Apple to Store Encryption Keys in China

Apple is bowing to pressure from the Chinese government and storing encryption keys in China. While I would prefer it if it would take a stand against China, I really can’t blame it for putting its business model ahead of its desires for customer privacy. Two more articles….

Apple is bowing to pressure from the Chinese government and storing encryption keys in China. While I would prefer it if it would take a stand against China, I really can't blame it for putting its business model ahead of its desires for customer privacy.

Two more articles.

from https://www.schneier.com/blog/

Article from a Former Chinese PLA General on Cyber Sovereignty

Interesting article by Major General Hao Yeli, Chinese People’s Liberation Army (ret.), a senior advisor at the China International Institute for Strategic Society, Vice President of China Institute for Innovation and Development Strategy, and the Chair of the Guanchao Cyber Forum. Against the background of globalization and the internet era, the emerging cyber sovereignty concept calls for breaking through the…

Interesting article by Major General Hao Yeli, Chinese People's Liberation Army (ret.), a senior advisor at the China International Institute for Strategic Society, Vice President of China Institute for Innovation and Development Strategy, and the Chair of the Guanchao Cyber Forum.

Against the background of globalization and the internet era, the emerging cyber sovereignty concept calls for breaking through the limitations of physical space and avoiding misunderstandings based on perceptions of binary opposition. Reinforcing a cyberspace community with a common destiny, it reconciles the tension between exclusivity and transferability, leading to a comprehensive perspective. China insists on its cyber sovereignty, meanwhile, it transfers segments of its cyber sovereignty reasonably. China rightly attaches importance to its national security, meanwhile, it promotes international cooperation and open development.

China has never been opposed to multi-party governance when appropriate, but rejects the denial of government's proper role and responsibilities with respect to major issues. The multilateral and multiparty models are complementary rather than exclusive. Governments and multi-stakeholders can play different leading roles at the different levels of cyberspace.

In the internet era, the law of the jungle should give way to solidarity and shared responsibilities. Restricted connections should give way to openness and sharing. Intolerance should be replaced by understanding. And unilateral values should yield to respect for differences while recognizing the importance of diversity.

from https://www.schneier.com/blog/

APT10 and Cloud Hopper

There’s a new report of a nation-state attack, presumed to be from China, on a series of managed ISPs. From the executive summary: Since late 2016, PwC UK and BAE Systems have been assisting victims of a new cyber espionage campaign conducted by a China-based threat actor. We assess this threat actor to almost certainly be the same as the…

There's a new report of a nation-state attack, presumed to be from China, on a series of managed ISPs. From the executive summary:

Since late 2016, PwC UK and BAE Systems have been assisting victims of a new cyber espionage campaign conducted by a China-based threat actor. We assess this threat actor to almost certainly be the same as the threat actor widely known within the security community as 'APT10'. The campaign, which we refer to as Operation Cloud Hopper, has targeted managed IT service providers (MSPs), allowing APT10 unprecedented potential access to the intellectual property and sensitive data of those MSPs and their clients globally. A number of Japanese organisations have also been directly targeted in a separate, simultaneous campaign by the same actor.

We have identified a number of key findings that are detailed below.

APT10 has recently unleashed a sustained campaign against MSPs. The compromise of MSP networks has provided broad and unprecedented access to MSP customer networks.

  • Multiple MSPs were almost certainly being targeted from 2016 onwards, and it is likely that APT10 had already begun to do so from as early as 2014.

  • MSP infrastructure has been used as part of a complex web of exfiltration routes spanning multiple victim networks.

[...]

APT10 focuses on espionage activity, targeting intellectual property and other sensitive data.

  • APT10 is known to have exfiltrated a high volume of data from multiple victims, exploiting compromised MSP networks, and those of their customers, to stealthily move this data around the world.

  • The targeted nature of the exfiltration we have observed, along with the volume of the data, is reminiscent of the previous era of APT campaigns pre-2013.

PwC UK and BAE Systems assess APT10 as highly likely to be a China-based threat actor.

  • It is a widely held view within the cyber security community that APT10 is a China-based threat actor.

  • Our analysis of the compile times of malware binaries, the registration times of domains attributed to APT10, and the majority of its intrusion activity indicates a pattern of work in line with China Standard Time (UTC+8).

  • The threat actor's targeting of diplomatic and political organisations in response to geopolitical tensions, as well as the targeting of specific commercial enterprises, is closely aligned with strategic Chinese interests.

I know nothing more than what's in this report, but it looks like a big one.

Press release.

from https://www.schneier.com/blog/

Analyzing WeChat

Citizen Lab has analyzed how censorship works in the Chinese chat app WeChat: Key Findings: Keyword filtering on WeChat is only enabled for users with accounts registered to mainland China phone numbers, and persists even if these users later link the account to an International number. Keyword censorship is no longer transparent. In the past, users received notification when their…

Citizen Lab has analyzed how censorship works in the Chinese chat app WeChat:

Key Findings:

  • Keyword filtering on WeChat is only enabled for users with accounts registered to mainland China phone numbers, and persists even if these users later link the account to an International number.

  • Keyword censorship is no longer transparent. In the past, users received notification when their message was blocked; now censorship of chat messages happens without any user notice.

  • More keywords are blocked on group chat, where messages can reach a larger audience, than one-to-one chat.

  • Keyword censorship is dynamic. Some keywords that triggered censorship in our original tests were later found to be permissible in later tests. Some newfound censored keywords appear to have been added in response to current news events.

  • WeChat's internal browser blocks China-based accounts from accessing a range of websites including gambling, Falun Gong, and media that report critically on China. Websites that are blocked for China accounts were fully accessible for International accounts, but there is intermittent blocking of gambling and pornography websites on International accounts.

Lots more details in the paper.

from https://www.schneier.com/blog/

Smartphone Secretly Sends Private Data to China

This is pretty amazing: International customers and users of disposable or prepaid phones are the people most affected by the software. But the scope is unclear. The Chinese company that wrote the software, Shanghai Adups Technology Company, says its code runs on more than 700 million phones, cars and other smart devices. One American phone manufacturer, BLU Products, said that…

This is pretty amazing:

International customers and users of disposable or prepaid phones are the people most affected by the software. But the scope is unclear. The Chinese company that wrote the software, Shanghai Adups Technology Company, says its code runs on more than 700 million phones, cars and other smart devices. One American phone manufacturer, BLU Products, said that 120,000 of its phones had been affected and that it had updated the software to eliminate the feature.

Kryptowire, the security firm that discovered the vulnerability, said the Adups software transmitted the full contents of text messages, contact lists, call logs, location information and other data to a Chinese server.

On one hand, the phone secretly sends private user data to China. On the other hand, it only costs $50.

from https://www.schneier.com/blog/

DDoS Attacks against Dyn

Yesterday’s DDoS attacks against Dyn are being reported everywhere. I have received a gazillion press requests, but I am traveling in Australia and Asia and have had to decline most of them. That’s okay, really, because we don’t know anything much of anything about the attacks. If I had to guess, though, I don’t think it’s China. I think it’s…

Yesterday's DDoS attacks against Dyn are being reported everywhere.

I have received a gazillion press requests, but I am traveling in Australia and Asia and have had to decline most of them. That's okay, really, because we don't know anything much of anything about the attacks.

If I had to guess, though, I don't think it's China. I think it's more likely related to the DDoS attacks against Brian Krebs than the probing attacks against the Internet infrastructure, despite how prescient that essay seems right now. And, no, I don't think China is going to launch a preemptive attack on the Internet.

from https://www.schneier.com/blog/