Tag Archives: fbi

El Chapo’s Encryption Defeated by Turning His IT Consultant

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/01/el_chapos_encry.html

Impressive police work:

In a daring move that placed his life in danger, the I.T. consultant eventually gave the F.B.I. his system’s secret encryption keys in 2011 after he had moved the network’s servers from Canada to the Netherlands during what he told the cartel’s leaders was a routine upgrade.

A Dutch article says that it’s a BlackBerry system.

El Chapo had his IT person install “…spyware called FlexiSPY on the ‘special phones’ he had given to his wife, Emma Coronel Aispuro, as well as to two of his lovers, including one who was a former Mexican lawmaker.” That same software was used by the FBI when his IT person turned over the keys. Yet again we learn the lesson that a backdoor can be used against you.

And it doesn’t have to be with the IT person’s permission. A good intelligence agency can use the IT person’s authorizations without his knowledge or consent. This is why the NSA hunts sysadmins.

Slashdot thread. Hacker News thread. Boing Boing post.

FBI Takes Down a Massive Advertising Fraud Ring

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/11/fbi_takes_down_.html

The FBI announced that it dismantled a large Internet advertising fraud network, and arrested eight people:

A 13-count indictment was unsealed today in federal court in Brooklyn charging Aleksandr Zhukov, Boris Timokhin, Mikhail Andreev, Denis Avdeev, Dmitry Novikov, Sergey Ovsyannikov, Aleksandr Isaev and Yevgeniy Timchenko with criminal violations for their involvement in perpetrating widespread digital advertising fraud. The charges include wire fraud, computer intrusion, aggravated identity theft and money laundering. Ovsyannikov was arrested last month in Malaysia; Zhukov was arrested earlier this month in Bulgaria; and Timchenko was arrested earlier this month in Estonia, all pursuant to provisional arrest warrants issued at the request of the United States. They await extradition. The remaining defendants are at large.

It looks like an impressive piece of police work.

Details of the forensics that led to the arrests.

New Report on Police Digital Forensics Techniques

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

According to a new CSIS report, “going dark” is not the most pressing problem facing law enforcement in the age of digital data:

Over the past year, we conducted a series of interviews with federal, state, and local law enforcement officials, attorneys, service providers, and civil society groups. We also commissioned a survey of law enforcement officers from across the country to better understand the full range of difficulties they are facing in accessing and using digital evidence in their cases. Survey results indicate that accessing data from service providers — much of which is not encrypted — is the biggest problem that law enforcement currently faces in leveraging digital evidence.

This is a problem that has not received adequate attention or resources to date. An array of federal and state training centers, crime labs, and other efforts have arisen to help fill the gaps, but they are able to fill only a fraction of the need. And there is no central entity responsible for monitoring these efforts, taking stock of the demand, and providing the assistance needed. The key federal entity with an explicit mission to assist state and local law enforcement with their digital evidence needs­ — the National Domestic Communications Assistance Center (NDCAC)­has a budget of $11.4 million, spread among several different programs designed to distribute knowledge about service providers’ poli­cies and products, develop and share technical tools, and train law enforcement on new services and tech­nologies, among other initiatives.

From a news article:

In addition to bemoaning the lack of guidance and help from tech companies — a quarter of survey respondents said their top issue was convincing companies to hand over suspects’ data — law enforcement officials also reported receiving barely any digital evidence training. Local police said they’d received only 10 hours of training in the past 12 months; state police received 13 and federal officials received 16. A plurality of respondents said they only received annual training. Only 16 percent said their organizations scheduled training sessions at least twice per year.

This is a point that Susan Landau has repeatedly made, and also one I make in my new book. The FBI needs technical expertise, not backdoors.

Here’s the report.

Router Vulnerability and the VPNFilter Botnet

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/06/router_vulnerab.html

On May 25, the FBI asked us all to reboot our routers. The story behind this request is one of sophisticated malware and unsophisticated home-network security, and it’s a harbinger of the sorts of pervasive threats ­ from nation-states, criminals and hackers ­ that we should expect in coming years.

VPNFilter is a sophisticated piece of malware that infects mostly older home and small-office routers made by Linksys, MikroTik, Netgear, QNAP and TP-Link. (For a list of specific models, click here.) It’s an impressive piece of work. It can eavesdrop on traffic passing through the router ­ specifically, log-in credentials and SCADA traffic, which is a networking protocol that controls power plants, chemical plants and industrial systems ­ attack other targets on the Internet and destructively “kill” its infected device. It is one of a very few pieces of malware that can survive a reboot, even though that’s what the FBI has requested. It has a number of other capabilities, and it can be remotely updated to provide still others. More than 500,000 routers in at least 54 countries have been infected since 2016.

Because of the malware’s sophistication, VPNFilter is believed to be the work of a government. The FBI suggested the Russian government was involved for two circumstantial reasons. One, a piece of the code is identical to one found in another piece of malware, called BlackEnergy, that was used in the December 2015 attack against Ukraine’s power grid. Russia is believed to be behind that attack. And two, the majority of those 500,000 infections are in Ukraine and controlled by a separate command-and-control server. There might also be classified evidence, as an FBI affidavit in this matter identifies the group behind VPNFilter as Sofacy, also known as APT28 and Fancy Bear. That’s the group behind a long list of attacks, including the 2016 hack of the Democratic National Committee.

Two companies, Cisco and Symantec, seem to have been working with the FBI during the past two years to track this malware as it infected ever more routers. The infection mechanism isn’t known, but we believe it targets known vulnerabilities in these older routers. Pretty much no one patches their routers, so the vulnerabilities have remained, even if they were fixed in new models from the same manufacturers.

On May 30, the FBI seized control of toknowall.com, a critical VPNFilter command-and-control server. This is called “sinkholing,” and serves to disrupt a critical part of this system. When infected routers contact toknowall.com, they will no longer be contacting a server owned by the malware’s creators; instead, they’ll be contacting a server owned by the FBI. This doesn’t entirely neutralize the malware, though. It will stay on the infected routers through reboot, and the underlying vulnerabilities remain, making the routers susceptible to reinfection with a variant controlled by a different server.

If you want to make sure your router is no longer infected, you need to do more than reboot it, the FBI’s warning notwithstanding. You need to reset the router to its factory settings. That means you need to reconfigure it for your network, which can be a pain if you’re not sophisticated in these matters. If you want to make sure your router cannot be reinfected, you need to update the firmware with any security patches from the manufacturer. This is harder to do and may strain your technical capabilities, though it’s ridiculous that routers don’t automatically download and install firmware updates on their own. Some of these models probably do not even have security patches available. Honestly, the best thing to do if you have one of the vulnerable models is to throw it away and get a new one. (Your ISP will probably send you a new one free if you claim that it’s not working properly. And you should have a new one, because if your current one is on the list, it’s at least 10 years old.)

So if it won’t clear out the malware, why is the FBI asking us to reboot our routers? It’s mostly just to get a sense of how bad the problem is. The FBI now controls toknowall.com. When an infected router gets rebooted, it connects to that server to get fully reinfected, and when it does, the FBI will know. Rebooting will give it a better idea of how many devices out there are infected.

Should you do it? It can’t hurt.

Internet of Things malware isn’t new. The 2016 Mirai botnet, for example, created by a lone hacker and not a government, targeted vulnerabilities in Internet-connected digital video recorders and webcams. Other malware has targeted Internet-connected thermostats. Lots of malware targets home routers. These devices are particularly vulnerable because they are often designed by ad hoc teams without a lot of security expertise, stay around in networks far longer than our computers and phones, and have no easy way to patch them.

It wouldn’t be surprising if the Russians targeted routers to build a network of infected computers for follow-on cyber operations. I’m sure many governments are doing the same. As long as we allow these insecure devices on the Internet ­ and short of security regulations, there’s no way to stop them ­ we’re going to be vulnerable to this kind of malware.

And next time, the command-and-control server won’t be so easy to disrupt.

This essay previously appeared in the Washington Post

EDITED TO ADD: The malware is more capable than we previously thought.

The FBI tells everybody to reboot their router

Post Syndicated from corbet original https://lwn.net/Articles/755741/rss

This CERT
advisory
warns of over 500,000 home routers that have been compromised
by the VPNFilter malware and is advising everybody to reboot their routers
to (partially) remove it. This Talos
Intelligence page
has a lot more information about VPNFilter, though a
lot apparently remains unknown. “At the time of this publication, we
do not have definitive proof on how the threat actor is exploiting the
affected devices. However, all of the affected makes/models that we have
uncovered had well-known, public vulnerabilities. Since advanced threat
actors tend to only use the minimum resources necessary to accomplish their
goals, we assess with high confidence that VPNFilter required no zero-day
exploitation techniques.

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.

Roku Displays FBI Anti-Piracy Warning to Legitimate YouTube & Netflix Users

Post Syndicated from Andy original https://torrentfreak.com/roku-displays-fbi-anti-piracy-warning-to-legitimate-youtube-netflix-users-180516/

In 2018, dealing with copyright infringement claims is a daily issue for many content platforms. The law in many regions demands swift attention and in order to appease copyright holders, most platforms are happy to oblige.

While it’s not unusual for ‘pirate’ content and services to suddenly disappear in response to a DMCA or similar notice, the same is rarely true for entire legitimate services.

But that’s what appeared to happen on the Roku platform during the night, when YouTube, Netflix and other channels disappeared only to be replaced with an ominous anti-piracy warning.

As the embedded tweet shows, the message caused confusion among Roku users who were only using their devices to access legal content. Messages replacing Netflix and YouTube seemed to have caused the greatest number of complaints but many other services were affected.

FoxSportsGo, FandangoNow, and India-focused YuppTV and Hotstar were also blacked out. As were the yoga and transformational videos specialists over at Gaia, the horror buffs at ChillerFlix, and UK TV service BritBox.

But while users scratched their heads, with some misguidedly blaming Roku for not being diligent enough against piracy, Roku took to Twitter to reveal that rather than anti-piracy complaints against the channels in question, a technical hitch was to blame.

However, a subsequent statement to CNET suggested that while blacking out Netflix and YouTube might have been accidental, Roku appears to have been taking anti-piracy action against another channel or channels at the time, with the measures inadvertently spilling over to innocent parties.

“We use that warning when we detect content that has violated copyright,” Roku said in a statement.

“Some channels in our Channel Store displayed that message and became inaccessible after Roku implemented a targeted anti-piracy measure on the platform.”

The precise nature of the action taken by Roku is unknown but it’s clear that copyright infringement is currently a hot topic for the platform.

Roku is currently fighting legal action in Mexico which ordered its products off the shelves following complaints that its platform is used by pirates. That led to an FBI warning being shown for what was believed to be the first time against the XTV and other channels last year.

This March, Roku took action against the popular USTVNow channel following what was described as a “third party” copyright infringement complaint. Just a couple of weeks later, Roku followed up by removing the controversial cCloud channel.

With Roku currently fighting to have sales reinstated in Mexico against a backdrop of claims that up to 40% of its users are pirates, it’s unlikely that Roku is suddenly going to go soft on piracy, so more channel outages can be expected in the future.

In the meantime, the scary FBI warnings of last evening are beginning to fade away (for legitimate channels at least) after the company issued advice on how to fix the problem.

“The recent outage which affected some channels has been resolved. Go to Settings > System > System update > Check now for a software update. Some channels may require you to log in again. Thank you for your patience,” the company wrote in an update.

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

No, Ray Ozzie hasn’t solved crypto backdoors

Post Syndicated from Robert Graham original https://blog.erratasec.com/2018/04/no-ray-ozzie-hasnt-solved-crypto.html

According to this Wired article, Ray Ozzie may have a solution to the crypto backdoor problem. No, he hasn’t. He’s only solving the part we already know how to solve. He’s deliberately ignoring the stuff we don’t know how to solve. We know how to make backdoors, we just don’t know how to secure them.

The vault doesn’t scale

Yes, Apple has a vault where they’ve successfully protected important keys. No, it doesn’t mean this vault scales. The more people and the more often you have to touch the vault, the less secure it becomes. We are talking thousands of requests per day from 100,000 different law enforcement agencies around the world. We are unlikely to protect this against incompetence and mistakes. We are definitely unable to secure this against deliberate attack.

A good analogy to Ozzie’s solution is LetsEncrypt for getting SSL certificates for your website, which is fairly scalable, using a private key locked in a vault for signing hundreds of thousands of certificates. That this scales seems to validate Ozzie’s proposal.

But at the same time, LetsEncrypt is easily subverted. LetsEncrypt uses DNS to verify your identity. But spoofing DNS is easy, as was recently shown in the recent BGP attack against a cryptocurrency. Attackers can create fraudulent SSL certificates with enough effort. We’ve got other protections against this, such as discovering and revoking the SSL bad certificate, so while damaging, it’s not catastrophic.

But with Ozzie’s scheme, equivalent attacks would be catastrophic, as it would lead to unlocking the phone and stealing all of somebody’s secrets.

In particular, consider what would happen if LetsEncrypt’s certificate was stolen (as Matthew Green points out). The consequence is that this would be detected and mass revocations would occur. If Ozzie’s master key were stolen, nothing would happen. Nobody would know, and evildoers would be able to freely decrypt phones. Ozzie claims his scheme can work because SSL works — but then his scheme includes none of the many protections necessary to make SSL work.

What I’m trying to show here is that in a lab, it all looks nice and pretty, but when attacked at scale, things break down — quickly. We have so much experience with failure at scale that we can judge Ozzie’s scheme as woefully incomplete. It’s not even up to the standard of SSL, and we have a long list of SSL problems.

Cryptography is about people more than math

We have a mathematically pure encryption algorithm called the “One Time Pad”. It can’t ever be broken, provably so with mathematics.

It’s also perfectly useless, as it’s not something humans can use. That’s why we use AES, which is vastly less secure (anything you encrypt today can probably be decrypted in 100 years). AES can be used by humans whereas One Time Pads cannot be. (I learned the fallacy of One Time Pad’s on my grandfather’s knee — he was a WW II codebreaker who broke German messages trying to futz with One Time Pads).

The same is true with Ozzie’s scheme. It focuses on the mathematical model but ignores the human element. We already know how to solve the mathematical problem in a hundred different ways. The part we don’t know how to secure is the human element.

How do we know the law enforcement person is who they say they are? How do we know the “trusted Apple employee” can’t be bribed? How can the law enforcement agent communicate securely with the Apple employee?

You think these things are theoretical, but they aren’t. Consider financial transactions. It used to be common that you could just email your bank/broker to wire funds into an account for such things as buying a house. Hackers have subverted that, intercepting messages, changing account numbers, and stealing millions. Most banks/brokers require additional verification before doing such transfers.

Let me repeat: Ozzie has only solved the part we already know how to solve. He hasn’t addressed these issues that confound us.

We still can’t secure security, much less secure backdoors

We already know how to decrypt iPhones: just wait a year or two for somebody to discover a vulnerability. FBI claims it’s “going dark”, but that’s only for timely decryption of phones. If they are willing to wait a year or two a vulnerability will eventually be found that allows decryption.

That’s what’s happened with the “GrayKey” device that’s been all over the news lately. Apple is fixing it so that it won’t work on new phones, but it works on old phones.

Ozzie’s solution is based on the assumption that iPhones are already secure against things like GrayKey. Like his assumption “if Apple already has a vault for private keys, then we have such vaults for backdoor keys”, Ozzie is saying “if Apple already had secure hardware/software to secure the phone, then we can use the same stuff to secure the backdoors”. But we don’t really have secure vaults and we don’t really have secure hardware/software to secure the phone.

Again, to stress this point, Ozzie is solving the part we already know how to solve, but ignoring the stuff we don’t know how to solve. His solution is insecure for the same reason phones are already insecure.

Locked phones aren’t the problem

Phones are general purpose computers. That means anybody can install an encryption app on the phone regardless of whatever other security the phone might provide. The police are powerless to stop this. Even if they make such encryption crime, then criminals will still use encryption.

That leads to a strange situation that the only data the FBI will be able to decrypt is that of people who believe they are innocent. Those who know they are guilty will install encryption apps like Signal that have no backdoors.

In the past this was rare, as people found learning new apps a barrier. These days, apps like Signal are so easy even drug dealers can figure out how to use them.

We know how to get Apple to give us a backdoor, just pass a law forcing them to. It may look like Ozzie’s scheme, it may be something more secure designed by Apple’s engineers. Sure, it will weaken security on the phone for everyone, but those who truly care will just install Signal. But again we are back to the problem that Ozzie’s solving the problem we know how to solve while ignoring the much larger problem, that of preventing people from installing their own encryption.

The FBI isn’t necessarily the problem

Ozzie phrases his solution in terms of U.S. law enforcement. Well, what about Europe? What about Russia? What about China? What about North Korea?

Technology is borderless. A solution in the United States that allows “legitimate” law enforcement requests will inevitably be used by repressive states for what we believe would be “illegitimate” law enforcement requests.

Ozzie sees himself as the hero helping law enforcement protect 300 million American citizens. He doesn’t see himself what he really is, the villain helping oppress 1.4 billion Chinese, 144 million Russians, and another couple billion living in oppressive governments around the world.

Conclusion

Ozzie pretends the problem is political, that he’s created a solution that appeases both sides. He hasn’t. He’s solved the problem we already know how to solve. He’s ignored all the problems we struggle with, the problems we claim make secure backdoors essentially impossible. I’ve listed some in this post, but there are many more. Any famous person can create a solution that convinces fawning editors at Wired Magazine, but if Ozzie wants to move forward he’s going to have to work harder to appease doubting cryptographers.

Roku Bans Popular Social IPTV Linking Service cCloud TV

Post Syndicated from Andy original https://torrentfreak.com/roku-bans-popular-social-iptv-linking-service-ccloud-tv-180409/

Despite being one of the more popular set-top box platforms, until last year Roku managed to stay completely out of the piracy conversation.

However, due to abuse of its system by third-parties, last June the Superior Court of Justice of the City of Mexico banned the importation and distribution of Roku devices in the country.

The decision followed a complaint filed by cable TV provider Cablevision, which said that some Roku channels and their users were infringing its distribution rights.

Since then, Roku has been fighting to have the ban lifted, previously informing TF that it expressly prohibits copyright infringement of any kind. That led to several more legal processes yet last month and after considerable effort, the ban was upheld, much to Roku’s disappointment.

“It is necessary for Roku to make adjustments to its software, as other online content distribution platforms do, so that violations of copyrighted content do not take place,” Cablevision said.

Then, at the end of March, Roku suddenly banned the USTVnow channel from its platform, citing a third-party copyright complaint.

In a series of emails with TF, the company declined to offer further details but there is plenty of online speculation that the decision was a move towards the “adjustments” demanded by Cablevision. Today yet more fuel is being poured onto that same fire with Roku’s decision to ban the popular cCloud TV service from its platform.

For those unfamiliar with cCloud TV, it’s a video streaming platform that relies on users to contribute media links found on the web, whether they’re movie and TV shows or live sporting events.

“Project cCloud TV is known as the ‘Popcorn Time for Live TV’. The project started with 50 channels and has grown over time and now has over 4000 channels from all around the world,” its founder ‘Bane’ told TF back in 2016.

“The project was inspired by Popcorn Time and its simplicity for streaming torrents. The service works based on media links that can be found anywhere on the web and the cCloud project makes it easier for users to stream.”

Aside from the vast array of content cCloud offers, its versatility is almost unrivaled. In an addition to working via most modern web browsers, it’s also accessible using smartphones, tablets, Plex media server, Kodi, VLC, and (until recently at least) Roku.

But cCloud and USTVnow aren’t the only services suffering bans at Roku.

As highlighted by CordCuttersNews, other channels are also suffering similar fates, such as XTV that was previously replaced with an FBI warning.

cCloud has had problems on Kodi too. Back in September 2017, TVAddons announced that it had been forced to remove the cCloud addon from its site.

“cCloud TV has been removed from our web site due to a complaint made by Bell, Rogers, Videotron and TVA on June 12th, 2017 as part of their lawsuit against our web site,” the site announced.

“Prior to hearing of the lawsuit, we had never received a single complaint relating to the cCloud TV addon for Kodi. cCloud TV for Kodi was developed by podgod, and was basically an interface for the community-based web service that goes by the same name.”

Last week, TVAddons went on to publish an “blacklist” that lists addons that have the potential to deliver content not authorized by rightsholders. Among many others, the list contains cCloud, meaning that potential users will now have to obtain it directly from the Kodi Bae Repository on Github instead.

At the time of publication, Roku had not responded to TorrentFreak’s request for comment.

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

Owner of ShareBeast and AlbumJams Sentenced To Five Years in Prison

Post Syndicated from Andy original https://torrentfreak.com/owner-of-sharebeast-and-albumjams-sentenced-to-five-years-in-prison-180323/

According to the RIAA, ShareBeast.com and AlbumJams.com were responsible for the illegal distribution of “a massive library” of popular albums and tracks.

With a nod to the sensitivity of pre-release piracy, the sites were blamed for offering “thousands of songs” that hadn’t yet reached their official release dates. In September 2015, U.S. authorities shut them down, placing seizure notices on both domains.

The RIAA claimed that ShareBeast was the largest illegal file-sharing site operating in the United States, noting that the site’s IP addresses at the time indicated that at least some hosting had taken place in Illinois.

“Millions of users accessed songs from ShareBeast each month without one penny of compensation going to countless artists, songwriters, labels and others who created the music,” RIAA Chairman & CEO Cary Sherman commented at the time.

Two years later in September 2017, then 29-year-old former ShareBeast operator Artur Sargsyan pleaded guilty to one felony count of criminal copyright infringement, admitting to the unauthorized distribution and reproduction of over one billion copies of copyrighted works.

“Through Sharebeast and other related sites, this defendant profited by illegally distributing copyrighted music and albums on a massive scale,” said U. S. Attorney John Horn.

“The collective work of the FBI and our international law enforcement partners have shut down the Sharebeast websites and prevented further economic losses by scores of musicians and artists.”

The Department of Justice reported that from 2012 to 2015, Sargsyan used ShareBeast as a pirate music repository, illegally hosting music by Ariana Grande, Katy Perry, Beyonce, Kanye West, and Justin Bieber, among others. Sargsyan linked to that content from Newjams.net and Albumjams.com, and granted access to the public.

If Sargsyan had responded to takedown notices more positively, it’s possible that things may have progressed in a different direction. The RIAA sent the site more than 100 copyright-infringement emails over a three-year period but to no effect.

This led the music industry group to get out its calculator and inform the DoJ that the total monetary loss to its member companies was “a conservative” $6.3 billion “gut-punch” to music creators who were paid nothing by the service.

Given the huge numbers involved, it’s likely that Sargsyan hoped his 2017 guilty plea would result in a more forgiving sentence. Yesterday, however, the full weight of the law came crashing down.

California resident Artur Sargsyan was sentenced by U.S. District Judge Timothy C. Batten, Sr., to five years in prison, followed by three years of supervised release. The now 30-year-old was also ordered to pay $458,200 restitution and ordered to forfeit $184,768.87.

“Sargsyan operated one of the most successful illegal music sharing websites on the Internet,” said U.S. Attorney Byung J. “BJay” Pak.

“His reproduction of copyrighted musical works were made available only to generate undeserved profits for himself. The incredible work done by our law enforcement partners and prosecutors in light of the complexity of Sargsyan’s operation demonstrates that we will employ all of our resources to stop this kind of theft.”

David J. LaValley, Special Agent in Charge of FBI Atlanta, said that Sargsyan was warned several times that he was violating the law by illegally sharing copyrighted works, but chose to ignore the warnings.

“His sentence sends a message that no matter how complex the operation, the FBI, its federal partners and law enforcement partners around the globe will go to every length to protect the property of hard working artists and the companies that produce their art,” LaValley said.

Given the music group’s lengthy statements on the Sharebeast topic in the past, thus far the RIAA has been relatively brief. Welcoming news of the sentencing via Twitter, the major labels’ figurehead congratulated the law enforcement bodies behind the successful prosecution.

“Congrats to U.S. Attorney BJay Pak + his team along with @TheJusticeDept CCIPS Division and @FBIAtlanta for their leadership on this important case,” the RIAA wrote.

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

Dotcom Affidavit Calls For Obama to Give Evidence in Megaupload Case

Post Syndicated from Andy original https://torrentfreak.com/dotcom-affidavit-calls-for-obama-to-give-evidence-in-megaupload-case-180320/

For more than six years since the raid on Megaupload, founder Kim Dotcom has insisted that the case against him, his co-defendants, and his company, was politically motivated.

The serial entrepreneur states unequivocally that former president Barack Obama’s close ties to Hollywood were the driving force.

Later today, Obama will touch down for a visit to New Zealand. In what appears to be a tightly managed affair, with heavy restrictions placed on the media and publicity, it seems clear that Obama wants to maintain control over his social and business engagements in the country.

But of course, New Zealand is home to Kim Dotcom and as someone who feels wronged by the actions of the former administration, he is determined to use this opportunity to shine more light on Obama’s role in the downfall of his company.

In a statement this morning, Dotcom reiterated his claims that attempts to have him extradited to the United States have no basis in law, chiefly due to the fact that the online dissemination of copyright-protected works by Megaupload’s users is not an extradition offense in New Zealand.

But Dotcom also attacks the politics behind his case, arguing that the Obama administration was under pressure from Hollywood to do something about copyright enforcement or risk losing financial support.

In connection with his case, Dotcom is currently suing the New Zealand government for billions of dollars so while Obama is in town, Dotcom is demanding that the former president gives evidence.

Dotcom’s case is laid out in a highly-detailed sworn affidavit dated March 19, 2018. The Megaupload founder explains that Hollywood has historically been a major benefactor of the Democrats so when seeking re-election for a further term, the Democrats were under pressure from the movie companies to make an example of Megaupload and Dotcom.

Dotcom notes that while he was based in Hong Kong, extradition to the US would be challenging. So, with Dotcom seeking residence in New Zealand, a plot was hatched to allow him into the country, despite the New Zealand government knowing that a criminal prosecution lay in wait for him. Dotcom says that by doing a favor for Hollywood, it could mean that New Zealand became a favored destination for US filmmakers.

“The interests of the United States and New Zealand were therefore perfectly aligned. I provided the perfect opportunity for New Zealand to facilitate the United States’ show of force on copyright enforcement,” Dotcom writes.

Citing documents obtained from Open Secrets, Dotcom shows how the Democrats took an 81% share of more than $46m donated to political parties in the US during the 2008 election cycle. In the 2010 cycle, 76% of more than $24m went to the Democrats and in 2012, they scooped up 78% of more than $56m.

Dotcom then recalls the attempts at passing the Stop Online Piracy Act (SOPA), which would have shifted the enforcement of copyright onto ISPs, assisting Hollywood greatly. Ultimately, Congressional support for the proposed legislation was withdrawn and Dotcom recalls this was followed by a public threat from the MPAA to withdraw campaign contributions on which the Democrats were especially reliant.

“The message to the White House was plain: do not expect funding if you do not advance the MPAA’s legislative agenda. On 20 January 2012, the day after this statement, I was arrested,” Dotcom notes.

Describing Megaupload as a highly profitable and innovative platform that highlighted copyright owners’ failure to keep up with the way in which content is now consumed, Dotcom says it made the perfect target for the Democrats.

Convinced the party was at the root of his prosecution, he utilized his connections in Hong Kong to contact Thomas Hart, a lawyer and lobbyist in Washington, D.C. with strong connections to the Democrats and the White House.

Dotcom said a telephone call between him and Mr Hart revealed that then Vice President Joe Biden was at the center of Dotcom’s prosecution but that Obama was dissatisfied with the way things had been handled.

“Biden did admit to have… you know, kind of started it, you know, along with support from others but it was Biden’s decision…,” Hart allegedly said.

“What he [President Obama] expressed to me was a growing concern about the matter. He indicated an awareness of that it had not gone well, that it was more complicated than he thought, that he will turn his attention to it more prominently after November.”

Dotcom says that Obama was “questioning the whole thing,” a suggestion that he may not have been fully committed to the continuing prosecution.

The affidavit then lists a whole series of meetings in 2011, documented in the White House visitor logs. They include meetings with then United States Attorney Neil McBride, various representatives from Hollywood, MPAA chief Chris Dodd, Mike Ellis of the MPA (who was based in Hong Kong and had met with New Zealand’s then Minister of Justice, Simon Power) and the Obama administration.

In summary, Dotcom suggests there was a highly organized scheme against him, hatched between Hollywood and the Obama administration, that had the provision of funds to win re-election at its heart.

From there, an intertwined agreement was reached at the highest levels of both the US and New Zealand governments where the former would benefit through tax concessions to Hollywood (and a sweetening of relations between the countries) and the latter would benefit financially through investment.

All New Zealand had to do was let Dotcom in for a while and then hand him over to the United States for prosecution. And New Zealand definitely knew that Dotcom was wanted by the US. Emails obtained by Dotcom concerning his residency application show that clearly.

“Kim DOTCOM is not of security concern but is likely to soon become the subject of a joint FBI / NZ Police criminal investigation. We have passed this over to NZ Police,” one of the emails reads. Another, well over a year before the raid, also shows the level of knowledge.

Bad but wealthy, so we have plans for him…

With “political pressure” to grant Dotcom’s application in place, Immigration New Zealand finally gave the Megaupload founder the thumbs-up on November 1, 2010. Dotcom believes that New Zealand was concerned he may have walked away from his application.

“This would have been of grave concern to the Government, which, at that time, was in negotiations with Hollywood lobby,” his affidavit reads.

“The last thing they would have needed at that delicate stage of the negotiations was for me to walk away from New Zealand and return to Hong Kong, where extradition would be more difficult. I believe that this concern is what prompted the ‘political pressure’ that led to my application finally being granted despite the presence of factors that would have caused anyone else’s application to have been rejected.”

Dotcom says that after being granted residency, there were signs things weren’t going to plan for him. The entrepreneur applied to buy his now-famous former mansion for NZ$37m, an application that was initially approved. However, after being passed to Simon Power, the application was denied.

“It would appear that, although my character was apparently good enough for me to be granted residence in November 2010, in July 2011 it was not considered good enough for me to buy property in New Zealand,” Dotcom notes.

“The Honourable Mr Power clearly did not want me purchasing $37 million of real estate, presumably because he knew that the United States was going to seek forfeiture of my assets and he did not want what was then the most expensive property in New Zealand being forfeited to the United States government.”

Of course, Dotcom concludes by highlighting the unlawful spying by New Zealand’s GCSB spy agency and the disproportionate use of force displayed by the police when they raided him in 2010 using dozens of armed officers. This, combined with all of the above, means that questions about his case must now be answered at the highest levels. With Obama in town, there’s no time like the present.

“As the evidence above demonstrates, this improper purpose which was then embraced by the New Zealand authorities, originated in the White House under the Obama administration. It is therefore necessary to examine Mr Obama in this proceeding,” Dotcom concludes.

Press blackouts aside, it appears that Obama has rather a lot of golf lined up for the coming days. Whether he’ll have any time to answer Dotcom’s questions is one thing but whether he’ll even be asked to is perhaps the most important point of all.

The full affidavit and masses of supporting evidence can be found here.

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

Dotcom: Obama Admitted “Mistakes Were Made” in Megaupload Case

Post Syndicated from Andy original https://torrentfreak.com/dotcom-obama-admitted-mistakes-were-made-in-megaupload-case-180301/

When Megaupload was forcefully shut down in 2012, it initially appeared like ‘just’ another wave of copyright enforcement action by US authorities.

When additional details began to filter through, the reality of what had happened was nothing short of extraordinary.

Not only were large numbers of Megaupload servers and millions of dollars seized, but Kim Dotcom’s home in New Zealand was subjected to a military-style raid comprised of helicopters and dozens of heavily armed special tactics police. The whole thing was monitored live by the FBI.

Few people who watched the events of that now-infamous January day unfold came to the conclusion this was a routine copyright-infringement case. According to Kim Dotcom, whose life had just been turned upside down, something of this scale must’ve filtered down from the very top of the US government. It was hard to disagree.

At the time, Dotcom told TorrentFreak that then-Vice President Joe Biden directed attorney Neil MacBride to target the cloud storage site and ever since the Megaupload founder has leveled increasingly serious allegations at officials of the former government of Barack Obama.

For example, Dotcom says that since the US would have difficulty gaining access to him in his former home of Hong Kong, the government of New Zealand was persuaded to welcome him in, knowing they would eventually turn him over to the United States. More recently he’s been turning up the pressure again, such as a tweet on February 20th which cast more light on that process.

“Joe Biden had a White House meeting with an ‘extradition expert’ who worked for Hong Kong police and a handful of Hollywood executives to discuss my case. A week prior to this meeting Neil MacBride hand-delivered his action plan to Biden’s chief of staff, also at the White House,” Dotcom wrote.

But this claim is just the tip of an extremely large iceberg that’s involved illegal spying on Dotcom in New Zealand and a dizzying array of legal battles that are set to go on for years to come. But perhaps of most interest now is that rather than wilting away under the pressure, Dotcom appears to be just warming up.

A few hours ago Dotcom commented on an article published in The Hill which revealed that Barack Obama will visit New Zealand in March, possibly to celebrate the opening of Air New Zealand’s new route to the U.S.

Rather than expressing disappointment, the Megaupload founder seemed pleased that the former president would be touching down next month.

“Great. I’ll have a Court subpoena waiting for him in New Zealand,” Dotcom wrote.

But that was just a mere hors d’oeuvre, with the main course was yet to come. But come it did.

“A wealthy Asian Megaupload shareholder hired a friend of the Obamas to enquire about our case. This person was recommended by a member of the Chinese politburo ‘if you want to get to Obama directly’. We did,” Dotcom revealed.

Dotcom says he’ll release a transcript detailing what Obama told his friend on March 21 when Obama arrives in town but in the meantime, he offered another little taster.

“Mistakes were made. It hasn’t gone well,” Obama reportedly told the person reporting back to Megaupload. “It’s a problem. I’ll see to it after the election.”

Of course, Obama’s position after the election was much different to what had gone before, but that didn’t stop Dotcom’s associates infiltrating the process aimed at keeping the Democrats in power.

“Our friendly Obama contact smuggled an @EFF lawyer into a re-election fundraiser hosted by former Vice President Joe Biden,” he revealed.

“When Biden was asked about the Megaupload case he bragged that it was his case and that he ‘took care of it’,” which is what Dotcom has been claiming all along.

On March 21, when Obama lands in New Zealand, Dotcom says he’ll be waiting.

“I’m looking forward to @BarackObama providing some insight into the political dimension of the Megaupload case when he arrives in the New Zealand jurisdiction,” he teased.

Better get the popcorn ready….

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

E-Mail Leaves an Evidence Trail

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/02/e-mail_leaves_a.html

If you’re going to commit an illegal act, it’s best not to discuss it in e-mail. It’s also best to Google tech instructions rather than asking someone else to do it:

One new detail from the indictment, however, points to just how unsophisticated Manafort seems to have been. Here’s the relevant passage from the indictment. I’ve bolded the most important bits:

Manafort and Gates made numerous false and fraudulent representations to secure the loans. For example, Manafort provided the bank with doctored [profit and loss statements] for [Davis Manafort Inc.] for both 2015 and 2016, overstating its income by millions of dollars. The doctored 2015 DMI P&L submitted to Lender D was the same false statement previously submitted to Lender C, which overstated DMI’s income by more than $4 million. The doctored 2016 DMI P&L was inflated by Manafort by more than $3.5 million. To create the false 2016 P&L, on or about October 21, 2016, Manafort emailed Gates a .pdf version of the real 2016 DMI P&L, which showed a loss of more than $600,000. Gates converted that .pdf into a “Word” document so that it could be edited, which Gates sent back to Manafort. Manafort altered that “Word” document by adding more than $3.5 million in income. He then sent this falsified P&L to Gates and asked that the “Word” document be converted back to a .pdf, which Gates did and returned to Manafort. Manafort then sent the falsified 2016 DMI P&L .pdf to Lender D.

So here’s the essence of what went wrong for Manafort and Gates, according to Mueller’s investigation: Manafort allegedly wanted to falsify his company’s income, but he couldn’t figure out how to edit the PDF. He therefore had Gates turn it into a Microsoft Word document for him, which led the two to bounce the documents back-and-forth over email. As attorney and blogger Susan Simpson notes on Twitter, Manafort’s inability to complete a basic task on his own seems to have effectively “created an incriminating paper trail.”

If there’s a lesson here, it’s that the Internet constantly generates data about what people are doing on it, and that data is all potential evidence. The FBI is 100% wrong that they’re going dark; it’s really the golden age of surveillance, and the FBI’s panic is really just its own lack of technical sophistication.

Kim Dotcom Begins New Fight to Avoid Extradition to United States

Post Syndicated from Andy original https://torrentfreak.com/kim-dotcom-begins-new-fight-to-avoid-extradition-to-united-states-180212/

More than six years ago in January 2012, file-hosting site Megaupload was shut down by the United States government and founder Kim Dotcom and his associates were arrested in New Zealand.

What followed was an epic legal battle to extradite Dotcom, Mathias Ortmann, Finn Batato, and Bram van der Kolk to the United States to face several counts including copyright infringement, racketeering, and money laundering. Dotcom has battled the US government every inch of the way.

The most significant matters include the validity of the search warrants used to raid Dotcom’s Coatesville home on January 20, 2012. Despite a prolonged trip through the legal system, in 2014 the Supreme Court dismissed Dotcom’s appeals that the search warrants weren’t valid.

In 2015, the District Court later ruled that Dotcom and his associates are eligible for extradition. A subsequent appeal to the High Court failed when in February 2017 – and despite a finding that communicating copyright-protected works to the public is not a criminal offense in New Zealand – a judge also ruled in favor.

Of course, Dotcom and his associates immediately filed appeals and today in the Court of Appeal in Wellington, their hearing got underway.

Lawyer Grant Illingworth, representing Van der Kolk and Ortmann, told the Court that the case had “gone off the rails” during the initial 10-week extradition hearing in 2015, arguing that the case had merited “meaningful” consideration by a judge, something which failed to happen.

“It all went wrong. It went absolutely, totally wrong,” Mr. Illingworth said. “We were not heard.”

As expected, Illingworth underlined the belief that under New Zealand law, a person may only be extradited for an offense that could be tried in a criminal court locally. His clients’ cases do not meet that standard, the lawyer argued.

Turning back the clocks more than six years, Illingworth again raised the thorny issue of the warrants used to authorize the raids on the Megaupload defendants.

It had previously been established that New Zealand’s GCSB intelligence service had illegally spied on Dotcom and his associates in the lead up to their arrests. However, that fact was not disclosed to the District Court judge who authorized the raids.

“We say that there was misleading conduct at this stage because there was no reference to the fact that information had been gathered illegally by the GCSB,” he said.

But according to Justice Forrest Miller, even if this defense argument holds up the High Court had already found there was a prima facie case to answer “with bells on”.

“The difficulty that you face here ultimately is whether the judicial process that has been followed in both of the courts below was meaningful, to use the Canadian standard,” Justice Miller said.

“You’re going to have to persuade us that what Justice Gilbert [in the High Court] ended up with, even assuming your interpretation of the legislation is correct, was wrong.”

Although the US seeks to extradite Dotcom and his associates on 13 charges, including racketeering, copyright infringement, money laundering and wire fraud, the Court of Appeal previously confirmed that extradition could be granted based on just some of the charges.

The stakes couldn’t be much higher. The FBI says that the “Megaupload Conspiracy” earned the quartet $175m and if extradited to the US, they could face decades in jail.

While Dotcom was not in court today, he has been active on Twitter.

“The court process went ‘off the rails’ when the only copyright expert Judge in NZ was >removed< from my case and replaced by a non-tech Judge who asked if Mega was ‘cow storage’. He then simply copy/pasted 85% of the US submissions into his judgment," Dotcom wrote.

Dotcom also appeared to question the suitability of judges at both the High Court and Court of Appeal for the task in hand.

“Justice Miller and Justice Gilbert (he wrote that High Court judgment) were business partners at the law firm Chapman Tripp which represents the Hollywood Studios in my case. Both Judges are now at the Court of Appeal. Gilbert was promoted shortly after ruling against me,” Dotcom added.

Dotcom is currently suing the New Zealand government for billions of dollars in damages over the warrant which triggered his arrest and the demise of Megaupload.

The hearing is expected to last up to two-and-a-half weeks.

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

Blame privacy activists for the Memo??

Post Syndicated from Robert Graham original http://blog.erratasec.com/2018/02/blame-privacy-activists-for-memo.html

Former FBI agent Asha Rangappa @AshaRangappa_ has a smart post debunking the Nunes Memo, then takes it all back again with an op-ed on the NYTimes blaming us privacy activists. She presents an obviously false narrative that the FBI and FISA courts are above suspicion.

I know from first hand experience the FBI is corrupt. In 2007, they threatened me, trying to get me to cancel a talk that revealed security vulnerabilities in a large corporation’s product. Such abuses occur because there is no transparency and oversight. FBI agents write down our conversation in their little notebooks instead of recording it, so that they can control the narrative of what happened, presenting their version of the converstion (leaving out the threats). In this day and age of recording devices, this is indefensible.

She writes “I know firsthand that it’s difficult to get a FISA warrant“. Yes, the process was difficult for her, an underling, to get a FISA warrant. The process is different when a leader tries to do the same thing.

I know this first hand having casually worked as an outsider with intelligence agencies. I saw two processes in place: one for the flunkies, and one for those above the system. The flunkies constantly complained about how there is too many process in place oppressing them, preventing them from getting their jobs done. The leaders understood the system and how to sidestep those processes.

That’s not to say the Nunes Memo has merit, but it does point out that privacy advocates have a point in wanting more oversight and transparency in such surveillance of American citizens.

Blaming us privacy advocates isn’t the way to go. It’s not going to succeed in tarnishing us, but will push us more into Trump’s camp, causing us to reiterate that we believe the FBI and FISA are corrupt.

After Section 702 Reauthorization

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/01/after_section_7.html

For over a decade, civil libertarians have been fighting government mass surveillance of innocent Americans over the Internet. We’ve just lost an important battle. On January 18, President Trump signed the renewal of Section 702, domestic mass surveillance became effectively a permanent part of US law.

Section 702 was initially passed in 2008, as an amendment to the Foreign Intelligence Surveillance Act of 1978. As the title of that law says, it was billed as a way for the NSA to spy on non-Americans located outside the United States. It was supposed to be an efficiency and cost-saving measure: the NSA was already permitted to tap communications cables located outside the country, and it was already permitted to tap communications cables from one foreign country to another that passed through the United States. Section 702 allowed it to tap those cables from inside the United States, where it was easier. It also allowed the NSA to request surveillance data directly from Internet companies under a program called PRISM.

The problem is that this authority also gave the NSA the ability to collect foreign communications and data in a way that inherently and intentionally also swept up Americans’ communications as well, without a warrant. Other law enforcement agencies are allowed to ask the NSA to search those communications, give their contents to the FBI and other agencies and then lie about their origins in court.

In 1978, after Watergate had revealed the Nixon administration’s abuses of power, we erected a wall between intelligence and law enforcement that prevented precisely this kind of sharing of surveillance data under any authority less restrictive than the Fourth Amendment. Weakening that wall is incredibly dangerous, and the NSA should never have been given this authority in the first place.

Arguably, it never was. The NSA had been doing this type of surveillance illegally for years, something that was first made public in 2006. Section 702 was secretly used as a way to paper over that illegal collection, but nothing in the text of the later amendment gives the NSA this authority. We didn’t know that the NSA was using this law as the statutory basis for this surveillance until Edward Snowden showed us in 2013.

Civil libertarians have been battling this law in both Congress and the courts ever since it was proposed, and the NSA’s domestic surveillance activities even longer. What this most recent vote tells me is that we’ve lost that fight.

Section 702 was passed under George W. Bush in 2008, reauthorized under Barack Obama in 2012, and now reauthorized again under Trump. In all three cases, congressional support was bipartisan. It has survived multiple lawsuits by the Electronic Frontier Foundation, the ACLU, and others. It has survived the revelations by Snowden that it was being used far more extensively than Congress or the public believed, and numerous public reports of violations of the law. It has even survived Trump’s belief that he was being personally spied on by the intelligence community, as well as any congressional fears that Trump could abuse the authority in the coming years. And though this extension lasts only six years, it’s inconceivable to me that it will ever be repealed at this point.

So what do we do? If we can’t fight this particular statutory authority, where’s the new front on surveillance? There are, it turns out, reasonable modifications that target surveillance more generally, and not in terms of any particular statutory authority. We need to look at US surveillance law more generally.

First, we need to strengthen the minimization procedures to limit incidental collection. Since the Internet was developed, all the world’s communications travel around in a single global network. It’s impossible to collect only foreign communications, because they’re invariably mixed in with domestic communications. This is called “incidental” collection, but that’s a misleading name. It’s collected knowingly, and searched regularly. The intelligence community needs much stronger restrictions on which American communications channels it can access without a court order, and rules that require they delete the data if they inadvertently collect it. More importantly, “collection” is defined as the point the NSA takes a copy of the communications, and not later when they search their databases.

Second, we need to limit how other law enforcement agencies can use incidentally collected information. Today, those agencies can query a database of incidental collection on Americans. The NSA can legally pass information to those other agencies. This has to stop. Data collected by the NSA under its foreign surveillance authority should not be used as a vehicle for domestic surveillance.

The most recent reauthorization modified this lightly, forcing the FBI to obtain a court order when querying the 702 data for a criminal investigation. There are still exceptions and loopholes, though.

Third, we need to end what’s called “parallel construction.” Today, when a law enforcement agency uses evidence found in this NSA database to arrest someone, it doesn’t have to disclose that fact in court. It can reconstruct the evidence in some other manner once it knows about it, and then pretend it learned of it that way. This right to lie to the judge and the defense is corrosive to liberty, and it must end.

Pressure to reform the NSA will probably first come from Europe. Already, European Union courts have pointed to warrantless NSA surveillance as a reason to keep Europeans’ data out of US hands. Right now, there is a fragile agreement between the EU and the United States ­– called “Privacy Shield” — ­that requires Americans to maintain certain safeguards for international data flows. NSA surveillance goes against that, and it’s only a matter of time before EU courts start ruling this way. That’ll have significant effects on both government and corporate surveillance of Europeans and, by extension, the entire world.

Further pressure will come from the increased surveillance coming from the Internet of Things. When your home, car, and body are awash in sensors, privacy from both governments and corporations will become increasingly important. Sooner or later, society will reach a tipping point where it’s all too much. When that happens, we’re going to see significant pushback against surveillance of all kinds. That’s when we’ll get new laws that revise all government authorities in this area: a clean sweep for a new world, one with new norms and new fears.

It’s possible that a federal court will rule on Section 702. Although there have been many lawsuits challenging the legality of what the NSA is doing and the constitutionality of the 702 program, no court has ever ruled on those questions. The Bush and Obama administrations successfully argued that defendants don’t have legal standing to sue. That is, they have no right to sue because they don’t know they’re being targeted. If any of the lawsuits can get past that, things might change dramatically.

Meanwhile, much of this is the responsibility of the tech sector. This problem exists primarily because Internet companies collect and retain so much personal data and allow it to be sent across the network with minimal security. Since the government has abdicated its responsibility to protect our privacy and security, these companies need to step up: Minimize data collection. Don’t save data longer than absolutely necessary. Encrypt what has to be saved. Well-designed Internet services will safeguard users, regardless of government surveillance authority.

For the rest of us concerned about this, it’s important not to give up hope. Everything we do to keep the issue in the public eye ­– and not just when the authority comes up for reauthorization again in 2024 — hastens the day when we will reaffirm our rights to privacy in the digital age.

This essay previously appeared in the Washington Post.

Yet Another FBI Proposal for Insecure Communications

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/01/yet_another_fbi.html

Deputy Attorney General Rosenstein has given talks where he proposes that tech companies decrease their communications and device security for the benefit of the FBI. In a recent talk, his idea is that tech companies just save a copy of the plaintext:

Law enforcement can also partner with private industry to address a problem we call “Going Dark.” Technology increasingly frustrates traditional law enforcement efforts to collect evidence needed to protect public safety and solve crime. For example, many instant-messaging services now encrypt messages by default. The prevent the police from reading those messages, even if an impartial judge approves their interception.

The problem is especially critical because electronic evidence is necessary for both the investigation of a cyber incident and the prosecution of the perpetrator. If we cannot access data even with lawful process, we are unable to do our job. Our ability to secure systems and prosecute criminals depends on our ability to gather evidence.

I encourage you to carefully consider your company’s interests and how you can work cooperatively with us. Although encryption can help secure your data, it may also prevent law enforcement agencies from protecting your data.

Encryption serves a valuable purpose. It is a foundational element of data security and essential to safeguarding data against cyber-attacks. It is critical to the growth and flourishing of the digital economy, and we support it. I support strong and responsible encryption.

I simply maintain that companies should retain the capability to provide the government unencrypted copies of communications and data stored on devices, when a court orders them to do so.

Responsible encryption is effective secure encryption, coupled with access capabilities. We know encryption can include safeguards. For example, there are systems that include central management of security keys and operating system updates; scanning of content, like your e-mails, for advertising purposes; simulcast of messages to multiple destinations at once; and key recovery when a user forgets the password to decrypt a laptop. No one calls any of those functions a “backdoor.” In fact, those very capabilities are marketed and sought out.

I do not believe that the government should mandate a specific means of ensuring access. The government does not need to micromanage the engineering.

The question is whether to require a particular goal: When a court issues a search warrant or wiretap order to collect evidence of crime, the company should be able to help. The government does not need to hold the key.

Rosenstein is right that many services like Gmail naturally keep plaintext in the cloud. This is something we pointed out in our 2016 paper: “Don’t Panic.” But forcing companies to build an alternate means to access the plaintext that the user can’t control is an enormous vulnerability.

Susan Landau’s New Book: Listening In

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/01/susan_landaus_n.html

Susan Landau has written a terrific book on cybersecurity threats and why we need strong crypto. Listening In: Cybersecurity in an Insecure Age. It’s based in part on her 2016 Congressional testimony in the Apple/FBI case; it examines how the Digital Revolution has transformed society, and how law enforcement needs to — and can — adjust to the new realities. The book is accessible to techies and non-techies alike, and is strongly recommended.

And if you’ve already read it, give it a review on Amazon. Reviews sell books, and this one needs more of them.

Game of Thrones Leaks “Carried Out By Former Iranian Military Hacker”

Post Syndicated from Andy original https://torrentfreak.com/game-of-thrones-leaks-carried-out-by-former-iranian-military-hacker-171122/

Late July it was reported that hackers had stolen proprietary information from media giant HBO.

The haul was said to include confidential details of the then-unreleased fourth episode of the latest Game of Thrones season, plus episodes of Ballers, Barry, Insecure, and Room 104.

“Hi to all mankind,” an email sent to reporters read. “The greatest leak of cyber space era is happening. What’s its name? Oh I forget to tell. Its HBO and Game of Thrones……!!!!!!”

In follow-up correspondence, the hackers claimed to have penetrated HBO’s internal network, gaining access to emails, technical platforms, and other confidential information.

Image released by the hackers

Soon after, HBO chairman and CEO Richard Plepler confirmed a breach at his company, telling employees that there had been a “cyber incident” in which information and programming had been taken.

“Any intrusion of this nature is obviously disruptive, unsettling, and disturbing for all of us. I can assure you that senior leadership and our extraordinary technology team, along with outside experts, are working round the clock to protect our collective interests,” he said.

During mid-August, problems persisted, with unreleased shows hitting the Internet. HBO appeared rattled by the ongoing incident, refusing to comment to the media on every new development. Now, however, it appears the tide is turning on HBO’s foe.

In a statement last evening, Joon H. Kim, Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Division of the FBI, announced the unsealing of an indictment charging a 29-year-old man with offenses carried out against HBO.

“Behzad Mesri, an Iranian national who had previously hacked computer systems for the Iranian military, allegedly infiltrated HBO’s systems, stole proprietary data, including scripts and plot summaries for unaired episodes of Game of Thrones, and then sought to extort HBO of $6 million in Bitcoins,” Kim said.

“Mesri now stands charged with federal crimes, and although not arrested today, he will forever have to look over his shoulder until he is made to face justice. American ingenuity and creativity is to be cultivated and celebrated — not hacked, stolen, and held for ransom. For hackers who test our resolve in protecting our intellectual property — even those hiding behind keyboards in countries far away — eventually, winter will come.”

According to the Department of Justice, Mesri honed his computer skills working for the Iranian military, conducting cyber attacks against enemy military systems, nuclear software, and Israeli infrastructure. He was also a member of the Turk Black Hat hacking team which defaced hundreds of websites with the online pseudonym “Skote Vahshat”.

The indictment states that Mesri began his campaign against HBO during May 2017, when he conducted “online reconnaissance” of HBO’s networks and employees. Between May and July, he then compromised a number of HBO employee user accounts and used them to access the company’s data and TV shows, copying them to his own machines.

After allegedly obtaining around 1.5 terabytes of HBO’s data, Mesri then began to extort HBO, warning that unless a ransom of $5.5 million wasn’t paid in Bitcoin, the leaking would begin. When the amount wasn’t paid, three days later Mesri told HBO that the amount had now risen to $6m and as an additional punishment, data could be wiped from HBO’s servers.

Subsequently, on or around July 30 and continuing through August 2017, Mesri allegedly carried through with his threats, leaking information and TV shows online and promoting them via emails to members of the press.

As a result of the above, Mesri is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of computer hacking (five years), three counts of threatening to impair the confidentiality of information (five years each), and one count of interstate transmission of an extortionate communication (two years). No copyright infringement offenses are mentioned in the indictment.

The big question now is whether the US will ever get their hands on Mesri. The answer to that, at least through any official channels, seems to be a resounding no. There is no extradition treaty between the US and Iran meaning that if Mesri stays put, he’s likely to remain a free man.

Wanted

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