NSA offering 'billions' for Skype eavesdrop solution

[Eugen Leitl]

http://www.theregister.co.uk/2009/02/12/nsa_offers_billions_for_skype_pwnage/ 

NSA offering 'billions' for Skype eavesdrop solution

Business model for P2P firm at last?

By Lewis Page b" Get more from this author

Posted in Government, 12th February 2009 11:32 GMT

Free research: Application platforms, the state of play

Counter Terror Expo News of a possible viable business model for P2P VoIP
network Skype emerged today, at the Counter Terror Expo in London. An
industry source disclosed that America's supersecret National Security Agency
(NSA) is offering "billions" to any firm which can offer reliable
eavesdropping on Skype IM and voice traffic.

The spybiz exec, who preferred to remain anonymous, confirmed that Skype
continues to be a major problem for government listening agencies, spooks and
police. This was already thought to be the case, following requests from
German authorities for special intercept/bugging powers to help them deal
with Skype-loving malefactors. Britain's GCHQ has also stated that it has
severe problems intercepting VoIP and internet communication in general.

Skype in particular is a serious problem for spooks and cops. Being P2P, the
network can't be accessed by the company providing it and the authorities
can't gain access by that route. The company won't disclose details of its
encryption, either, and isn't required to as it is Europe based. This lack of
openness prompts many security pros to rubbish Skype on "security through
obscurity" grounds: but nonetheless it remains a popular choice with those
who think they might find themselves under surveillance. Rumour suggests that
America's NSA may be able to break Skype encryption - assuming they have
access to a given call or message - but nobody else.

The NSA may be able to do that: but it seems that if so, this uses up too
much of the agency's resources at present.

"They are saying to the industry, you get us into Skype and we will make you
a very rich company," said the industry source, adding that the obscure
encryption used by the P2Pware is believed to change frequently as part of
software updates.

The spyware kingpin suggested that Skype is deliberately seeking to frustrate
national listening agencies, which seems an odd thing to do - Skype has
difficulties enough getting revenues out of its vast user base at any time,
and a paid secure-voice system for subversives doesn't seem like a
money-spinner.

But corporate parent eBay, having had to write down $1.4bn already following
its $2.6bn purchase of Skype back in the bubble-2.0 days of 2005, might see
an opportunity here. A billion or two from the NSA for a backdoor into Skype
might make the acquisition seem like a sensible idea.

We asked the NSA for comment, particularly on the idea of simply buying a way
into Skype, but hadn't yet received a response as of publication.