of early owners of the iPad, including movie stars and members of the Obama administration. It’s an interesting legal case because on one hand, techies consider this so obvious as to not be “hacking”. On the other hand, non-techies, especially judges and prosecutors, believe this to be obviously “hacking”.

DDoS, spoofing, and amplification [*]

For decades now, online gamers have figured out an easy way to win: just flood the opponent with Internet traffic, slowing their network connection. This is called a DoS, which stands for “Denial of Service”. DoSing game competitors is often a teenager’s first foray into hacking.
A variant of this is when you hack a bunch of other machines on the Internet, then command them to flood your target. (The hacked machines are often called a “botnet”, a network of robot computers). This is called DDoS, or “Distributed DoS”. At this point, it gets quite serious, as instead of competitive gamers hackers can take down entire businesses. Extortion scams, DDoSing websites then demanding payment to stop, is a common way hackers earn money.
Another form of DDoS is “amplification”. Sometimes when you send a packet to a machine on the Internet it’ll respond with a much larger response, either a very large packet or many packets. The hacker can then send a packet to many of these sites, “spoofing” or forging the IP address of the victim. This causes all those sites to then flood the victim with traffic. Thus, with a small amount of outbound traffic, the hacker can flood the inbound traffic of the victim.
This is one of those things that has worked for 20 years, because it’s so obvious teenagers can do it, yet there is no obvious solution. President Trump’s executive order of cyberspace specifically demanded that his government come up with a report on how to address this, but it’s unlikely that they’ll come up with any useful strategy.

More: Wikipedia on DDoS, Wikipedia on Spoofing

Conclusion

Tweet me (@ErrataRob) your obvious hacks, so I can add them to the list.

The Future of Ransomware

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/05/the_future_of_r.html

Ransomware isn’t new, but it’s increasingly popular and profitable.

The concept is simple: Your computer gets infected with a virus that encrypts your files until you pay a ransom. It’s extortion taken to its networked extreme. The criminals provide step-by-step instructions on how to pay, sometimes even offering a help line for victims unsure how to buy bitcoin. The price is designed to be cheap enough for people to pay instead of giving up: a few hundred dollars in many cases. Those who design these systems know their market, and it’s a profitable one.

The ransomware that has affected systems in more than 150 countries recently, WannaCry, made press headlines last week, but it doesn’t seem to be more virulent or more expensive than other ransomware. This one has a particularly interesting pedigree: It’s based on a vulnerability developed by the National Security Agency that can be used against many versions of the Windows operating system. The NSA’s code was, in turn, stolen by an unknown hacker group called Shadow Brokers ­ widely believed by the security community to be the Russians ­ in 2014 and released to the public in April.

Microsoft patched the vulnerability a month earlier, presumably after being alerted by the NSA that the leak was imminent. But the vulnerability affected older versions of Windows that Microsoft no longer supports, and there are still many people and organizations that don’t regularly patch their systems. This allowed whoever wrote WannaCry ­– it could be anyone from a lone individual to an organized crime syndicate — to use it to infect computers and extort users.

The lessons for users are obvious: Keep your system patches up to date and regularly backup your data. This isn’t just good advice to defend against ransomware, but good advice in general. But it’s becoming obsolete.

Everything is becoming a computer. Your microwave is a computer that makes things hot. Your refrigerator is a computer that keeps things cold. Your car and television, the traffic lights and signals in your city and our national power grid are all computers. This is the much-hyped Internet of Things (IoT). It’s coming, and it’s coming faster than you might think. And as these devices connect to the Internet, they become vulnerable to ransomware and other computer threats.

It’s only a matter of time before people get messages on their car screens saying that the engine has been disabled and it will cost $200 in bitcoin to turn it back on. Or a similar message on their phones about their Internet-enabled door lock: Pay $100 if you want to get into your house tonight. Or pay far more if they want their embedded heart defibrillator to keep working.

This isn’t just theoretical. Researchers have already demonstrated a ransomware attack against smart thermostats, which may sound like a nuisance at first but can cause serious property damage if it’s cold enough outside. If the device under attack has no screen, you’ll get the message on the smartphone app you control it from.

Hackers don’t even have to come up with these ideas on their own; the government agencies whose code was stolen were already doing it. One of the leaked CIA attack tools targets Internet-enabled Samsung smart televisions.

Even worse, the usual solutions won’t work with these embedded systems. You have no way to back up your refrigerator’s software, and it’s unclear whether that solution would even work if an attack targets the functionality of the device rather than its stored data.

These devices will be around for a long time. Unlike our phones and computers, which we replace every few years, cars are expected to last at least a decade. We want our appliances to run for 20 years or more, our thermostats even longer.

What happens when the company that made our smart washing machine — or just the computer part — goes out of business, or otherwise decides that they can no longer support older models? WannaCry affected Windows versions as far back as XP, a version that Microsoft no longer supports. The company broke with policy and released a patch for those older systems, but it has both the engineering talent and the money to do so.

That won’t happen with low-cost IoT devices.

Those devices are built on the cheap, and the companies that make them don’t have the dedicated teams of security engineers ready to craft and distribute security patches. The economics of the IoT doesn’t allow for it. Even worse, many of these devices aren’t patchable. Remember last fall when the Mirai botnet infected hundreds of thousands of Internet-enabled digital video recorders, webcams and other devices and launched a massive denial-of-service attack that resulted in a host of popular websites dropping off the Internet? Most of those devices couldn’t be fixed with new software once they were attacked. The way you update your DVR is to throw it away and buy a new one.

Solutions aren’t easy and they’re not pretty. The market is not going to fix this unaided. Security is a hard-to-evaluate feature against a possible future threat, and consumers have long rewarded companies that provide easy-to-compare features and a quick time-to-market at its expense. We need to assign liabilities to companies that write insecure software that harms people, and possibly even issue and enforce regulations that require companies to maintain software systems throughout their life cycle. We may need minimum security standards for critical IoT devices. And it would help if the NSA got more involved in securing our information infrastructure and less in keeping it vulnerable so the government can eavesdrop.

I know this all sounds politically impossible right now, but we simply cannot live in a future where everything — from the things we own to our nation’s infrastructure ­– can be held for ransom by criminals again and again.

This essay previously appeared in the Washington Post.

Four Things To Do On World Backup Day

Post Syndicated from Peter Cohen original https://www.backblaze.com/blog/four-things-to-do-on-world-backup-day/

World Backup Day 2017

Happy World Backup Day! Are you backed up? If not, you should be! And if you are backing up, now’s the time to check to make sure your backup is doing what it’s supposed to. On this day, we thought we’d offer a few backup pointers to make sure you’re on the right track.

World Backup Day was thought up a few years ago to help remind us that backing up your data is important. While we at Backblaze didn’t have anything to do with its creation, it’s an idea that we certainly support. Because *every* day is World Backup Day at Backblaze.

1. Be Wary Of New Threats

Even if you regularly back up your computer, problems can stop you in your tracks. Malware and ransomware are prominent issues. Anti-virus and anti-malware software apps don’t always detect new exploits in a timely fashion.

Malware infection symptoms range from the annoying – browser redirects, crashes and slowdowns – to the downright extortionate, like our own Elli’s experience with ransomware.

Elli was protected with a Backblaze backup. The alternative would have been to either lose data or pay off ransomware hackers – either way, not a pretty picture.

2. Keep Your Backups Close

Don’t make your backup strategy dependent on a single point of failure. Hedge your bets by having more than one backup to restore from in the event of an emergency.

One solution is to keep a local backup copy on hand and another one offsite. Backblaze makes it easy with our unlimited, unthrottled cloud backup service available for one low price – just $5 per month.

Keep a local backup copy on hand and another one offsite.

Apple’s Time Machine, Microsoft’s Windows Backup, and many other apps let you create a local backup copy you can restore from quickly and easily. If anything goes wrong with that backup, or if you need to access your backup files when you’re away from your computer, you can restore from your cloud backup.

It’s part of the 3-2-1 Backup Strategy, which we think is a good start to make sure your data is safe.

3. Check Your Backup

If you already back up your computer, terrific. World Backup Day is just one day a year, but hopefully your backups happen more frequently. Take some time today to check your backup. Make sure the files you need are where they’re supposed to be.

Testing your backups should be an essential part of your overall backup strategy. Make sure you’re backing up what you need to. Also make sure the backups themselves work as they’re supposed to, by restoring files and checking them. A practical benefit of doing this is to gain familiarity with the process. That way, you’ll be experienced with what to do when it matters.

With Backblaze, it takes only a few mouse clicks to confirm your files are backed up.

Need more guidance to test your backups? We have you covered: Read up on
How To Test Your Backup.

4. Keep Up To Date on Backup Best Practices

Don’t be an April Fool. Despite the ubiquity of digital devices in our life, we’re complacent about the safety of our data. About a third of us have never backed up our computer.

Testing your backups should be an essential part of your overall backup strategy.

If you’re in that group, there are ways to keep your Mac or PC data safe. Visit our Computer Backup Guide to learn more. We’ll help you break down the why, what and how of computer backups.

If you already use Backblaze, make sure to catch up on our best practices, like testing the Backblaze backup service, using appropriate security measures, and restoring data to test integrity.

If you have ideas about backup practices or questions you’d like help with, join the discussion!

The post Four Things To Do On World Backup Day appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Hackers Threaten to Erase Apple Customer Data

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/03/hackers_threate.html

Turkish hackers are threatening to erase millions of iCloud user accounts unless Apple pays a ransom.

This is a weird story, and I’m skeptical of some of the details. Presumably Apple has decided that it’s smarter to spend the money on secure backups and other security measures than to pay the ransom. But we’ll see how this unfolds.

Botnets

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/03/botnets.html

Botnets have existed for at least a decade. As early as 2000, hackers were breaking into computers over the Internet and controlling them en masse from centralized systems. Among other things, the hackers used the combined computing power of these botnets to launch distributed denial-of-service attacks, which flood websites with traffic to take them down.

But now the problem is getting worse, thanks to a flood of cheap webcams, digital video recorders, and other gadgets in the “Internet of things.” Because these devices typically have little or no security, hackers can take them over with little effort. And that makes it easier than ever to build huge botnets that take down much more than one site at a time.

In October, a botnet made up of 100,000 compromised gadgets knocked an Internet infrastructure provider partially offline. Taking down that provider, Dyn, resulted in a cascade of effects that ultimately caused a long list of high-profile websites, including Twitter and Netflix, to temporarily disappear from the Internet. More attacks are sure to follow: the botnet that attacked Dyn was created with publicly available malware called Mirai that largely automates the process of co-opting computers.

The best defense would be for everything online to run only secure software, so botnets couldn’t be created in the first place. This isn’t going to happen anytime soon. Internet of things devices are not designed with security in mind and often have no way of being patched. The things that have become part of Mirai botnets, for example, will be vulnerable until their owners throw them away. Botnets will get larger and more powerful simply because the number of vulnerable devices will go up by orders of magnitude over the next few years.

What do hackers do with them? Many things.

Botnets are used to commit click fraud. Click fraud is a scheme to fool advertisers into thinking that people are clicking on, or viewing, their ads. There are lots of ways to commit click fraud, but the easiest is probably for the attacker to embed a Google ad in a Web page he owns. Google ads pay a site owner according to the number of people who click on them. The attacker instructs all the computers on his botnet to repeatedly visit the Web page and click on the ad. Dot, dot, dot, PROFIT! If the botnet makers figure out more effective ways to siphon revenue from big companies online, we could see the whole advertising model of the Internet crumble.

Similarly, botnets can be used to evade spam filters, which work partly by knowing which computers are sending millions of e-mails. They can speed up password guessing to break into online accounts, mine bitcoins, and do anything else that requires a large network of computers. This is why botnets are big businesses. Criminal organizations rent time on them.

But the botnet activities that most often make headlines are denial-of-service attacks. Dyn seems to have been the victim of some angry hackers, but more financially motivated groups use these attacks as a form of extortion. Political groups use them to silence websites they don’t like. Such attacks will certainly be a tactic in any future cyberwar.

Once you know a botnet exists, you can attack its command-and-control system. When botnets were rare, this tactic was effective. As they get more common, this piecemeal defense will become less so. You can also secure yourself against the effects of botnets. For example, several companies sell defenses against denial-of-service attacks. Their effectiveness varies, depending on the severity of the attack and the type of service.

But overall, the trends favor the attacker. Expect more attacks like the one against Dyn in the coming year.

This essay previously appeared in the MIT Technology Review.

Security and the Internet of Things

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/02/security_and_th.html

Last year, on October 21, your digital video recorder ­- or at least a DVR like yours ­- knocked Twitter off the internet. Someone used your DVR, along with millions of insecure webcams, routers, and other connected devices, to launch an attack that started a chain reaction, resulting in Twitter, Reddit, Netflix, and many sites going off the internet. You probably didn’t realize that your DVR had that kind of power. But it does.

All computers are hackable. This has as much to do with the computer market as it does with the technologies. We prefer our software full of features and inexpensive, at the expense of security and reliability. That your computer can affect the security of Twitter is a market failure. The industry is filled with market failures that, until now, have been largely ignorable. As computers continue to permeate our homes, cars, businesses, these market failures will no longer be tolerable. Our only solution will be regulation, and that regulation will be foisted on us by a government desperate to “do something” in the face of disaster.

In this article I want to outline the problems, both technical and political, and point to some regulatory solutions. Regulation might be a dirty word in today’s political climate, but security is the exception to our small-government bias. And as the threats posed by computers become greater and more catastrophic, regulation will be inevitable. So now’s the time to start thinking about it.

We also need to reverse the trend to connect everything to the internet. And if we risk harm and even death, we need to think twice about what we connect and what we deliberately leave uncomputerized.

If we get this wrong, the computer industry will look like the pharmaceutical industry, or the aircraft industry. But if we get this right, we can maintain the innovative environment of the internet that has given us so much.

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We no longer have things with computers embedded in them. We have computers with things attached to them.

Your modern refrigerator is a computer that keeps things cold. Your oven, similarly, is a computer that makes things hot. An ATM is a computer with money inside. Your car is no longer a mechanical device with some computers inside; it’s a computer with four wheels and an engine. Actually, it’s a distributed system of over 100 computers with four wheels and an engine. And, of course, your phones became full-power general-purpose computers in 2007, when the iPhone was introduced.

We wear computers: fitness trackers and computer-enabled medical devices ­- and, of course, we carry our smartphones everywhere. Our homes have smart thermostats, smart appliances, smart door locks, even smart light bulbs. At work, many of those same smart devices are networked together with CCTV cameras, sensors that detect customer movements, and everything else. Cities are starting to embed smart sensors in roads, streetlights, and sidewalk squares, also smart energy grids and smart transportation networks. A nuclear power plant is really just a computer that produces electricity, and ­- like everything else we’ve just listed -­ it’s on the internet.

The internet is no longer a web that we connect to. Instead, it’s a computerized, networked, and interconnected world that we live in. This is the future, and what we’re calling the Internet of Things.

Broadly speaking, the Internet of Things has three parts. There are the sensors that collect data about us and our environment: smart thermostats, street and highway sensors, and those ubiquitous smartphones with their motion sensors and GPS location receivers. Then there are the “smarts” that figure out what the data means and what to do about it. This includes all the computer processors on these devices and ­- increasingly ­- in the cloud, as well as the memory that stores all of this information. And finally, there are the actuators that affect our environment. The point of a smart thermostat isn’t to record the temperature; it’s to control the furnace and the air conditioner. Driverless cars collect data about the road and the environment to steer themselves safely to their destinations.

You can think of the sensors as the eyes and ears of the internet. You can think of the actuators as the hands and feet of the internet. And you can think of the stuff in the middle as the brain. We are building an internet that senses, thinks, and acts.

This is the classic definition of a robot. We’re building a world-size robot, and we don’t even realize it.

To be sure, it’s not a robot in the classical sense. We think of robots as discrete autonomous entities, with sensors, brain, and actuators all together in a metal shell. The world-size robot is distributed. It doesn’t have a singular body, and parts of it are controlled in different ways by different people. It doesn’t have a central brain, and it has nothing even remotely resembling a consciousness. It doesn’t have a single goal or focus. It’s not even something we deliberately designed. It’s something we have inadvertently built out of the everyday objects we live with and take for granted. It is the extension of our computers and networks into the real world.

This world-size robot is actually more than the Internet of Things. It’s a combination of several decades-old computing trends: mobile computing, cloud computing, always-on computing, huge databases of personal information, the Internet of Things ­- or, more precisely, cyber-physical systems ­- autonomy, and artificial intelligence. And while it’s still not very smart, it’ll get smarter. It’ll get more powerful and more capable through all the interconnections we’re building.

It’ll also get much more dangerous.

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Computer security has been around for almost as long as computers have been. And while it’s true that security wasn’t part of the design of the original internet, it’s something we have been trying to achieve since its beginning.

I have been working in computer security for over 30 years: first in cryptography, then more generally in computer and network security, and now in general security technology. I have watched computers become ubiquitous, and have seen firsthand the problems ­- and solutions ­- of securing these complex machines and systems. I’m telling you all this because what used to be a specialized area of expertise now affects everything. Computer security is now everything security. There’s one critical difference, though: The threats have become greater.

Traditionally, computer security is divided into three categories: confidentiality, integrity, and availability. For the most part, our security concerns have largely centered around confidentiality. We’re concerned about our data and who has access to it ­- the world of privacy and surveillance, of data theft and misuse.

But threats come in many forms. Availability threats: computer viruses that delete our data, or ransomware that encrypts our data and demands payment for the unlock key. Integrity threats: hackers who can manipulate data entries can do things ranging from changing grades in a class to changing the amount of money in bank accounts. Some of these threats are pretty bad. Hospitals have paid tens of thousands of dollars to criminals whose ransomware encrypted critical medical files. JPMorgan Chase spends half a billion on cybersecurity a year.

Today, the integrity and availability threats are much worse than the confidentiality threats. Once computers start affecting the world in a direct and physical manner, there are real risks to life and property. There is a fundamental difference between crashing your computer and losing your spreadsheet data, and crashing your pacemaker and losing your life. This isn’t hyperbole; recently researchers found serious security vulnerabilities in St. Jude Medical’s implantable heart devices. Give the internet hands and feet, and it will have the ability to punch and kick.

Take a concrete example: modern cars, those computers on wheels. The steering wheel no longer turns the axles, nor does the accelerator pedal change the speed. Every move you make in a car is processed by a computer, which does the actual controlling. A central computer controls the dashboard. There’s another in the radio. The engine has 20 or so computers. These are all networked, and increasingly autonomous.

Now, let’s start listing the security threats. We don’t want car navigation systems to be used for mass surveillance, or the microphone for mass eavesdropping. We might want it to be used to determine a car’s location in the event of a 911 call, and possibly to collect information about highway congestion. We don’t want people to hack their own cars to bypass emissions-control limitations. We don’t want manufacturers or dealers to be able to do that, either, as Volkswagen did for years. We can imagine wanting to give police the ability to remotely and safely disable a moving car; that would make high-speed chases a thing of the past. But we definitely don’t want hackers to be able to do that. We definitely don’t want them disabling the brakes in every car without warning, at speed. As we make the transition from driver-controlled cars to cars with various driver-assist capabilities to fully driverless cars, we don’t want any of those critical components subverted. We don’t want someone to be able to accidentally crash your car, let alone do it on purpose. And equally, we don’t want them to be able to manipulate the navigation software to change your route, or the door-lock controls to prevent you from opening the door. I could go on.

That’s a lot of different security requirements, and the effects of getting them wrong range from illegal surveillance to extortion by ransomware to mass death.

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Our computers and smartphones are as secure as they are because companies like Microsoft, Apple, and Google spend a lot of time testing their code before it’s released, and quickly patch vulnerabilities when they’re discovered. Those companies can support large, dedicated teams because those companies make a huge amount of money, either directly or indirectly, from their software ­ and, in part, compete on its security. Unfortunately, this isn’t true of embedded systems like digital video recorders or home routers. Those systems are sold at a much lower margin, and are often built by offshore third parties. The companies involved simply don’t have the expertise to make them secure.

At a recent hacker conference, a security researcher analyzed 30 home routers and was able to break into half of them, including some of the most popular and common brands. The denial-of-service attacks that forced popular websites like Reddit and Twitter off the internet last October were enabled by vulnerabilities in devices like webcams and digital video recorders. In August, two security researchers demonstrated a ransomware attack on a smart thermostat.

Even worse, most of these devices don’t have any way to be patched. Companies like Microsoft and Apple continuously deliver security patches to your computers. Some home routers are technically patchable, but in a complicated way that only an expert would attempt. And the only way for you to update the firmware in your hackable DVR is to throw it away and buy a new one.

The market can’t fix this because neither the buyer nor the seller cares. The owners of the webcams and DVRs used in the denial-of-service attacks don’t care. Their devices were cheap to buy, they still work, and they don’t know any of the victims of the attacks. The sellers of those devices don’t care: They’re now selling newer and better models, and the original buyers only cared about price and features. There is no market solution, because the insecurity is what economists call an externality: It’s an effect of the purchasing decision that affects other people. Think of it kind of like invisible pollution.

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Security is an arms race between attacker and defender. Technology perturbs that arms race by changing the balance between attacker and defender. Understanding how this arms race has unfolded on the internet is essential to understanding why the world-size robot we’re building is so insecure, and how we might secure it. To that end, I have five truisms, born from what we’ve already learned about computer and internet security. They will soon affect the security arms race everywhere.

Truism No. 1: On the internet, attack is easier than defense.

There are many reasons for this, but the most important is the complexity of these systems. More complexity means more people involved, more parts, more interactions, more mistakes in the design and development process, more of everything where hidden insecurities can be found. Computer-security experts like to speak about the attack surface of a system: all the possible points an attacker might target and that must be secured. A complex system means a large attack surface. The defender has to secure the entire attack surface. The attacker just has to find one vulnerability ­- one unsecured avenue for attack -­ and gets to choose how and when to attack. It’s simply not a fair battle.

There are other, more general, reasons why attack is easier than defense. Attackers have a natural agility that defenders often lack. They don’t have to worry about laws, and often not about morals or ethics. They don’t have a bureaucracy to contend with, and can more quickly make use of technical innovations. Attackers also have a first-mover advantage. As a society, we’re generally terrible at proactive security; we rarely take preventive security measures until an attack actually happens. So more advantages go to the attacker.

Truism No. 2: Most software is poorly written and insecure.

If complexity isn’t enough, we compound the problem by producing lousy software. Well-written software, like the kind found in airplane avionics, is both expensive and time-consuming to produce. We don’t want that. For the most part, poorly written software has been good enough. We’d all rather live with buggy software than pay the prices good software would require. We don’t mind if our games crash regularly, or our business applications act weird once in a while. Because software has been largely benign, it hasn’t mattered. This has permeated the industry at all levels. At universities, we don’t teach how to code well. Companies don’t reward quality code in the same way they reward fast and cheap. And we consumers don’t demand it.

But poorly written software is riddled with bugs, sometimes as many as one per 1,000 lines of code. Some of them are inherent in the complexity of the software, but most are programming mistakes. Not all bugs are vulnerabilities, but some are.

Truism No. 3: Connecting everything to each other via the internet will expose new vulnerabilities.

The more we network things together, the more vulnerabilities on one thing will affect other things. On October 21, vulnerabilities in a wide variety of embedded devices were all harnessed together to create what hackers call a botnet. This botnet was used to launch a distributed denial-of-service attack against a company called Dyn. Dyn provided a critical internet function for many major internet sites. So when Dyn went down, so did all those popular websites.

These chains of vulnerabilities are everywhere. In 2012, journalist Mat Honan suffered a massive personal hack because of one of them. A vulnerability in his Amazon account allowed hackers to get into his Apple account, which allowed them to get into his Gmail account. And in 2013, the Target Corporation was hacked by someone stealing credentials from its HVAC contractor.

Vulnerabilities like these are particularly hard to fix, because no one system might actually be at fault. It might be the insecure interaction of two individually secure systems.

Truism No. 4: Everybody has to stop the best attackers in the world.

One of the most powerful properties of the internet is that it allows things to scale. This is true for our ability to access data or control systems or do any of the cool things we use the internet for, but it’s also true for attacks. In general, fewer attackers can do more damage because of better technology. It’s not just that these modern attackers are more efficient, it’s that the internet allows attacks to scale to a degree impossible without computers and networks.

This is fundamentally different from what we’re used to. When securing my home against burglars, I am only worried about the burglars who live close enough to my home to consider robbing me. The internet is different. When I think about the security of my network, I have to be concerned about the best attacker possible, because he’s the one who’s going to create the attack tool that everyone else will use. The attacker that discovered the vulnerability used to attack Dyn released the code to the world, and within a week there were a dozen attack tools using it.

Truism No. 5: Laws inhibit security research.

The Digital Millennium Copyright Act is a terrible law that fails at its purpose of preventing widespread piracy of movies and music. To make matters worse, it contains a provision that has critical side effects. According to the law, it is a crime to bypass security mechanisms that protect copyrighted work, even if that bypassing would otherwise be legal. Since all software can be copyrighted, it is arguably illegal to do security research on these devices and to publish the result.

Although the exact contours of the law are arguable, many companies are using this provision of the DMCA to threaten researchers who expose vulnerabilities in their embedded systems. This instills fear in researchers, and has a chilling effect on research, which means two things: (1) Vendors of these devices are more likely to leave them insecure, because no one will notice and they won’t be penalized in the market, and (2) security engineers don’t learn how to do security better.
Unfortunately, companies generally like the DMCA. The provisions against reverse-engineering spare them the embarrassment of having their shoddy security exposed. It also allows them to build proprietary systems that lock out competition. (This is an important one. Right now, your toaster cannot force you to only buy a particular brand of bread. But because of this law and an embedded computer, your Keurig coffee maker can force you to buy a particular brand of coffee.)

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In general, there are two basic paradigms of security. We can either try to secure something well the first time, or we can make our security agile. The first paradigm comes from the world of dangerous things: from planes, medical devices, buildings. It’s the paradigm that gives us secure design and secure engineering, security testing and certifications, professional licensing, detailed preplanning and complex government approvals, and long times-to-market. It’s security for a world where getting it right is paramount because getting it wrong means people dying.

The second paradigm comes from the fast-moving and heretofore largely benign world of software. In this paradigm, we have rapid prototyping, on-the-fly updates, and continual improvement. In this paradigm, new vulnerabilities are discovered all the time and security disasters regularly happen. Here, we stress survivability, recoverability, mitigation, adaptability, and muddling through. This is security for a world where getting it wrong is okay, as long as you can respond fast enough.

These two worlds are colliding. They’re colliding in our cars -­ literally -­ in our medical devices, our building control systems, our traffic control systems, and our voting machines. And although these paradigms are wildly different and largely incompatible, we need to figure out how to make them work together.

So far, we haven’t done very well. We still largely rely on the first paradigm for the dangerous computers in cars, airplanes, and medical devices. As a result, there are medical systems that can’t have security patches installed because that would invalidate their government approval. In 2015, Chrysler recalled 1.4 million cars to fix a software vulnerability. In September 2016, Tesla remotely sent a security patch to all of its Model S cars overnight. Tesla sure sounds like it’s doing things right, but what vulnerabilities does this remote patch feature open up?

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Until now we’ve largely left computer security to the market. Because the computer and network products we buy and use are so lousy, an enormous after-market industry in computer security has emerged. Governments, companies, and people buy the security they think they need to secure themselves. We’ve muddled through well enough, but the market failures inherent in trying to secure this world-size robot will soon become too big to ignore.

Markets alone can’t solve our security problems. Markets are motivated by profit and short-term goals at the expense of society. They can’t solve collective-action problems. They won’t be able to deal with economic externalities, like the vulnerabilities in DVRs that resulted in Twitter going offline. And we need a counterbalancing force to corporate power.

This all points to policy. While the details of any computer-security system are technical, getting the technologies broadly deployed is a problem that spans law, economics, psychology, and sociology. And getting the policy right is just as important as getting the technology right because, for internet security to work, law and technology have to work together. This is probably the most important lesson of Edward Snowden’s NSA disclosures. We already knew that technology can subvert law. Snowden demonstrated that law can also subvert technology. Both fail unless each work. It’s not enough to just let technology do its thing.

Any policy changes to secure this world-size robot will mean significant government regulation. I know it’s a sullied concept in today’s world, but I don’t see any other possible solution. It’s going to be especially difficult on the internet, where its permissionless nature is one of the best things about it and the underpinning of its most world-changing innovations. But I don’t see how that can continue when the internet can affect the world in a direct and physical manner.

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I have a proposal: a new government regulatory agency. Before dismissing it out of hand, please hear me out.

We have a practical problem when it comes to internet regulation. There’s no government structure to tackle this at a systemic level. Instead, there’s a fundamental mismatch between the way government works and the way this technology works that makes dealing with this problem impossible at the moment.

Government operates in silos. In the U.S., the FAA regulates aircraft. The NHTSA regulates cars. The FDA regulates medical devices. The FCC regulates communications devices. The FTC protects consumers in the face of “unfair” or “deceptive” trade practices. Even worse, who regulates data can depend on how it is used. If data is used to influence a voter, it’s the Federal Election Commission’s jurisdiction. If that same data is used to influence a consumer, it’s the FTC’s. Use those same technologies in a school, and the Department of Education is now in charge. Robotics will have its own set of problems, and no one is sure how that is going to be regulated. Each agency has a different approach and different rules. They have no expertise in these new issues, and they are not quick to expand their authority for all sorts of reasons.

Compare that with the internet. The internet is a freewheeling system of integrated objects and networks. It grows horizontally, demolishing old technological barriers so that people and systems that never previously communicated now can. Already, apps on a smartphone can log health information, control your energy use, and communicate with your car. That’s a set of functions that crosses jurisdictions of at least four different government agencies, and it’s only going to get worse.

Our world-size robot needs to be viewed as a single entity with millions of components interacting with each other. Any solutions here need to be holistic. They need to work everywhere, for everything. Whether we’re talking about cars, drones, or phones, they’re all computers.

This has lots of precedent. Many new technologies have led to the formation of new government regulatory agencies. Trains did, cars did, airplanes did. Radio led to the formation of the Federal Radio Commission, which became the FCC. Nuclear power led to the formation of the Atomic Energy Commission, which eventually became the Department of Energy. The reasons were the same in every case. New technologies need new expertise because they bring with them new challenges. Governments need a single agency to house that new expertise, because its applications cut across several preexisting agencies. It’s less that the new agency needs to regulate -­ although that’s often a big part of it -­ and more that governments recognize the importance of the new technologies.

The internet has famously eschewed formal regulation, instead adopting a multi-stakeholder model of academics, businesses, governments, and other interested parties. My hope is that we can keep the best of this approach in any regulatory agency, looking more at the new U.S. Digital Service or the 18F office inside the General Services Administration. Both of those organizations are dedicated to providing digital government services, and both have collected significant expertise by bringing people in from outside of government, and both have learned how to work closely with existing agencies. Any internet regulatory agency will similarly need to engage in a high level of collaborate regulation -­ both a challenge and an opportunity.

I don’t think any of us can predict the totality of the regulations we need to ensure the safety of this world, but here’s a few. We need government to ensure companies follow good security practices: testing, patching, secure defaults -­ and we need to be able to hold companies liable when they fail to do these things. We need government to mandate strong personal data protections, and limitations on data collection and use. We need to ensure that responsible security research is legal and well-funded. We need to enforce transparency in design, some sort of code escrow in case a company goes out of business, and interoperability between devices of different manufacturers, to counterbalance the monopolistic effects of interconnected technologies. Individuals need the right to take their data with them. And internet-enabled devices should retain some minimal functionality if disconnected from the internet

I’m not the only one talking about this. I’ve seen proposals for a National Institutes of Health analog for cybersecurity. University of Washington law professor Ryan Calo has proposed a Federal Robotics Commission. I think it needs to be broader: maybe a Department of Technology Policy.

Of course there will be problems. There’s a lack of expertise in these issues inside government. There’s a lack of willingness in government to do the hard regulatory work. Industry is worried about any new bureaucracy: both that it will stifle innovation by regulating too much and that it will be captured by industry and regulate too little. A domestic regulatory agency will have to deal with the fundamentally international nature of the problem.

But government is the entity we use to solve problems like this. Governments have the scope, scale, and balance of interests to address the problems. It’s the institution we’ve built to adjudicate competing social interests and internalize market externalities. Left to their own devices, the market simply can’t. That we’re currently in the middle of an era of low government trust, where many of us can’t imagine government doing anything positive in an area like this, is to our detriment.

Here’s the thing: Governments will get involved, regardless. The risks are too great, and the stakes are too high. Government already regulates dangerous physical systems like cars and medical devices. And nothing motivates the U.S. government like fear. Remember 2001? A nominally small-government Republican president created the Office of Homeland Security 11 days after the terrorist attacks: a rushed and ill-thought-out decision that we’ve been trying to fix for over a decade. A fatal disaster will similarly spur our government into action, and it’s unlikely to be well-considered and thoughtful action. Our choice isn’t between government involvement and no government involvement. Our choice is between smarter government involvement and stupider government involvement. We have to start thinking about this now. Regulations are necessary, important, and complex; and they’re coming. We can’t afford to ignore these issues until it’s too late.

We also need to start disconnecting systems. If we cannot secure complex systems to the level required by their real-world capabilities, then we must not build a world where everything is computerized and interconnected.

There are other models. We can enable local communications only. We can set limits on collected and stored data. We can deliberately design systems that don’t interoperate with each other. We can deliberately fetter devices, reversing the current trend of turning everything into a general-purpose computer. And, most important, we can move toward less centralization and more distributed systems, which is how the internet was first envisioned.

This might be a heresy in today’s race to network everything, but large, centralized systems are not inevitable. The technical elites are pushing us in that direction, but they really don’t have any good supporting arguments other than the profits of their ever-growing multinational corporations.

But this will change. It will change not only because of security concerns, it will also change because of political concerns. We’re starting to chafe under the worldview of everything producing data about us and what we do, and that data being available to both governments and corporations. Surveillance capitalism won’t be the business model of the internet forever. We need to change the fabric of the internet so that evil governments don’t have the tools to create a horrific totalitarian state. And while good laws and regulations in Western democracies are a great second line of defense, they can’t be our only line of defense.

My guess is that we will soon reach a high-water mark of computerization and connectivity, and that afterward we will make conscious decisions about what and how we decide to interconnect. But we’re still in the honeymoon phase of connectivity. Governments and corporations are punch-drunk on our data, and the rush to connect everything is driven by an even greater desire for power and market share. One of the presentations released by Edward Snowden contained the NSA mantra: “Collect it all.” A similar mantra for the internet today might be: “Connect it all.”

The inevitable backlash will not be driven by the market. It will be deliberate policy decisions that put the safety and welfare of society above individual corporations and industries. It will be deliberate policy decisions that prioritize the security of our systems over the demands of the FBI to weaken them in order to make their law-enforcement jobs easier. It’ll be hard policy for many to swallow, but our safety will depend on it.

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The scenarios I’ve outlined, both the technological and economic trends that are causing them and the political changes we need to make to start to fix them, come from my years of working in internet-security technology and policy. All of this is informed by an understanding of both technology and policy. That turns out to be critical, and there aren’t enough people who understand both.

This brings me to my final plea: We need more public-interest technologists.

Over the past couple of decades, we’ve seen examples of getting internet-security policy badly wrong. I’m thinking of the FBI’s “going dark” debate about its insistence that computer devices be designed to facilitate government access, the “vulnerability equities process” about when the government should disclose and fix a vulnerability versus when it should use it to attack other systems, the debacle over paperless touch-screen voting machines, and the DMCA that I discussed above. If you watched any of these policy debates unfold, you saw policy-makers and technologists talking past each other.

Our world-size robot will exacerbate these problems. The historical divide between Washington and Silicon Valley -­ the mistrust of governments by tech companies and the mistrust of tech companies by governments ­- is dangerous.

We have to fix this. Getting IoT security right depends on the two sides working together and, even more important, having people who are experts in each working on both. We need technologists to get involved in policy, and we need policy-makers to get involved in technology. We need people who are experts in making both technology and technological policy. We need technologists on congressional staffs, inside federal agencies, working for NGOs, and as part of the press. We need to create a viable career path for public-interest technologists, much as there already is one for public-interest attorneys. We need courses, and degree programs in colleges, for people interested in careers in public-interest technology. We need fellowships in organizations that need these people. We need technology companies to offer sabbaticals for technologists wanting to go down this path. We need an entire ecosystem that supports people bridging the gap between technology and law. We need a viable career path that ensures that even though people in this field won’t make as much as they would in a high-tech start-up, they will have viable careers. The security of our computerized and networked future ­ meaning the security of ourselves, families, homes, businesses, and communities ­ depends on it.

This plea is bigger than security, actually. Pretty much all of the major policy debates of this century will have a major technological component. Whether it’s weapons of mass destruction, robots drastically affecting employment, climate change, food safety, or the increasing ubiquity of ever-shrinking drones, understanding the policy means understanding the technology. Our society desperately needs technologists working on the policy. The alternative is bad policy.

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The world-size robot is less designed than created. It’s coming without any forethought or architecting or planning; most of us are completely unaware of what we’re building. In fact, I am not convinced we can actually design any of this. When we try to design complex sociotechnical systems like this, we are regularly surprised by their emergent properties. The best we can do is observe and channel these properties as best we can.

Market thinking sometimes makes us lose sight of the human choices and autonomy at stake. Before we get controlled ­ or killed ­ by the world-size robot, we need to rebuild confidence in our collective governance institutions. Law and policy may not seem as cool as digital tech, but they’re also places of critical innovation. They’re where we collectively bring about the world we want to live in.

While I might sound like a Cassandra, I’m actually optimistic about our future. Our society has tackled bigger problems than this one. It takes work and it’s not easy, but we eventually find our way clear to make the hard choices necessary to solve our real problems.

The world-size robot we’re building can only be managed responsibly if we start making real choices about the interconnected world we live in. Yes, we need security systems as robust as the threat landscape. But we also need laws that effectively regulate these dangerous technologies. And, more generally, we need to make moral, ethical, and political decisions on how those systems should work. Until now, we’ve largely left the internet alone. We gave programmers a special right to code cyberspace as they saw fit. This was okay because cyberspace was separate and relatively unimportant: That is, it didn’t matter. Now that that’s changed, we can no longer give programmers and the companies they work for this power. Those moral, ethical, and political decisions need, somehow, to be made by everybody. We need to link people with the same zeal that we are currently linking machines. “Connect it all” must be countered with “connect us all.”

This essay previously appeared in New York Magazine.

Lessons From the Dyn DDoS Attack

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2016/11/lessons_from_th_5.html

A week ago Friday, someone took down numerous popular websites in a massive distributed denial-of-service (DDoS) attack against the domain name provider Dyn. DDoS attacks are neither new nor sophisticated. The attacker sends a massive amount of traffic, causing the victim’s system to slow to a crawl and eventually crash. There are more or less clever variants, but basically, it’s a datapipe-size battle between attacker and victim. If the defender has a larger capacity to receive and process data, he or she will win. If the attacker can throw more data than the victim can process, he or she will win.

The attacker can build a giant data cannon, but that’s expensive. It is much smarter to recruit millions of innocent computers on the internet. This is the “distributed” part of the DDoS attack, and pretty much how it’s worked for decades. Cybercriminals infect innocent computers around the internet and recruit them into a botnet. They then target that botnet against a single victim.

You can imagine how it might work in the real world. If I can trick tens of thousands of others to order pizzas to be delivered to your house at the same time, I can clog up your street and prevent any legitimate traffic from getting through. If I can trick many millions, I might be able to crush your house from the weight. That’s a DDoS attack ­ it’s simple brute force.

As you’d expect, DDoSers have various motives. The attacks started out as a way to show off, then quickly transitioned to a method of intimidation ­ or a way of just getting back at someone you didn’t like. More recently, they’ve become vehicles of protest. In 2013, the hacker group Anonymous petitioned the White House to recognize DDoS attacks as a legitimate form of protest. Criminals have used these attacks as a means of extortion, although one group found that just the fear of attack was enough. Military agencies are also thinking about DDoS as a tool in their cyberwar arsenals. A 2007 DDoS attack against Estonia was blamed on Russia and widely called an act of cyberwar.

The DDoS attack against Dyn two weeks ago was nothing new, but it illustrated several important trends in computer security.

These attack techniques are broadly available. Fully capable DDoS attack tools are available for free download. Criminal groups offer DDoS services for hire. The particular attack technique used against Dyn was first used a month earlier. It’s called Mirai, and since the source code was released four weeks ago, over a dozen botnets have incorporated the code.

The Dyn attacks were probably not originated by a government. The perpetrators were most likely hackers mad at Dyn for helping Brian Krebs identify ­ and the FBI arrest ­ two Israeli hackers who were running a DDoS-for-hire ring. Recently I have written about probing DDoS attacks against internet infrastructure companies that appear to be perpetrated by a nation-state. But, honestly, we don’t know for sure.

This is important. Software spreads capabilities. The smartest attacker needs to figure out the attack and write the software. After that, anyone can use it. There’s not even much of a difference between government and criminal attacks. In December 2014, there was a legitimate debate in the security community as to whether the massive attack against Sony had been perpetrated by a nation-state with a $20 billion military budget or a couple of guys in a basement somewhere. The internet is the only place where we can’t tell the difference. Everyone uses the same tools, the same techniques and the same tactics.

These attacks are getting larger. The Dyn DDoS attack set a record at 1.2 Tbps. The previous record holder was the attack against cybersecurity journalist Brian Krebs a month prior at 620 Gbps. This is much larger than required to knock the typical website offline. A year ago, it was unheard of. Now it occurs regularly.

The botnets attacking Dyn and Brian Krebs consisted largely of unsecure Internet of Things (IoT) devices ­ webcams, digital video recorders, routers and so on. This isn’t new, either. We’ve already seen internet-enabled refrigerators and TVs used in DDoS botnets. But again, the scale is bigger now. In 2014, the news was hundreds of thousands of IoT devices ­ the Dyn attack used millions. Analysts expect the IoT to increase the number of things on the internet by a factor of 10 or more. Expect these attacks to similarly increase.

The problem is that these IoT devices are unsecure and likely to remain that way. The economics of internet security don’t trickle down to the IoT. Commenting on the Krebs attack last month, I wrote:

The market can’t fix this because neither the buyer nor the seller cares. Think of all the CCTV cameras and DVRs used in the attack against Brian Krebs. The owners of those devices don’t care. Their devices were cheap to buy, they still work, and they don’t even know Brian. The sellers of those devices don’t care: They’re now selling newer and better models, and the original buyers only cared about price and features. There is no market solution because the insecurity is what economists call an externality: It’s an effect of the purchasing decision that affects other people. Think of it kind of like invisible pollution.

To be fair, one company that made some of the unsecure things used in these attacks recalled its unsecure webcams. But this is more of a publicity stunt than anything else. I would be surprised if the company got many devices back. We already know that the reputational damage from having your unsecure software made public isn’t large and doesn’t last. At this point, the market still largely rewards sacrificing security in favor of price and time-to-market.

DDoS prevention works best deep in the network, where the pipes are the largest and the capability to identify and block the attacks is the most evident. But the backbone providers have no incentive to do this. They don’t feel the pain when the attacks occur and they have no way of billing for the service when they provide it. So they let the attacks through and force the victims to defend themselves. In many ways, this is similar to the spam problem. It, too, is best dealt with in the backbone, but similar economics dump the problem onto the endpoints.

We’re unlikely to get any regulation forcing backbone companies to clean up either DDoS attacks or spam, just as we are unlikely to get any regulations forcing IoT manufacturers to make their systems secure. This is me again:

What this all means is that the IoT will remain insecure unless government steps in and fixes the problem. When we have market failures, government is the only solution. The government could impose security regulations on IoT manufacturers, forcing them to make their devices secure even though their customers don’t care. They could impose liabilities on manufacturers, allowing people like Brian Krebs to sue them. Any of these would raise the cost of insecurity and give companies incentives to spend money making their devices secure.

That leaves the victims to pay. This is where we are in much of computer security. Because the hardware, software and networks we use are so unsecure, we have to pay an entire industry to provide after-the-fact security.

There are solutions you can buy. Many companies offer DDoS protection, although they’re generally calibrated to the older, smaller attacks. We can safely assume that they’ll up their offerings, although the cost might be prohibitive for many users. Understand your risks. Buy mitigation if you need it, but understand its limitations. Know the attacks are possible and will succeed if large enough. And the attacks are getting larger all the time. Prepare for that.

This essay previously appeared on the SecurityIntelligence website.

Virtual Kidnapping

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2016/10/virtual_kidnapp_1.html

This is a harrowing story of a scam artist that convinced a mother that her daughter had been kidnapped. More stories are here. It’s unclear if these virtual kidnappers use data about their victims, or just call people at random and hope to get lucky. Still, it’s a new criminal use of smartphones and ubiquitous information.

Reminds me of the scammers who call low-wage workers at retail establishments late at night and convince them to do outlandish and occasionally dangerous things.