Major Zcash Vulnerability Fixed

Zcash just fixed a vulnerability that would have allowed "infinite counterfeit" Zcash. Like all the other blockchain vulnerabilities and updates, this demonstrates the ridiculousness of the notion that code can replace people, that trust can be encompassed in the protocols, or that human governance is not ncessary….

Zcash just fixed a vulnerability that would have allowed "infinite counterfeit" Zcash.

Like all the other blockchain vulnerabilities and updates, this demonstrates the ridiculousness of the notion that code can replace people, that trust can be encompassed in the protocols, or that human governance is not ncessary.

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

Security Flaws in Children’s Smart Watches

A year ago, the Norwegian Consumer Council published an excellent security analysis of children’s GPS-connected smart watches. The security was terrible. Not only could parents track the children, anyone else could also track the children. A recent analysis checked if anything had improved after that torrent of bad press. Short answer: no. Guess what: a train wreck. Anyone could access…

A year ago, the Norwegian Consumer Council published an excellent security analysis of children's GPS-connected smart watches. The security was terrible. Not only could parents track the children, anyone else could also track the children.

A recent analysis checked if anything had improved after that torrent of bad press. Short answer: no.

Guess what: a train wreck. Anyone could access the entire database, including real time child location, name, parents details etc. Not just Gator watches either -- the same back end covered multiple brands and tens of thousands of watches

The Gator web backend was passing the user level as a parameter. Changing that value to another number gave super admin access throughout the platform. The system failed to validate that the user had the appropriate permission to take admin control!

This means that an attacker could get full access to all account information and all watch information. They could view any user of the system and any device on the system, including its location. They could manipulate everything and even change users' emails/passwords to lock them out of their watch.

In fairness, upon our reporting of the vulnerability to them, Gator got it fixed in 48 hours.

This is a lesson in the limits of naming and shaming: publishing vulnerabilities in an effort to get companies to improve their security. If a company is specifically named, it is likely to improve the specific vulnerability described. But that is unlikely to translate into improved security practices in the future. If an industry, or product category, is named generally, nothing is likely to happen. This is one of the reasons I am a proponent of regulation.

News article.

EDITED TO ADD (2/13): The EU has acted in a similar case.

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

Security Analysis of the LIFX Smart Light Bulb

The security is terrible: In a very short limited amount of time, three vulnerabilities have been discovered: Wifi credentials of the user have been recovered (stored in plaintext into the flash memory). No security settings. The device is completely open (no secure boot, no debug interface disabled, no flash encryption). Root certificate and RSA private key have been extracted. Boing…

The security is terrible:

In a very short limited amount of time, three vulnerabilities have been discovered:

  • Wifi credentials of the user have been recovered (stored in plaintext into the flash memory).
  • No security settings. The device is completely open (no secure boot, no debug interface disabled, no flash encryption).
  • Root certificate and RSA private key have been extracted.

Boing Boing post.

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

iPhone FaceTime Vulnerability

This is kind of a crazy iPhone vulnerability: it’s possible to call someone on FaceTime and listen on their microphone — and see from their camera — before they accept the call. This is definitely an embarrassment, and Apple was right to disable Group FaceTime until it’s fixed. But it’s hard to imagine how an adversary can operationalize this in…

This is kind of a crazy iPhone vulnerability: it's possible to call someone on FaceTime and listen on their microphone -- and see from their camera -- before they accept the call.

This is definitely an embarrassment, and Apple was right to disable Group FaceTime until it's fixed. But it's hard to imagine how an adversary can operationalize this in any useful way.

New York governor Andrew M. Cuomo wrote: "The FaceTime bug is an egregious breach of privacy that puts New Yorkers at risk." Kinda, I guess.

EDITED TO ADD (1/30): This bug/vulnerability was first discovered by a 14-year-old, whose mother tried to alert Apple with no success.

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

Japanese Government Will Hack Citizens’ IoT Devices

The Japanese government is going to run penetration tests against all the IoT devices in their country, in an effort to (1) figure out what’s insecure, and (2) help consumers secure them: The survey is scheduled to kick off next month, when authorities plan to test the password security of over 200 million IoT devices, beginning with routers and web…

The Japanese government is going to run penetration tests against all the IoT devices in their country, in an effort to (1) figure out what's insecure, and (2) help consumers secure them:

The survey is scheduled to kick off next month, when authorities plan to test the password security of over 200 million IoT devices, beginning with routers and web cameras. Devices in people's homes and on enterprise networks will be tested alike.

[...]

The Japanese government's decision to log into users' IoT devices has sparked outrage in Japan. Many have argued that this is an unnecessary step, as the same results could be achieved by just sending a security alert to all users, as there's no guarantee that the users found to be using default or easy-to-guess passwords would change their passwords after being notified in private.

However, the government's plan has its technical merits. Many of today's IoT and router botnets are being built by hackers who take over devices with default or easy-to-guess passwords.

Hackers can also build botnets with the help of exploits and vulnerabilities in router firmware, but the easiest way to assemble a botnet is by collecting the ones that users have failed to secure with custom passwords.

Securing these devices is often a pain, as some expose Telnet or SSH ports online without the users' knowledge, and for which very few users know how to change passwords. Further, other devices also come with secret backdoor accounts that in some cases can't be removed without a firmware update.

I am interested in the results of this survey. Japan isn't very different from other industrialized nations in this regard, so their findings will be general. I am less optimistic about the country's ability to secure all of this stuff -- especially before the 2020 Summer Olympics.

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

Hacking Construction Cranes

Construction cranes are vulnerable to hacking: In our research and vulnerability discoveries, we found that weaknesses in the controllers can be (easily) taken advantage of to move full-sized machines such as cranes used in construction sites and factories. In the different attack classes that we’ve outlined, we were able to perform the attacks quickly and even switch on the controlled…

Construction cranes are vulnerable to hacking:

In our research and vulnerability discoveries, we found that weaknesses in the controllers can be (easily) taken advantage of to move full-sized machines such as cranes used in construction sites and factories. In the different attack classes that we've outlined, we were able to perform the attacks quickly and even switch on the controlled machine despite an operator's having issued an emergency stop (e-stop).

The core of the problem lies in how, instead of depending on wireless, standard technologies, these industrial remote controllers rely on proprietary RF protocols, which are decades old and are primarily focused on safety at the expense of security. It wasn't until the arrival of Industry 4.0, as well as the continuing adoption of the industrial internet of things (IIoT), that industries began to acknowledge the pressing need for security.

News article. Report.

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

Evaluating the GCHQ Exceptional Access Proposal

The so-called Crypto Wars have been going on for 25 years now. Basically, the FBI — and some of their peer agencies in the UK, Australia, and elsewhere — argue that the pervasive use of civilian encryption is hampering their ability to solve crimes and that they need the tech companies to make their systems susceptible to government eavesdropping. Sometimes…

The so-called Crypto Wars have been going on for 25 years now. Basically, the FBI -- and some of their peer agencies in the UK, Australia, and elsewhere -- argue that the pervasive use of civilian encryption is hampering their ability to solve crimes and that they need the tech companies to make their systems susceptible to government eavesdropping. Sometimes their complaint is about communications systems, like voice or messaging apps. Sometimes it's about end-user devices. On the other side of this debate is pretty much all technologists working in computer security and cryptography, who argue that adding eavesdropping features fundamentally makes those systems less secure.

A recent entry in this debate is a proposal by Ian Levy and Crispin Robinson, both from the UK's GCHQ (the British signals-intelligence agency -- basically, its NSA). It's actually a positive contribution to the discourse around backdoors; most of the time government officials broadly demand that the tech companies figure out a way to meet their requirements, without providing any details. Levy and Robinson write:

In a world of encrypted services, a potential solution could be to go back a few decades. It's relatively easy for a service provider to silently add a law enforcement participant to a group chat or call. The service provider usually controls the identity system and so really decides who's who and which devices are involved -- they're usually involved in introducing the parties to a chat or call. You end up with everything still being end-to-end encrypted, but there's an extra 'end' on this particular communication. This sort of solution seems to be no more intrusive than the virtual crocodile clips that our democratically elected representatives and judiciary authorise today in traditional voice intercept solutions and certainly doesn't give any government power they shouldn't have.

On the surface, this isn't a big ask. It doesn't affect the encryption that protects the communications. It only affects the authentication that assures people of whom they are talking to. But it's no less dangerous a backdoor than any others that have been proposed: It exploits a security vulnerability rather than fixing it, and it opens all users of the system to exploitation of that same vulnerability by others.

In a blog post, cryptographer Matthew Green summarized the technical problems with this GCHQ proposal. Basically, making this backdoor work requires not only changing the cloud computers that oversee communications, but it also means changing the client program on everyone's phone and computer. And that change makes all of those systems less secure. Levy and Robinson make a big deal of the fact that their backdoor would only be targeted against specific individuals and their communications, but it's still a general backdoor that could be used against anybody.

The basic problem is that a backdoor is a technical capability -- a vulnerability -- that is available to anyone who knows about it and has access to it. Surrounding that vulnerability is a procedural system that tries to limit access to that capability. Computers, especially internet-connected computers, are inherently hackable, limiting the effectiveness of any procedures. The best defense is to not have the vulnerability at all.

That old physical eavesdropping system Levy and Robinson allude to also exploits a security vulnerability. Because telephone conversations were unencrypted as they passed through the physical wires of the phone system, the police were able to go to a switch in a phone company facility or a junction box on the street and manually attach alligator clips to a specific pair and listen in to what that phone transmitted and received. It was a vulnerability that anyone could exploit -- not just the police -- but was mitigated by the fact that the phone company was a monolithic monopoly, and physical access to the wires was either difficult (inside a phone company building) or obvious (on the street at a junction box).

The functional equivalent of physical eavesdropping for modern computer phone switches is a requirement of a 1994 U.S. law called CALEA -- and similar laws in other countries. By law, telephone companies must engineer phone switches that the government can eavesdrop, mirroring that old physical system with computers. It is not the same thing, though. It doesn't have those same physical limitations that make it more secure. It can be administered remotely. And it's implemented by a computer, which makes it vulnerable to the same hacking that every other computer is vulnerable to.

This isn't a theoretical problem; these systems have been subverted. The most public incident dates from 2004 in Greece. Vodafone Greece had phone switches with the eavesdropping feature mandated by CALEA. It was turned off by default in the Greek phone system, but the NSA managed to surreptitiously turn it on and use it to eavesdrop on the Greek prime minister and over 100 other high-ranking dignitaries.

There's nothing distinct about a phone switch that makes it any different from other modern encrypted voice or chat systems; any remotely administered backdoor system will be just as vulnerable. Imagine a chat program added this GCHQ backdoor. It would have to add a feature that added additional parties to a chat from somewhere in the system -- and not by the people at the endpoints. It would have to suppress any messages alerting users to another party being added to that chat. Since some chat programs, like iMessage and Signal, automatically send such messages, it would force those systems to lie to their users. Other systems would simply never implement the "tell me who is in this chat conversation" feature­which amounts to the same thing.

And once that's in place, every government will try to hack it for its own purposes­ -- just as the NSA hacked Vodafone Greece. Again, this is nothing new. In 2010, China successfully hacked the back-door mechanism Google put in place to meet law-enforcement requests. In 2015, someone -- we don't know who -- hacked an NSA backdoor in a random-number generator used to create encryption keys, changing the parameters so they could also eavesdrop on the communications. There are certainly other stories that haven't been made public.

Simply adding the feature erodes public trust. If you were a dissident in a totalitarian country trying to communicate securely, would you want to use a voice or messaging system that is known to have this sort of backdoor? Who would you bet on, especially when the cost of losing the bet might be imprisonment or worse: the company that runs the system, or your country's government intelligence agency? If you were a senior government official, or the head of a large multinational corporation, or the security manager or a critical technician at a power plant, would you want to use this system?

Of course not.

Two years ago, there was a rumor of a WhatsApp backdoor. The details are complicated, and calling it a backdoor or a vulnerability is largely inaccurate -- but the resultant confusion caused some people to abandon the encrypted messaging service.

Trust is fragile, and transparency is essential to trust. And while Levy and Robinson state that "any exceptional access solution should not fundamentally change the trust relationship between a service provider and its users," this proposal does exactly that. Communications companies could no longer be honest about what their systems were doing, and we would have no reason to trust them if they tried.

In the end, all of these exceptional access mechanisms, whether they exploit existing vulnerabilities that should be closed or force vendors to open new ones, reduce the security of the underlying system. They reduce our reliance on security technologies we know how to do well -- cryptography -- to computer security technologies we are much less good at. Even worse, they replace technical security measures with organizational procedures. Whether it's a database of master keys that could decrypt an iPhone or a communications switch that orchestrates who is securely chatting with whom, it is vulnerable to attack. And it will be attacked.

The foregoing discussion is a specific example of a broader discussion that we need to have, and it's about the attack/defense balance. Which should we prioritize? Should we design our systems to be open to attack, in which case they can be exploited by law enforcement -- and others? Or should we design our systems to be as secure as possible, which means they will be better protected from hackers, criminals, foreign governments and -- unavoidably -- law enforcement as well?

This discussion is larger than the FBI's ability to solve crimes or the NSA's ability to spy. We know that foreign intelligence services are targeting the communications of our elected officials, our power infrastructure, and our voting systems. Do we really want some foreign country penetrating our lawful-access backdoor in the same way the NSA penetrated Greece's?

I have long maintained that we need to adopt a defense-dominant strategy: We should prioritize our need for security over our need for surveillance. This is especially true in the new world of physically capable computers. Yes, it will mean that law enforcement will have a harder time eavesdropping on communications and unlocking computing devices. But law enforcement has other forensic techniques to collect surveillance data in our highly networked world. We'd be much better off increasing law enforcement's technical ability to investigate crimes in the modern digital world than we would be to weaken security for everyone. The ability to surreptitiously add ghost users to a conversation is a vulnerability, and it's one that we would be better served by closing than exploiting.

This essay originally appeared on Lawfare.com.

EDITED TO ADD (1/30): More commentary.

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

Prices for Zero-Day Exploits Are Rising

Companies are willing to pay ever-increasing amounts for good zero-day exploits against hard-to-break computers and applications: On Monday, market-leading exploit broker Zerodium said it would pay up to $2 million for zero-click jailbreaks of Apple’s iOS, $1.5 million for one-click iOS jailbreaks, and $1 million for exploits that take over secure messaging apps WhatsApp and iMessage. Previously, Zerodium was offering…

Companies are willing to pay ever-increasing amounts for good zero-day exploits against hard-to-break computers and applications:

On Monday, market-leading exploit broker Zerodium said it would pay up to $2 million for zero-click jailbreaks of Apple's iOS, $1.5 million for one-click iOS jailbreaks, and $1 million for exploits that take over secure messaging apps WhatsApp and iMessage. Previously, Zerodium was offering $1.5 million, $1 million, and $500,000 for the same types of exploits respectively. The steeper prices indicate not only that the demand for these exploits continues to grow, but also that reliably compromising these targets is becoming increasingly hard.

Note that these prices are for offensive uses of the exploit. Zerodium -- and others -- sell exploits to companies who make surveillance tools and cyber-weapons for governments. Many companies have bug bounty programs for those who want the exploit used for defensive purposes -- i.e., fixed -- but they pay orders of magnitude less. This is a problem.

Back in 2014, Dan Geer said that that the US should corner the market on software vulnerabilities:

"There is no doubt that the U.S. Government could openly corner the world vulnerability market," said Geer, "that is, we buy them all and we make them all public. Simply announce 'Show us a competing bid, and we'll give you [10 times more].' Sure, there are some who will say 'I hate Americans; I sell only to Ukrainians,' but because vulnerability finding is increasingly automation-assisted, the seller who won't sell to the Americans knows that his vulns can be rediscovered in due course by someone who will sell to the Americans who will tell everybody, thus his need to sell his product before it outdates is irresistible."

I don't know about the 10x, but in theory he's right. There's no other way to solve this.

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

Security Vulnerabilities in Cell Phone Systems

Good essay on the inherent vulnerabilities in the cell phone standards and the market barriers to fixing them. So far, industry and policymakers have largely dragged their feet when it comes to blocking cell-site simulators and SS7 attacks. Senator Ron Wyden, one of the few lawmakers vocal about this issue, sent a letter in August encouraging the Department of Justice…

Good essay on the inherent vulnerabilities in the cell phone standards and the market barriers to fixing them.

So far, industry and policymakers have largely dragged their feet when it comes to blocking cell-site simulators and SS7 attacks. Senator Ron Wyden, one of the few lawmakers vocal about this issue, sent a letter in August encouraging the Department of Justice to "be forthright with federal courts about the disruptive nature of cell-site simulators." No response has ever been published.

The lack of action could be because it is a big task -- there are hundreds of companies and international bodies involved in the cellular network. The other reason could be that intelligence and law enforcement agencies have a vested interest in exploiting these same vulnerabilities. But law enforcement has other effective tools that are unavailable to criminals and spies. For example, the police can work directly with phone companies, serving warrants and Title III wiretap orders. In the end, eliminating these vulnerabilities is just as valuable for law enforcement as it is for everyone else.

As it stands, there is no government agency that has the power, funding and mission to fix the problems. Large companies such as AT&T, Verizon, Google and Apple have not been public about their efforts, if any exist.

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