CRYPTO-GRAM, April 15, 2009

Bruce Schneier schneier at SCHNEIER.COM
Wed Apr 15 00:55:52 PDT 2009


                 CRYPTO-GRAM

                April 15, 2009

              by Bruce Schneier
      Chief Security Technology Officer, BT
             schneier at schneier.com
            http://www.schneier.com


A free monthly newsletter providing summaries, analyses, insights, and 
commentaries on security: computer and otherwise.

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You can read this issue on the web at 
<http://www.schneier.com/crypto-gram-0904.html>.  These same essays 
appear in the "Schneier on Security" blog: 
<http://www.schneier.com/blog>.  An RSS feed is available.


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In this issue:
     Fourth Annual Movie-Plot Threat Contest
     Who Should be in Charge of U.S. Cybersecurity?
     News
     Privacy and the Fourth Amendment
     Schneier News
     The Definition of "Weapon of Mass Destruction"
     Stealing Commodities
     Comments from Readers


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     Fourth Annual Movie-Plot Threat Contest



Let's face it, the War on Terror is a tired brand.  There just isn't 
enough action out there to scare people.  If this keeps up, people will 
forget to be scared.  And then both the terrorists and the 
terror-industrial complex lose.  We can't have that.

We're going to help revive the fear.  There's plenty to be scared about, 
if only people would just think about it in the right way.  In this 
Fourth Movie-Plot Threat Contest, the object is to find an existing 
event somewhere in the industrialized world -- Third World events are 
just too easy -- and provide a conspiracy theory to explain how the 
terrorists were really responsible.

The goal here is to be outlandish but plausible, ridiculous but 
possible, and -- if it were only true -- terrifying.    Entries should 
be formatted as a news story, and are limited to 150 words (I'm going to 
check this time) because fear needs to be instilled in a population with 
short attention spans.  Submit your entry, by the end of the month, in 
comments to the blog post.

Submit your entry here:
http://www.schneier.com/blog/archives/2009/04/fourth_annual_m.html

An example from The Onion:
http://www.theonion.com/content/cartoon/feb-23-2009

The First Movie-Plot Threat Contest:
http://www.schneier.com/blog/archives/2006/04/announcing_movi.html
http://www.schneier.com/blog/archives/2006/06/movieplot_threa_1.html

The Second Movie-Plot Threat Contest:
http://www.schneier.com/blog/archives/2007/04/announcing_seco.html
http://www.schneier.com/blog/archives/2007/06/second_annual_m.html
http://www.schneier.com/blog/archives/2007/06/second_movieplo.html

The Third Movie-Plot Threat Contest:
http://www.schneier.com/blog/archives/2008/04/third_annual_mo.html
http://www.schneier.com/blog/archives/2008/05/third_annual_mo_2.html
http://www.schneier.com/blog/archives/2008/05/third_annual_mo_1.html


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     Who Should be in Charge of U.S. Cybersecurity?



U.S. government cybersecurity is an insecure mess, and fixing it is 
going to take considerable attention and resources. Trying to make sense 
of this, President Barack Obama ordered a 60-day review of government 
cybersecurity initiatives. Meanwhile, the U.S. House Subcommittee on 
Emerging Threats, Cybersecurity, Science and Technology is holding 
hearings on the same topic.

One of the areas of contention is who should be in charge. The FBI, DHS 
and DoD -- specifically, the NSA -- all have interests here. Earlier 
this month, Rod Beckstrom resigned from his position as director of the 
DHS's National Cybersecurity Center, warning of a power grab by the NSA.

Putting national cybersecurity in the hands of the NSA is an incredibly 
bad idea. An entire parade of people, ranging from former FBI director 
Louis Freeh to Microsoft's Trusted Computing Group Vice President and 
former Justice Department computer crime chief Scott Charney, have told 
Congress the same thing at this month's hearings.

Cybersecurity isn't a military problem, or even a government problem -- 
it's a universal problem. All networks, military, government, civilian 
and commercial, use the same computers, the same networking hardware, 
the same Internet protocols and the same software packages. We all are 
the targets of the same attack tools and tactics. It's not even that 
government targets are somehow more important; these days, most of our 
nation's critical IT infrastructure is in commercial hands. 
Government-sponsored Chinese hackers go after both military and civilian 
targets.

Some have said that the NSA should be in charge because it has 
specialized knowledge. Earlier this month, Director of National 
Intelligence Admiral Dennis Blair made this point, saying "There are 
some wizards out there at Ft. Meade who can do stuff." That's probably 
not true, but if it is, we'd better get them out of Ft. Meade as soon as 
possible -- they're doing the nation little good where they are now.

Not that government cybersecurity failings require any specialized 
wizardry to fix. GAO reports indicate that government problems include 
insufficient access controls, a lack of encryption where necessary, poor 
network management, failure to install patches, inadequate audit 
procedures, and incomplete or ineffective information security programs. 
These aren't super-secret NSA-level security issues; these are the same 
managerial problems that every corporate CIO wrestles with.

We've all got the same problems, so solutions must be shared. If the 
government has any clever ideas to solve its cybersecurity problems, 
certainly a lot of us could benefit from those solutions. If it has an 
idea for improving network security, it should tell everyone. The best 
thing the government can do for cybersecurity world-wide is to use its 
buying power to improve the security of the IT products everyone uses. 
If it imposes significant security requirements on its IT vendors, those 
vendors will modify their products to meet those requirements. And those 
same products, now with improved security, will become available to all 
of us as the new standard.

Moreover, the NSA's dual mission of providing security and conducting 
surveillance means it has an inherent conflict of interest in 
cybersecurity. Inside the NSA, this is called the "equities issue." 
During the Cold War, it was easy; the NSA used its expertise to protect 
American military information and communications, and eavesdropped on 
Soviet information and communications. But what happens when both the 
good guys the NSA wants to protect, and the bad guys the NSA wants to 
eavesdrop on, use the same systems? They all use Microsoft Windows, 
Oracle databases, Internet email, and Skype. When the NSA finds a 
vulnerability in one of those systems, does it alert the manufacturer 
and fix it -- making both the good guys and the bad guys more secure? Or 
does it keep quiet about the vulnerability and not tell anyone -- making 
it easier to spy on the bad guys but also keeping the good guys 
insecure? Programs like the NSA's warrantless wiretapping program have 
created additional vulnerabilities in our domestic telephone networks.

Testifying before Congress earlier this month, former DHS National Cyber 
Security division head Amit Yoran said "the intelligence community has 
always and will always prioritize its own collection efforts over the 
defensive and protection mission of our government's and nation's 
digital systems."

Maybe the NSA could convince us that it's putting cybersecurity first, 
but its culture of secrecy will mean that any decisions it makes will be 
suspect. Under current law, extended by the Bush administration's 
extravagant invocation of the "state secrets" privilege when charged 
with statutory and constitutional violations, the NSA's activities are 
not subject to any meaningful public oversight. And the NSA's tradition 
of military secrecy makes it harder for it to coordinate with other 
government IT departments, most of which don't have clearances, let 
alone coordinate with local law enforcement or the commercial sector.

We need transparent and accountable government processes, using 
commercial security products. We need government cybersecurity programs 
that improve security for everyone. The NSA certainly has an advisory 
and a coordination role in national cybersecurity, and perhaps a more 
supervisory role in DoD cybersecurity -- both offensive and defensive -- 
but it should not be in charge.

A copy of this essay, with all embedded links, is here:
http://www.schneier.com/blog/archives/2009/04/who_should_be_i.html

A version of this essay appeared on The Wall Street Journal website.
http://online.wsj.com/article/SB123844579753370907.html


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     News



Privacy in Google Latitude: good news.
http://blog.wired.com/business/2009/03/googles-latitud.html

Leaving infants in the car.  It happens, and sometimes they die.
http://www.schneier.com/blog/archives/2009/03/leaving_infants.html

Interesting piece of cryptographic history: a cipher designed by Robert 
Patterson and sent to Thomas Jefferson in 1801.
http://www.schneier.com/blog/archives/2009/03/1801_cipher_sol.html

The Bayer company is refusing to talk about a fatal accident at a West 
Virginia plant, citing a 2002 terrorism law.
http://pubs.acs.org/cen/news/87/i11/8711news6.html
The meeting has been rescheduled.  No word on how forthcoming Bayer will be.
http://www.csb.gov/index.cfm?folder=news_releases&page=news&NEWS_ID=461 
or http://tinyurl.com/cckma9

Research on fingerprinting paper:
http://www.freedom-to-tinker.com/blog/felten/fingerprinting-blank-paper-using-commodity-scanners 
or http://tinyurl.com/djvdkz
http://citp.princeton.edu/pub/paper09oak.pdf

Blowfish on the television series 24, again:
http://www.schneier.com/blog/archives/2009/03/blowfish_on_24_1.html

Interesting analysis of why people steal rare books.
http://www.ft.com/cms/s/2/d41a83d6-09dc-11de-add8-0000779fd2ac.html

Last month, I linked to a catalog of NSA video courses from 1991. 
Here's an update, with new information (the FOIA redactions were appealed).
http://www.governmentattic.org/2docs/NSA_TV_Center_Catalog_1991-Update.pdf 
or http://tinyurl.com/d2ds68

You just can't make this stuff up: a UK bomb squad is called in because 
someone saw a plastic replica of the Holy Hand Grenade of Antioch, from 
the movie Monty Python and the Holy Grail.
http://www.schneier.com/blog/archives/2009/03/holy_hand_grena.html

Interesting research in explosives detection.
http://www.aip.org/press_release/detecting_explosives.html

A Psychology Today article on fear and the availability heuristic:
http://blogs.psychologytoday.com/blog/the-narcissus-in-all-us/200903/mass-murder-is-nothing-fear 
or http://tinyurl.com/c8mkzm

>From Kentucky: I think this is the first documented case of election 
fraud in the U.S. using electronic voting machines (there have been lots 
of documented cases of errors and voting problems, but this one involves 
actual maliciousness).  Lots of details; well worth reading.
http://www.schneier.com/blog/archives/2009/03/election_fraud.html

Sniffing keyboard keystrokes with a laser:
http://news.zdnet.com/2100-9595_22-280184.html

Where you stand matters in surviving a suicide bombing.
http://www.sciencedaily.com/releases/2009/03/090323161125.htm
Presumably they also discovered where the attacker should stand to be as 
lethal as possible, but there's no indication they published those results.

An impressive solar plasma movie-plot threat.
http://www.newscientist.com/article/mg20127001.300-space-storm-alert-90-seconds-from-catastrophe.html?full=true 
or http://tinyurl.com/c3xphd

Security fears drive Iran to Linux:
http://www.theage.com.au/articles/2004/09/21/1095651288238.html

A gorilla detector, from Muppet Labs.
http://www.youtube.com/watch?v=4QrelL9fOjY

Bob Blakley makes an interesting point about what he calls "the zone of 
essential risk": "if you conduct medium-sized transactions rarely, 
you're in trouble. The transactions are big enough so that you care 
about losses, you don't have enough transaction volume to amortize those 
losses, and the cost of insurance or escrow is high enough compared to 
the value of your transactions that it doesn't make economic sense to 
protect yourself."
http://notabob.blogspot.com/2009/03/zone-of-essential-risk.html

Massive Chinese espionage network discovered:
http://www.schneier.com/blog/archives/2009/03/massive_chinese.html

Thefts at the Museum of Bad Art:
http://en.wikipedia.org/wiki/Museum_Of_Bad_Art
Be sure to notice the camera:
http://en.wikipedia.org/wiki/File:MOBAcamera.JPG

Here's a story about a very expensive series of false positives.  The 
German police spent years and millions of dollars tracking a mysterious 
killer whose DNA had been found at the scenes of six murders.  Finally 
they realized they were tracking a worker at the factory that assembled 
the prepackaged swabs used for DNA testing.
http://scienceblogs.com/authority/2009/03/the_phantom_of_heilbronn_and_n.php 
or http://tinyurl.com/d5cwww
This story could be used as justification for a massive DNA database. 
After all, if that factory worker had his or her DNA in the database, 
the police would have quickly realized what the problem was.

Identifying people using anonymous social networking data:
http://www.schneier.com/blog/archives/2009/04/identifying_peo.html

What to fear: a great rundown of the statistics.
http://www.counterpunch.org/goekler03242009.html

Crypto puzzle and NSA problem:
http://www.cryptosmith.com/archives/565

Clever social networking identity theft scams:
http://www.schneier.com/blog/archives/2009/04/social_networki.html

Police powers and the UK government in the 1980s:
http://www.schneier.com/blog/archives/2009/04/police_powers_a.html

Research into preserving P2P privacy:
http://www.physorg.com/news158419063.html

Fact-free article about foreign companies hacking the U.S. power grid 
suggests we panic.  My guess is that it was deliberately planted by 
someone looking for leverage in the upcoming budget battle.
http://www.schneier.com/blog/archives/2009/04/us_power_grid_h.html

Here's a tip: when walking around in public with secret government 
documents, put them in an envelope.  Don't carry them in the open where 
people can read (and photograph) them.
http://www.schneier.com/blog/archives/2009/04/how_not_to_carr.html

Details of the arrests made in haste after the above disclosure:
http://www.timesonline.co.uk/tol/news/uk/article6078397.ece

It is a measure of our restored sanity that no one has called the TSA 
about Tweenbots:
http://www.tweenbots.com/

How to write a scary cyberterrorism story.  From Foreign Affairs, no less.
http://neteffect.foreignpolicy.com/posts/2009/04/11/writing_the_scariest_article_about_cyberwarfare_in_10_easy_steps


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     Privacy and the Fourth Amendment



In the United States, the concept of "expectation of privacy" matters 
because it's the constitutional test, based on the Fourth Amendment, 
that governs when and how the government can invade your privacy.

Based on the 1967 Katz v. United States Supreme Court decision, this 
test actually has two parts. First, the government's action can't 
contravene an individual's subjective expectation of privacy; and 
second, that expectation of privacy must be one that society in general 
recognizes as reasonable. That second part isn't based on anything like 
polling data; it is more of a normative idea of what level of privacy 
people should be allowed to expect, given the competing importance of 
personal privacy on one hand and the government's interest in public 
safety on the other.

The problem is, in today's information society, that definition test 
will rapidly leave us with no privacy at all.

In Katz, the Court ruled that the police could not eavesdrop on a phone 
call without a warrant: Katz expected his phone conversations to be 
private and this expectation resulted from a reasonable balance between 
personal privacy and societal security. Given NSA's large-scale 
warrantless eavesdropping, and the previous administration's continual 
insistence that it was necessary to keep America safe from terrorism, is 
it still reasonable to expect that our phone conversations are private?

Between the NSA's massive internet eavesdropping program and Gmail's 
content-dependent advertising, does anyone actually expect their e-mail 
to be private? Between calls for ISPs to retain user data and companies 
serving content-dependent web ads, does anyone expect their web browsing 
to be private? Between the various computer-infecting malware, and world 
governments increasingly demanding to see laptop data at borders, hard 
drives are barely private. I certainly don't believe that my SMSs, any 
of my telephone data, or anything I say on LiveJournal or Facebook -- 
regardless of the privacy settings -- is private.

Aerial surveillance, data mining, automatic face recognition, terahertz 
radar that can "see" through walls, wholesale surveillance, brain scans, 
RFID, "life recorders" that save everything: Even if society still has 
some small expectation of digital privacy, that will change as these and 
other technologies become ubiquitous. In short, the problem with a 
normative expectation of privacy is that it changes with perceived 
threats, technology and large-scale abuses.

Clearly, something has to change if we are to be left with any privacy 
at all. Three legal scholars have written law review articles that 
wrestle with the problems of applying the Fourth Amendment to cyberspace 
and to our computer-mediated world in general.

George Washington University's Daniel Solove, who blogs at Concurring 
Opinions, has tried to capture the Byzantine complexities of modern 
privacy. He points out, for example, that the following privacy 
violations -- all real -- are very different: A company markets a list 
of 5 million elderly incontinent women; reporters deceitfully gain entry 
to a person's home and secretly photograph and record the person; the 
government uses a thermal sensor device to detect heat patterns in a 
person's home; and a newspaper reports the name of a rape victim. Going 
beyond simple definitions such as the divulging of a secret, Solove has 
developed a taxonomy of privacy, and the harms that result from their 
violation.

His 16 categories are: surveillance, interrogation, aggregation, 
identification, insecurity, secondary use, exclusion, breach of 
confidentiality, disclosure, exposure, increased accessibility, 
blackmail, appropriation, distortion, intrusion and decisional 
interference. Solove's goal is to provide a coherent and comprehensive 
understanding of what is traditionally an elusive and hard-to-explain 
concept: privacy violations. (This taxonomy is also discussed in 
Solove's book, Understanding Privacy.)

Orin Kerr, also a law professor at George Washington University, and a 
blogger at Volokh Conspiracy, has attempted to lay out general 
principles for applying the Fourth Amendment to the internet. First, he 
points out that the traditional inside/outside distinction -- the police 
can watch you in a public place without a warrant, but not in your home 
-- doesn't work very well with regard to cyberspace. Instead, he 
proposes a distinction between content and non-content information: the 
body of an e-mail versus the header information, for example. The police 
should be required to get a warrant for the former, but not for the 
latter. Second, he proposes that search warrants should be written for 
particular individuals and not for particular internet accounts.

Meanwhile, Jed Rubenfeld of Yale Law School has tried to reinterpret the 
Fourth Amendment not in terms of privacy, but in terms of security. 
Pointing out that the whole "expectations" test is circular -- what the 
government does affects what the government can do -- he redefines 
everything in terms of security: the security that our private affairs 
are private.

This security is violated when, for example, the government makes 
widespread use of informants, or engages in widespread eavesdropping -- 
even if no one's privacy is actually violated. This neatly bypasses the 
whole individual privacy versus societal security question -- a 
balancing that the individual usually loses -- by framing both sides in 
terms of personal security.

I have issues with all of these articles. Solove's taxonomy is 
excellent, but the sense of outrage that accompanies a privacy violation 
-- "How could they know/do/say that!?" -- is an important part of the 
harm resulting from a privacy violation. The non-content information 
that Kerr believes should be collectible without a warrant can be very 
private and personal: URLs can be very personal, and it's possible to 
figure out browsed content just from the size of encrypted SSL traffic. 
Also, the ease with which the government can collect all of it -- the 
calling and called party of every phone call in the country -- makes the 
balance very different. I believe these need to be protected with a 
warrant requirement. Rubenfeld's reframing is interesting, but the devil 
is in the details. Reframing privacy in terms of security still results 
in a balancing of competing rights. I'd rather take the approach of 
stating the -- obvious to me -- individual and societal value of 
privacy, and giving privacy its rightful place as a fundamental human 
right. (There's additional commentary on Rubenfeld's thesis at ArsTechnica.)

The trick here is to realize that a normative definition of the 
expectation of privacy doesn't need to depend on threats or technology, 
but rather on what we -- as society -- decide it should be. Sure, 
today's technology make it easier than ever to violate privacy. But it 
doesn't necessarily follow that we have to violate privacy. Today's guns 
make it easier than ever to shoot virtually anyone for any reason. That 
doesn't mean our laws have to change.

No one knows how this will shake out legally. These three articles are 
from law professors; they're not judicial opinions. But clearly 
something has to change, and ideas like these may someday form the basis 
of new Supreme Court decisions that brings legal notions of privacy into 
the 21st century.

A copy of this essay, with all embedded links, is here:
http://www.schneier.com/blog/archives/2009/03/privacy_and_the_1.html

This essay originally appeared on Wired.com.
http://www.wired.com/politics/security/commentary/securitymatters/2009/03/securitymatters_0326 
or http://tinyurl.com/dh3xg5


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     Schneier News



I was interviewed on Federal News Radio about insider threats:
http://www.federalnewsradio.com/index.php?nid=56&sid=1632741

I'm speaking at the Taiwan Information Security Center on April 17 in 
Taipei:
http://forum.twisc.ncku.edu.tw/dm.html

I'll be on the Cryptographers' Panel at the RSA Conference on April 21 
in San Francisco:
http://www.rsaconference.com/2009/US/Home.aspx

I'll be the keynote speaker at the IPSI Research Symposium on May 6 in 
Toronto:
http://www.ipsi.utoronto.ca/events/IPSI_Research_Symposium_2009.htm

I'm speaking at the International Workshop on Coding and Cryptography on 
May 12 in Lofthus, Norway:
http://www.selmer.uib.no/WCC2009/callWCC2009.pdf

I'm giving the keynote speech on Day 2 of the European OWASP Application 
Security Conference, May 14 in Krakow, Poland:
http://www.owasp.org/index.php/AppSecEU09

And I'm giving the keynote speech at CONfidence on May 15 in Krakow, Poland:
http://2009.confidence.org.pl/


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     The Definition of "Weapon of Mass Destruction"



At least, according to U.S. law:

	18 U.S.C. 2332a
		(2) the term "weapon of mass destruction" means --
			(A) any destructive device as defined in section 921 
			of this title;
			(B) any weapon that is designed or intended to cause 
			death or serious bodily injury through the release, dissemination, or impact 
of toxic or poisonous chemicals, or their precursors;
			(C) any weapon involving a biological agent, toxin, 
			or vector (as those terms are defined in section 178 of this title); or
			(D) any weapon that is designed to release radiation 
			or radioactivity at a level dangerous to human life;

	18 U.S.C. 921
		(4) The term "destructive device" means--
			(A) any explosive, incendiary, or poison gas--
				(i) bomb,
				(ii) grenade,
				(iii) rocket having a propellant charge of 
				more than four ounces,
				(iv) missile having an explosive or 
				incendiary charge of more than one-quarter ounce,
				(v) mine, or
				(vi) device similar to any of the devices 
				described in the preceding clauses;
			(B) any type of weapon (other than a shotgun or a 
			shotgun shell which the Attorney General finds is generally recognized as 
particularly suitable for sporting purposes) by whatever name known which 
will, or which may be readily converted to, expel a projectile by the action 
of an explosive or other propellant, and which has any barrel with a bore 
of more than one-half inch in diameter; and
			(C) any combination of parts either designed or 
			intended for use in converting any device into any destructive device 
described in subparagraph (A) or (B) and from which a destructive device may 
be readily assembled.

	The term "destructive device" shall not include any device which is 
neither designed nor redesigned for use as a weapon; any device, 
although originally designed for use as a weapon, which is redesigned 
for use as a signaling, pyrotechnic, line throwing, safety, or similar 
device; surplus ordnance sold, loaned, or given by the Secretary of the 
Army pursuant to the provisions of section 4684 (2), 4685, or 4686 of 
title 10; or any other device which the Attorney General finds is not 
likely to be used as a weapon, is an antique, or is a rifle which the 
owner intends to use solely for sporting, recreational or cultural purposes.

This is a very broad definition, and one that involves the intention of 
the weapon's creator as well as the details of the weapon itself.

In an e-mail, Ohio State University Professor John Mueller commented to 
me:

"As I understand it, not only is a grenade a weapon of mass destruction, 
but so is a maliciously-designed child's rocket even if it doesn't have 
a warhead. On the other hand, although a missile-propelled firecracker 
would be considered a weapon of mass destruction if its designers had 
wanted to think of it as a weapon, it would not be so considered if it 
had previously been designed for use as a weapon and then redesigned for 
pyrotechnic use or if it was surplus and had been sold, loaned, or given 
to you (under certain circumstances) by the Secretary of the Army.

"It also means that we are coming up on the 25th anniversary of the 
Reagan administration's long-misnamed WMD-for-Hostages deal with Iran.

"Bad news for you, though.  You'll have to amend that line you like 
using in your presentations about how all WMD in all of history have 
killed fewer people than OIF (or whatever), since all artillery, and 
virtually every muzzle-loading military long arm for that matter, 
legally qualifies as an WMD. It does make the bombardment of Ft. Sumter 
all the more sinister.  To say nothing of the revelation that The Star 
Spangled Banner is in fact an account of a WMD attack on American shores."

Amusing, to be sure, but there's something important going on.  The U.S. 
government has passed specific laws about "weapons of mass destruction," 
because they're particularly scary and damaging.  But by generalizing 
the definition of WMDs, those who write the laws greatly broaden their 
applicability.  And I have to wonder how many of those who vote in favor 
of the laws realize how general they really are, or -- if they do know 
-- vote for them anyway because they can't be seen to be "soft" on WMDs.

It reminds me of those provisions of the USA PATRIOT Act -- and other 
laws -- that created police powers to be used for "terrorism and other 
crimes."

Prosecutions based on this unreasonable definition:
http://www.ph2dot1.com/2008/04/wmd-arent-what-they-used-to-be.html


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     Stealing Commodities



Before his arrest, Tom Berge stole lead roof tiles from several 
buildings in south-east England, including the Honeywood Museum in 
Carshalton, the Croydon parish church, and the Sutton high school for 
girls. He then sold those tiles to scrap metal dealers.

As a security expert, I find this story interesting for two reasons. 
First, amongst increasingly ridiculous attempts to ban, or at least 
censor, Google Earth, lest it help the terrorists, here is an actual 
crime that relied on the service: Berge needed Google Earth for 
reconnaissance.

But more interesting is the discrepancy between the value of the lead 
tiles to the original owner and to the thief. The Sutton school had to 
spend #10,000 to buy new lead tiles; the Croydon Church had to repair 
extensive water damage after the theft. But Berge only received #700 a 
ton from London scrap metal dealers.

This isn't an isolated story; the same dynamic is in play with other 
commodities as well.

There is an epidemic of copper wiring thefts worldwide; copper is being 
stolen out of telephone and power stations--and off poles in the 
streets--and thieves have killed themselves because they didn't 
understand the dangers of high voltage. Homeowners are returning from 
holiday to find the copper pipes stolen from their houses. In 2001, 
scrap copper was worth 70 cents per pound. In April 2008, it was worth $4.

Gasoline siphoning became more common as pump prices rose. And used 
restaurant grease, formerly either given away or sold for pennies to 
farmers, is being stolen from restaurant parking lots and turned into 
biofuels. Newspapers and other recyclables are stolen from curbs, and 
trees are stolen and resold as Christmas trees.

Iron fences have been stolen from buildings and houses, manhole covers 
have been stolen from the middle of streets, and aluminum guard rails 
have been stolen from roadways. Steel is being stolen for scrap, too. In 
2004 in Ukraine, thieves stole an entire steel bridge.

These crimes are particularly expensive to society because the 
replacement cost is much higher than the thief's profit. A manhole cover 
is worth $5-$10 as scrap, but it costs $500 to replace, including labor. 
A thief may take $20 worth of copper from a construction site, but do 
$10,000 in damage in the process. And even if the thieves don't get to 
the copper or steel, the increased threat means more money being spent 
on security to protect those commodities in the first place.

Security can be viewed as a tax on the honest, and these thefts 
demonstrate that our taxes are going up. And unlike many taxes, we don't 
benefit from their collection. The cost to society of retrofitting 
manhole covers with locks, or replacing them with less resalable 
alternatives, is high; but there is no benefit other than reducing theft.

These crimes are a harbinger of the future: evolutionary pressure on our 
society, if you will. Criminals are often referred to as social 
parasites; they leech off society but provide no useful benefit. But 
they are an early warning system of societal changes. Unfettered by laws 
or moral restrictions, they can be the first to respond to changes that 
the rest of society will be slower to pick up on. In fact, currently 
there's a reprieve. Scrap metal prices are all down from last 
year's--copper is currently $1.62 per pound, and lead is half what Berge 
got--and thefts are down along with them.

We've designed much of our infrastructure around the assumptions that 
commodities are cheap and theft is rare. We don't protect transmission 
lines, manhole covers, iron fences, or lead flashing on roofs. But if 
commodity prices really are headed for new higher stable points, society 
will eventually react and find alternatives for these items--or find 
ways to protect them. Criminals were the first to point this out, and 
will continue to exploit the system until it restabilizes.

A copy of this essay, with all embedded links, is here:
http://www.schneier.com/blog/archives/2009/04/stealing_commod.html

A version of this essay originally appeared in The Guardian.
http://www.guardian.co.uk/technology/2009/apr/02/google-earth-censorship-crime-comodities 
or http://tinyurl.com/coo59n


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     Comments from Readers



There are hundreds of comments -- many of them interesting -- on these 
topics on my blog. Search for the story you want to comment on, and join in.

http://www.schneier.com/blog


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