Tag Archives: risks

On Cybersecurity Insurance

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/09/on_cybersecurit.html

Good paper on cybersecurity insurance: both the history and the promise for the future. From the conclusion:

Policy makers have long held high hopes for cyber insurance as a tool for improving security. Unfortunately, the available evidence so far should give policymakers pause. Cyber insurance appears to be a weak form of governance at present. Insurers writing cyber insurance focus more on organisational procedures than technical controls, rarely include basic security procedures in contracts, and offer discounts that only offer a marginal incentive to invest in security. However, the cost of external response services is covered, which suggests insurers believe ex-post responses to be more effective than ex-ante mitigation. (Alternatively, they can more easily translate the costs associated with ex-post responses into manageable claims.)

The private governance role of cyber insurance is limited by market dynamics. Competitive pressures drive a race-to-the-bottom in risk assessment standards and prevent insurers including security procedures in contracts. Policy interventions, such as minimum risk assessment standards, could solve this collective action problem. Policy-holders and brokers could also drive this change by looking to insurers who conduct rigorous assessments. Doing otherwise ensures adverse selection and moral hazard will increase costs for firms with responsible security postures. Moving toward standardised risk assessment via proposal forms or external scans supports the actuarial base in the long-term. But there is a danger policyholders will succumb to Goodhart’s law by internalising these metrics and optimising the metric rather than minimising risk. This is particularly likely given these assessments are constructed by private actors with their own incentives. Search-light effects may drive the scores towards being based on what can be measured, not what is important.

EDITED TO ADD (9/11): BoingBoing post.

Risks of Password Managers

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/06/risks_of_passwo.html

Stuart Schechter writes about the security risks of using a password manager. It’s a good piece, and nicely discusses the trade-offs around password managers: which one to choose, which passwords to store in it, and so on.

My own Password Safe is mentioned. My particular choices about security and risk is to only store passwords on my computer — not on my phone — and not to put anything in the cloud. In my way of thinking, that reduces the risks of a password manager considerably. Yes, there are losses in convenience.

Excellent Analysis of the Boeing 737 Max Software Problems

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/04/excellent_analy.html

This is the best analysis of the software causes of the Boeing 737 MAX disasters that I have read.

Technically this is safety and not security; there was no attacker. But the fields are closely related and there are a lot of lessons for IoT security — and the security of complex socio-technical systems in general — in here.

EDITED TO ADD (4/30): A rebuttal of sorts.

Access Now Is Looking for a Chief Security Officer

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/10/access_now_is_l.html

The international digital human rights organization Access Now (I am on the board) is looking to hire a Chief Security Officer.

I believe that, somewhere, there is a highly qualified security person who has had enough of corporate life and wants instead to make a difference in the world. If that’s you, please consider applying.

Nicholas Weaver on Cryptocurrencies

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/07/nicholas_weaver_2.html

This is well-worth reading (non-paywalled version). Here’s the opening:

Cryptocurrencies, although a seemingly interesting idea, are simply not fit for purpose. They do not work as currencies, they are grossly inefficient, and they are not meaningfully distributed in terms of trust. Risks involving cryptocurrencies occur in four major areas: technical risks to participants, economic risks to participants, systemic risks to the cryptocurrency ecosystem, and societal risks.

I haven’t written much about cryptocurrencies, but I share Weaver’s skepticism.

Some quick thoughts on the public discussion regarding facial recognition and Amazon Rekognition this past week

Post Syndicated from Dr. Matt Wood original https://aws.amazon.com/blogs/aws/some-quick-thoughts-on-the-public-discussion-regarding-facial-recognition-and-amazon-rekognition-this-past-week/

We have seen a lot of discussion this past week about the role of Amazon Rekognition in facial recognition, surveillance, and civil liberties, and we wanted to share some thoughts.

Amazon Rekognition is a service we announced in 2016. It makes use of new technologies – such as deep learning – and puts them in the hands of developers in an easy-to-use, low-cost way. Since then, we have seen customers use the image and video analysis capabilities of Amazon Rekognition in ways that materially benefit both society (e.g. preventing human trafficking, inhibiting child exploitation, reuniting missing children with their families, and building educational apps for children), and organizations (enhancing security through multi-factor authentication, finding images more easily, or preventing package theft). Amazon Web Services (AWS) is not the only provider of services like these, and we remain excited about how image and video analysis can be a driver for good in the world, including in the public sector and law enforcement.

There have always been and will always be risks with new technology capabilities. Each organization choosing to employ technology must act responsibly or risk legal penalties and public condemnation. AWS takes its responsibilities seriously. But we believe it is the wrong approach to impose a ban on promising new technologies because they might be used by bad actors for nefarious purposes in the future. The world would be a very different place if we had restricted people from buying computers because it was possible to use that computer to do harm. The same can be said of thousands of technologies upon which we all rely each day. Through responsible use, the benefits have far outweighed the risks.

Customers are off to a great start with Amazon Rekognition; the evidence of the positive impact this new technology can provide is strong (and growing by the week), and we’re excited to continue to support our customers in its responsible use.

-Dr. Matt Wood, general manager of artificial intelligence at AWS

FCC Asks Amazon & eBay to Help Eliminate Pirate Media Box Sales

Post Syndicated from Andy original https://torrentfreak.com/fcc-asks-amazon-ebay-to-help-eliminate-pirate-media-box-sales-180530/

Over the past several years, anyone looking for a piracy-configured set-top box could do worse than search for one on Amazon or eBay.

Historically, people deploying search terms including “Kodi” or “fully-loaded” were greeted by page after page of Android-type boxes, each ready for illicit plug-and-play entertainment consumption following delivery.

Although the problem persists on both platforms, people are now much less likely to find infringing devices than they were 12 to 24 months ago. Under pressure from entertainment industry groups, both Amazon and eBay have tightened the screws on sellers of such devices. Now, however, both companies have received requests to stem sales from a completetey different direction.

In a letter to eBay CEO Devin Wenig and Amazon CEO Jeff Bezos first spotted by Ars, FCC Commissioner Michael O’Rielly calls on the platforms to take action against piracy-configured boxes that fail to comply with FCC equipment authorization requirements or falsely display FCC logos, contrary to United States law.

“Disturbingly, some rogue set-top box manufacturers and distributors are exploiting the FCC’s trusted logo by fraudulently placing it on devices that have not been approved via the Commission’s equipment authorization process,” O’Rielly’s letter reads.

“Specifically, nine set-top box distributors were referred to the FCC in October for enabling the unlawful streaming of copyrighted material, seven of which displayed the FCC logo, although there was no record of such compliance.”

While O’Rielly admits that the copyright infringement aspects fall outside the jurisdiction of the FCC, he says it’s troubling that many of these devices are used to stream infringing content, “exacerbating the theft of billions of dollars in American innovation and creativity.”

As noted above, both Amazon and eBay have taken steps to reduce sales of pirate boxes on their respective platforms on copyright infringement grounds, something which is duly noted by O’Rielly. However, he points out that devices continue to be sold to members of the public who may believe that the devices are legal since they’re available for sale from legitimate companies.

“For these reasons, I am seeking your further cooperation in assisting the FCC in taking steps to eliminate the non-FCC compliant devices or devices that fraudulently bear the FCC logo,” the Commissioner writes (pdf).

“Moreover, if your company is made aware by the Commission, with supporting evidence, that a particular device is using a fraudulent FCC label or has not been appropriately certified and labeled with a valid FCC logo, I respectfully request that you commit to swiftly removing these products from your sites.”

In the event that Amazon and eBay take action under this request, O’Rielly asks both platforms to hand over information they hold on offending manufacturers, distributors, and suppliers.

Amazon was quick to respond to the FCC. In a letter published by Ars, Amazon’s Public Policy Vice President Brian Huseman assured O’Rielly that the company is not only dedicated to tackling rogue devices on copyright-infringement grounds but also when there is fraudulent use of the FCC’s logos.

Noting that Amazon is a key member of the Alliance for Creativity and Entertainment (ACE) – a group that has been taking legal action against sellers of infringing streaming devices (ISDs) and those who make infringing addons for Kodi-type systems – Huseman says that dealing with the problem is a top priority.

“Our goal is to prevent the sale of ISDs anywhere, as we seek to protect our customers from the risks posed by these devices, in addition to our interest in protecting Amazon Studios content,” Huseman writes.

“In 2017, Amazon became the first online marketplace to prohibit the sale of streaming media players that promote or facilitate piracy. To prevent the sale of these devices, we proactively scan product listings for signs of potentially infringing products, and we also invest heavily in sophisticated, automated real-time tools to review a variety of data sources and signals to identify inauthentic goods.

“These automated tools are supplemented by human reviewers that conduct manual investigations. When we suspect infringement, we take immediate action to remove suspected listings, and we also take enforcement action against sellers’ entire accounts when appropriate.”

Huseman also reveals that since implementing a proactive policy against such devices, “tens of thousands” of listings have been blocked from Amazon. In addition, the platform has been making criminal referrals to law enforcement as well as taking civil action (1,2,3) as part of ACE.

“As noted in your letter, we would also appreciate the opportunity to collaborate further with the FCC to remove non-compliant devices that improperly use the FCC logo or falsely claim FCC certification. If any FCC non-compliant devices are identified, we seek to work with you to ensure they are not offered for sale,” Huseman concludes.

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

Hong Kong Customs Arrest Pirate Streaming Device Vendors

Post Syndicated from Andy original https://torrentfreak.com/hong-kong-customs-arrest-pirate-streaming-device-vendors-180529/

As Internet-capable set-top boxes pour into homes across all populated continents, authorities seem almost powerless to come up with a significant response to the growing threat.

In standard form these devices, which are often Android-based, are entirely legal. However, when configured with specialist software they become piracy powerhouses providing access to all content imaginable, often at copyright holders’ expense.

A large proportion of these devices come from Asia, China in particular, but it’s relatively rare to hear of enforcement action in that part of the world. That changed this week with an announcement from Hong Kong customs detailing a series of raids in the areas of Sham Shui Po and Wan Chai.

After conducting an in-depth investigation with the assistance of copyright holders, on May 25 and 26 Customs and Excise officers launched Operation Trojan Horse, carrying out a series of raids on four premises selling suspected piracy-configured set-top boxes.

During the operation, officers arrested seven men and one woman aged between 18 and 45. Four of them were shop owners and the other four were salespeople. Around 354 suspected ‘pirate’ boxes were seized with an estimated market value of HK$320,000 (US$40,700).

“In the past few months, the department has stepped up inspections of hotspots for TV set-top boxes,” a statement from authorities reads.

“We have discovered that some shops have sold suspected illegal set-top boxes that bypass the copyright protection measures imposed by copyright holders of pay television programs allowing people to watch pay television programs for free.”

Some of the devices seized by Hong Kong Customs

During a press conference yesterday, a representative from the Customs Copyright and Trademark Investigations (Action) Division said that in the run up to the World Cup in 2018, measures against copyright infringement will be strengthened both on and online.

The announcement was welcomed by the Cable and Satellite Broadcasting Association of Asia’s (CASBAA) Coalition Against Piracy, which is back by industry heavyweights including Disney, Fox, HBO Asia, NBCUniversal, Premier League, Turner Asia-Pacific, A&E Networks, Astro, BBC Worldwide, National Basketball Association, TV5MONDE, Viacom International, and others.

“We commend the great work of Hong Kong Customs in clamping down on syndicates who profit from the sale of Illicit Streaming Devices,” said General Manager Neil Gane.

“The prevalence of ISDs in Hong Kong and across South East Asia is staggering. The criminals who sell ISDs, as well as those who operate the ISD networks and pirate websites, are profiting from the hard work of talented creators, seriously damaging the legitimate content ecosystem as well as exposing consumers to dangerous malware.”

Malware warnings are very prevalent these days but it’s not something the majority of set-top box owners have a problem with. Indeed, a study carried by Sycamore Research found that pirates aren’t easily deterred by such warnings.

Nevertheless, there are definite risks for individuals selling devices when they’re configured for piracy.

Recent cases, particularly in the UK, have shown that hefty jail sentences can hit offenders while over in the United States (1,2,3), lawsuits filed by the Alliance for Creativity and Entertainment (ACE) have the potential to end in unfavorable rulings for multiple defendants.

Although rarely reported, offenders in Hong Kong also face stiff sentences for this kind of infringement including large fines and custodial sentences of up to four years.

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

Despite US Criticism, Ukraine Cybercrime Chief Receives Few Piracy Complaints

Post Syndicated from Andy original https://torrentfreak.com/despite-us-criticism-ukraine-cybercrime-chief-receives-few-piracy-complaints-180522/

On a large number of occasions over the past decade, Ukraine has played host to some of the world’s largest pirate sites.

At various points over the years, The Pirate Bay, KickassTorrents, ExtraTorrent, Demonoid and raft of streaming portals could be found housed in the country’s data centers, reportedly taking advantage of laws more favorable than those in the US and EU.

As a result, Ukraine has been regularly criticized for not doing enough to combat piracy but when placed under pressure, it does take action. In 2010, for example, the local government expressed concerns about the hosting of KickassTorrents in the country and in August the same year, the site was kicked out by its host.

“Kickasstorrents.com main web server was shut down by the hosting provider after it was contacted by local authorities. One way or another I’m afraid we must say goodbye to Ukraine and move the servers to other countries,” the site’s founder told TF at the time.

In the years since, Ukraine has launched sporadic action against pirate sites and has taken steps to tighten up copyright law. The Law on State Support of Cinematography came into force during April 2017 and gave copyright owners new tools to combat infringement by forcing (in theory, at least) site operators and web hosts to respond to takedown requests.

But according to the United States and Europe, not enough is being done. After the EU Commission warned that Ukraine risked damaging relations with the EU, last September US companies followed up with another scathing attack.

In a recommendation to the U.S. Government, the IIPA, which counts the MPAA, RIAA, and ESA among its members, asked U.S. authorities to suspend or withdraw Ukraine’s trade benefits until the online piracy situation improves.

“Legislation is needed to institute proper notice and takedown provisions, including a requirement that service providers terminate access to individuals (or entities) that have repeatedly engaged in infringement, and the retention of information for law enforcement, as well as to provide clear third party liability regarding ISPs,” the IIPA wrote.

But amid all the criticism, Ukraine cyber police chief Sergey Demedyuk says that while his department is committed to tackling piracy, it can only do so when complaints are filed with him.

“Yes, we are engaged in piracy very closely. The problem is that piracy is a crime of private accusation. So here we deal with them only in cases where we are contacted,” Demedyuk said in an Interfax interview published yesterday.

Surprisingly, given the number of dissenting voices, it appears that complaints about these matters aren’t exactly prevalent. So are there many at all?

“Unfortunately, no. In the media, many companies claim that their rights are being violated by pirates. But if you count the applications that come to us, they are one,” Demedyuk reveals.

“In general, we are handling Ukrainian media companies, who produce their own product and are worried about its fate. Also on foreign films, the ‘Anti-Piracy Agency’ refers to us, but not as intensively as before.”

Why complaints are going down, Demedyuk does not know, but when his unit is asked to take action it does so, he claims. Indeed, Demedyuk cites two particularly significant historical operations against a pair of large ‘pirate’ sites.

In 2012, Ukraine shut down EX.ua, a massive cyberlocker site following a six-month investigation initiated by international tech companies including Microsoft, Graphisoft and Adobe. Around 200 servers were seized, together hosting around 6,000 terabytes of data.

Then in November 2016, following a complaint from the MPAA, police raided FS.to, one of Ukraine’s most popular pirate sites. Initial reports indicated that 60 servers were seized and 19 people were arrested.

“To see the effect of combating piracy, this should not be done at the level of cyberpolicy, but at the state level,” Demedyuk advises.

“This requires constant close interaction between law enforcement agencies and rights holders. Only by using all these tools will we be able to effectively counteract copyright infringements.”

Meanwhile, the Office of the United States Trade Representative has maintained Ukraine’s position on the Priority Watchlist of its latest Special 301 Report and there a no signs it will be leaving anytime soon.

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

ExtraTorrent Replacement Displays Warning On Predecessor’s Shutdown Anniversary

Post Syndicated from Andy original https://torrentfreak.com/extratorrent-replacement-displays-warning-on-predecessors-shutdown-anniversary-180518/

Exactly one year ago, millions of users in the BitTorrent community went into mourning with the shock depature of one of its major players.

ExtraTorrent was founded in back in November 2006, at a time when classic platforms such as TorrentSpy and Mininova were dominating the torrent site landscape. But with dedication and determination, the site amassed millions of daily visitors, outperforming every other torrent site apart from the mighty Pirate Bay.

Then, on May 17, 2017, everything came crashing down.

“ExtraTorrent has shut down permanently,” a note in the site read. “ExtraTorrent with all mirrors goes offline. We permanently erase all data. Stay away from fake ExtraTorrent websites and clones. Thx to all ET supporters and torrent community. ET was a place to be….”

While ExtraTorrent staff couldn’t be more clear in advising people to stay away from clones, few people listened to their warnings. Within hours, new sites appeared claiming to be official replacements for the much-loved torrent site and people flocked to them in their millions.

One of those was ExtraTorrent.ag, a torrent site connected to the operators of EZTV.ag, which appeared as a replacement in the wake of the official EZTV’s demise. Graphically very similar to the original ExtraTorrent, the .ag ‘replacement’ had none of its namesake’s community or unique content. But that didn’t dent its popularity.

ExtraTorrent.ag

At the start of this week, ExtraTorrent.ag was one of the most popular torrent sites on the Internet. With an Alexa rank of around 2,200, it would’ve clinched ninth position in our Top 10 Torrent Sites report earlier this year. However, after registering the site’s domain a year ago, something seems to have gone wrong.

Yesterday, on the anniversary of ExtraTorrent’s shutdown and exactly a year after the ExtraTorrent.ag domain was registered, ExtraTorrent.ag disappeared only to be replaced by a generic landing page, as shown below.

ExtraTorrent.ag landing page

This morning, however, there appear to be additional complications. Accessing with Firefox produces the page above but attempting to do so with Chrome produces an ominous security warning.

Chrome warning

Indeed, those protected by MalwareBytes won’t be able to access the page at all, since ExtraTorrent.ag redirects to the domain FindBetterResults.com, which the anti-malware app flags as malicious.

The change was reported to TF by the operator of domain unblocking site Unblocked.lol, which offers torrent site proxies as well as access to live TV and sports.

“I noticed when I started receiving emails saying ExtraTorrent was redirecting to some parked domain. When I jumped on the PC and checked myself it was just redirecting to a blank page,” he informs us.

“First I thought they’d blocked our IP address so I used some different ones. But I soon discovered the domain was in fact parked.”

So what has happened to this previously-functioning domain?

Whois records show that ExtraTorrent.ag was created on May 17, 2017 and appears to have been registered for a year. Yesterday, on May 17, 2018, the domain was updated to list what could potentially be a new owner, with an expiry date of May 17, 2019.

Once domains have expired, they usually enter an ‘Auto-Renew Grace Period’ for up to 45 days. This is followed by a 30-day ‘Redemption Grace Period’. At the end of this second period, domains cannot be renewed and are released for third-parties to register. That doesn’t appear to have been the case here.

So, to find out more about the sudden changes we reached out to the email address listed in the WHOIS report but received no response. Should we hear more we’ll update this report but in the meantime the Internet has lost one of its largest torrent sites and gained a rather pointless landing page with potential security risks.

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

Cryptocurrency Security Challenges

Post Syndicated from Roderick Bauer original https://www.backblaze.com/blog/cryptocurrency-security-challenges/

Physical coins representing cyrptocurrencies

Most likely you’ve read the tantalizing stories of big gains from investing in cryptocurrencies. Someone who invested $1,000 into bitcoins five years ago would have over $85,000 in value now. Alternatively, someone who invested in bitcoins three months ago would have seen their investment lose 20% in value. Beyond the big price fluctuations, currency holders are possibly exposed to fraud, bad business practices, and even risk losing their holdings altogether if they are careless in keeping track of the all-important currency keys.

It’s certain that beyond the rewards and risks, cryptocurrencies are here to stay. We can’t ignore how they are changing the game for how money is handled between people and businesses.

Some Advantages of Cryptocurrency

  • Cryptocurrency is accessible to anyone.
  • Decentralization means the network operates on a user-to-user (or peer-to-peer) basis.
  • Transactions can completed for a fraction of the expense and time required to complete traditional asset transfers.
  • Transactions are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs.
  • There aren’t usually transaction fees for cryptocurrency exchanges.
  • Cryptocurrency allows the cryptocurrency holder to send exactly what information is needed and no more to the merchant or recipient, even permitting anonymous transactions (for good or bad).
  • Cryptocurrency operates at the universal level and hence makes transactions easier internationally.
  • There is no other electronic cash system in which your account isn’t owned by someone else.

On top of all that, blockchain, the underlying technology behind cryptocurrencies, is already being applied to a variety of business needs and itself becoming a hot sector of the tech economy. Blockchain is bringing traceability and cost-effectiveness to supply-chain management — which also improves quality assurance in areas such as food, reducing errors and improving accounting accuracy, smart contracts that can be automatically validated, signed and enforced through a blockchain construct, the possibility of secure, online voting, and many others.

Like any new, booming marketing there are risks involved in these new currencies. Anyone venturing into this domain needs to have their eyes wide open. While the opportunities for making money are real, there are even more ways to lose money.

We’re going to cover two primary approaches to staying safe and avoiding fraud and loss when dealing with cryptocurrencies. The first is to thoroughly vet any person or company you’re dealing with to judge whether they are ethical and likely to succeed in their business segment. The second is keeping your critical cryptocurrency keys safe, which we’ll deal with in this and a subsequent post.

Caveat Emptor — Buyer Beware

The short history of cryptocurrency has already seen the demise of a number of companies that claimed to manage, mine, trade, or otherwise help their customers profit from cryptocurrency. Mt. Gox, GAW Miners, and OneCoin are just three of the many companies that disappeared with their users’ money. This is the traditional equivalent of your bank going out of business and zeroing out your checking account in the process.

That doesn’t happen with banks because of regulatory oversight. But with cryptocurrency, you need to take the time to investigate any company you use to manage or trade your currencies. How long have they been around? Who are their investors? Are they affiliated with any reputable financial institutions? What is the record of their founders and executive management? These are all important questions to consider when evaluating a company in this new space.

Would you give the keys to your house to a service or person you didn’t thoroughly know and trust? Some companies that enable you to buy and sell currencies online will routinely hold your currency keys, which gives them the ability to do anything they want with your holdings, including selling them and pocketing the proceeds if they wish.

That doesn’t mean you shouldn’t ever allow a company to keep your currency keys in escrow. It simply means that you better know with whom you’re doing business and if they’re trustworthy enough to be given that responsibility.

Keys To the Cryptocurrency Kingdom — Public and Private

If you’re an owner of cryptocurrency, you know how this all works. If you’re not, bear with me for a minute while I bring everyone up to speed.

Cryptocurrency has no physical manifestation, such as bills or coins. It exists purely as a computer record. And unlike currencies maintained by governments, such as the U.S. dollar, there is no central authority regulating its distribution and value. Cryptocurrencies use a technology called blockchain, which is a decentralized way of keeping track of transactions. There are many copies of a given blockchain, so no single central authority is needed to validate its authenticity or accuracy.

The validity of each cryptocurrency is determined by a blockchain. A blockchain is a continuously growing list of records, called “blocks”, which are linked and secured using cryptography. Blockchains by design are inherently resistant to modification of the data. They perform as an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable, permanent way. A blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. On a scaled network, this level of collusion is impossible — making blockchain networks effectively immutable and trustworthy.

Blockchain process

The other element common to all cryptocurrencies is their use of public and private keys, which are stored in the currency’s wallet. A cryptocurrency wallet stores the public and private “keys” or “addresses” that can be used to receive or spend the cryptocurrency. With the private key, it is possible to write in the public ledger (blockchain), effectively spending the associated cryptocurrency. With the public key, it is possible for others to send currency to the wallet.

What is a cryptocurrency address?

Cryptocurrency “coins” can be lost if the owner loses the private keys needed to spend the currency they own. It’s as if the owner had lost a bank account number and had no way to verify their identity to the bank, or if they lost the U.S. dollars they had in their wallet. The assets are gone and unusable.

The Cryptocurrency Wallet

Given the importance of these keys, and lack of recourse if they are lost, it’s obviously very important to keep track of your keys.

If you’re being careful in choosing reputable exchanges, app developers, and other services with whom to trust your cryptocurrency, you’ve made a good start in keeping your investment secure. But if you’re careless in managing the keys to your bitcoins, ether, Litecoin, or other cryptocurrency, you might as well leave your money on a cafe tabletop and walk away.

What Are the Differences Between Hot and Cold Wallets?

Just like other numbers you might wish to keep track of — credit cards, account numbers, phone numbers, passphrases — cryptocurrency keys can be stored in a variety of ways. Those who use their currencies for day-to-day purchases most likely will want them handy in a smartphone app, hardware key, or debit card that can be used for purchases. These are called “hot” wallets. Some experts advise keeping the balances in these devices and apps to a minimal amount to avoid hacking or data loss. We typically don’t walk around with thousands of dollars in U.S. currency in our old-style wallets, so this is really a continuation of the same approach to managing spending money.

Bread mobile app screenshot

A “hot” wallet, the Bread mobile app

Some investors with large balances keep their keys in “cold” wallets, or “cold storage,” i.e. a device or location that is not connected online. If funds are needed for purchases, they can be transferred to a more easily used payment medium. Cold wallets can be hardware devices, USB drives, or even paper copies of your keys.

Trezor hardware wallet

A “cold” wallet, the Trezor hardware wallet

Ledger Nano S hardware wallet

A “cold” wallet, the Ledger Nano S

Bitcoin paper wallet

A “cold” Bitcoin paper wallet

Wallets are suited to holding one or more specific cryptocurrencies, and some people have multiple wallets for different currencies and different purposes.

A paper wallet is nothing other than a printed record of your public and private keys. Some prefer their records to be completely disconnected from the internet, and a piece of paper serves that need. Just like writing down an account password on paper, however, it’s essential to keep the paper secure to avoid giving someone the ability to freely access your funds.

How to Keep your Keys, and Cryptocurrency Secure

In a post this coming Thursday, Securing Your Cryptocurrency, we’ll discuss the best strategies for backing up your cryptocurrency so that your currencies don’t become part of the millions that have been lost. We’ll cover the common (and uncommon) approaches to backing up hot wallets, cold wallets, and using paper and metal solutions to keeping your keys safe.

In the meantime, please tell us of your experiences with cryptocurrencies — good and bad — and how you’ve dealt with the issue of cryptocurrency security.

The post Cryptocurrency Security Challenges appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Bad Software Is Our Fault

Post Syndicated from Bozho original https://techblog.bozho.net/bad-software-is-our-fault/

Bad software is everywhere. One can even claim that every software is bad. Cool companies, tech giants, established companies, all produce bad software. And no, yours is not an exception.

Who’s to blame for bad software? It’s all complicated and many factors are intertwined – there’s business requirements, there’s organizational context, there’s lack of sufficient skilled developers, there’s the inherent complexity of software development, there’s leaky abstractions, reliance on 3rd party software, consequences of wrong business and purchase decisions, time limitations, flawed business analysis, etc. So yes, despite the catchy title, I’m aware it’s actually complicated.

But in every “it’s complicated” scenario, there’s always one or two factors that are decisive. All of them contribute somehow, but the major drivers are usually a handful of things. And in the case of base software, I think it’s the fault of technical people. Developers, architects, ops.

We don’t seem to care about best practices. And I’ll do some nasty generalizations here, but bear with me. We can spend hours arguing about tabs vs spaces, curly bracket on new line, git merge vs rebase, which IDE is better, which framework is better and other largely irrelevant stuff. But we tend to ignore the important aspects that span beyond the code itself. The context in which the code lives, the non-functional requirements – robustness, security, resilience, etc.

We don’t seem to get security. Even trivial stuff such as user authentication is almost always implemented wrong. These days Twitter and GitHub realized they have been logging plain-text passwords, for example, but that’s just the tip of the iceberg. Too often we ignore the security implications.

“But the business didn’t request the security features”, one may say. The business never requested 2-factor authentication, encryption at rest, PKI, secure (or any) audit trail, log masking, crypto shredding, etc., etc. Because the business doesn’t know these things – we do and we have to put them on the backlog and fight for them to be implemented. Each organization has its specifics and tech people can influence the backlog in different ways, but almost everywhere we can put things there and prioritize them.

The other aspect is testing. We should all be well aware by now that automated testing is mandatory. We have all the tools in the world for unit, functional, integration, performance and whatnot testing, and yet many software projects lack the necessary test coverage to be able to change stuff without accidentally breaking things. “But testing takes time, we don’t have it”. We are perfectly aware that testing saves time, as we’ve all had those “not again!” recurring bugs. And yet we think of all sorts of excuses – “let the QAs test it”, we have to ship that now, we’ll test it later”, “this is too trivial to be tested”, etc.

And you may say it’s not our job. We don’t define what has do be done, we just do it. We don’t define the budget, the scope, the features. We just write whatever has been decided. And that’s plain wrong. It’s not our job to make money out of our code, and it’s not our job to define what customers need, but apart from that everything is our job. The way the software is structured, the security aspects and security features, the stability of the code base, the way the software behaves in different environments. The non-functional requirements are our job, and putting them on the backlog is our job.

You’ve probably heard that every software becomes “legacy” after 6 months. And that’s because of us, our sloppiness, our inability to mitigate external factors and constraints. Too often we create a mess through “just doing our job”.

And of course that’s a generalization. I happen to know a lot of great professionals who don’t make these mistakes, who strive for excellence and implement things the right way. But our industry as a whole doesn’t. Our industry as a whole produces bad software. And it’s our fault, as developers – as the only people who know why a certain piece of software is bad.

In a talk of his, Bob Martin warns us of the risks of our sloppiness. We have been building websites so far, but we are more and more building stuff that interacts with the real world, directly and indirectly. Ultimately, lives may depend on our software (like the recent unfortunate death caused by a self-driving car). And I’ll agree with Uncle Bob that it’s high time we self-regulate as an industry, before some technically incompetent politician decides to do that.

How, I don’t know. We’ll have to think more about it. But I’m pretty sure it’s our fault that software is bad, and no amount of blaming the management, the budget, the timing, the tools or the process can eliminate our responsibility.

Why do I insist on bashing my fellow software engineers? Because if we start looking at software development with more responsibility; with the fact that if it fails, it’s our fault, then we’re more likely to get out of our current bug-ridden, security-flawed, fragile software hole and really become the experts of the future.

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Let’s stop talking about password strength

Post Syndicated from Robert Graham original https://blog.erratasec.com/2018/04/lets-stop-talking-about-password.html

Picture from EFF — CC-BY license

Near the top of most security recommendations is to use “strong passwords”. We need to stop doing this.

Yes, weak passwords can be a problem. If a website gets hacked, weak passwords are easier to crack. It’s not that this is wrong advice.

On the other hand, it’s not particularly good advice, either. It’s far down the list of important advice that people need to remember. “Weak passwords” are nowhere near the risk of “password reuse”. When your Facebook or email account gets hacked, it’s because you used the same password across many websites, not because you used a weak password.

Important websites, where the strength of your password matters, already take care of the problem. They use strong, salted hashes on the backend to protect the password. On the frontend, they force passwords to be a certain length and a certain complexity. Maybe the better advice is to not trust any website that doesn’t enforce stronger passwords (minimum of 8 characters consisting of both letters and non-letters).

To some extent, this “strong password” advice has become obsolete. A decade ago, websites had poor protection (MD5 hashes) and no enforcement of complexity, so it was up to the user to choose strong passwords. Now that important websites have changed their behavior, such as using bcrypt, there is less onus on the user.

But the real issue here is that “strong password” advice reflects the evil, authoritarian impulses of the infosec community. Instead of measuring insecurity in terms of costs vs. benefits, risks vs. rewards, we insist that it’s an issue of moral weakness. We pretend that flaws happen because people are greedy, lazy, and ignorant. We pretend that security is its own goal, a benefit we should achieve, rather than a cost we must endure.

We like giving moral advice because it’s easy: just be “stronger”. Discussing “password reuse” is more complicated, forcing us discuss password managers, writing down passwords on paper, that it’s okay to reuse passwords for crappy websites you don’t care about, and so on.

What I’m trying to say is that the moral weakness here is us. Rather then give pertinent advice we give lazy advice. We give the advice that victim shames them for being weak while pretending that we are strong.

So stop telling people to use strong passwords. It’s crass advice on your part and largely unhelpful for your audience, distracting them from the more important things.

User Authentication Best Practices Checklist

Post Syndicated from Bozho original https://techblog.bozho.net/user-authentication-best-practices-checklist/

User authentication is the functionality that every web application shared. We should have perfected that a long time ago, having implemented it so many times. And yet there are so many mistakes made all the time.

Part of the reason for that is that the list of things that can go wrong is long. You can store passwords incorrectly, you can have a vulnerably password reset functionality, you can expose your session to a CSRF attack, your session can be hijacked, etc. So I’ll try to compile a list of best practices regarding user authentication. OWASP top 10 is always something you should read, every year. But that might not be enough.

So, let’s start. I’ll try to be concise, but I’ll include as much of the related pitfalls as I can cover – e.g. what could go wrong with the user session after they login:

  • Store passwords with bcrypt/scrypt/PBKDF2. No MD5 or SHA, as they are not good for password storing. Long salt (per user) is mandatory (the aforementioned algorithms have it built in). If you don’t and someone gets hold of your database, they’ll be able to extract the passwords of all your users. And then try these passwords on other websites.
  • Use HTTPS. Period. (Otherwise user credentials can leak through unprotected networks). Force HTTPS if user opens a plain-text version.
  • Mark cookies as secure. Makes cookie theft harder.
  • Use CSRF protection (e.g. CSRF one-time tokens that are verified with each request). Frameworks have such functionality built-in.
  • Disallow framing (X-Frame-Options: DENY). Otherwise your website may be included in another website in a hidden iframe and “abused” through javascript.
  • Have a same-origin policy
  • Logout – let your users logout by deleting all cookies and invalidating the session. This makes usage of shared computers safer (yes, users should ideally use private browsing sessions, but not all of them are that savvy)
  • Session expiry – don’t have forever-lasting sessions. If the user closes your website, their session should expire after a while. “A while” may still be a big number depending on the service provided. For ajax-heavy website you can have regular ajax-polling that keeps the session alive while the page stays open.
  • Remember me – implementing “remember me” (on this machine) functionality is actually hard due to the risks of a stolen persistent cookie. Spring-security uses this approach, which I think should be followed if you wish to implement more persistent logins.
  • Forgotten password flow – the forgotten password flow should rely on sending a one-time (or expiring) link to the user and asking for a new password when it’s opened. 0Auth explain it in this post and Postmark gives some best pracitces. How the link is formed is a separate discussion and there are several approaches. Store a password-reset token in the user profile table and then send it as parameter in the link. Or do not store anything in the database, but send a few params: userId:expiresTimestamp:hmac(userId+expiresTimestamp). That way you have expiring links (rather than one-time links). The HMAC relies on a secret key, so the links can’t be spoofed. It seems there’s no consensus, as the OWASP guide has a bit different approach
  • One-time login links – this is an option used by Slack, which sends one-time login links instead of asking users for passwords. It relies on the fact that your email is well guarded and you have access to it all the time. If your service is not accessed to often, you can have that approach instead of (rather than in addition to) passwords.
  • Limit login attempts – brute-force through a web UI should not be possible; therefore you should block login attempts if they become too many. One approach is to just block them based on IP. The other one is to block them based on account attempted. (Spring example here). Which one is better – I don’t know. Both can actually be combined. Instead of fully blocking the attempts, you may add a captcha after, say, the 5th attempt. But don’t add the captcha for the first attempt – it is bad user experience.
  • Don’t leak information through error messages – you shouldn’t allow attackers to figure out if an email is registered or not. If an email is not found, upon login report just “Incorrect credentials”. On passwords reset, it may be something like “If your email is registered, you should have received a password reset email”. This is often at odds with usability – people don’t often remember the email they used to register, and the ability to check a number of them before getting in might be important. So this rule is not absolute, though it’s desirable, especially for more critical systems.
  • Make sure you use JWT only if it’s really necessary and be careful of the pitfalls.
  • Consider using a 3rd party authentication – OpenID Connect, OAuth by Google/Facebook/Twitter (but be careful with OAuth flaws as well). There’s an associated risk with relying on a 3rd party identity provider, and you still have to manage cookies, logout, etc., but some of the authentication aspects are simplified.
  • For high-risk or sensitive applications use 2-factor authentication. There’s a caveat with Google Authenticator though – if you lose your phone, you lose your accounts (unless there’s a manual process to restore it). That’s why Authy seems like a good solution for storing 2FA keys.

I’m sure I’m missing something. And you see it’s complicated. Sadly we’re still at the point where the most common functionality – authenticating users – is so tricky and cumbersome, that you almost always get at least some of it wrong.

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Public Hearing on IoT Risks

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

The US Consumer Product Safety Commission is holding hearings on IoT risks:

The U.S. Consumer Product Safety Commission (CPSC, Commission, or we) will conduct a public hearing to receive information from all interested parties about potential safety issues and hazards associated with internet-connected consumer products. The information received from the public hearing will be used to inform future Commission risk management work. The Commission also requests written comments.

Maybe I should send them my book manuscript.