March 2009 - cypherpunks-legacy

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25 Mar '09

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25 Mar '09

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25 Mar '09

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Boffins sniff keystrokes with lasers, oscilloscopes
by Eugen Leitl 25 Mar '09

25 Mar '09

http://www.theregister.co.uk/2009/03/19/keyboard_sniffing_demo/print.html Boffins sniff keystrokes with lasers, oscilloscopes I know what you typed last summer By Dan Goodin in Vancouver Posted in Security, 19th March 2009 23:30 GMT CanSecWest Researchers have devised two novel ways to eavesdrop on people as they enter passwords, emails, and other sensitive information into computers, even when they're not connected to the internet or other networks. Exploiting vibrational patterns and electromagnetic pulses that emanate with every character entered, the Italian researchers are able to remotely sniff keystrokes from significant distances. The techniques use inexpensive equipment and can be hard for targets to detect, making them ideal for snooping on unsuspecting people in the office or building next door. "The data is there," Andrea Barisani, of security firm Inverse Path, told those attending the CanSecWest security conference in Vancouver, British Columbia. "That's the important thing you need to know: whenever you type your data goes somewhere else. Not many people think about that." The first method involves the use of laser microphones, which have long been the stuff of thrillers with spies who eavesdrop on conversations spoken from afar. By pointing the devices at windows, snoops can read the sound waves and then reconstruct the words that are being spoken. Barisani, who was joined on stage by fellow Inverse Path colleague Daniele Bianco, said laser microphones can be trained on a laptop computer or desktop keyboard to similarly read the characters being entered. Because each keystroke has a distinctly different sound vibration, it is possible to remotely discern the characters by capturing the sound and then subjecting it to analysis. The process is akin to the way secret codes are often cracked. An eavesdropper first figures out which sound represents the space bar. From there, he compares the input against words in a dictionary for likely matches. The more input the device picks up, the more accurate it becomes. Because keystrokes sound different for different people, a snoop would need to learn the distinctive sounds of each person being spied on. Of course, the technique requires the eavesdropper to have a clean line of sight to the target PC, but it remains suitable for snooping on people typing in public places or next to windows. An attacker can also use one line of sight to point the laser on the victim and a separate straight line to receive the signal that's bounced back for analysis. What's more, infrared lasers can be used to escape detection. There is another way The second spying method uses electro-magnetic pulses to discern which key has been tapped. By tapping into the local grid that's powering the target PC, an attacker can measure leaked electrical currents that change with every keystroke. The patterns are captured using an oscilloscope and then subjected to filtering, which can isolate each individual keystroke. The technique works at distances of 15 meters, but the researchers said with more expensive equipment it could work as far away as 100 meters. The technique does come with one significant limitation: It works only for keyboards using a PS/2 connector. USB keyboards and keyboards for laptops are immune, and Barisani said it will be hard to overcome the limitation. The techniques outlined Thursday contribute to research first disclosed in October (http://www.theregister.co.uk/2008/10/20/keyboard_sniffing_attack/) by scientists in Switzerland. They showed it was possible to use a variety of methods to capture keystrokes of PS/2, universal serial bus or laptop keyboards. The researchers, from the Security and Cryptography Laboratory at Ecole Polytechnique Federale de Lausanne, are expected to formally release their research paper soon. Despite their limitations, the more recent techniques remain impressive because they use off-the-shelf components that can be put together at little expense and without much expertise. The method involving the laser microphone costs only about $80. The other comes to less than $200. It's also worth noting that Barisani and Bianco developed the techniques in their spare time over the course of some five weeks. "We're part-time hackers working on weekends," Barisani said. "Imagine what a determined government agency can do."

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more UK snoopery
by Eugen Leitl 25 Mar '09

25 Mar '09

(in other news, my own dear government just today ordered Internet censorship for all major ISPs (Deutsche Telekom, Vodafone/Arcor, Hansenet/Alice, O2 and Kabel Deutschland caved in "voluntarily", the rest will be forced by unconstitutional laws)) http://www.guardian.co.uk/technology/2009/mar/25/social-networking-sites-mo… Home Office defends plan to monitor social network conversations b" Facebook and MySpace could be required to hold data about every person users chat with for up to year b" Privacy campaigners condemn 'centralised snooping' * Matthew Weaver * guardian.co.uk, Wednesday 25 March 2009 06.39 GMT Privacy campaigners expressed alarm today over government plans to monitor all conversations on social networking sites in an attempt to crackdown on terror. A Home Office spokesman said that the internet eavesdropping plan, which would be set out in the next few weeks, would cover any social network that allows people to chat to one another, including Facebook, MySpace, Bebo and Twitter as well as internet calls on Skype. He said the proposal would update existing plans to store information about every telephone call, email, and internet visit made by anyone in the UK on a central database. "We have no way of knowing whether Osama bin Laden is chatting to Abu Hamza on Facebook. Or terrorists could be having a four-way chat on Skype," he said. He said the government was not interested in the contents of the communication: "What we want to monitor is that so-and-so is logged on to that site and spoke to so-and-so. It's the who, when and where, not the content." But he conceded that in "high-profile cases" the police would want to examine the contents of social network chatter. "The security service would want the ability to capture information that could lead to conviction," he said. Under the new proposals, the sites that host social networks could be required to hold data about who users correspond with for up to a year. Privacy campaigners criticised the plan, saying it would be another unwieldy, costly and unnecessary failure. Shami Chakrabarti, director of human rights group Liberty, said: "The widescale use of social networking websites highlights the enormity of government ambitions for a centralised communications database for the surveillance of the entire population b& Technological development is used as an excuse for centralised snooping of a kind that ought never to be acceptable in the oldest unbroken democracy on earth." Michael Parker, spokesman for campaign group NO2ID, said the government was enforcing data sharing and the pillaging of private information. "Their plans for the intercept modernisation programme were completely unworkable to begin with and are becoming more so with every addition they suggest. The idea of tracking calls, texts and emails made by people in the country is unspeakably offensive." The plans were first revealed by the Home Office minister, Vernon Coaker, last week at a Commons committee hearing on a draft EU directive that does not cover social networking. He said the government's intercept modernisation programme proposals may be extended to include "the retention of data on Facebook, Bebo, MySpace and all other similar sites". He added: "The government are looking at what we should do about the intercept modernisation programme because there are certain aspects of communications which are not covered by the [EU] directive." Coaker acknowledged that the plan would raise fresh concerns about the right to privacy. "I accept that this is an extremely difficult area. The interface between retaining data, private security and all such issues of privacy is extremely important," he said. The Home Office spokesman said a consultation paper, to be published shortly before or after Easter, would explore the practicality of the plan. In a statement the Home Office added: "The government has no interest in the content of people's social network sites and this is not going to be part of our upcoming consultation. We have been clear the communications revolution has been rapid in this country and the way in which we collect communications data needs to change so that law enforcement agencies can maintain their ability to tackle terrorism and gather evidence. "To ensure that we keep up with technological advances we intend to consult widely on proposals shortly. We have been very clear that there are no plans for a database containing the content of emails, texts, conversations or social networking sites." On Monday the Joseph Rowntree Reform Trust published a report claiming that a quarter of all the largest public-sector database projects, including the identity cards register, were fundamentally flawed and clearly breach European data protection and rights laws. Claiming to be the most comprehensive map so far of Britain's "database state", the report says that 11 of the 46 biggest schemes, including the national DNA database and the Contactpoint index of all children in England, should be given a "red light" and immediately scrapped or redesigned.

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Police raid home of Wikileaks.de domain owner over censorship lists
by Eugen Leitl 25 Mar '09

25 Mar '09

http://wikileaks.org/wiki/Police_raid_home_of_Wikileaks.de_domain_owner_ove… Police raid home of Wikileaks.de domain owner over censorship lists March 24, 2009 EDITORIAL (Wikileaks) Excerpt raid documentation Shortly after 9pm on Tuesday the 24th of March 2009, seven police officers in Dresden and four in Jena searched the homes of Theodor Reppe, who holds the domain registration for "wikileaks.de", the German name for wikileaks.org. According to police documentation, the reason for the search was "distribution of pornographic material" and "discovery of evidence". Police claim the raid was initiated due to Mr. Reppe's position as the Wikileaks.de domain owner. Police did not want to give any further information to Mr. Reppe and no contact was made with Wikileaks before or after the search. It is therefore not totally clear why the search was made, however Wikileaks, in its role as a defender of press freedoms, has published censorship lists for Australia, Thailand, Denmark and other countries. Included on the lists are references to sites containing pornography and no other material has been released by Wikileaks relating to the subject. Some details of the search raise questions: * Wikileaks was not contacted before the search, despite Wikileaks having at least two journalists which are recognized members of the German Press Association (Deutscher Presse Verband). * The time of at least 11 police detectives was wasted conducting a futile raid on the private home of volunteer assistant to a media organization. * Police asked for the passwords to the "wikileaks.de" domain and for the entire domain to be disabled. * Mr Reppe was not informed of his rights; police documentation clearly shows that box to be left unchecked. * Contrary to what is stated in the police protocol, Mr. Reppe did not agree to "not having a witness" present. Ultimately, Mr Reppe refused to sign the police documentation due to its inaccuracies. The raid appears to be related to a recent German social hysteria around child pornography and the controversial battle for a national censorship system by the German family minister Ursula von der Leyen. It comes just a few weeks after a member of parliament, SPD minister Joerg Tauss had his office and private house searched by police. German bloggers discussing the subject were similarly raided. Mr. Reppe sponsors the Wikileaks German domain registration and mirrors a collection of Wikileaks US Congressional Research Service reports but is not otherwise operationally involved. Mr Reppe is also maintainer of one of the most popular German Tor-proxy servers (morphium.info) but only the connection to Wikileaks was mentioned during the raid. Wikileaks.de and other Wikileaks domains were unaffected by the raid. Wikileaks is a non-profit project, sponsored by transparency groups and investigative journalists world wide. To support our defense of this and other cases, see http://wikileaks.org/wiki/Wikileaks Police documentation of the raid: * Wikileaks.de police raid documentation, 24 Mar 2009 Additional context: * Durchsuchungsbeschluss Blog wegen Verlinkung auf Schutzalter und anwaltliche Reaktion, 2009 * Grundrechtliche, telekommunikations- und telemedienrechtliche Fragen im Zusammenhang mit der Sperrung kinderpornographischer Inhalte im Internet, 19 Feb 2009 * Vertragsentwurf BKA ISP, 11 Feb 2009 * Bundestag: Sperrverfugung gegen Internet-Provider, 2009 * German Interior Ministry Internet Expertise re internet spying and censorship, 17 Feb 2009 * German police search warrant over study linking to Danish censorship list on Wikileaks, Feb 2009 * Australia secretly censors Wikileaks press release and Danish Internet censorship list, 16 Mar 2009 * Australian Government censorship of US anti-abortion site abortiontv.com, 21 Jan 2009 * Australian Government censorship of US anti-abortion site abortiontv.com, 21 Jan 2009 * Denmark: 3863 sites on censorship list, Feb 2008 * 797 domains on Finnish Internet censorship list, including censorship critic, 2008 * Thailand official MICT censorship list, 20 Dec 2008 * United Arab Emirates Internet censorship plan (2006)

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Hernando de Soto Says Toxic Assets Emerged From a Shadow Economy
by R.A. Hettinga 25 Mar '09

25 Mar '09

<http://online.wsj.com/article/SB123793811398132049.html?mod=djemEditorialPa… > The Wall Street Journal OPINION MARCH 25, 2009 Toxic Assets Were Hidden Assets We can't afford to allow shadow economies to grow this big. By HERNANDO DE SOTO The Obama administration has finally come up with a plan to deal with the real cause of the credit crunch: the infamous "toxic assets" on bank balance sheets that have scared off investors and borrowers, clogging credit markets around the world. But if Treasury Secretary Timothy Geithner hopes to prevent a repeat of this global economic crisis, his rescue plan must recognize that the real problem is not the bad loans, but the debasement of the paper they are printed on. Today's global crisis -- a loss on paper of more than $50 trillion in stocks, real estate, commodities and operational earnings within 15 months -- cannot be explained only by the default on a meager 7% of subprime mortgages (worth probably no more than $1 trillion) that triggered it. The real villain is the lack of trust in the paper on which they -- and all other assets -- are printed. If we don't restore trust in paper, the next default -- on credit cards or student loans -- will trigger another collapse in paper and bring the world economy to its knees. If you think about it, everything of value we own travels on property paper. At the beginning of the decade there was about $100 trillion worth of property paper representing tangible goods such as land, buildings, and patents world-wide, and some $170 trillion representing ownership over such semiliquid assets as mortgages, stocks and bonds. Since then, however, aggressive financiers have manufactured what the Bank for International Settlements estimates to be $1 quadrillion worth of new derivatives (mortgage-backed securities, collateralized debt obligations, and credit default swaps) that have flooded the market. These derivatives are the root of the credit crunch. Why? Unlike all other property paper, derivatives are not required by law to be recorded, continually tracked and tied to the assets they represent. Nobody knows precisely how many there are, where they are, and who is finally accountable for them. Thus, there is widespread fear that potential borrowers and recipients of capital with too many nonperforming derivatives will be unable to repay their loans. As trust in property paper breaks down it sets off a chain reaction, paralyzing credit and investment, which shrinks transactions and leads to a catastrophic drop in employment and in the value of everyone's property. Ever since humans started trading, lending and investing beyond the confines of the family and the tribe, we have depended on legally authenticated written statements to get the facts about things of value. Over the past 200 years, that legal authority has matured into a global consensus on the procedures, standards and principles required to document facts in a way that everyone can easily understand and trust. The result is a formidable property system with rules and recording mechanisms that fix on paper the facts that allow us to hold, transfer, transform and use everything we own, from stocks to screenplays. The only paper representing an asset that is not centrally recorded, standardized and easily tracked are derivatives. Property is much more than a body of norms. It is also a huge information system that processes raw data until it is transformed into facts that can be tested for truth, and thereby destroys the main catalysts of recessions and panics -- ambiguity and opacity. To bring derivatives under the rule of law, governments should ensure that they conform to six longstanding procedures that guarantee the value and legitimacy of any kind of paper purporting to represent an asset: - All documents and the assets and transactions they represent or are derived from must be recorded in publicly accessible registries. It is only by recording and continually updating such factual knowledge that we can detect the kind of overly creative financial and contractual instruments that plunged us into this recession. - The law has to take into account the "externalities" or side effects of all financial transactions according to the legal principle of erga omnes ("toward all"), which was originally developed to protect third parties from the negative consequences of secret deals carried out by aristocracies accountable to no one but themselves. - Every financial deal must be firmly tethered to the real performance of the asset from which it originated. By aligning debts to assets, we can create simple and understandable benchmarks for quickly detecting whether a financial transaction has been created to help production or to bet on the performance of distant "underlying assets." - Governments should never forget that production always takes priority over finance. As Adam Smith and Karl Marx both recognized, finance supports wealth creation, but in itself creates no value. - Governments can encourage assets to be leveraged, transformed, combined, recombined and repackaged into any number of tranches, provided the process intends to improve the value of the original asset. This has been the rule for awarding property since the beginning of time. - Governments can no longer tolerate the use of opaque and confusing language in drafting financial instruments. Clarity and precision are indispensable for the creation of credit and capital through paper. Western politicians must not forget what their greatest thinkers have been saying for centuries: All obligations and commitments that stick are derived from words recorded on paper with great precision. Above all, governments should stop clinging to the hope that the existing market will eventually sort things out. "Let the market do its work" has come to mean, "let the shadow economy do its work." But modern markets only work if the paper is reliable. Government's main duty now is to bring the whole toxic environment under the rule of law where it will be subject to enforcement. No economic activity based on the public trust should be allowed to operate outside the general principles of property law. Financial institutions will have to serve society and fully report what they own and what they owe -- just like the rest of us -- so that we get the facts necessary to find our way out of the current maze. They must begin learning to put on paper statements about facts, instead of statements about statements. Mr. de Soto, the author of "The Mystery of Capital" (Basic Books, 2000) and "The Other Path" (Harper and Row, 1989), co-chairs the Commission on Legal Empowerment of the Poor.

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25 Mar '09

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by Zoie Melendez 25 Mar '09

25 Mar '09

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