Tag Archives: fbi

Using Foreign Nationals to Bypass US Surveillance Restrictions

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2022/01/using-foreign-nationals-to-bypass-us-surveillance-restrictions.html

Remember when the US and Australian police surreptitiously owned and operated the encrypted cell phone app ANOM? They arrested 800 people in 2021 based on that operation.

New documents received by Motherboard show that over 100 of those phones were shipped to users in the US, far more than previously believed.

What’s most interesting to me about this new information is how the US used the Australians to get around domestic spying laws:

For legal reasons, the FBI did not monitor outgoing messages from Anom devices determined to be inside the U.S. Instead, the Australian Federal Police (AFP) monitored them on behalf of the FBI, according to previously published court records. In those court records unsealed shortly before the announcement of the Anom operation, FBI Special Agent Nicholas Cheviron wrote that the FBI received Anom user data three times a week, which contained the messages of all of the users of Anom with some exceptions, including “the messages of approximately 15 Anom users in the U.S. sent to any other Anom device.”

[…]

Stewart Baker, partner at Steptoe & Johnson LLP, and Bryce Klehm, associate editor of Lawfare, previously wrote that “The ‘threat to life; standard echoes the provision of U.S. law that allows communications providers to share user data with law enforcement without legal process under 18 U.S.C. § 2702. Whether the AFP was relying on this provision of U.S. law or a more general moral imperative to take action to prevent imminent threats is not clear.” That section of law discusses the voluntary disclosure of customer communications or records.

When asked about the practice of Australian law enforcement monitoring devices inside the U.S. on behalf of the FBI, Senator Ron Wyden told Motherboard in a statement “Multiple intelligence community officials have confirmed to me, in writing, that intelligence agencies cannot ask foreign partners to conduct surveillance that the U.S. would be legally prohibited from doing itself. The FBI should follow this same standard. Allegations that the FBI outsourced warrantless surveillance of Americans to a foreign government raise troubling questions about the Justice Department’s oversight of these practices.”

I and others have long suspected that the NSA uses foreign nationals to get around restrictions that prevent it from spying on Americans. It is interesting to see the FBI using the same trick.

Stolen Bitcoins Returned

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/12/stolen-bitcoins-returned.html

The US has returned $154 million in bitcoins stolen by a Sony employee.

However, on December 1, following an investigation in collaboration with Japanese law enforcement authorities, the FBI seized the 3879.16242937 BTC in Ishii’s wallet after obtaining the private key, which made it possible to transfer all the bitcoins to the FBI’s bitcoin wallet.

Law Enforcement Access to Chat Data and Metadata

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/12/law-enforcement-access-to-chat-data-and-metadata.html

A January 2021 FBI document outlines what types of data and metadata can be lawfully obtained by the FBI from messaging apps. Rolling Stone broke the story and it’s been written about elsewhere.

I don’t see a lot of surprises in the document. Lots of apps leak all sorts of metadata: iMessage and WhatsApp seem to be the worst. Signal protects the most metadata. End-to-end encrypted message content can be available if the user uploads it to an unencrypted backup server.

EDITED TO ADD (12/13): Here’s a more legible copy of the text.

Wire Fraud Scam Upgraded with Bitcoin

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/11/wire-fraud-scam-upgraded-with-bitcoin.html

The FBI has issued a bulletin describing a bitcoin variant of a wire fraud scam:

As the agency describes it, the scammer will contact their victim and somehow convince them that they need to send money, either with promises of love, further riches, or by impersonating an actual institution like a bank or utility company. After the mark is convinced, the scammer will have them get cash (sometimes out of investment or retirement accounts), and head to an ATM that sells cryptocurrencies and supports reading QR codes. Once the victim’s there, they’ll scan a QR code that the scammer sent them, which will tell the machine to send any crypto purchased to the scammer’s address. Just like that, the victim loses their money, and the scammer has successfully exploited them.

[…]

The “upgrade” (as it were) for scammers with the crypto ATM method is two-fold: it can be less friction than sending a wire transfer, and at the end the scammer has cryptocurrency instead of fiat. With wire transfers, you have to fill out a form, and you may give that form to an actual person (who could potentially vibe check you). Using the ATM method, there’s less time to reflect on the fact that you’re about to send money to a stranger. And, if you’re a criminal trying to get your hands on Bitcoin, you won’t have to teach your targets how to buy coins on the internet and transfer them to another wallet — they probably already know how to use an ATM and scan a QR code.

FBI Had the REvil Decryption Key

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/09/fbi-had-the-revil-decryption-key.html

The Washington Post reports that the FBI had a decryption key for the REvil ransomware, but didn’t pass it along to victims because it would have disrupted an ongoing operation.

The key was obtained through access to the servers of the Russia-based criminal gang behind the July attack. Deploying it immediately could have helped the victims, including schools and hospitals, avoid what analysts estimate was millions of dollars in recovery costs.

But the FBI held on to the key, with the agreement of other agencies, in part because it was planning to carry out an operation to disrupt the hackers, a group known as REvil, and the bureau did not want to tip them off. Also, a government assessment found the harm was not as severe as initially feared.

Fighting ransomware is filled with security trade-offs. This is one I had not previously considered.

Another news story.

Chinese Supply-Chain Attack on Computer Systems

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/chinese-supply-chain-attack-on-computer-systems.html

Bloomberg News has a major story about the Chinese hacking computer motherboards made by Supermicro, Levono, and others. It’s been going on since at least 2008. The US government has known about it for almost as long, and has tried to keep the attack secret:

China’s exploitation of products made by Supermicro, as the U.S. company is known, has been under federal scrutiny for much of the past decade, according to 14 former law enforcement and intelligence officials familiar with the matter. That included an FBI counterintelligence investigation that began around 2012, when agents started monitoring the communications of a small group of Supermicro workers, using warrants obtained under the Foreign Intelligence Surveillance Act, or FISA, according to five of the officials.

There’s lots of detail in the article, and I recommend that you read it through.

This is a follow on, with a lot more detail, to a story Bloomberg reported on in fall 2018. I didn’t believe the story back then, writing:

I don’t think it’s real. Yes, it’s plausible. But first of all, if someone actually surreptitiously put malicious chips onto motherboards en masse, we would have seen a photo of the alleged chip already. And second, there are easier, more effective, and less obvious ways of adding backdoors to networking equipment.

I seem to have been wrong. From the current Bloomberg story:

Mike Quinn, a cybersecurity executive who served in senior roles at Cisco Systems Inc. and Microsoft Corp., said he was briefed about added chips on Supermicro motherboards by officials from the U.S. Air Force. Quinn was working for a company that was a potential bidder for Air Force contracts, and the officials wanted to ensure that any work would not include Supermicro equipment, he said. Bloomberg agreed not to specify when Quinn received the briefing or identify the company he was working for at the time.

“This wasn’t a case of a guy stealing a board and soldering a chip on in his hotel room; it was architected onto the final device,” Quinn said, recalling details provided by Air Force officials. The chip “was blended into the trace on a multilayered board,” he said.

“The attackers knew how that board was designed so it would pass” quality assurance tests, Quinn said.

Supply-chain attacks are the flavor of the moment, it seems. But they’re serious, and very hard to defend against in our deeply international IT industry. (I have repeatedly called this an “insurmountable problem.”) Here’s me in 2018:

Supply-chain security is an incredibly complex problem. US-only design and manufacturing isn’t an option; the tech world is far too internationally interdependent for that. We can’t trust anyone, yet we have no choice but to trust everyone. Our phones, computers, software and cloud systems are touched by citizens of dozens of different countries, any one of whom could subvert them at the demand of their government.

We need some fundamental security research here. I wrote this in 2019:

The other solution is to build a secure system, even though any of its parts can be subverted. This is what the former Deputy Director of National Intelligence Sue Gordon meant in April when she said about 5G, “You have to presume a dirty network.” Or more precisely, can we solve this by building trustworthy systems out of untrustworthy parts?

It sounds ridiculous on its face, but the Internet itself was a solution to a similar problem: a reliable network built out of unreliable parts. This was the result of decades of research. That research continues today, and it’s how we can have highly resilient distributed systems like Google’s network even though none of the individual components are particularly good. It’s also the philosophy behind much of the cybersecurity industry today: systems watching one another, looking for vulnerabilities and signs of attack.

It seems that supply-chain attacks are constantly in the news right now. That’s good. They’ve been a serious problem for a long time, and we need to take the threat seriously. For further reading, I strongly recommend this Atlantic Council report from last summer: “Breaking trust: Shades of crisis across an insecure software supply chain.“

Another SolarWinds Orion Hack

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/another-solarwinds-orion-hack.html

At the same time the Russians were using a backdoored SolarWinds update to attack networks worldwide, another threat actor — believed to be Chinese in origin — was using an already existing vulnerability in Orion to penetrate networks:

Two people briefed on the case said FBI investigators recently found that the National Finance Center, a federal payroll agency inside the U.S. Department of Agriculture, was among the affected organizations, raising fears that data on thousands of government employees may have been compromised.

[…]

Reuters was not able to establish how many organizations were compromised by the suspected Chinese operation. The sources, who spoke on condition of anonymity to discuss ongoing investigations, said the attackers used computer infrastructure and hacking tools previously deployed by state-backed Chinese cyberspies.

[…]

While the alleged Russian hackers penetrated deep into SolarWinds network and hid a “back door” in Orion software updates which were then sent to customers, the suspected Chinese group exploited a separate bug in Orion’s code to help spread across networks they had already compromised, the sources said.

Two takeaways: One, we are learning about a lot of supply-chain attacks right now. Two, SolarWinds’ terrible security is the result of a conscious business decision to reduce costs in the name of short-term profits. Economist Matt Stoller writes about this:

These private equity-owned software firms torture professionals with bad user experiences and shitty customer support in everything from yoga studio software to car dealer IT to the nightmarish ‘core’ software that runs small banks and credit unions, as close as one gets to automating Office Space. But they also degrade product quality by firing or disrespecting good workers, under-investing in good security practices, or sending work abroad and paying badly, meaning their products are more prone to espionage. In other words, the same sloppy and corrupt practices that allowed this massive cybersecurity hack made Bravo a billionaire. In a sense, this hack, and many more like it, will continue to happen, as long as men like Bravo get rich creating security vulnerabilities for bad actors to exploit.

SolarWinds increased its profits by increasing its cybersecurity risk, and then transferred that risk to its customers without their knowledge or consent.