Fwd: CRYPTO-GRAM, January 15, 2014

coderman coderman at gmail.com
Wed Jan 15 16:41:45 PST 2014


---------- Forwarded message ----------
From: Bruce Schneier <schneier at schneier.com>
Date: Tue, Jan 14, 2014 at 11:52 PM
Subject: CRYPTO-GRAM, January 15, 2014



           CRYPTO-GRAM

         January 15, 2014

         by Bruce Schneier
       CTO, Co3 Systems, Inc.
       schneier at schneier.com
      http://www.schneier.com


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In this issue:
     How the NSA Threatens National Security
     NSA Exploit of the Day
     Tor User Identified by FBI
     News
     Security Risks of Embedded Systems
     Schneier News
     Schneier News: I've Joined Co3 Systems
     Twitter Users: Please Make Sure You're Following the Right Feed

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     How the NSA Threatens National Security



Secret NSA eavesdropping is still in the news. Details about once
secret programs continue to leak. The Director of National
Intelligence has recently declassified additional information, and the
President's Review Group has just released its report and
recommendations.

With all this going on, it's easy to become inured to the breadth and
depth of the NSA's activities. But through the disclosures, we've
learned an enormous amount about the agency's capabilities, how it is
failing to protect us, and what we need to do to regain security in
the Information Age.

First and foremost, the surveillance state is robust. It is robust
politically, legally, and technically. I can name three different NSA
programs to collect Gmail user data. These programs are based on three
different technical eavesdropping capabilities. They rely on three
different legal authorities. They involve collaborations with three
different companies. And this is just Gmail. The same is true for cell
phone call records, Internet chats, cell-phone location data.

Second, the NSA continues to lie about its capabilities. It hides
behind tortured interpretations of words like "collect,"
"incidentally," "target," and "directed." It cloaks programs in
multiple code names to obscure their full extent and capabilities.
Officials testify that a particular surveillance activity is not done
under one particular program or authority, conveniently omitting that
it is done under some other program or authority.

Third, US government surveillance is not just about the NSA. The
Snowden documents have given us extraordinary details about the NSA's
activities, but we now know that the CIA, NRO, FBI, DEA, and local
police all engage in ubiquitous surveillance using the same sorts of
eavesdropping tools, and that they regularly share information with
each other.

The NSA's collect-everything mentality is largely a hold-over from the
Cold War, when a voyeuristic interest in the Soviet Union was the
norm. Still, it is unclear how effective targeted surveillance against
"enemy" countries really is. Even when we learn actual secrets, as we
did regarding Syria's use of chemical weapons earlier this year, we
often can't do anything with the information.

Ubiquitous surveillance should have died with the fall of Communism,
but it got a new -- and even more dangerous -- life with the
intelligence community's post-9/11 "never again" terrorism mission.
This quixotic goal of preventing something from happening forces us to
try to know everything that does happen. This pushes the NSA to
eavesdrop on online gaming worlds and on every cell phone in the
world. But it's a fool's errand; there are simply too many ways to
communicate.

We have no evidence that any of this surveillance makes us safer. NSA
Director General Keith Alexander responded to these stories in June by
claiming that he disrupted 54 terrorist plots. In October, he revised
that number downward to 13, and then to "one or two." At this point,
the only "plot" prevented was that of a San Diego man sending $8,500
to support a Somali militant group. We have been repeatedly told that
these surveillance programs would have been able to stop 9/11, yet the
NSA didn't detect the Boston bombings -- even though one of the two
terrorists was on the watch list and the other had a sloppy social
media trail. Bulk collection of data and metadata is an ineffective
counterterrorism tool.

Not only is ubiquitous surveillance ineffective, it is extraordinarily
costly. I don't mean just the budgets, which will continue to
skyrocket. Or the diplomatic costs, as country after country learns of
our surveillance programs against their citizens. I'm also talking
about the cost to our society. It breaks so much of what our society
has built. It breaks our political systems, as Congress is unable to
provide any meaningful oversight and citizens are kept in the dark
about what government does. It breaks our legal systems, as laws are
ignored or reinterpreted, and people are unable to challenge
government actions in court. It breaks our commercial systems, as US
computer products and services are no longer trusted worldwide. It
breaks our technical systems, as the very protocols of the Internet
become untrusted. And it breaks our social systems; the loss of
privacy, freedom, and liberty is much more damaging to our society
than the occasional act of random violence.

And finally, these systems are susceptible to abuse. This is not just
a hypothetical problem. Recent history illustrates many episodes where
this information was, or would have been, abused: Hoover and his FBI
spying, McCarthy, Martin Luther King Jr. and the civil rights
movement, anti-war Vietnam protesters, and -- more recently -- the
Occupy movement. Outside the US, there are even more extreme examples.
Building the surveillance state makes it too easy for people and
organizations to slip over the line into abuse.

It's not just domestic abuse we have to worry about; it's the rest of
the world, too. The more we choose to eavesdrop on the Internet and
other communications technologies, the less we are secure from
eavesdropping by others. Our choice isn't between a digital world
where the NSA can eavesdrop and one where the NSA is prevented from
eavesdropping; it's between a digital world that is vulnerable to all
attackers, and one that is secure for all users.

Fixing this problem is going to be hard. We are long past the point
where simple legal interventions can help. The bill in Congress to
limit NSA surveillance won't actually do much to limit NSA
surveillance. Maybe the NSA will figure out an interpretation of the
law that will allow it to do what it wants anyway. Maybe it'll do it
another way, using another justification. Maybe the FBI will do it and
give it a copy. And when asked, it'll lie about it.

NSA-level surveillance is like the Maginot Line was in the years
before World War II: ineffective and wasteful. We need to openly
disclose what surveillance we have been doing, and the known
insecurities that make it possible. We need to work toward security,
even if other countries like China continue to use the Internet as a
giant surveillance platform. We need to build a coalition of
free-world nations dedicated to a secure global Internet, and we need
to continually push back against bad actors -- both state and
non-state -- that work against that goal.

Securing the Internet requires both laws and technology. It requires
Internet technology that secures data wherever it is and however it
travels. It requires broad laws that put security ahead of both
domestic and international surveillance. It requires additional
technology to enforce those laws, and a worldwide enforcement regime
to deal with bad actors. It's not easy, and has all the problems that
other international issues have: nuclear, chemical, and biological
weapon non-proliferation; small arms trafficking; human trafficking;
money laundering; intellectual property. Global information security
and anti-surveillance needs to join those difficult global problems,
so we can start making progress.

The President's Review Group recommendations are largely positive, but
they don't go nearly far enough. We need to recognize that security is
more important than surveillance, and work towards that goal.

This essay previously appeared on TheAtlantic.com.
http://www.theatlantic.com/technology/archive/2014/01/how-the-nsa-threatens-national-security/282822/
or http://tinyurl.com/ok4vydn

Newish Snowden revelations:
http://www.nytimes.com/2013/12/21/world/nsa-dragnet-included-allies-aid-groups-and-business-elite.html
or http://tinyurl.com/or8lz4e
http://www.theguardian.com/uk-news/2013/dec/20/gchq-targeted-aid-agencies-german-government-eu-commissioner
or http://tinyurl.com/pcmqpgm
http://www.spiegel.de/international/world/snowden-documents-show-gchq-targeted-european-and-german-politicians-a-940135.html
or http://tinyurl.com/oxcv5ko

Recent DNI declassifications:
http://www.theguardian.com/world/2013/dec/21/national-intelligence-bush-era-nsa-documents
or http://tinyurl.com/lxufd23
http://icontherecord.tumblr.com/post/70683717031/dni-announces-the-declassification-of-the
 or http://tinyurl.com/mqqu9jg

President's Review Group report:
http://www.whitehouse.gov/sites/default/files/docs/2013-12-12_rg_final_report.pdf
 or http://tinyurl.com/lj4azsg
http://www.nytimes.com/2013/12/20/opinion/protecting-citizens-and-their-privacy.html
or http://tinyurl.com/nfjnrub

The three different GMail collection programs:
http://www.washingtonpost.com/investigations/us-intelligence-mining-data-from-nine-us-internet-companies-in-broad-secret-program/2013/06/06/3a0c0da8-cebf-11e2-8845-d970ccb04497_story.html
or http://tinyurl.com/mm3ttqt
http://www.washingtonpost.com/world/national-security/nsa-collects-millions-of-e-mail-address-books-globally/2013/10/14/8e58b5be-34f9-11e3-80c6-7e6dd8d22d8f_story.html
or http://tinyurl.com/kn8ld96
http://www.washingtonpost.com/world/national-security/nsa-infiltrates-links-to-yahoo-google-data-centers-worldwide-snowden-documents-say/2013/10/30/e51d661e-4166-11e3-8b74-d89d714ca4dd_story.html
or http://tinyurl.com/jwzxh77

Cell-phone location data collection:
http://www.washingtonpost.com/world/national-security/nsa-tracking-cellphone-locations-worldwide-snowden-documents-show/2013/12/04/5492873a-5cf2-11e3-bc56-c6ca94801fac_story.html
or http://tinyurl.com/nu4h5s9
http://www.washingtonpost.com/blogs/the-switch/wp/2013/12/10/new-documents-show-how-the-nsa-infers-relationships-based-on-mobile-location-data/
or http://tinyurl.com/opjhjko

NSA lying:
http://www.theatlantic.com/politics/archive/2013/12/new-evidence-that-the-head-of-the-nsa-misled-us/282365/
or http://tinyurl.com/kjyd43o

NSA redefining words:
https://www.eff.org/deeplinks/2013/06/director-national-intelligences-word-games-explained-how-government-deceived
or http://tinyurl.com/ma7dk5j
http://www.newyorker.com/online/blogs/closeread/2013/12/how-to-tell-when-the-nsa-is-lying.html
or http://tinyurl.com/ly4eewu

NSA hiding behind particular programs:
http://www.theatlantic.com/politics/archive/2013/12/how-americans-were-deceived-about-cell-phone-location-data/282239/
or http://tinyurl.com/q5mt8j7

All the Snowden documents released so far:
https://www.eff.org/nsa-spying/nsadocs
https://www.aclu.org/nsa-documents-released-public-june-2013
http://cryptome.org/2013/11/snowden-tally.htm
http://www.mindmeister.com/326632176/nsa-css
http://www.tedgioia.com/nsa_facts.html

Other law-enforcement organizations that engage in national surveillance:
http://online.wsj.com/news/article_email/SB10001424052702303559504579198370113163530-lMyQjAxMTAzMDEwNDExNDQyWj
or http://tinyurl.com/q434yn7
http://arstechnica.com/tech-policy/2013/12/new-us-spy-satellite-features-world-devouring-octopus/
or http://tinyurl.com/no7yzbx
http://www.foreignpolicy.com/articles/2013/11/21/the_obscure_fbi_team_that_does_the_nsa_dirty_work
or http://tinyurl.com/mozzoyp
http://www.nytimes.com/2013/09/02/us/drug-agents-use-vast-phone-trove-eclipsing-nsas.html
or http://tinyurl.com/k2qd45z
http://www.usatoday.com/story/news/nation/2013/12/08/cellphone-data-spying-nsa-police/3902809/
or http://tinyurl.com/mxdftt8

Sharing of intelligence information between organizations:
http://www.reuters.com/article/2013/08/05/us-dea-sod-idUSBRE97409R20130805
or http://tinyurl.com/kbsc4k9
http://www.reuters.com/article/2013/08/07/us-dea-irs-idUSBRE9761AZ20130807
or http://tinyurl.com/modr5rz

The limitations of intelligence:
https://www.schneier.com/blog/archives/2013/09/the_limitations.html

The NSA's Quixotic goal:
https://www.schneier.com/blog/archives/2013/11/dan_geer_explai.html

NSA spying on online gaming worlds:
http://www.nytimes.com/2013/12/10/world/spies-dragnet-reaches-a-playing-field-of-elves-and-trolls.html
or http://tinyurl.com/mee2ubn

No evidence that NSA bulk surveillance makes us safer:
http://www.theguardian.com/commentisfree/2013/oct/08/nsa-bulk-metadata-surveillance-intelligence
or http://tinyurl.com/pt7v3eb

Alexander's 54 terrorist plots:
http://usnews.nbcnews.com/_news/2013/06/27/19175466-nsa-chief-says-surveillance-programs-helped-foil-54-plots
or http://tinyurl.com/m2tldhc

Alexander's 13 terrorist plots:
http://www.salon.com/2013/10/02/nsa_director_admits_to_misleading_public_on_terror_plots/
or http://tinyurl.com/m459sa6

Alexander's one remaining plot:
http://www.huffingtonpost.com/2013/10/23/nsa-attacks-thwarted_n_4148811.html
or http://tinyurl.com/mc3ccda

Arguments that NSA surveillance could have stopped 9/11:
http://www.washingtonpost.com/blogs/the-switch/wp/2013/10/30/heres-why-nsa-officials-never-seem-to-stop-talking-about-911/
or http://tinyurl.com/myk6s9u

Boston bombers:
http://www.reuters.com/article/2013/04/24/us-usa-explosions-boston-suspect-idUSBRE93N06720130424
or http://tinyurl.com/kk7vrwb
http://storify.com/MacleansMag/the-social-media-trail-of-tsarnaev-brothers
or http://tinyurl.com/klvz899

NSA surveillance is ineffective:
http://www.cnn.com/2013/12/30/opinion/bergen-nsa-surveillance-september-11/index.html
or http://tinyurl.com/kjvk3sr

U.S. intelligence budgets:
http://articles.washingtonpost.com/2013-08-29/world/41709796_1_intelligence-community-intelligence-spending-national-intelligence-program
or http://tinyurl.com/ov35q5q

Lack of Congressional oversight:
https://www.youtube.com/watch?v=JPnfgUkcvOk
http://www.theguardian.com/commentisfree/2013/oct/25/nsa-no-congress-oversight
or http://tinyurl.com/p8ctswu

NSA's lawbreaking:
https://www.aclu.org/national-security/nsa-collating-data-americans-facebook-gps-tax-other-records
or http://tinyurl.com/mqs3mwf
http://www.theguardian.com/commentisfree/2013/oct/16/nsa-fbi-endrun-weak-oversight
or http://tinyurl.com/kp3t92s
http://www.nationalreview.com/corner/356159/sensenbrenner-nsa-surveillance-abuse-patriot-act-john-fund
or http://tinyurl.com/l5deldt
http://www.theatlantic.com/politics/archive/2013/07/mission-creep-when-everything-is-terrorism/277844/
or http://tinyurl.com/l2ddac9

Current Congressional bills:
https://www.aclu.org/blog/national-security/usa-freedom-act-real-spying-reform
or http://tinyurl.com/mzjlyns
https://www.eff.org/deeplinks/2013/11/floor-not-ceiling-supporting-usa-freedom-act-step-towards-less-surveillance
or http://tinyurl.com/mvqew8f

Transparency and oversight:
https://www.schneier.com/essay-447.html
https://www.schneier.com/essay-435.html

Security is more important than surveillance:
http://www.schneier.com/essay-452.html


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     NSA Exploit of the Day



One of the top secret NSA documents published by Der Spiegel is a
50-page catalog of "implants" from the NSA's Tailored Access Group.
Because the individual implants are so varied and we saw so many at
once, most of them were never discussed in the security community.
(Also, the pages were images, which makes them harder to index and
search.)  To rectify this, I am publishing an exploit a day on my
blog.

In the blog comments, feel free to discuss how the exploit works, how
we might detect it, how it has probably been improved since the
catalog entry in 2008, and so on.

"DEITYBOUNCE provides software application persistence on Dell
PowerEdge servers by exploiting the motherboard BIOS and utilizing
System Management Mode (SMM) to gain periodic execution while the
Operating System loads."
https://www.schneier.com/blog/archives/2014/01/nsa_exploit_of.html

"IRONCHEF provides access persistence to target systems by exploiting
the motherboard BIOS and utilizing System  Management Mode (SMM) to
communicate with a hardware implany that provides two-way RF
communication."  It works on the HP Proliant 380DL G5 server.
https://www.schneier.com/blog/archives/2014/01/nsa_exploit_of_1.html

"FEEDTROUGH is a persistence technique for two software implants,
DNT's BANANAGLEE and CES's ZESTYLEAK used against Juniper Netscreen
firewalls."
https://www.schneier.com/blog/archives/2014/01/feedtrough_nsa.html

"GOURMETTROUGH is a user configurable implant for certain Juniper
firewalls. It persists DNT's BANANAGLEE implant across reboots and OS
upgrades. For some platforms, it supports a minimal implant with
beaconing for OS's unsupported by BANANAGLEE."
https://www.schneier.com/blog/archives/2014/01/gourmettrough_n.html

"The HALLUXWATER Persistence Back Door implant is installed on a
target Huawei Eudemon firewall as a boot ROM upgrade. When the target
reboots, the PBD installer software will find the needed patch points
and install the back door in the inbound packet processing routine."
https://www.schneier.com/blog/archives/2014/01/halluxwater_nsa.html

"JETPLOW is a firmware persistence implant for Cisco PIX Series and
ASA (Adaptive Security Appliance) firewalls. It persists DNT's
BANANAGLEE software implant. JETPLOW also has a persistent back-door
capability."
https://www.schneier.com/blog/archives/2014/01/jetplow_nsa_exp.html

"SOUFFLETROUGH is a BIOS persistence implant for Juniper SSG 500 and
SSG 300 firewalls. It persists DNT's BANANAGLEE software implant.
SOUFFLETROUGH also has an advanced persistent back-door capability."
https://www.schneier.com/blog/archives/2014/01/souffletrough_n.html

"HEADWATER is a Persistent Backdoor (PDB) software implant for
selected Huawei routers. The implant will enable covert functions to
be remotely executed within the router via an Internet connection."
https://www.schneier.com/blog/archives/2014/01/headwater_nsa_e.html

"SCHOOLMONTANA provides persistence for DNT implants. The DNT implant
will survive an upgrade or replacement of the operating system --
including physically replacing the router's compact flash card."
https://www.schneier.com/blog/archives/2014/01/schoolmontana_n.html

A U.S. government employee e-mailed me, asking me not to post these on
my blog.  The government has a weird policy that exposed secrets are
still secret, and government employees without clearances are
prohibited from reading the classified paragraphs.  I've heard this
before. Basically, before exposure only people with a TOP SECRET
clearance could read these paragraphs.  After exposure, only people
without any clearance at all can read these paragraphs.  No, it
doesn't make any sense.


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     Tor User Identified by FBI



Eldo Kim sent an e-mail bomb threat to Harvard so he could skip a
final exam.  (It's just a coincidence that I was on the Harvard campus
that day.)  Even though he used an anonymous account and Tor, the FBI
identified him. Reading the criminal complaint, it seems that the FBI
got itself a list of Harvard users that accessed the Tor network, and
went through them one by one to find the one who sent the threat.

This is one of the problems of using a rare security tool.  The very
thing that gives you plausible deniability also makes you the most
likely suspect.  The FBI didn't have to break Tor; they just used
conventional police mechanisms to get Kim to confess.

Tor didn't break; Kim did.

http://usnews.nbcnews.com/_news/2013/12/17/21943608-harvard-student-tried-to-dodge-exam-with-bomb-hoax-fbi-says
or http://tinyurl.com/oud3x95
http://www.thecrimson.com/article/2013/12/17/eldo-threats-experts-sentencing/
or http://tinyurl.com/lvok7nm
http://www.wbur.org/2013/12/18/pdf-criminal-complaint-harvard-bomb-threat
or http://tinyurl.com/oe8mrsp


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     News



This story is about how at least two professional online poker players
had their hotel rooms broken into and their computers infected with
malware.  I agree with the conclusion: "So, what's the moral of the
story? If you have a laptop that is used to move large amounts of
money, take good care of it. Lock the keyboard when you step away. Put
it in a safe when you're not around it, and encrypt the disk to
prevent off-line access. Don't surf the web with it (use another
laptop/device for that, they're relatively cheap). This advice is true
whether you're a poker pro using a laptop for gaming or a business
controller in a large company using the computer for wiring a large
amount of funds."  Cheap laptops are very cheap, especially if you buy
old models off the remainder tables at big box stores.  There's no
reason not to have special purpose machines.
http://www.f-secure.com/weblog/archives/00002647.html

An interesting research paper documents a "honeymoon effect" when it
comes to software and vulnerabilities: attackers are more likely to
find vulnerabilities in older and more familiar code.  It's a few
years old, but I haven't seen it before now. The paper is by Sandy
Clark, Stefan Frei, Matt Blaze, and Jonathan Smith: "Familiarity
Breeds Contempt: The Honeymoon Effect and the Role of Legacy Code in
Zero-Day Vulnerabilities," Annual Computer Security Applications
Conference 2010.
http://www.acsac.org/2010/openconf/modules/request.php?module=oc_program&action=view.php&a=&id=69&type=2
or http://tinyurl.com/kkypwxz

Acoustic cryptanalysis "can extract full 4096-bit RSA decryption keys
from laptop computers (of various models), within an hour, using the
sound generated by the computer during the decryption of some chosen
ciphertexts."
http://www.cs.tau.ac.il/~tromer/acoustic/

Two long blog posts on the NSA.  The first is about RSA entering into
a secret agreement with the NSA to make the backdoored DUAL_EC_PRNG
the default random number generator in their BSAFE toolkit.  The real
story here is how the NSA has corroded the trust on the Internet.
https://www.schneier.com/blog/archives/2013/12/nsa_spying_who.html

The second is about the NSA Tailored Access Operations (TAO) group and
their capabilities, based on new NSA top secret documents released by
Der Spiegel.  Jacob Appelbaum did a great job reporting on this stuff.
https://www.schneier.com/blog/archives/2013/12/more_about_the.html
If you read nothing else from this issue of Crypto-Gram, read those two links.

Here is the list of NSA documents from the Der Spiegel article:
https://www.schneier.com/blog/archives/2014/01/nsa_documents_f.html

Fascinating report from Citizen Lab on the use of malware in the
current Syrian conflict.
https://www.eff.org/document/quantum-surveillance-familiar-actors-and-possible-false-flags-syrian-malware-campaigns
or http://tinyurl.com/nx3vtwu
https://www.eff.org/deeplinks/2013/12/social-engineering-and-malware-syria-eff-and-citizen-labs-latest-report-digital
or http://tinyurl.com/my7dd9j
http://www.wired.com/threatlevel/2013/12/syria-report/

Amusing Christmas comic.
http://www.onthefastrack.com/?webcomic1=december-22-2013

"Talking to Vula" is the story of a 1980s secret communications
channel between black South African leaders and others living in exile
in the UK.  The system used encrypted text encoded into DTMF "touch
tones" and transmitted from pay phones.
http://www.anc.org.za/show.php?id=4693

Joseph Stiglitz has an excellent essay on the value of trust, and the
lack of it in today's society.
http://opinionator.blogs.nytimes.com/2013/12/21/in-no-one-we-trust/

It has amazed me that the NSA doesn't seem to do any cost/benefit
analyses on any of its surveillance programs.  This seems particularly
important for bulk surveillance programs, as they have significant
costs aside from the obvious monetary costs.  In this paper, John
Mueller and Mark G. Stewart have done the analysis on one of these
programs.  Worth reading.
http://politicalscience.osu.edu/faculty/jmueller/NSAshane3.pdf

Matt Blaze on TAO's methods, pointing out that targeted surveillance
is better than bulk surveillance.
http://www.theguardian.com/commentisfree/2014/jan/06/nsa-tailored-access-operations-privacy
or http://tinyurl.com/m8s74no
This is important.  As scarily impressive as TAO's implant catalog is,
it's targeted.  We can argue about how it should be targeted -- who
counts as a "bad guy" and who doesn't -- but it's much better than the
NSA's collecting cell phone location data on everyone on the planet.
The more we can deny the NSA the ability to do broad wholesale
surveillance on everyone, and force them to do targeted surveillance
in individuals and organizations, the safer we all are.

The failure of privacy notices and consumer choice.
http://firstmonday.org/ojs/index.php/fm/article/view/4838/3802

Interesting story of a 1971 burglary of an FBI office.
http://www.nytimes.com/2014/01/07/us/burglars-who-took-on-fbi-abandon-shadows.html
or http://tinyurl.com/n62lf4d
http://www.nytimes.com/video/us/100000002635482/stealing-j-edgar-hoovers-secrets.html
or http://tinyurl.com/kqwjuvm
It's also a book:
http://www.amazon.com/The-Burglary-Discovery-Hoovers-Secret/dp/0307962954/
or http://tinyurl.com/mjlt3xm


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     Security Risks of Embedded Systems



We're at a crisis point now with regard to the security of embedded
systems, where computing is embedded into the hardware itself -- as
with the Internet of Things. These embedded computers are riddled with
vulnerabilities, and there's no good way to patch them.

It's not unlike what happened in the mid-1990s, when the insecurity of
personal computers was reaching crisis levels. Software and operating
systems were riddled with security vulnerabilities, and there was no
good way to patch them. Companies were trying to keep vulnerabilities
secret, and not releasing security updates quickly. And when updates
were released, it was hard -- if not impossible -- to get users to
install them. This has changed over the past twenty years, due to a
combination of full disclosure -- publishing vulnerabilities to force
companies to issue patches quicker -- and automatic updates:
automating the process of installing updates on users' computers. The
results aren't perfect, but they're much better than ever before.

But this time the problem is much worse, because the world is
different: All of these devices are connected to the Internet. The
computers in our routers and modems are much more powerful than the
PCs of the mid-1990s, and the Internet of Things will put computers
into all sorts of consumer devices. The industries producing these
devices are even less capable of fixing the problem than the PC and
software industries were.

If we don't solve this soon, we're in for a security disaster as
hackers figure out that it's easier to hack routers than computers. At
a recent Def Con, a researcher looked at thirty home routers and broke
into half of them -- including some of the most popular and common
brands.

To understand the problem, you need to understand the embedded systems market.

Typically, these systems are powered by specialized computer chips
made by companies such as Broadcom, Qualcomm, and Marvell. These chips
are cheap, and the profit margins slim. Aside from price, the way the
manufacturers differentiate themselves from each other is by features
and bandwidth. They typically put a version of the Linux operating
system onto the chips, as well as a bunch of other open-source and
proprietary components and drivers. They do as little engineering as
possible before shipping, and there's little incentive to update their
"board support package" until absolutely necessary.

The system manufacturers -- usually original device manufacturers
(ODMs) who often don't get their brand name on the finished product --
choose a chip based on price and features, and then build a router,
server, or whatever. They don't do a lot of engineering, either. The
brand-name company on the box may add a user interface and maybe some
new features, make sure everything works, and they're done, too.

The problem with this process is that no one entity has any incentive,
expertise, or even ability to patch the software once it's shipped.
The chip manufacturer is busy shipping the next version of the chip,
and the ODM is busy upgrading its product to work with this next chip.
Maintaining the older chips and products just isn't a priority.

And the software is old, even when the device is new. For example, one
survey of common home routers found that the software components were
four to five years older than the device. The minimum age of the Linux
operating system was four years. The minimum age of the Samba file
system software: six years. They may have had all the security patches
applied, but most likely not. No one has that job. Some of the
components are so old that they're no longer being patched. This
patching is especially important because security vulnerabilities are
found "more easily" as systems age.

To make matters worse, it's often impossible to patch the software or
upgrade the components to the latest version. Often, the complete
source code isn't available. Yes, they'll have the source code to
Linux and any other open-source components. But many of the device
drivers and other components are just "binary blobs" -- no source code
at all. That's the most pernicious part of the problem: No one can
possibly patch code that's just binary.

Even when a patch is possible, it's rarely applied. Users usually have
to manually download and install relevant patches. But since users
never get alerted about security updates, and don't have the expertise
to manually administer these devices, it doesn't happen. Sometimes the
ISPs have the ability to remotely patch routers and modems, but this
is also rare.

The result is hundreds of millions of devices that have been sitting
on the Internet, unpatched and insecure, for the last five to ten
years.

Hackers are starting to notice. Malware DNS Changer attacks home
routers as well as computers. In Brazil, 4.5 million DSL routers were
compromised for purposes of financial fraud. Last month, Symantec
reported on a Linux worm that targets routers, cameras, and other
embedded devices.

This is only the beginning. All it will take is some easy-to-use
hacker tools for the script kiddies to get into the game.

And the Internet of Things will only make this problem worse, as the
Internet -- as well as our homes and bodies -- becomes flooded with
new embedded devices that will be equally poorly maintained and
unpatchable. But routers and modems pose a particular problem, because
they're: (1) between users and the Internet, so turning them off is
increasingly not an option; (2) more powerful and more general in
function than other embedded devices; (3) the one 24/7 computing
device in the house, and are a natural place for lots of new features.

We were here before with personal computers, and we fixed the problem.
But disclosing vulnerabilities in an effort to force vendors to fix
the problem won't work the same way as with embedded systems. The last
time, the problem was computers, ones mostly not connected to the
Internet, and slow-spreading viruses. The scale is different today:
more devices, more vulnerability, viruses spreading faster on the
Internet, and less technical expertise on both the vendor and the user
sides. Plus vulnerabilities that are impossible to patch.

Combine full function with lack of updates, add in a pernicious market
dynamic that has inhibited updates and prevented anyone else from
updating, and we have an incipient disaster in front of us. It's just
a matter of when.

We simply have to fix this. We have to put pressure on embedded system
vendors to design their systems better. We need open-source driver
software -- no more binary blobs! -- so third-party vendors and ISPs
can provide security tools and software updates for as long as the
device is in use. We need automatic update mechanisms to ensure they
get installed.

The economic incentives point to large ISPs as the driver for change.
Whether they're to blame or not, the ISPs are the ones who get the
service calls for crashes. They often have to send users new hardware
because it's the only way to update a router or modem, and that can
easily cost a year's worth of profit from that customer. This problem
is only going to get worse, and more expensive. Paying the cost up
front for better embedded systems is much cheaper than paying the
costs of the resultant security disasters.

This essay originally appeared on Wired.com.
http://www.wired.com/opinion/2014/01/theres-no-good-way-to-patch-the-internet-of-things-and-thats-a-huge-problem/
or http://tinyurl.com/ngoxykw

Security vulnerabilities in routers:
https://www.defcon.org/images/defcon-18/dc-18-presentations/Heffner/DEFCON-18-Heffner-Routers.pdf
or http://tinyurl.com/mycykl7
http://www.youtube.com/watch?v=stnJiPBIM6o

Security vulnerabilities of older systems:
http://www.acsac.org/2010/openconf/modules/request.php?module=oc_program&action=view.php&a=&id=69&type=2
or http://tinyurl.com/l57yph8

Embedded malware:
http://news.cnet.com/8301-10784_3-9970972-7.html
http://nakedsecurity.sophos.com/2012/10/01/hacked-routers-brazil-vb2012/
or http://tinyurl.com/8js9jg2
http://www.symantec.com/connect/blogs/linux-worm-targeting-hidden-devices
or http://tinyurl.com/ncwl6rr
http://arstechnica.com/security/2013/11/new-linux-worm-targets-routers-cameras-internet-of-things-devices/
or http://tinyurl.com/mcv73mj

Two essays that debunk the "NSA surveillance could have stopped 9/11" myth:
http://www.cnn.com/2013/12/30/opinion/bergen-nsa-surveillance-september-11/
http://www.newyorker.com/talk/comment/2014/01/13/140113taco_talk_wright

The changing cost of surveillance:
http://ashkansoltani.org/2014/01/09/the-cost-of-surveillance/
http://www.yalelawjournal.org/the-yale-law-journal-pocket-part/constitutional-law/tiny-constables-and-the-cost-of-surveillance:-making-cents-out-of-united-states-v.-jones


** *** ***** ******* *********** *************

     Schneier News



I left BT at the end of December.
https://www.schneier.com/blog/archives/2013/12/yes_im_leaving.html

Last month, Eben Moglen and I had a conversation about NSA
surveillance.  Audio and video are online.
https://www.softwarefreedom.org/events/2013/a_conversation_with_bruce_schneier/
or http://tinyurl.com/mganzed
https://www.youtube.com/watch?v=N8Sc6pUR1mA


** *** ***** ******* *********** *************

     Schneier News: I've Joined Co3 Systems



For decades, I've said that good security is a combination of
protection, detection, and response.  In 1999, when I formed
Counterpane Internet Security, I focused the company on what was then
the nascent area of detection.  Since then, there have been many
products and services that focus on detection, and it's a huge part of
the information security industry.  Now, it's time for response.
While there are many companies that offer services to aid in incident
response -- mitigation, forensics, recovery, compliance -- there are
no comprehensive products in this area.

Well, almost none.  Co3 Systems provides a coordination system for
incident response.  I think of it as a social networking site for
incident response, though the company doesn't use this term.  The idea
is that the system generates your incident response plan on
installation, and when something happens, automatically executes it.
It collects information about the incident, assigns and tracks tasks,
and logs everything you do.  It links you with information you might
need, companies you might want to talk to, and regulations you might
be required to comply with.  And it logs everything, so you can
demonstrate that you followed your response plan and thus the law --
or see how and where you fell short.

Years ago, attacks were both less frequent and less serious, and
compliance requirements were more modest. But today, companies get
breached all the time, and regulatory requirements are complicated --
and getting more so all the time.  Ad hoc incident response isn't
enough anymore.  There are lots of things you need to do when you're
attacked, both to secure your network from the attackers and to secure
your company from litigation.

The problem with any emergency response plan is that you only need it
in an emergency.  Emergencies are both complicated and stressful, and
it's easy for things to fall through the cracks.  It's critical to
have something -- a system, a checklist, even a person -- that tracks
everything and makes sure that everything that has to get done is.

Co3 Systems is great in an emergency, but of course you really want to
have installed and configured it *before* the emergency.

It will also serve you better if you use it regularly.  Co3 Systems is
designed to be valuable for all incident response, both the mundane
and the critical.  The system can record and assess everything that
appears abnormal.  The incident response plans it generates make it
easy, and the intelligence feeds make it useful.  If Co3 Systems is
already in place, when something turns out to be a real incident, it's
easy to escalate it to the next level, and you'll be using tools
you're already familiar with.

Co3 Systems works either from a private cloud or on your network.  I
think the cloud makes more sense; you don't want to coordinate
incident response from the network that is under attack.  And it's
constantly getting better as more partner companies integrate their
information feeds and best practices.  The company has launched some
of these partnerships already, and there are some major names soon to
be announced.

Today I am joining Co3 Systems as its Chief Technology Officer.  I've
been on the company's advisory board for about a year, and was an
informal adviser to CEO John Bruce before that.  John and I worked
together at Counterpane in the early 2000s, and we both think this is
a natural extension to what we tried to build there.  I also know CMO
Ted Julian from his days at @Stake.  Together, we're going to build
*the* incident response product.

I'm really excited about this -- and the fact that the company
headquarters are just three T stops inbound to Harvard and the Berkman
Center makes it even more perfect.

http://www.co3sys.com

https://www.co3sys.com/news/news-releases/bruce-schneier-joins-co3-systems-cto
or http://tinyurl.com/nzhbsf4
http://www.darkreading.com/attacks-breaches/bruce-schneier-departs-bt-for-startup-co/240165137
or http://tinyurl.com/nyatozb
http://threatpost.com/bruce-schneier-joins-startup-co3-systems/103429
or http://tinyurl.com/puynhos
http://www.networkworld.com/news/2014/010614-schneier-co3-277365.html
or http://tinyurl.com/kd4f4j9
https://www.co3sys.com/blog-post/bruce-schneier-chief-technology-officer
or http://tinyurl.com/kszop9o
https://www.co3sys.com/blog-post/security-legend-bruce-schneier-joins-co3
or http://tinyurl.com/k2u3rnb
https://www.youtube.com/watch?v=c7XMWR1hD9M&sns=tw
http://threatpost.com/bruce-schneier-joins-startup-co3-systems/103429#
or http://tinyurl.com/khs2gdk


** *** ***** ******* *********** *************

     Twitter Users: Please Make Sure You're Following the Right Feed



I have an official Twitter feed of my blog; it's @schneierblog.
There's also an unofficial feed at @Bruce_Schneier. I have nothing to
do with that one.

I wouldn't mind the unofficial feed -- if people are reading my blog,
who cares -- except that it isn't working right, and hasn't been for
some time.  It publishes some posts weeks late and skips others
entirely.  I'm only hoping that this one will show up there.

It's also kind of annoying that @Bruce_Schneier keeps following
people, who think it's me.  It's not; I never log in to Twitter and I
don't follow anyone there.

So if you want to read my blog on Twitter, please make sure you're
following @schneierblog.  And if you are the person who runs the
@Bruce_Schneier account -- if anyone is even running it anymore --
please e-mail me at the address on my Contact page.  I'd rather see it
fixed than shut down, but better for it to be shut down than continue
in its broken state.

@schneierblog:
http://twitter.com/schneierblog/

@Bruce_Schneier:
https://twitter.com/Bruce_Schneier

My contact page:
https://www.schneier.com/contact.html


** *** ***** ******* *********** *************

Since 1998, CRYPTO-GRAM has been a free monthly newsletter providing
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Please feel free to forward CRYPTO-GRAM, in whole or in part, to
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CRYPTO-GRAM is written by Bruce Schneier. Bruce Schneier is an
internationally renowned security technologist, called a "security
guru" by The Economist. He is the author of 12 books -- including
"Liars and Outliers: Enabling the Trust Society Needs to Survive" --
as well as hundreds of articles, essays, and academic papers. His
influential newsletter "Crypto-Gram" and his blog "Schneier on
Security" are read by over 250,000 people. He has testified before
Congress, is a frequent guest on television and radio, has served on
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Schneier is a fellow at the Berkman Center for Internet and Society at
Harvard Law School, a program fellow at the New America Foundation's
Open Technology Institute, a board member of the Electronic Frontier
Foundation, an Advisory Board Member of the Electronic Privacy
Information Center, and the Chief Technology Officer at Co3 Systems,
Inc.  See <http://www.schneier.com>.



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