More than two years ago, Apple told the FBI that it planned to offer users end-to-end encryption when storing their phone data on iCloud, according to one current and three former FBI officials and one current and one former Apple employee.
Under that plan, primarily designed to thwart hackers, Apple would no longer have a key to unlock the encrypted data, meaning it would not be able to turn material over to authorities in a readable form even under court order.
In private talks with Apple soon after, representatives of the FBI’s cyber crime agents and its operational technology division objected to the plan, arguing it would deny them the most effective means for gaining evidence against iPhone-using suspects, the government sources said.
When Apple spoke privately to the FBI about its work on phone security the following year, the end-to-end encryption plan had been dropped, according to the six sources. Reuters could not determine why exactly Apple dropped the plan.
While most people behind unlicensed IPTV services prefer to sit in the shadows, popular YouTube celebrity OMI IN A HELLCAT took an entirely different approach.
Real name Omar Carrasquillo, OMI flaunted massive wealth in his videos, many featuring his beautiful houses, huge supercar collection, not to mention masses of jewelry. Last month, however, OMI revealed that a combination of his position as founder of IPTV service Gears Reloaded, an unpaid tax bill, and allegations of money laundering, had led to an unwelcome visit from the FBI “who took pretty much everything.”
Right from the very beginning, a small number of vocal individuals took to YouTube and social media platforms declaring that the whole thing was either a giant publicity stunt or an elaborate scam designed to fool the masses. However, around a week after the news was first reported, a reporter from local TV outlet Fox 29 appeared on air with some of OMI’s neighbors who witnessed the whole thing.
Despite there being no obvious reason why OMI would immerse himself in a month-long multi-level lie laid out in many more videos published since the authorities came in November, he says he’s still under pressure to show that he isn’t lying about the whole thing. That resulted in a new statement over the weekend where he attempted, once again, to provide irrefutable evidence.
“I don’t let things bother me, I’m not that kind of person to listen to outside noise. But the one thing that does bother me is that my life is in jeopardy and there are a lot of people who believe that this shit is fake,” OMI said.
“Like I don’t get it, I don’t understand it. There are so many people affected by this: 30 employees, good families – people who right now aren’t going to have Christmas.”
OMI says he believes the FBI is sitting back and laughing at his YouTube videos. He says they want people to believe that what happened is fake and they don’t want the attention. According to him, however, there will be plenty of attention very soon due to an upcoming high-profile interview. In the meantime, he’s been providing more detail on what happened last month.
“My friends…we all got hit simultaneously. I got hit in this house [Philadelphia], my kids’ mom got hit in the house in Swedesboro where they took all my cars. Here, they took my Mercedes, my Bentley, my work van. They took the Dodge Caravan [used by OMI’s video guy],” OMI explains.
“They went to one of my friend’s house a few blocks away from the house I’m currently living in. I sold him a Jeep Trackhawk a while ago and we never transferred it to his name and they took that from their house.”
According to OMI’s statement, the impact of what happened stretches far beyond him. The FBI allegedly took another friend’s car and then had to give it back. OMI says his nephew, who worked for him in construction, also had his car seized and all of his money and savings. But that wasn’t the end.
“They hit my friend Wolfie in Los Angeles. They hit some of the houses in Philly trying to look for servers and all this other stuff,” he added.
OMI’s long video statement (linked below) also contains CCTV footage that OMI says was given to him by his neighbors which apparently shows the FBI arriving at one of the addresses in several SUVs, cars, and pickup trucks. Shouts of “FBI, police,” can be heard after officers approached an address (identified as 3412 N Hope St, Philadelphia) after blocking a nearby street with their vehicles.
OMI says the show of force was extreme, with around 60 FBI agents and police officers targeting the address detailed above. The commotion in the street was recorded by at least one witness who uploaded the footage to the Internet and later shown briefly on OMI’s channel. Around 30 officers and agents raided OMI’s property in Philadelphia, which according to him was a terrifying experience.
“Can you imagine looking out this door, watching this whole driveway full of cars, and all these agents right here with their guns drawn?” he asks.
In his video, a clearly exasperated OMI explains that he feels the need to prove this isn’t an elaborate scam. However, since he hasn’t actually been charged with anything yet, he doesn’t want to release his case number in public. That being said, he believes the authorities’ strategy is to take everything he has so that he can’t afford to defend himself and ensure that he doesn’t run away. He will not do that, he insists.
Included in a five-page Department of Justice receipt detailing the many cars, pieces of jewelry, electronic and other sundry items seized, appears two items described as “lists of channels and email accounts” plus bank account information under the name “Bill Castillo” linked to “streaming video”.
“The only thing I have now is my YouTube [channel],” OMI says. “Honestly speaking, everything else is shut down. I have nothing else. My assistant hasn’t been paid, my secretary hasn’t been paid, my manager hasn’t got paid, my right-hand man in construction hasn’t got paid.
“And everyone’s like ‘But what did they do? He was committing fraud’. I never committed fraud a day in my damn life. This is for not paying taxes on a service. A service, not a Ponzi scheme, none of that shit. On a service.”
Interestingly, OMI claims that the FBI told him not to talk about the case in public but he refused to agree to that. But keeping things quiet wouldn’t be possible, not least since someone on Instagram posted a video of a convoy of his vehicles being taken away on trucks, including a Lamborghini that OMI previously had wrapped in very distinctive Power Ranger graphics.
Finally, in addition to all of the physical items that were seized, the FBI was looking for OMI’s money. He doesn’t reveal exactly how much was taken but he did show a screenshot from just one of his accounts that shows that on the day of the raid, more than $5.2m was removed, a transaction that left him in the red.
A second account, the details of which weren’t revealed, was also the subject of a seizure according to OMI. The ‘transaction’ reportedly left him $126,000 “in the negative”.
While all of the items presented in evidence can still be disputed, it seems unthinkable that OMI would destroy the most valuable thing he has left – the trust of his still-loyal fanbase. The authorities still refuse to confirm or deny any action against the YouTuber but at some point, they will probably have to go on the record, one way or another.
The New Yorker has published the long and interesting story of the cybersecurity firm Tiversa.
Watching “60 Minutes,” Boback saw a remarkable new business angle. Here was a multibillion-dollar industry with a near-existential problem and no clear solution. He did not know it then, but, as he turned the opportunity over in his mind, he was setting in motion a sequence of events that would earn him millions of dollars, friendships with business élites, prime-time media attention, and respect in Congress. It would also place him at the center of one of the strangest stories in the brief history of cybersecurity; he would be mired in lawsuits, countersuits, and counter-countersuits, which would gather into a vortex of litigation so ominous that one friend compared it to the Bermuda Triangle. He would be accused of fraud, of extortion, and of manipulating the federal government into harming companies that did not do business with him. Congress would investigate him. So would the F.B.I.
If US-based anti-piracy groups needed a recognizable local icon to rival the flamboyance of Kim Dotcom, last week they appeared to get one.
Omar Carrasquillo – better known by his YouTube name OMI IN A HELLCAT – is the founder of ‘pirate’ IPTV service Gears Reloaded. Unlike his counterparts behind similar platforms, however, OMI never hid the fact that he was running one of the most recognizable brands in the business.
OMI’s wealth, which included a huge house, the most blingy of jewelry, and a supercar collection to die for, was paraded all over his YouTube channel for everyone to see. But last week it came to an abrupt end. Gears Reloaded unexpectedly closed down and hours later OMI claimed he’d been raided by the FBI and IRS, allegedly for copyright infringement and tax offenses.
When compared to any of OMI’s previous videos, his demeanor made it clear that something catastrophic had happened. Nevertheless, in the absence of any confirmation by the FBI, some people complained that the whole thing was an elaborate fake designed to generate clicks.
Today, following a TV report from Fox 29, any notion that the raid existed only in OMI’s imagination has been dispelled. In the segment, a Fox 29 reporter is seen knocking on OMI’s front door, a home that was previously owned by former Philadelphia Phillies shortstop, Jimmy Rollins.
While the TV crew appears to have received no answer, the channel did manage to speak with some of OMI’s neighbors who confirmed what the YouTuber had been saying all along.
“[The FBI] had like bullet-proof vests on and they had guns drawn and they were very slowly approaching the house next door,” said neighbor Liz Ware.
In respect of OMI’s supercar collection, which some doubters claimed were either still sitting outside or had even been moved by OMI for effect, another neighbor who saw the whole thing recalled what happened.
“They loaded them off one by one through the course of about four or five hours,” said witness John Ware, who appears to be OMI’s next-door neighbor. “They took all the cars. Probably thirty of them.”
Other than OMI’s claims, that the case against him revolves around Gears Reloaded and tax issues, there is still no official confirmation of the allegations against him.
Last week the FBI refused to confirm or deny any operation and after prompting by Fox 29 yesterday, still declined to comment. It’s believed, however, that OMI is yet to be charged.
Interestingly, in a video posted to YouTube a few hours ago by OMI himself, which shows part of the Fox 29 report, the YouTuber said that just a few weeks ago his people asked the IRS “if they were after him” and he was told they were not. However, he’s certainly not happy with the way his accounts were prepared by his tax advisor.
“Back in September when I prepared my taxes, it just didn’t look right. I’m a 100% sure of this, I have 100% proof. I’m not just saying it, it just didn’t look right. My CPA [Certified Public Accountant] …she had access to all my bank accounts. She was only filing the 1099 [forms] that I received and shit didn’t look right,” OMI says.
“I [said] ‘i’m making more money than what you’re filing’. Thank God I didn’t sign them because that would’ve been hiding money, that would’ve been way worse, way worse. We contacted the IRS to see if they were after me, the IRS sent back a letter to my CPA and said no, they weren’t after me.”
OMI says that if he hadn’t been raided last week, there would be a payment plan in place by now, with around $2 million paid upfront in taxes and the rest paid in installments. Clearly, however, time had already run out and according to OMI, the assessment that streaming is something that won’t be acted on probably doesn’t stand anymore.
“To all the other streaming services out there, this is proof that this is not considered a great area,” he adds.
It is not uncommon for anti-piracy groups to state that some ‘pirates’ make a lot of money.
However, whenever that is the case, there’s a tendency for most in the piracy world to maintain a low profile.
Take that position, multiply it by a million. You’re now just halfway to the crazy world of YouTube sensation OMI IN A HELLCAT.
Regularly seen on his channel adding yet another supercar to his huge collection (a recent addition was a McLaren 720s Spider), OMI — real name Omar Carrasquillo — is the founder and owner of ‘pirate’ IPTV service Gears Reloaded.
There’s no suggestion that all of OMI’s rumored $50m fortune came from piracy (he reportedly owns real estate, a restaurant, and several other businesses) but it seems highly likely that the Gears Reloaded gig is well and truly over.
Starting early yesterday, users of the Gears Reloaded IPTV service reported rare downtime. The website connected to the service displays a message indicating ‘down for maintenance’ but according to OMI himself, that’s only part of the story.
“This ain’t clickbait. This ain’t fake, this is not fake. This is 100% real,” OMI said in a noticeably subdued live Q&A with his fans a couple of hours ago, streamed from a friend’s house in Philadelphia.
“I’m gonna let you guys know exactly…and by the way, the FBI is in here [the channel] watching right now as we speak. What i’m gonna need you guys to do for me, i’m gonna need you to buy that merch when it drops,” the persistent entrepreneur began.
“Pretty much they seized all my cars. One thing they didn’t seize was the things I was able to sell a few weeks ago, even a few days ago before this shit happened. A few cars and shit.
“When I tell you they took ‘everything’, they took every SD card, every camera, every television in my house — HOUSES. They took every car. They took ALL my Hellcats. They only thing they didn’t take was my dick because it’s attached to my balls.”
Describing himself for the benefit of newcomers, OMI insisted that his wealth isn’t the result of selling drugs. He began as an app developer for Kodi, one that “got hacked early on.” He then answered the million-dollar question — what happened with the FBI?
“It was pretty much IPTV and taxes and shit and hiring the wrong CPA [accountant]. This is really important for you guys, make sure your taxes are paid for,” he said.
That “taxes and shit” is apparently a reference to pending tax evasion and money laundering charges following a two-year IRS investigation. This is particularly interesting when one considers that OMI has regularly and persistently described pirate IPTV as legal.
“I hit a great area and exploited it and they just didn’t like it. I made a ton of money but at the same time a lot of the money I made super-legit,” he told the Q&A.
“I felt that what I was doing wasn’t illegal. Streaming is totally legal, it’s just the way they’re trying to word it, it’s a little different. But streaming isn’t illegal. It was never live television, it was always delayed television and there’s no laws against it. There’s no laws against it.
“This is Napster 2.0. This wasn’t killing anybody. If anything I saved hundreds of thousands of people [with] cheaper cable. IPTV is not illegal in the US. It isn’t. It isn’t. It’s illegal in other countries but it’s not illegal in the US.
“The [Copyright Act] has nothing to do with streaming and when they seize those servers and they realize there’s nothing being stored on these servers, you have nothing on me. Streaming is not illegal. I saw a window, I saw an opportunity, I exploited the fuck out of it. That’s all it is.”
In earlier videos, OMI said that he previously made lots of money from hosting services, including Minecraft and Grand Theft Auto servers. He also talked about selling huge numbers of Firesticks. Generally, it’s difficult to find a video where the amount of money he’s made isn’t either the sole topic of conversation or at least heavily featured.
But according to OMI, that might be more difficult in the future.
“[My friend] had to lend me a phone because I don’t have a phone. They seized millions of dollars out of all my accounts. They took all the cash I had laying around,” he says. “They took all my jewelry [a recent video has OMI apparently buying $300K’s worth], kids’ things, they took Xboxes, they took computers, laptops, cellphones. They didn’t even leave drones.”
Having previously watched a good number of OMI’s videos, his optimism and positivity have always shone through. That wasn’t the case during this Q&A. By his own estimation, he’s going to prison “for a few years” although he says he’ll also take the rap for those who worked with him.
Another particular point of interest is that OMI insists that entertainment companies never sued him.
“I could’ve dealt with the MPA or the NFL suing me, that never happened. They never gave me fair warning, which by law they have to. Especially when it comes down to a crime like this, when it comes down to ‘copyright infringement’. They were supposed to hit me with a seize operation, or a cease and desist.
“They never hit me with that. I would’ve took it right down,” he adds.
However, OMI also admits that he had been receiving takedown notices issued from the UK on behalf of “the European leagues”, which seems like a reference to either Premier League or UEFA blocking efforts. He also acknowledges receiving notices from Sky, HBO, and similar “fucking stupid channels.”
If there is a point where a defendant in a serious criminal case should stop talking and consult a lawyer, OMI doesn’t seem to know where that point is. He told viewers that the FBI is accusing him of “stealing channels” but he insists he always paid for his — before capturing them and distributing them to his customers.
“I paid for my channels. I did things the old school way. I used capture cards. I take full responsibility so anybody on my team and shit, I pretty much hope you guys don’t ever go to jail now,” he explained.
According to OMI, he knew an investigation was underway since an associate he names as ‘Hector Fuentes’ was a CI (an informant).
“So he used to come around and shit, with a little wire on and could see the wire through his fucking shirt and would say dumb shit to see how far it would get him. The mother-fucker was a confidential informant. The whole time, he was putting people in jail for a long time,” OMI claimed.
Considering this was a Q&A streamed live on YouTube, things then got dark, very dark indeed. OMI says that after being detained by the FBI and being run to the station, all he could think of was killing himself, live on YouTube.
“I’m gonna go on live….and i’m going to kill myself. I’m gonna go on live, express how I feel and then shoot myself on live.”
Thankfully, for everyone’s sake, that didn’t happen.
In an extraordinary essay, the former FBI general counsel Jim Baker makes the case for strong encryption over government-mandated backdoors:
In the face of congressional inaction, and in light of the magnitude of the threat, it is time for governmental authorities — including law enforcement — to embrace encryption because it is one of the few mechanisms that the United States and its allies can use to more effectively protect themselves from existential cybersecurity threats, particularly from China. This is true even though encryption will impose costs on society, especially victims of other types of crime.
I am unaware of a technical solution that will effectively and simultaneously reconcile all of the societal interests at stake in the encryption debate, such as public safety, cybersecurity and privacy as well as simultaneously fostering innovation and the economic competitiveness of American companies in a global marketplace.
All public safety officials should think of protecting the cybersecurity of the United States as an essential part of their core mission to protect the American people and uphold the Constitution. And they should be doing so even if there will be real and painful costs associated with such a cybersecurity-forward orientation. The stakes are too high and our current cybersecurity situation too grave to adopt a different approach.
Basically, he argues that the security value of strong encryption greatly outweighs the security value of encryption that can be bypassed. He endorses a “defense dominant” strategy for Internet security.
Yahoo News reported that the Russians have successfully targeted an FBI communications system:
American officials discovered that the Russians had dramatically improved their ability to decrypt certain types of secure communications and had successfully tracked devices used by elite FBI surveillance teams. Officials also feared that the Russians may have devised other ways to monitor U.S. intelligence communications, including hacking into computers not connected to the internet. Senior FBI and CIA officials briefed congressional leaders on these issues as part of a wide-ranging examination on Capitol Hill of U.S. counterintelligence vulnerabilities.
These compromises, the full gravity of which became clear to U.S. officials in 2012, gave Russian spies in American cities including Washington, New York and San Francisco key insights into the location of undercover FBI surveillance teams, and likely the actual substance of FBI communications, according to former officials. They provided the Russians opportunities to potentially shake off FBI surveillance and communicate with sensitive human sources, check on remote recording devices and even gather intelligence on their FBI pursuers, the former officials said.
It’s unclear whether the Russians were able to recover encrypted data or just perform traffic analysis. The Yahoo story implies the former; the NBC News story says otherwise. It’s hard to tell if the reporters truly understand the difference. We do know, from research Matt Blaze and others did almost ten years ago, that at least one FBI radio system was horribly insecure in practice — but not in a way that breaks the encryption. Its poor design just encourages users to turn off the encryption.
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.
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.
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.
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.
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 sophisticatedpiece 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 askingus 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.
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 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.”
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.
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.
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.
We are aware of a technical glitch that is affecting the Channel Store and channel playback on your Roku device. We hope to resolve the issue shortly. You can get a status update at https://t.co/mxCNxoG36N. We apologize for any inconvenience.
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.
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.
Forbesreports that the Israeli company Cellebrite can probably unlock all iPhone models:
Cellebrite, a Petah Tikva, Israel-based vendor that’s become the U.S. government’s company of choice when it comes to unlocking mobile devices, is this month telling customers its engineers currently have the ability to get around the security of devices running iOS 11. That includes the iPhone X, a model that Forbes has learned was successfully raided for data by the Department for Homeland Security back in November 2017, most likely with Cellebrite technology.
It also appears the feds have already tried out Cellebrite tech on the most recent Apple handset, the iPhone X. That’s according to a warrant unearthed by Forbes in Michigan, marking the first known government inspection of the bleeding edge smartphone in a criminal investigation. The warrant detailed a probe into Abdulmajid Saidi, a suspect in an arms trafficking case, whose iPhone X was taken from him as he was about to leave America for Beirut, Lebanon, on November 20. The device was sent to a Cellebrite specialist at the DHS Homeland Security Investigations Grand Rapids labs and the data extracted on December 5.
This story is based on some excellent reporting, but leaves a lot of questions unanswered. We don’t know exactly what was extracted from any of the phones. Was it metadata or data, and what kind of metadata or data was it.
The story I hear is that Cellebrite hires ex-Apple engineers and moves them to countries where Apple can’t prosecute them under the DMCA or its equivalents. There’s also a credible rumor that Cellebrite’s mechanisms only defeat the mechanism that limits the number of password attempts. It does not allow engineers to move the encrypted data off the phone and run an offline password cracker. If this is true, then strong passwords are still secure.
EDITED TO ADD (3/1): Another article, with more information. It looks like there’s an arms race going on between Apple and Cellebrite. At least, if Cellebrite is telling the truth — which they may or may not be.
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.”
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.
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 Trumpsigned 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.
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.
The collective thoughts of the interwebz
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