Tag Archives: obama

MPAA Chief Says Fighting Piracy Remains “Top Priority”

Post Syndicated from Andy original https://torrentfreak.com/mpaa-chief-says-fighting-piracy-remains-top-priority-180425/

After several high-profile years at the helm of the movie industry’s most powerful lobbying group, last year saw the departure of Chris Dodd from the role of Chairman and CEO at the MPAA.

The former Senator, who earned more than $3.5m a year championing the causes of the major Hollywood studios since 2011, was immediately replaced by another political heavyweight.

Charles Rivkin, who took up his new role September 5, 2017, previously served as Assistant Secretary of State for Economic and Business Affairs in the Obama administration. With an underperforming domestic box office year behind him fortunately overshadowed by massive successes globally, this week he spoke before US movie exhibitors for the first time at CinemaCon in Las Vegas.

“Globally, we hit a record high of $40.6 billion at the box office. Domestically, our $11.1 billion box office was slightly down from the 2016 record. But it exactly matched the previous high from 2015. And it was the second highest total in the past decade,” Rivkin said.

“But it exactly matched the previous high from 2015. And it was the second highest total in the past decade.”

Rivkin, who spent time as President and CEO of The Jim Henson Company, told those in attendance that he shares a deep passion for the movie industry and looks forward optimistically to the future, a future in which content is secured from those who intend on sharing it for free.

“Making sure our creative works are valued and protected is one of the most important things we can do to keep that industry heartbeat strong. At the Henson Company, and WildBrain, I learned just how much intellectual property affects everyone. Our entire business model depended on our ability to license Kermit the Frog, Miss Piggy, and the Muppets and distribute them across the globe,” Rivkin said.

“I understand, on a visceral level, how important copyright is to any creative business and in particular our country’s small and medium enterprises – which are the backbone of the American economy. As Chairman and CEO of the MPAA, I guarantee you that fighting piracy in all forms remains our top priority.”

That tackling piracy is high on the MPAA’s agenda won’t comes as a surprise but at least in terms of the numbers of headlines plastered over the media, high-profile anti-piracy action has been somewhat lacking in recent years.

With lawsuits against torrent sites seemingly a thing of the past and a faltering Megaupload case that will conclude who-knows-when, the MPAA has taken a broader view, seeking partnerships with sometimes rival content creators and distributors, each with a shared desire to curtail illicit media.

“One of the ways that we’re already doing that is through the Alliance for Creativity and Entertainment – or ACE as we call it,” Rivkin said.

“This is a coalition of 30 leading global content creators, including the MPAA’s six member studios as well as Netflix, and Amazon. We work together as a powerful team to ensure our stories are seen as they were intended to be, and that their creators are rewarded for their hard work.”

Announced in June 2017, ACE has become a united anti-piracy powerhouse for a huge range of entertainment industry groups, encompassing the likes of CBS, HBO, BBC, Sky, Bell Canada, CBS, Hulu, Lionsgate, Foxtel and Village Roadshow, to name a few.

The coalition was announced by former MPAA Chief Chris Dodd and now, with serious financial input from all companies involved, appears to be picking its fights carefully, focusing on the growing problem of streaming piracy centered around misuse of Kodi and similar platforms.

From threatening relatively small-time producers and distributors of third-party addons and builds (1,2,3), ACE is also attempting to make its mark among the profiteers.

The group now has several lawsuits underway in the United States against people selling piracy-enabled IPTV boxes including Tickbox, Dragon Box, and during the last week, Set TV.

With these important cases pending, Rivkin offered assurances that his organization remains committed to anti-piracy enforcement and he thanked exhibitors for their efforts to prevent people quickly running away with copies of the latest releases.

“I am grateful to all of you for recognizing what is at stake, and for working with us to protect creativity, such as fighting the use of illegal camcorders in theaters,” he said.

“Protecting our creativity isn’t only a fundamental right. It’s an economic necessity, for us and all creative economies. Film and television are among the most valuable – and most impactful – exports we have.

Thus far at least, Rivkin has a noticeably less aggressive tone on piracy than his predecessor Chris Dodd but it’s unlikely that will be mistaken for weakness among pirates, nor should it. The MPAA isn’t known for going soft on pirates and it certainly won’t be changing course anytime soon.

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Dotcom’s Bid to Compel Obama to Give Evidence Rejected By High Court

Post Syndicated from Andy original https://torrentfreak.com/dotcoms-bid-to-compel-obama-to-give-evidence-rejected-by-high-court-180321/

With former US president Barack Obama in New Zealand until Friday, the visit provided a golden opportunity for Kim Dotcom to pile on yet more pressure over the strained prosecution of both him and his defunct cloud storage site, Megaupload.

In a statement issued yesterday, 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.

Mainly, however, Dotcom shone yet more light on what he perceives to be the dark politics behind the case, arguing that the Obama administration was under pressure from Hollywood to do something about copyright enforcement or risk losing funding. He says they pulled out all the stops and trampled his rights to prevent that from happening.

In a lengthy affidavit, filed this week to coincide with Obama’s visit, Dotcom called on the High Court to compel the former president to give evidence in the entrepreneur’s retaliatory multi-billion dollar damages claim against the Kiwi government.

This morning, however, Chief High Court Judge, Justice Geoffrey Venning, quickly shut that effort down.

With Obama enjoying a round of golf alongside former Prime Minister and Dotcom nemesis John Key, Justice Venning declined the request to compel Obama to give evidence, whether in New Zealand during the current visit or via letter of request to judicial authorities in the United States.

In his decision, Justice Venning notes that Dotcom’s applications were filed late on March 19 and the matter was only handed to him yesterday. As a result, he convened a telephone conference this morning to “deal with the application as a matter of urgency.”

Dotcom’s legal team argued that in the absence of a Court order it’s unlikely that Obama would give evidence. Equally, given that no date has yet been set for Dotcom’s damages hearing, it will “not be practicable” to serve Obama at a later point in the United States.

Furthermore, absent an order compelling his attendance, Obama would be unlikely to be called as a witness, despite him being the most competent potential witness currently present in New Zealand.

Dotcom counsel Ron Mansfield accepted that there would be practical limitations on what could be achieved between March 21 and March 23 while Obama is in New Zealand. However, he asked that an order be granted so that it could be served while Obama is in the country, even if the examination took place at a later date.

The Judge wasn’t convinced.

“Despite Mr Mansfield’s concession, I consider the application is still premature. The current civil proceedings were only filed on 22 December 2017. The defendants have applied for an order deferring the filing of a statement of defense pending the determination of the hearing of two appeals currently before the Court of Appeal. That application is yet to be determined,” Justice Venning’s decision reads.

The Judge also questions whether evidence Obama could give would be relevant.

He notes that Dotcom’s evidence is based on the fact that Hollywood was a major benefactor of the Democratic Party in the United States and that, in his opinion, the action against Megaupload and him “met the United States’ need to appease the Hollywood lobby” and “that the United States and New Zealand’s interests were perfectly aligned.”

However, Dotcom’s transcripts of his conversations with a lobbyist, which appeared to indicate Obama’s dissatisfaction with the Megaupload prosecution, are dismissed as “hearsay evidence”. Documentation of a private lunch with Obama and the head of the MPAA is also played down.

“Mr Dotcom’s opinion that Mr Obama’s evidence will be relevant to the present claims appears at best speculative,” the Judge notes.

But even if the evidence had been stronger, Justice Venning says that Obama would need to be given time to prepare for an examination, given that it would relate to matters that occurred several years ago.

“He would need to review relevant documents and materials from the time in preparation for any examination. That confirms the current application is premature,” the Judge writes.

In support, it is noted that Dotcom knew as early as February 21 that Obama’s visit would be taking place this week, yet his application was filed just days ago.

With that, the Judge dismissed the application, allowing Obama to play golf in peace. Well, relative peace at least. Dotcom isn’t done yet.

“I am disappointed of course because I believe my affidavit contains compelling evidence of the link between the Obama administration, Hollywood, and my extradition proceeding. However, after seven years of this, I am used to fighting to get to the truth and will keep fighting. Next round!” Dotcom said in response.

“The judgment is no surprise and we’ll get the opportunity to question Obama sooner or later,” he added.

As a further indication of the international nature of Dotcom’s case, the Megaupload founder also reminded people of his former connections to Hong Kong, noting that people in power there are keeping an eye on his case.

“The Chinese Government is watching my case with interest. Expect some bold action in the Hong Kong Courts soon. Never again shall an accusation from the US DOJ be enough to destroy a Hong Kong business. That lesson will soon be learned,” he said.

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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.

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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….

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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.

Libertarians are against net neutrality

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/12/libertarians-are-against-net-neutrality.html

This post claims to be by a libertarian in support of net neutrality. As a libertarian, I need to debunk this. “Net neutrality” is a case of one-hand clapping, you rarely hear the competing side, and thus, that side may sound attractive. This post is about the other side, from a libertarian point of view.

That post just repeats the common, and wrong, left-wing talking points. I mean, there might be a libertarian case for some broadband regulation, but this isn’t it.

This thing they call “net neutrality” is just left-wing politics masquerading as some sort of principle. It’s no different than how people claim to be “pro-choice”, yet demand forced vaccinations. Or, it’s no different than how people claim to believe in “traditional marriage” even while they are on their third “traditional marriage”.

Properly defined, “net neutrality” means no discrimination of network traffic. But nobody wants that. A classic example is how most internet connections have faster download speeds than uploads. This discriminates against upload traffic, harming innovation in upload-centric applications like DropBox’s cloud backup or BitTorrent’s peer-to-peer file transfer. Yet activists never mention this, or other types of network traffic discrimination, because they no more care about “net neutrality” than Trump or Gingrich care about “traditional marriage”.

Instead, when people say “net neutrality”, they mean “government regulation”. It’s the same old debate between who is the best steward of consumer interest: the free-market or government.

Specifically, in the current debate, they are referring to the Obama-era FCC “Open Internet” order and reclassification of broadband under “Title II” so they can regulate it. Trump’s FCC is putting broadband back to “Title I”, which means the FCC can’t regulate most of its “Open Internet” order.

Don’t be tricked into thinking the “Open Internet” order is anything but intensely politically. The premise behind the order is the Democrat’s firm believe that it’s government who created the Internet, and all innovation, advances, and investment ultimately come from the government. It sees ISPs as inherently deceitful entities who will only serve their own interests, at the expense of consumers, unless the FCC protects consumers.

It says so right in the order itself. It starts with the premise that broadband ISPs are evil, using illegitimate “tactics” to hurt consumers, and continues with similar language throughout the order.

A good contrast to this can be seen in Tim Wu’s non-political original paper in 2003 that coined the term “net neutrality”. Whereas the FCC sees broadband ISPs as enemies of consumers, Wu saw them as allies. His concern was not that ISPs would do evil things, but that they would do stupid things, such as favoring short-term interests over long-term innovation (such as having faster downloads than uploads).

The political depravity of the FCC’s order can be seen in this comment from one of the commissioners who voted for those rules:

FCC Commissioner Jessica Rosenworcel wants to increase the minimum broadband standards far past the new 25Mbps download threshold, up to 100Mbps. “We invented the internet. We can do audacious things if we set big goals, and I think our new threshold, frankly, should be 100Mbps. I think anything short of that shortchanges our children, our future, and our new digital economy,” Commissioner Rosenworcel said.

This is indistinguishable from communist rhetoric that credits the Party for everything, as this booklet from North Korea will explain to you.

But what about monopolies? After all, while the free-market may work when there’s competition, it breaks down where there are fewer competitors, oligopolies, and monopolies.

There is some truth to this, in individual cities, there’s often only only a single credible high-speed broadband provider. But this isn’t the issue at stake here. The FCC isn’t proposing light-handed regulation to keep monopolies in check, but heavy-handed regulation that regulates every last decision.

Advocates of FCC regulation keep pointing how broadband monopolies can exploit their renting-seeking positions in order to screw the customer. They keep coming up with ever more bizarre and unlikely scenarios what monopoly power grants the ISPs.

But the never mention the most simplest: that broadband monopolies can just charge customers more money. They imagine instead that these companies will pursue a string of outrageous, evil, and less profitable behaviors to exploit their monopoly position.

The FCC’s reclassification of broadband under Title II gives it full power to regulate ISPs as utilities, including setting prices. The FCC has stepped back from this, promising it won’t go so far as to set prices, that it’s only regulating these evil conspiracy theories. This is kind of bizarre: either broadband ISPs are evilly exploiting their monopoly power or they aren’t. Why stop at regulating only half the evil?

The answer is that the claim “monopoly” power is a deception. It starts with overstating how many monopolies there are to begin with. When it issued its 2015 “Open Internet” order the FCC simultaneously redefined what they meant by “broadband”, upping the speed from 5-mbps to 25-mbps. That’s because while most consumers have multiple choices at 5-mbps, fewer consumers have multiple choices at 25-mbps. It’s a dirty political trick to convince you there is more of a problem than there is.

In any case, their rules still apply to the slower broadband providers, and equally apply to the mobile (cell phone) providers. The US has four mobile phone providers (AT&T, Verizon, T-Mobile, and Sprint) and plenty of competition between them. That it’s monopolistic power that the FCC cares about here is a lie. As their Open Internet order clearly shows, the fundamental principle that animates the document is that all corporations, monopolies or not, are treacherous and must be regulated.

“But corporations are indeed evil”, people argue, “see here’s a list of evil things they have done in the past!”

No, those things weren’t evil. They were done because they benefited the customers, not as some sort of secret rent seeking behavior.

For example, one of the more common “net neutrality abuses” that people mention is AT&T’s blocking of FaceTime. I’ve debunked this elsewhere on this blog, but the summary is this: there was no network blocking involved (not a “net neutrality” issue), and the FCC analyzed it and decided it was in the best interests of the consumer. It’s disingenuous to claim it’s an evil that justifies FCC actions when the FCC itself declared it not evil and took no action. It’s disingenuous to cite the “net neutrality” principle that all network traffic must be treated when, in fact, the network did treat all the traffic equally.

Another frequently cited abuse is Comcast’s throttling of BitTorrent.Comcast did this because Netflix users were complaining. Like all streaming video, Netflix backs off to slower speed (and poorer quality) when it experiences congestion. BitTorrent, uniquely among applications, never backs off. As most applications become slower and slower, BitTorrent just speeds up, consuming all available bandwidth. This is especially problematic when there’s limited upload bandwidth available. Thus, Comcast throttled BitTorrent during prime time TV viewing hours when the network was already overloaded by Netflix and other streams. BitTorrent users wouldn’t mind this throttling, because it often took days to download a big file anyway.

When the FCC took action, Comcast stopped the throttling and imposed bandwidth caps instead. This was a worse solution for everyone. It penalized heavy Netflix viewers, and prevented BitTorrent users from large downloads. Even though BitTorrent users were seen as the victims of this throttling, they’d vastly prefer the throttling over the bandwidth caps.

In both the FaceTime and BitTorrent cases, the issue was “network management”. AT&T had no competing video calling service, Comcast had no competing download service. They were only reacting to the fact their networks were overloaded, and did appropriate things to solve the problem.

Mobile carriers still struggle with the “network management” issue. While their networks are fast, they are still of low capacity, and quickly degrade under heavy use. They are looking for tricks in order to reduce usage while giving consumers maximum utility.

The biggest concern is video. It’s problematic because it’s designed to consume as much bandwidth as it can, throttling itself only when it experiences congestion. This is what you probably want when watching Netflix at the highest possible quality, but it’s bad when confronted with mobile bandwidth caps.

With small mobile devices, you don’t want as much quality anyway. You want the video degraded to lower quality, and lower bandwidth, all the time.

That’s the reasoning behind T-Mobile’s offerings. They offer an unlimited video plan in conjunction with the biggest video providers (Netflix, YouTube, etc.). The catch is that when congestion occurs, they’ll throttle it to lower quality. In other words, they give their bandwidth to all the other phones in your area first, then give you as much of the leftover bandwidth as you want for video.

While it sounds like T-Mobile is doing something evil, “zero-rating” certain video providers and degrading video quality, the FCC allows this, because they recognize it’s in the customer interest.

Mobile providers especially have great interest in more innovation in this area, in order to conserve precious bandwidth, but they are finding it costly. They can’t just innovate, but must ask the FCC permission first. And with the new heavy handed FCC rules, they’ve become hostile to this innovation. This attitude is highlighted by the statement from the “Open Internet” order:

And consumers must be protected, for example from mobile commercial practices masquerading as “reasonable network management.”

This is a clear declaration that free-market doesn’t work and won’t correct abuses, and that that mobile companies are treacherous and will do evil things without FCC oversight.

Conclusion

Ignoring the rhetoric for the moment, the debate comes down to simple left-wing authoritarianism and libertarian principles. The Obama administration created a regulatory regime under clear Democrat principles, and the Trump administration is rolling it back to more free-market principles. There is no principle at stake here, certainly nothing to do with a technical definition of “net neutrality”.

The 2015 “Open Internet” order is not about “treating network traffic neutrally”, because it doesn’t do that. Instead, it’s purely a left-wing document that claims corporations cannot be trusted, must be regulated, and that innovation and prosperity comes from the regulators and not the free market.

It’s not about monopolistic power. The primary targets of regulation are the mobile broadband providers, where there is plenty of competition, and who have the most “network management” issues. Even if it were just about wired broadband (like Comcast), it’s still ignoring the primary ways monopolies profit (raising prices) and instead focuses on bizarre and unlikely ways of rent seeking.

If you are a libertarian who nonetheless believes in this “net neutrality” slogan, you’ve got to do better than mindlessly repeating the arguments of the left-wing. The term itself, “net neutrality”, is just a slogan, varying from person to person, from moment to moment. You have to be more specific. If you truly believe in the “net neutrality” technical principle that all traffic should be treated equally, then you’ll want a rewrite of the “Open Internet” order.

In the end, while libertarians may still support some form of broadband regulation, it’s impossible to reconcile libertarianism with the 2015 “Open Internet”, or the vague things people mean by the slogan “net neutrality”.

Don Jr.: I’ll bite

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/11/don-jr-ill-bite.html

So Don Jr. tweets the following, which is an excellent troll. So I thought I’d bite. The reason is I just got through debunk Democrat claims about NetNeutrality, so it seems like a good time to balance things out and debunk Trump nonsense.

The issue here is not which side is right. The issue here is whether you stand for truth, or whether you’ll seize any factoid that appears to support your side, regardless of the truthfulness of it. The ACLU obviously chose falsehoods, as I documented. In the following tweet, Don Jr. does the same.

It’s a preview of the hyperpartisan debates are you are likely to have across the dinner table tomorrow, which each side trying to outdo the other in the false-hoods they’ll claim.

What we see in this number is a steady trend of these statistics since the Great Recession, with no evidence in the graphs showing how Trump has influenced these numbers, one way or the other.

Stock markets at all time highs

This is true, but it’s obviously not due to Trump. The stock markers have been steadily rising since the Great Recession. Trump has done nothing substantive to change the market trajectory. Also, he hasn’t inspired the market to change it’s direction.
To be fair to Don Jr., we’ve all been crediting (or blaming) presidents for changes in the stock market despite the fact they have almost no influence over it. Presidents don’t run the economy, it’s an inappropriate conceit. The most influence they’ve had is in harming it.

Lowest jobless claims since 73

Again, let’s graph this:

As we can see, jobless claims have been on a smooth downward trajectory since the Great Recession. It’s difficult to see here how President Trump has influenced these numbers.

6 Trillion added to the economy

What he’s referring to is that assets have risen in value, like the stock market, homes, gold, and even Bitcoin.
But this is a well known fallacy known as Mercantilism, believing the “economy” is measured by the value of its assets. This was debunked by Adam Smith in his book “The Wealth of Nations“, where he showed instead the the “economy” is measured by how much it produces (GDP – Gross Domestic Product) and not assets.
GDP has grown at 3.0%, which is pretty good compared to the long term trend, and is better than Europe or Japan (though not as good as China). But Trump doesn’t deserve any credit for this — today’s rise in GDP is the result of stuff that happened years ago.
Assets have risen by $6 trillion, but that’s not a good thing. After all, when you sell your home for more money, the buyer has to pay more. So one person is better off and one is worse off, so the net effect is zero.
Actually, such asset price increase is a worrisome indicator — we are entering into bubble territory. It’s the result of a loose monetary policy, low interest rates and “quantitative easing” that was designed under the Obama administration to stimulate the economy. That’s why all assets are rising in value. Normally, a rise in one asset means a fall in another, like selling gold to pay for houses. But because of loose monetary policy, all assets are increasing in price. The amazing rise in Bitcoin over the last year is as much a result of this bubble growing in all assets as it is to an exuberant belief in Bitcoin.
When this bubble collapses, which may happen during Trump’s term, it’ll really be the Obama administration who is to blame. I mean, if Trump is willing to take credit for the asset price bubble now, I’m willing to give it to him, as long as he accepts the blame when it crashes.

1.5 million fewer people on food stamps

As you’d expect, I’m going to debunk this with a graph: the numbers have been falling since the great recession. Indeed, in the previous period under Obama, 1.9 fewer people got off food stamps, so Trump’s performance is slight ahead rather than behind Obama. Of course, neither president is really responsible.

Consumer confidence through the roof

Again we are going to graph this number:

Again we find nothing in the graph that suggests President Trump is responsible for any change — it’s been improving steadily since the Great Recession.

One thing to note is that, technically, it’s not “through the roof” — it still quite a bit below the roof set during the dot-com era.

Lowest Unemployment rate in 17 years

Again, let’s simply graph it over time and look for Trump’s contribution. as we can see, there doesn’t appear to be anything special Trump has done — unemployment has steadily been improving since the Great Recession.
But here’s the thing, the “unemployment rate” only measures those looking for work, not those who have given up. The number that concerns people more is the “labor force participation rate”. The Great Recession kicked a lot of workers out of the economy.
Mostly this is because Baby Boomer are now retiring an leaving the workforce, and some have chosen to retire early rather than look for another job. But there are still some other problems in our economy that cause this. President Trump has nothing particular in order to solve these problems.

Conclusion

As we see, Don Jr’s tweet is a troll. When we look at the graphs of these indicators going back to the Great Recession, we don’t see how President Trump has influenced anything. The improvements this year are in line with the improvements last year, which are in turn inline with the improvements in the previous year.
To be fair, all parties credit their President with improvements during their term. President Obama’s supporters did the same thing. But at least right now, with these numbers, we can see that there’s no merit to anything in Don Jr’s tweet.
The hyperpartisan rancor in this country is because neither side cares about the facts. We should care. We should care that these numbers suck, even if we are Republicans. Conversely, we should care that those NetNeutrality claims by Democrats suck, even if we are Democrats.

IoT Cybersecurity: What’s Plan B?

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/10/iot_cybersecuri.html

In August, four US Senators introduced a bill designed to improve Internet of Things (IoT) security. The IoT Cybersecurity Improvement Act of 2017 is a modest piece of legislation. It doesn’t regulate the IoT market. It doesn’t single out any industries for particular attention, or force any companies to do anything. It doesn’t even modify the liability laws for embedded software. Companies can continue to sell IoT devices with whatever lousy security they want.

What the bill does do is leverage the government’s buying power to nudge the market: any IoT product that the government buys must meet minimum security standards. It requires vendors to ensure that devices can not only be patched, but are patched in an authenticated and timely manner; don’t have unchangeable default passwords; and are free from known vulnerabilities. It’s about as low a security bar as you can set, and that it will considerably improve security speaks volumes about the current state of IoT security. (Full disclosure: I helped draft some of the bill’s security requirements.)

The bill would also modify the Computer Fraud and Abuse and the Digital Millennium Copyright Acts to allow security researchers to study the security of IoT devices purchased by the government. It’s a far narrower exemption than our industry needs. But it’s a good first step, which is probably the best thing you can say about this legislation.

However, it’s unlikely this first step will even be taken. I am writing this column in August, and have no doubt that the bill will have gone nowhere by the time you read it in October or later. If hearings are held, they won’t matter. The bill won’t have been voted on by any committee, and it won’t be on any legislative calendar. The odds of this bill becoming law are zero. And that’s not just because of current politics — I’d be equally pessimistic under the Obama administration.

But the situation is critical. The Internet is dangerous — and the IoT gives it not just eyes and ears, but also hands and feet. Security vulnerabilities, exploits, and attacks that once affected only bits and bytes now affect flesh and blood.

Markets, as we’ve repeatedly learned over the past century, are terrible mechanisms for improving the safety of products and services. It was true for automobile, food, restaurant, airplane, fire, and financial-instrument safety. The reasons are complicated, but basically, sellers don’t compete on safety features because buyers can’t efficiently differentiate products based on safety considerations. The race-to-the-bottom mechanism that markets use to minimize prices also minimizes quality. Without government intervention, the IoT remains dangerously insecure.

The US government has no appetite for intervention, so we won’t see serious safety and security regulations, a new federal agency, or better liability laws. We might have a better chance in the EU. Depending on how the General Data Protection Regulation on data privacy pans out, the EU might pass a similar security law in 5 years. No other country has a large enough market share to make a difference.

Sometimes we can opt out of the IoT, but that option is becoming increasingly rare. Last year, I tried and failed to purchase a new car without an Internet connection. In a few years, it’s going to be nearly impossible to not be multiply connected to the IoT. And our biggest IoT security risks will stem not from devices we have a market relationship with, but from everyone else’s cars, cameras, routers, drones, and so on.

We can try to shop our ideals and demand more security, but companies don’t compete on IoT safety — and we security experts aren’t a large enough market force to make a difference.

We need a Plan B, although I’m not sure what that is. E-mail me if you have any ideas.

This essay previously appeared in the September/October issue of IEEE Security & Privacy.

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

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

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

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

Shared Passwords

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

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

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

Tools: HaveIBeenPwned.com

PIN encrypted PDFs

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

Tools: Hashcat, John the Ripper

SQL and other injection

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

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

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

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

Buffer overflows

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

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

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

SendMail DEBUG command (historical)

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

More: Wikipedia on Morris Worm

Email Attachments/Links

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

Default and backdoor passwords

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

Masscan and background radiation of the Internet

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

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

Tools: masscan, firewalls

Packet-sniffing, sidejacking

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

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

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

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

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

Tools: Wireshark, dsniff

Stuxnet LNK vulnerability

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

Social Engineering and Tech Support [* * *]

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

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

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

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

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

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

Blue-boxes (historical) [*]

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

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

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

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

Thumb drives in parking lots [*]

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

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

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

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

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

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

Googling [*]

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

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

URL editing [*]

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

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

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

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

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

DDoS, spoofing, and amplification [*]

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

More: Wikipedia on DDoS, Wikipedia on Spoofing

Conclusion

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

More notes on US-CERTs IOCs

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/06/more-notes-on-us-certs-iocs.html

Yet another Russian attack against the power grid, and yet more bad IOCs from the DHS US-CERT.

IOCs are “indicators of compromise“, things you can look for in order to order to see if you, too, have been hacked by the same perpetrators. There are several types of IOCs, ranging from the highly specific to the uselessly generic.

A uselessly generic IOC would be like trying to identify bank robbers by the fact that their getaway car was “white” in color. It’s worth documenting, so that if the police ever show up in a suspected cabin in the woods, they can note that there’s a “white” car parked in front.

But if you work bank security, that doesn’t mean you should be on the lookout for “white” cars. That would be silly.

This is what happens with US-CERT’s IOCs. They list some potentially useful things, but they also list a lot of junk that waste’s people’s times, with little ability to distinguish between the useful and the useless.

An example: a few months ago was the GRIZZLEYBEAR report published by US-CERT. Among other things, it listed IP addresses used by hackers. There was no description which would be useful IP addresses to watch for, and which would be useless.

Some of these IP addresses were useful, pointing to servers the group has been using a long time as command-and-control servers. Other IP addresses are more dubious, such as Tor exit nodes. You aren’t concerned about any specific Tor exit IP address, because it changes randomly, so has no relationship to the attackers. Instead, if you cared about those Tor IP addresses, what you should be looking for is a dynamically updated list of Tor nodes updated daily.

And finally, they listed IP addresses of Yahoo, because attackers passed data through Yahoo servers. No, it wasn’t because those Yahoo servers had been compromised, it’s just that everyone passes things though them, like email.

A Vermont power-plant blindly dumped all those IP addresses into their sensors. As a consequence, the next morning when an employee checked their Yahoo email, the sensors triggered. This resulted in national headlines about the Russians hacking the Vermont power grid.

Today, the US-CERT made similar mistakes with CRASHOVERRIDE. They took a report from Dragos Security, then mutilated it. Dragos’s own IOCs focused on things like hostile strings and file hashes of the hostile files. They also included filenames, but similar to the reason you’d noticed a white car — because it happened, not because you should be on the lookout for it. In context, there’s nothing wrong with noting the file name.

But the US-CERT pulled the filenames out of context. One of those filenames was, humorously, “svchost.exe”. It’s the name of an essential Windows service. Every Windows computer is running multiple copies of “svchost.exe”. It’s like saying “be on the lookout for Windows”.

Yes, it’s true that viruses use the same filenames as essential Windows files like “svchost.exe”. That’s, generally, something you should be aware of. But that CRASHOVERRIDE did this is wholly meaningless.

What Dragos Security was actually reporting was that a “svchost.exe” with the file hash of 79ca89711cdaedb16b0ccccfdcfbd6aa7e57120a was the virus — it’s the hash that’s the important IOC. Pulling the filename out of context is just silly.

Luckily, the DHS also provides some of the raw information provided by Dragos. But even then, there’s problems: they provide it in formatted form, for HTML, PDF, or Excel documents. This corrupts the original data so that it’s no longer machine readable. For example, from their webpage, they have the following:

import “pe”
import “hash”

Among the problems are the fact that the quote marks have been altered, probably by Word’s “smart quotes” feature. In other cases, I’ve seen PDF documents get confused by the number 0 and the letter O, as if the raw data had been scanned in from a printed document and OCRed.

If this were a “threat intel” company,  we’d call this snake oil. The US-CERT is using Dragos Security’s reports to promote itself, but ultimate providing negative value, mutilating the content.

This, ultimately, causes a lot of harm. The press trusted their content. So does the network of downstream entities, like municipal power grids. There are tens of thousands of such consumers of these reports, often with less expertise than even US-CERT. There are sprinklings of smart people in these organizations, I meet them at hacker cons, and am fascinated by their stories. But institutionally, they are dumbed down the same level as these US-CERT reports, with the smart people marginalized.

There are two solutions to this problem. The first is that when the stupidity of what you do causes everyone to laugh at you, stop doing it. The second is to value technical expertise, empowering those who know what they are doing. Examples of what not to do are giving power to people like Obama’s cyberczar, Michael Daniels, who once claimed his lack of technical knowledge was a bonus, because it allowed him to see the strategic picture instead of getting distracted by details.

WannaCry and Vulnerabilities

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/06/wannacry_and_vu.html

There is plenty of blame to go around for the WannaCry ransomware that spread throughout the Internet earlier this month, disrupting work at hospitals, factories, businesses, and universities. First, there are the writers of the malicious software, which blocks victims’ access to their computers until they pay a fee. Then there are the users who didn’t install the Windows security patch that would have prevented an attack. A small portion of the blame falls on Microsoft, which wrote the insecure code in the first place. One could certainly condemn the Shadow Brokers, a group of hackers with links to Russia who stole and published the National Security Agency attack tools that included the exploit code used in the ransomware. But before all of this, there was the NSA, which found the vulnerability years ago and decided to exploit it rather than disclose it.

All software contains bugs or errors in the code. Some of these bugs have security implications, granting an attacker unauthorized access to or control of a computer. These vulnerabilities are rampant in the software we all use. A piece of software as large and complex as Microsoft Windows will contain hundreds of them, maybe more. These vulnerabilities have obvious criminal uses that can be neutralized if patched. Modern software is patched all the time — either on a fixed schedule, such as once a month with Microsoft, or whenever required, as with the Chrome browser.

When the US government discovers a vulnerability in a piece of software, however, it decides between two competing equities. It can keep it secret and use it offensively, to gather foreign intelligence, help execute search warrants, or deliver malware. Or it can alert the software vendor and see that the vulnerability is patched, protecting the country — and, for that matter, the world — from similar attacks by foreign governments and cybercriminals. It’s an either-or choice. As former US Assistant Attorney General Jack Goldsmith has said, “Every offensive weapon is a (potential) chink in our defense — and vice versa.”

This is all well-trod ground, and in 2010 the US government put in place an interagency Vulnerabilities Equities Process (VEP) to help balance the trade-off. The details are largely secret, but a 2014 blog post by then President Barack Obama’s cybersecurity coordinator, Michael Daniel, laid out the criteria that the government uses to decide when to keep a software flaw undisclosed. The post’s contents were unsurprising, listing questions such as “How much is the vulnerable system used in the core Internet infrastructure, in other critical infrastructure systems, in the US economy, and/or in national security systems?” and “Does the vulnerability, if left unpatched, impose significant risk?” They were balanced by questions like “How badly do we need the intelligence we think we can get from exploiting the vulnerability?” Elsewhere, Daniel has noted that the US government discloses to vendors the “overwhelming majority” of the vulnerabilities that it discovers — 91 percent, according to NSA Director Michael S. Rogers.

The particular vulnerability in WannaCry is code-named EternalBlue, and it was discovered by the US government — most likely the NSA — sometime before 2014. The Washington Post reported both how useful the bug was for attack and how much the NSA worried about it being used by others. It was a reasonable concern: many of our national security and critical infrastructure systems contain the vulnerable software, which imposed significant risk if left unpatched. And yet it was left unpatched.

There’s a lot we don’t know about the VEP. The Washington Post says that the NSA used EternalBlue “for more than five years,” which implies that it was discovered after the 2010 process was put in place. It’s not clear if all vulnerabilities are given such consideration, or if bugs are periodically reviewed to determine if they should be disclosed. That said, any VEP that allows something as dangerous as EternalBlue — or the Cisco vulnerabilities that the Shadow Brokers leaked last August to remain unpatched for years isn’t serving national security very well. As a former NSA employee said, the quality of intelligence that could be gathered was “unreal.” But so was the potential damage. The NSA must avoid hoarding vulnerabilities.

Perhaps the NSA thought that no one else would discover EternalBlue. That’s another one of Daniel’s criteria: “How likely is it that someone else will discover the vulnerability?” This is often referred to as NOBUS, short for “nobody but us.” Can the NSA discover vulnerabilities that no one else will? Or are vulnerabilities discovered by one intelligence agency likely to be discovered by another, or by cybercriminals?

In the past few months, the tech community has acquired some data about this question. In one study, two colleagues from Harvard and I examined over 4,300 disclosed vulnerabilities in common software and concluded that 15 to 20 percent of them are rediscovered within a year. Separately, researchers at the Rand Corporation looked at a different and much smaller data set and concluded that fewer than six percent of vulnerabilities are rediscovered within a year. The questions the two papers ask are slightly different and the results are not directly comparable (we’ll both be discussing these results in more detail at the Black Hat Conference in July), but clearly, more research is needed.

People inside the NSA are quick to discount these studies, saying that the data don’t reflect their reality. They claim that there are entire classes of vulnerabilities the NSA uses that are not known in the research world, making rediscovery less likely. This may be true, but the evidence we have from the Shadow Brokers is that the vulnerabilities that the NSA keeps secret aren’t consistently different from those that researchers discover. And given the alarming ease with which both the NSA and CIA are having their attack tools stolen, rediscovery isn’t limited to independent security research.

But even if it is difficult to make definitive statements about vulnerability rediscovery, it is clear that vulnerabilities are plentiful. Any vulnerabilities that are discovered and used for offense should only remain secret for as short a time as possible. I have proposed six months, with the right to appeal for another six months in exceptional circumstances. The United States should satisfy its offensive requirements through a steady stream of newly discovered vulnerabilities that, when fixed, also improve the country’s defense.

The VEP needs to be reformed and strengthened as well. A report from last year by Ari Schwartz and Rob Knake, who both previously worked on cybersecurity policy at the White House National Security Council, makes some good suggestions on how to further formalize the process, increase its transparency and oversight, and ensure periodic review of the vulnerabilities that are kept secret and used for offense. This is the least we can do. A bill recently introduced in both the Senate and the House calls for this and more.

In the case of EternalBlue, the VEP did have some positive effects. When the NSA realized that the Shadow Brokers had stolen the tool, it alerted Microsoft, which released a patch in March. This prevented a true disaster when the Shadow Brokers exposed the vulnerability on the Internet. It was only unpatched systems that were susceptible to WannaCry a month later, including versions of Windows so old that Microsoft normally didn’t support them. Although the NSA must take its share of the responsibility, no matter how good the VEP is, or how many vulnerabilities the NSA reports and the vendors fix, security won’t improve unless users download and install patches, and organizations take responsibility for keeping their software and systems up to date. That is one of the important lessons to be learned from WannaCry.

This essay originally appeared in Foreign Affairs.

I want to talk for a moment about tolerance

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/05/i-want-to-talk-for-moment-about.html

This post is in response to this Twitter thread. I was going to do a series of tweets in response, but as the number grew, I thought it’d better be done in a blog.

She thinks we are fighting for the rights of Nazis. We aren’t — indeed, the fact that she thinks we are is exactly the problem. They aren’t Nazis.

The issue is not about a slippery slope that first Nazi’s lose free speech, then other groups start losing their speech as well. The issue is that it’s a slippery slope that more and more people get labeled a Nazi. And we are already far down that slope.

The “alt-right” is a diverse group. Like any group. Vilifying the entire alt-right by calling them Nazi’s is like lumping all Muslims in with ISIS or Al Qaeda. We really don’t have Nazi’s in America. Even White Nationalists don’t fit the bill. Nazism was about totalitarianism, real desire to exterminate Jews, lebensraum, and Aryan superiority. Sure, some of these people exist, but they are a fringe, even among the alt-right.

It’s at this point we need to discuss words like “tolerance”. I don’t think it means what you think it means.

The idea of tolerance is that reasonable people can disagree. You still believe you are right, and the other person is wrong, but you accept that they are nonetheless a reasonable person with good intentions, and that they don’t need to be punished for holding the wrong opinion.

Gay rights is a good example. I agree with you that there is only one right answer to this. Having spent nights holding my crying gay college roommate, because his father hated gays, has filled me with enormous hatred and contempt for people like his father. I’ve done my fair share shouting at people for anti-gay slurs.

Yet on the other hand, progressive icons like Barack Obama and Hillary Clinton have had evolving positions on gay rights issues, such as having opposed gay marriage at one time.

Tolerance means accepting that a person is reasonable, intelligent, and well-meaning — even if they oppose gay marriage. It means accepting that Hillary and Obama were reasonable people, even when they were vocally opposing gay marriage.

I’m libertarian. Like most libertarians, I support wide open borders, letting any immigrant across the border for any reason. To me, Hillary’s and Obama’s immigration policies are almost as racist as Trump’s. I have to either believe all you people supporting Hillary/Obama are irredeemably racist — or that well-meaning, good people can disagree about immigration.

I could go through a long list of issues that separate the progressive left and alt-right, and my point would always be the same. While people disagree on issues, and I have my own opinions about which side is right, there are reasonable people on both sides. If there are issues that divide our country down the middle, then by definition, both sides are equally reasonable. The problem with the progressive left is that they do not tolerate this. They see the world as being between one half who hold the correct opinions, and the other half who are unreasonable.

What defines the “alt-right” is not Nazism or White Nationalism, but the reaction of many on the right to intolerance of many on the left. Every time somebody is punished and vilified for uttering what is in fact a reasonable difference of opinion, they join the “alt-right”.

The issue at stake here, the issue that the ACLU is defending, is after that violent attack on the Portland train by an extremist, the city is denying all “alt-right” protesters the right to march. It’s blaming all those of the “alt-right” for the actions of one of their member. It’s similar to cities blocking Muslims from building a mosque because of extremists like ISIS and Al Qaeda, or disturbed individuals who carry out violent attacks in the name of Islam.

This is not just a violation of the First Amendment rights, it’s an obvious one. As the Volokh Conspiracy documents, the courts have ruled many times on this issue. There is no doubt that the “alt-right” has the right to march, and that the city’s efforts to deny them this right is a blatant violation of the constitution.

What we are defending here is not the rights of actual Nazi’s to march (as the courts famous ruled was still legitimate speech in Skokie, Illinois), but the rights of non-Nazi’s to march, most who have legitimate, reasonable (albeit often wrong) grievances to express. This speech is clearly being suppressed by gun wielding thugs in Portland, Oregon.

Those like Jillian see this as dealing with unreasonable speech, we see this as a problem of tolerably wrong speech. Those like Jillian York aren’t defending the right to free speech because, in their minds, they’ve vilified the people they disagree with. But that’s that’s exactly when, and only when, free speech needs our protection, when those speaking out have been vilified, and their repression seems just. Look at how Russia suppresses supporters of gay rights, with exactly this sort of vilification, whereby the majority of the populace sees the violence and policing as a legitimate response to speech that should not be free.

We aren’t fighting a slippery slope here, by defending Nazis. We’ve already slid down that slope, where reasonable people’s rights are being violated. We are fighting to get back up top.

–> –>

Who Are the Shadow Brokers?

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

In 2013, a mysterious group of hackers that calls itself the Shadow Brokers stole a few disks full of NSA secrets. Since last summer, they’ve been dumping these secrets on the Internet. They have publicly embarrassed the NSA and damaged its intelligence-gathering capabilities, while at the same time have put sophisticated cyberweapons in the hands of anyone who wants them. They have exposed major vulnerabilities in Cisco routers, Microsoft Windows, and Linux mail servers, forcing those companies and their customers to scramble. And they gave the authors of the WannaCry ransomware the exploit they needed to infect hundreds of thousands of computer worldwide this month.

After the WannaCry outbreak, the Shadow Brokers threatened to release more NSA secrets every month, giving cybercriminals and other governments worldwide even more exploits and hacking tools.

Who are these guys? And how did they steal this information? The short answer is: we don’t know. But we can make some educated guesses based on the material they’ve published.

The Shadow Brokers suddenly appeared last August, when they published a series of hacking tools and computer exploits­ — vulnerabilities in common software — ­from the NSA. The material was from autumn 2013, and seems to have been collected from an external NSA staging server, a machine that is owned, leased, or otherwise controlled by the US, but with no connection to the agency. NSA hackers find obscure corners of the Internet to hide the tools they need as they go about their work, and it seems the Shadow Brokers successfully hacked one of those caches.

In total, the group has published four sets of NSA material: a set of exploits and hacking tools against routers, the devices that direct data throughout computer networks; a similar collection against mail servers; another collection against Microsoft Windows; and a working directory of an NSA analyst breaking into the SWIFT banking network. Looking at the time stamps on the files and other material, they all come from around 2013. The Windows attack tools, published last month, might be a year or so older, based on which versions of Windows the tools support.

The releases are so different that they’re almost certainly from multiple sources at the NSA. The SWIFT files seem to come from an internal NSA computer, albeit one connected to the Internet. The Microsoft files seem different, too; they don’t have the same identifying information that the router and mail server files do. The Shadow Brokers have released all the material unredacted, without the care journalists took with the Snowden documents or even the care WikiLeaks has taken with the CIA secrets it’s publishing. They also posted anonymous messages in bad English but with American cultural references.

Given all of this, I don’t think the agent responsible is a whistleblower. While possible, it seems like a whistleblower wouldn’t sit on attack tools for three years before publishing. They would act more like Edward Snowden or Chelsea Manning, collecting for a time and then publishing immediately­ — and publishing documents that discuss what the US is doing to whom. That’s not what we’re seeing here; it’s simply a bunch of exploit code, which doesn’t have the political or ethical implications that a whistleblower would want to highlight. The SWIFT documents are records of an NSA operation, and the other posted files demonstrate that the NSA is hoarding vulnerabilities for attack rather than helping fix them and improve all of our security.

I also don’t think that it’s random hackers who stumbled on these tools and are just trying to harm the NSA or the US. Again, the three-year wait makes no sense. These documents and tools are cyber-Kryptonite; anyone who is secretly hoarding them is in danger from half the intelligence agencies in the world. Additionally, the publication schedule doesn’t make sense for the leakers to be cybercriminals. Criminals would use the hacking tools for themselves, incorporating the exploits into worms and viruses, and generally profiting from the theft.

That leaves a nation state. Whoever got this information years before and is leaking it now has to be both capable of hacking the NSA and willing to publish it all. Countries like Israel and France are capable, but would never publish, because they wouldn’t want to incur the wrath of the US. Country like North Korea or Iran probably aren’t capable. (Additionally, North Korea is suspected of being behind WannaCry, which was written after the Shadow Brokers released that vulnerability to the public.) As I’ve written previously, the obvious list of countries who fit my two criteria is small: Russia, China, and­ — I’m out of ideas. And China is currently trying to make nice with the US.

It was generally believed last August, when the first documents were released and before it became politically controversial to say so, that the Russians were behind the leak, and that it was a warning message to President Barack Obama not to retaliate for the Democratic National Committee hacks. Edward Snowden guessed Russia, too. But the problem with the Russia theory is, why? These leaked tools are much more valuable if kept secret. Russia could use the knowledge to detect NSA hacking in its own country and to attack other countries. By publishing the tools, the Shadow Brokers are signaling that they don’t care if the US knows the tools were stolen.

Sure, there’s a chance the attackers knew that the US knew that the attackers knew — ­and round and round we go. But the “we don’t give a damn” nature of the releases points to an attacker who isn’t thinking strategically: a lone hacker or hacking group, which clashes with the nation-state theory.

This is all speculation on my part, based on discussion with others who don’t have access to the classified forensic and intelligence analysis. Inside the NSA, they have a lot more information. Many of the files published include operational notes and identifying information. NSA researchers know exactly which servers were compromised, and through that know what other information the attackers would have access to. As with the Snowden documents, though, they only know what the attackers could have taken and not what they did take. But they did alert Microsoft about the Windows vulnerability the Shadow Brokers released months in advance. Did they have eavesdropping capability inside whoever stole the files, as they claimed to when the Russians attacked the State Department? We have no idea.

So, how did the Shadow Brokers do it? Did someone inside the NSA accidentally mount the wrong server on some external network? That’s possible, but seems very unlikely for the organization to make that kind of rookie mistake. Did someone hack the NSA itself? Could there be a mole inside the NSA?

If it is a mole, my guess is that the person was arrested before the Shadow Brokers released anything. No country would burn a mole working for it by publishing what that person delivered while he or she was still in danger. Intelligence agencies know that if they betray a source this severely, they’ll never get another one.

That points to two possibilities. The first is that the files came from Hal Martin. He’s the NSA contractor who was arrested in August for hoarding agency secrets in his house for two years. He can’t be the publisher, because the Shadow Brokers are in business even though he is in prison. But maybe the leaker got the documents from his stash, either because Martin gave the documents to them or because he himself was hacked. The dates line up, so it’s theoretically possible. There’s nothing in the public indictment against Martin that speaks to his selling secrets to a foreign power, but that’s just the sort of thing that would be left out. It’s not needed for a conviction.

If the source of the documents is Hal Martin, then we can speculate that a random hacker did in fact stumble on it — ­no need for nation-state cyberattack skills.

The other option is a mysterious second NSA leaker of cyberattack tools. Could this be the person who stole the NSA documents and passed them on to someone else? The only time I have ever heard about this was from a Washington Post story about Martin:

There was a second, previously undisclosed breach of cybertools, discovered in the summer of 2015, which was also carried out by a TAO employee [a worker in the Office of Tailored Access Operations], one official said. That individual also has been arrested, but his case has not been made public. The individual is not thought to have shared the material with another country, the official said.

Of course, “not thought to have” is not the same as not having done so.

It is interesting that there have been no public arrests of anyone in connection with these hacks. If the NSA knows where the files came from, it knows who had access to them — ­and it’s long since questioned everyone involved and should know if someone deliberately or accidentally lost control of them. I know that many people, both inside the government and out, think there is some sort of domestic involvement; things may be more complicated than I realize.

It’s also not over. Last week, the Shadow Brokers were back, with a rambling and taunting message announcing a “Data Dump of the Month” service. They’re offering to sell unreleased NSA attack tools­ — something they also tried last August­ — with the threat to publish them if no one pays. The group has made good on their previous boasts: In the coming months, we might see new exploits against web browsers, networking equipment, smartphones, and operating systems — Windows in particular. Even scarier, they’re threatening to release raw NSA intercepts: data from the SWIFT network and banks, and “compromised data from Russian, Chinese, Iranian, or North Korean nukes and missile programs.”

Whoever the Shadow Brokers are, however they stole these disks full of NSA secrets, and for whatever reason they’re releasing them, it’s going to be a long summer inside of Fort Meade­ — as it will be for the rest of us.

This essay previously appeared in the Atlantic, and is an update of this essay from Lawfare.

Shadow Brokers Releases the Rest of Their NSA Hacking Tools

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/04/shadow_brokers_.html

Last August, an unknown group called the Shadow Brokers released a bunch of NSA tools to the public. The common guesses were that the tools were discovered on an external staging server, and that the hack and release was the work of the Russians (back then, that wasn’t controversial). This was me:

Okay, so let’s think about the game theory here. Some group stole all of this data in 2013 and kept it secret for three years. Now they want the world to know it was stolen. Which governments might behave this way? The obvious list is short: China and Russia. Were I betting, I would bet Russia, and that it’s a signal to the Obama Administration: “Before you even think of sanctioning us for the DNC hack, know where we’ve been and what we can do to you.”

They published a second, encrypted, file. My speculation:

They claim to be auctioning off the rest of the data to the highest bidder. I think that’s PR nonsense. More likely, that second file is random nonsense, and this is all we’re going to get. It’s a lot, though.

I was wrong. On November 1, the Shadow Brokers released some more documents, and two days ago they released the key to that original encrypted archive:

EQGRP-Auction-Files is CrDj”(;Va.*[email protected])#>deB7mN

I don’t think their statement is worth reading for content. I still believe the Russia are more likely to be the perpetrator than China.

There’s not much yet on the contents of this dump of Top Secret NSA hacking tools, but it can’t be a fun weekend at Ft. Meade. I’m sure that by now they have enough information to know exactly where and when the data got stolen, and maybe even detailed information on who did it. My guess is that we’ll never see that information, though.

EDITED TO ADD (4/11): Seems like there’s not a lot here.

Some confusing language in the 0day debate

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/03/some-confusing-language-in-0day-debate.html

As revealed in last week’s CIA #Vault7 leaks, the CIA has some 0days. This has ignited the debate about whether organizations like the CIA should be disclosing these 0days so that vendors can fix them, rather than “stockpiling” them. There seems to be some confusion about language.

Stockpile

The word “stockpile” has multiple connotations, as shown below:

This distorts the debate. Using the word “stockpile” strongly implies “reserve for use” at some time in the future. This prejudices the debate. If the the 0day is sitting on a shelf somewhere not being used, then it apparently has little value for offense, and thus, should be disclosed/patched for defense.

The truth is that that government does not buy 0days to sit on the shelf. With few exceptions, it buys 0days because it plans to use them in an offensive operation. This was described in that recent RAND report:

It’s the sellers who might keep 0days on the shelf, because the buyers have no immediate need. It’s not the government buyers who are stockpiling.

Words like “stockpiling”, “amassing”, or “hoarding” also bring the connotation that the number is too big. Words like “hoarding” bring the connotation that the government is doing something to keep the 0days away from others, preventing them from finding them, too.

Neutral terms would be more accurate, such as “acquiring” 0days, or having a “collection” 0days.

Find 0days

People keep describing the government as “finding” 0days. The word has two different meanings:

We are talking about two different policies here, one where the government finds 0day by chance, and one where they obtain 0days by effort.

Numerous articles quote Michael Daniel, former cyberczar under Obama, as claiming their default policy was to disclose 0days they find. What he meant was those found by chance. That doesn’t apply to vulnerabilities researched/bought by the CIA/NSA. Obviously, if you’ve got a target (like described above), and you buy an 0day to attack that target, you are going to use it. You aren’t going to immediately disclose it, thereby making it useless for the purpose for which you bought it.

Michael Daniels is typical government speak: while their official policy was to disclose, their practice was to not disclose.

Using the word “find” prejudices the conversation, like “stockpiling”, making it look like the government has no particular interest in an 0day, and is just hoarding it out of spite. What the government actually does is “buy” 0days from outsiders, or “researches” 0days themselves. Either way, they put a lot of effort into it.

0day

In this context, there are actually two very different types of 0day: those the government use for offense, and all the rest.

We think of the NSA/CIA as superspies, but really the opposite is true. Their internal processes kill creativity, and what they really want are weaponized/operationalized exploits they can give to ill-trained cyber-warriors. As that RAND paper also indicates, they have other strange needs, such as how it’s really important they don’t get caught. They’d rather forgo hacking a target they know they can hack, rather than use a noisy 0day.

Also, as mentioned above, they have a specific target in mind when they buy a bug. While the NSA/CIA has 0days for mainstream products like iPhone and Android, the bulk is for products you’ve never heard of. For example, if they learn that ISIS is using a specific model of router from Huawei, they’ll go out and buy one, pull the firmware, reverse engineer it, and find an 0day. I pick “Huawei” routers here, because they are rare in the United States, but common in the areas the NSA wants to hack.

The point is this: the “0day” discussion misses what’s going really going on with the government weaponized/offensive 0days. They are apples-to-oranges 0days.

Conclusion

Recently, there has been a lot of discussion about the government finding and stockpiling 0days. The debate is off-kilter because the words don’t mean what people think they mean.

Only lobbyist and politicians matter, not techies

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/03/only-lobbyist-and-politicians-matter.html

The NSA/CIA will only buy an 0day if they can use it. They can’t use it if they disclose the bug.

I point this out, yet again, because of this WaPo article [*] built on the premise that the NSA/CIA spend millions of dollars on 0day they don’t use, while unilaterally disarming tiself. Since that premise is false, the entire article is false. It’s the sort of article you get when all you interview are Washington D.C. lobbyists and Washington D.C. politicians — and no outside experts.

It quotes former cyberczar (under Obama) Michael Daniel explaining that the “default assumption” is to disclose 0days that the NSA/CIA get. This is a Sean Spicer style lie. He’s paid to say this, but it’s not true. The NSA/CIA only buy 0day if they can use it. They won’t buy 0day if the default assumption is that they will disclose it. QED: the default assumption of such 0day is they won’t disclose them.

The story quotes Ben Wizner of the ACLU saying that we should patch 0days instead of using them. Patching isn’t an option. If we aren’t using them, then we aren’t buying them, and hence, there are no 0days to patch. The two options are to not buy 0days at all (and not patch) or buy to use them (and not patch). Either way, patching doesn’t happen.

Wizner didn’t actually say “use them”. He said “stockpiling” them, a word that means “hold in reserve for use in the future”. That’s not what the NSA/CIA does. They buy 0days to use, now. They’ve got budgets and efficiency ratings. They don’t buy 0days which they can’t use in the near future. In other words, Wizner paints the choice between an 0day that has no particular value to the government, and one would have value being patched.

The opposite picture is true. Almost all the 0days possessed by the NSA/CIA have value, being actively used against our adversaries right now. Conversely, patching an 0day provides little value for defense. Nobody else knew about the 0day anyway (that’s what 0day means), so nobody was in danger, so nobody was made safer by patching it.

Wizner and Snowden are quoted in the article that somehow the NSA/CIA is “maintaining vulnerabilities” and “keeping the holes open”. This phrasing is deliberately misleading. The NSA/CIA didn’t create the holes. They aren’t working to keep them open. If somebody else finds the same 0day hole and tells the vendor (like Apple), then the NSA/CIA will do nothing to stop them. They just won’t work to close the holes.

Activists like Wizner and Snowden deliberate mislead on the issue because they can’t possibly win a rational debate. The government is not going to continue to spend millions of dollars on buying 0days just to close them, because everyone agrees the value proposition is crap, that the value of fixing yet another iPhone hole is not worth the $1 million it’ll cost, and do little to stop Russians from finding an unrelated hole. Likewise, while the peacenicks (rightfully, in many respects) hate the militarization of cyberspace, they aren’t going to win the argument that the NSA/CIA should unilaterally disarm themselves. So instead they’ve tried to morph the debate into some crazy argument that makes no sense.

This is the problem with Washington D.C. journalism. It presumes the only people who matter are those in Washington, either the lobbyists of one position, or government defenders of another position. At no point did they go out and talk to technical experts, such as somebody who has discovered, weaponized, used an 0day exploit. So they write articles premised on the fact that the NSA/CIA, out of their offensive weapons budget, will continue to buy 0days that are immediately patched and fixed without ever being useful.

CSIS’s Cybersecurity Agenda

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

The Center for Strategic and International Studies (CSIS) published “From Awareness to Action: A Cybersecurity Agenda for the 45th President” (press release here). There’s a lot I agree with — and some things I don’t — but these paragraphs struck me as particularly insightful:

The Obama administration made significant progress but suffered from two conceptual problems in its cybersecurity efforts. The first was a belief that the private sector would spontaneously generate the solutions needed for cybersecurity and minimize the need for government action. The obvious counter to this is that our problems haven’t been solved. There is no technological solution to the problem of cybersecurity, at least any time soon, so turning to technologists was unproductive. The larger national debate over the role of government made it difficult to balance public and private-sector responsibility and created a sense of hesitancy, even timidity, in executive branch actions.

The second was a misunderstanding of how the federal government works. All White Houses tend to float above the bureaucracy, but this one compounded the problem with its desire to bring high-profile business executives into government. These efforts ran counter to what is needed to manage a complex bureaucracy where greatly differing rules, relationships, and procedures determine the success of any initiative. Unlike the private sector, government decisionmaking is more collective, shaped by external pressures both bureaucratic and political, and rife with assorted strictures on resources and personnel.

1984 is the new Bible in the age of Trump

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/02/1984-is-new-bible.html

In the age of Trump, Orwell’s book 1984 is becoming the new Bible: a religious text which few read, but which many claim supports their beliefs. A good demonstration is this CNN op-ed, in which the author describes Trump as being Orwellian, but mostly just because Trump is a Republican.

Trump’s populist attacks against our (classically) liberal world order is indeed cause for concern. His assault on the truth is indeed a bit Orwellian. But it’s op-eds like this one at CNN that are part of the problem.
While the author of the op-ed spends much time talking about his dogs (“Winston”, “Julia”), and how much he hates Trump, he spends little time on the core thesis “Orwellianism”. When he does, it’s mostly about old political disagreements. For example, the op-ed calls Trump’s cabinet appointees Orwellian simply because they are Republicans:

He has provided us with Betsy DeVos, a secretary of education nominee who is widely believed to oppose public education, and who promotes the truly Orwellian-sounding concept of “school choice,” a plan that seems well-intentioned but which critics complain actually siphons much-needed funds from public to private education institutions.

Calling school-choice “Orwellian” is absurd. Republicans want to privatize more, and the Democrats want the state to run more of the economy. It’s the same disagreement that divides the two parties on almost any policy issue. When you call every little political disagreement “Orwellian” then you devalue the idea. I’m Republican, so of course I’d argue that the it’s the state-run education system giving parents zero choice that is the thing that’s Orwellian here. And now we bicker, both convinced that Orwell is on our side in this debate. #WhatWouldOrwellDo
If something is “Orwellian”, then you need to do a better job demonstrating this, making the analogy clear. For example, last year I showed how in response to a political disagreement, that Wikipedia and old newspaper articles were edited in order to conform to the new political reality. This is a clear example of Winston Smith’s job of changing the past in order to match the present.
But even such clear documentation is probably powerless to change anybody’s mind. Whether “changing the text of old newspaper articles to fit modern politics” is Orwellian depends entirely on your politics, whether the changes agree with your views. Go follow the link [*] and see for yourself and see if you agree with the change (replacing the word “refugee” in old articles with “asylee” instead).
It’s this that Orwell was describing. Doublethink wasn’t something forced onto us by a totalitarian government so much as something we willingly adopted ourselves. The target of Orwell’s criticism wasn’t them, the totalitarian government, but us, the people who willingly went along with it. Doublethink is what people in both parties (Democrats and Republicans) do equally, regardless of the who resides in the White House.
Trump is an alt-Putin. He certainly wants to become a totalitarian. But at this point, his lies are juvenile and transparent, which even his supporters find difficult believing [*]. The most Orwellian thing about him is what he inherits from Obama [*]: the two Party system, perpetual war, omnipresent surveillance, the propaganda system, and our nascent cyber-police-state [*].
Conclusion

Yes, people should read 1984 in the age of Trump, not because he’s created the Orwellian system, but because he’s trying to exploit the system that’s already there. If you believe he’s Orwellian because he’s Republican, as the foolish author of that CNN op-ed believes, then you’ve missed the point of Orwell’s novel completely.

Bonus: Doing a point-by-point rebuttal gets boring, and makes the post long, but ought to be done out of a sense of completeness. The following paragraph contains the most “Orwell” points, but it’s all essentially nonsense:

We are living in this state of flux in real life. Russia was and likely is our nation’s fiercest rival, yet as a candidate, President Trump famously stated, “Russia, if you’re listening, I hope you’re able to find the 30,000 [Clinton] emails that are missing.” He praises Putin but states that perhaps he may not actually like him when they meet. WikiLeaks published DNC data alleged to have been obtained by Russian operatives, but the election was not “rigged.” A recount would be “ridiculous,” yet voter fraud was rampant. Trusted sources of information are “fake news,” and somehow Chelsea Manning, WikiLeaks’ most notable whistleblower, is now an “ungrateful traitor.”

Trump’s asking Russia to find the missing emails was clearly a joke. Trump’s speech is marked by exaggeration and jokes like this. That Trump’s rivals insist his jokes be taken seriously is the problem here, more than what he’s joking about.

The correct Orwellian analogy to draw here is is the Eurasia (Russia) and Eastasia (China) parallels. Under Obama, China was a close trading partner while Russia was sanctioned for invading the Ukraine. Under Trump, it’s China who is our top rival while Russia/Putin is more of our friends. What’s Orwellian is how polls [*] of what Republicans think of Russia have gone through a shift, “We’ve always been at war with Eastasia”.

The above paragraph implies Trump said the election wasn’t “rigged”. No, Trump still says the election was rigged, even after he won it. [*] It’s Democrats who’ve flip-flopped on their opinion whether the election was “rigged” after Trump’s win. Trump attacks the election system because that’s what illiberal totalitarians always do, not because it’s Orwellian.

“Recounts” and “fraudulent votes” aren’t the same thing. Somebody registered to vote, and voting, in multiple states is not something that’ll be detected with a “recount” in any one state, for example. Trump’s position on voter fraud is absurd, but it’s not Orwellian.

Instead of these small things, what’s Orwellian is Trump’s grander story of a huge popular “movement” behind him. That’s why his inauguration numbers are important. That’s why losing the popular vote is important. It’s why he keeps using the word “movement” in all his speeches. It’s the big lie he’s telling that makes him Orwellian, not all the small lies.

Trusted sources of news are indeed “fake news”. The mainstream media has problems, whether it’s their tendency to sensationalism, or the way they uncritically repeat government propaganda (“according to senior government officials”) regardless of which Party controls the White House. Indeed, Orwell himself was a huge critic of the press — sometimes what they report is indeed “fake news”, not simply a mistake but something that violates the press’s own standards.

Yes, the President or high-level government officials have no business attacking the press the way Trump does, regardless if they deserve it. Trump indeed had a few legitimate criticism of the press, but his attacks have quickly devolved to attacking the press whenever it’s simply Truth disagreeing with Trump’s lies. It’s all attacks against the independent press that are the problem, not the label “fake news”.

As Wikipedia documents, “the term “traitor” has been used as a political epithet, regardless of any verifiable treasonable action”. Despite being found not guilty of “aiding the enemy”, Chelsea Manning was convicted of espionage. Reasonable people can disagree about Manning’s action — while you may not like the “traitor” epithet, it’s not an Orwellian term.

Instead, what is Orwellian is insisting Manning was a “whistleblower”. Reasonable people disagree with that description. Manning didn’t release specific diplomatic cables demonstrative of official wrongdoing, but the entire dump of all cables going back more than a decade. It’s okay to call Manning a whistleblower (I might describe her as such), but it’s absurd to claim this is some objective truth. For example, the Wikipedia article [*] on Chelsea Manning documents several people calling her a whistleblower, but does not itself use that term to describe Manning. The struggle between objective and subjective “Truth” is a big part of Orwell’s work.

What I’m demonstrating here in this bonus section is the foolishness of that CNN op-ed. He hates Trump, but entirely misunderstands Orwell. He does a poor job pinning down Trump on exactly how he fits the Orwellian mode. He writes like somebody who hasn’t actually read the book at all.