The question is, would you buy it? See Facebook’s response here and below.
Have to feel sorry for Snowden here…
Here’s an exclusive story (below) from Al Jazeera neither Google nor the NSA wants you to know.
Exclusive: Emails reveal close Google relationship with NSA
National Security Agency head and Internet giant’s executives have coordinated through high-level policy discussions
May 6, 2014 5:00AM ET
by Jason Leopold
Email exchanges between National Security Agency Director Gen. Keith Alexander and Google executives Sergey Brin and Eric Schmidt suggest a far cozier working relationship between some tech firms and the U.S. government than was implied by Silicon Valley brass after last year’s revelations about NSA spying.
Disclosures by former NSA contractor Edward Snowden about the agency’s vast capability for spying on Americans’ electronic communications prompted a number of tech executives whose firms cooperated with the government to insist they had done so only when compelled by a court of law.
But Al Jazeera has obtained two sets of email communications dating from a year before Snowden became a household name that suggest not all cooperation was under pressure.
On the morning of June 28, 2012, an email from Alexander invited Schmidt to attend a four-hour-long “classified threat briefing” on Aug. 8 at a “secure facility in proximity to the San Jose, CA airport.”
“The meeting discussion will be topic-specific, and decision-oriented, with a focus on Mobility Threats and Security,” Alexander wrote in the email, obtained under a Freedom of Information Act (FOIA) request, the first of dozens of communications between the NSA chief and Silicon Valley executives that the agency plans to turn over.
Alexander, Schmidt and other industry executives met earlier in the month, according to the email. But Alexander wanted another meeting with Schmidt and “a small group of CEOs” later that summer because the government needed Silicon Valley’s help.
“About six months ago, we began focusing on the security of mobility devices,” Alexander wrote. “A group (primarily Google, Apple and Microsoft) recently came to agreement on a set of core security principles. When we reach this point in our projects we schedule a classified briefing for the CEOs of key companies to provide them a brief on the specific threats we believe can be mitigated and to seek their commitment for their organization to move ahead … Google’s participation in refinement, engineering and deployment of the solutions will be essential.”
Jennifer Granick, director of civil liberties at Stanford Law School’s Center for Internet and Society, said she believes information sharing between industry and the government is “absolutely essential” but “at the same time, there is some risk to user privacy and to user security from the way the vulnerability disclosure is done.”
The challenge facing government and industry was to enhance security without compromising privacy, Granick said. The emails between Alexander and Google executives, she said, show “how informal information sharing has been happening within this vacuum where there hasn’t been a known, transparent, concrete, established methodology for getting security information into the right hands.”
The classified briefing cited by Alexander was part of a secretive government initiative known as the Enduring Security Framework (ESF), and his email provides some rare information about what the ESF entails, the identities of some participant tech firms and the threats they discussed.
Alexander explained that the deputy secretaries of the Department of Defense, Homeland Security and “18 US CEOs” launched the ESF in 2009 to “coordinate government/industry actions on important (generally classified) security issues that couldn’t be solved by individual actors alone.”
“For example, over the last 18 months, we (primarily Intel, AMD [Advanced Micro Devices], HP [Hewlett-Packard], Dell and Microsoft on the industry side) completed an effort to secure the BIOS of enterprise platforms to address a threat in that area.”
“BIOS” is an acronym for “basic input/output system,” the system software that initializes the hardware in a personal computer before the operating system starts up. NSA cyberdefense chief Debora Plunkett in December disclosed that the agency had thwarted a “BIOS plot” by a “nation-state,” identified as China, to brick U.S. computers. That plot, she said, could have destroyed the U.S. economy. “60 Minutes,” which broke the story, reported that the NSA worked with unnamed “computer manufacturers” to address the BIOS software vulnerability.
But some cybersecurity experts questioned the scenario outlined by Plunkett.
“There is probably some real event behind this, but it’s hard to tell, because we don’t have any details,” wrote Robert Graham, CEO of the penetration-testing firm Errata Security in Atlanta, on his blog in December. “It”s completely false in the message it is trying to convey. What comes out is gibberish, as any technical person can confirm.”
And by enlisting the NSA to shore up their defenses, those companies may have made themselves more vulnerable to the agency’s efforts to breach them for surveillance purposes.
“I think the public should be concerned about whether the NSA was really making its best efforts, as the emails claim, to help secure enterprise BIOS and mobile devices and not holding the best vulnerabilities close to their chest,” said Nate Cardozo, a staff attorney with the Electronic Frontier Foundation’s digital civil liberties team.
He doesn’t doubt that the NSA was trying to secure enterprise BIOS, but he suggested that the agency, for its own purposes, was “looking for weaknesses in the exact same products they’re trying to secure.”
The NSA “has no business helping Google secure its facilities from the Chinese and at the same time hacking in through the back doors and tapping the fiber connections between Google base centers,” Cardozo said. “The fact that it’s the same agency doing both of those things is in obvious contradiction and ridiculous.” He recommended dividing offensive and defensive functions between two agencies.
Two weeks after the “60 Minutes” broadcast, the German magazine Der Spiegel, citing documents obtained by Snowden, reported that the NSA inserted back doors into BIOS, doing exactly what Plunkett accused a nation-state of doing during her interview.
Google’s Schmidt was unable to attend to the mobility security meeting in San Jose in August 2012.
“General Keith.. so great to see you.. !” Schmidt wrote. “I’m unlikely to be in California that week so I’m sorry I can’t attend (will be on the east coast). Would love to see you another time. Thank you !” Since the Snowden disclosures, Schmidt has been critical of the NSA and said its surveillance programs may be illegal.
Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, did attend that briefing. Foreign Policy reported a month later that Dempsey and other government officials — no mention of Alexander — were in Silicon Valley “picking the brains of leaders throughout the valley and discussing the need to quickly share information on cyber threats.” Foreign Policy noted that the Silicon Valley executives in attendance belonged to the ESF. The story did not say mobility threats and security was the top agenda item along with a classified threat briefing.
A week after the gathering, Dempsey said during a Pentagon press briefing, “I was in Silicon Valley recently, for about a week, to discuss vulnerabilities and opportunities in cyber with industry leaders … They agreed — we all agreed on the need to share threat information at network speed.”
Google co-founder Sergey Brin attended previous meetings of the ESF group but because of a scheduling conflict, according to Alexander’s email, he also could not attend the Aug. 8 briefing in San Jose, and it’s unknown if someone else from Google was sent.
A few months earlier, Alexander had emailed Brin to thank him for Google’s participation in the ESF.
“I see ESF’s work as critical to the nation’s progress against the threat in cyberspace and really appreciate Vint Cerf [Google’s vice president and chief Internet evangelist], Eric Grosse [vice president of security engineering] and Adrian Ludwig’s [lead engineer for Android security] contributions to these efforts during the past year,” Alexander wrote in a Jan. 13, 2012, email.
“You recently received an invitation to the ESF Executive Steering Group meeting, which will be held on January 19, 2012. The meeting is an opportunity to recognize our 2012 accomplishments and set direction for the year to come. We will be discussing ESF’s goals and specific targets for 2012. We will also discuss some of the threats we see and what we are doing to mitigate those threats … Your insights, as a key member of the Defense Industrial Base, are valuable to ensure ESF’s efforts have measurable impact.”
A Google representative declined to answer specific questions about Brin’s and Schmidt’s relationship with Alexander or about Google’s work with the government.
“We work really hard to protect our users from cyberattacks, and we always talk to experts — including in the U.S. government — so we stay ahead of the game,” the representative said in a statement to Al Jazeera. “It’s why Sergey attended this NSA conference.”
Brin responded to Alexander the following day even though the head of the NSA didn’t use the appropriate email address when contacting the co-chairman.
“Hi Keith, looking forward to seeing you next week. FYI, my best email address to use is [redacted],” Brin wrote. “The one your email went to — email@example.com — I don’t really check.”
Facebook ‘tracks all visitors, breaching EU law’
Exclusive: People without Facebook accounts, logged out users, and EU users who have explicitly opted out of tracking are all being tracked, report says
Facebook tracks the web browsing of everyone who visits a page on its site even if the user does not have an account or has explicitly opted out of tracking in the EU, extensive research commissioned by the Belgian data protection agency has revealed.
The researchers now claim that Facebook tracks computers of users without their consent, whether they are logged in to Facebook or not, and even if they are not registered users of the site or explicitly opt out in Europe. Facebook tracks users in order to target advertising.
The issue revolves around Facebook’s use of its social plugins such as the “Like” button, which has been placed on more than 13m sites including health and government sites.
Facebook places tracking cookies on users’ computers if they visit any page on the facebook.com domain, including fan pages or other pages that do not require a Facebook account to visit.
When a user visits a third-party site that carries one of Facebook’s social plug-ins, it detects and sends the tracking cookies back to Facebook – even if the user does not interact with the Like button, Facebook Login or other extension of the social media site.
EU privacy law states that prior consent must be given before issuing a cookie or performing tracking, unless it is necessary for either the networking required to connect to the service (“criterion A”) or to deliver a service specifically requested by the user (“criterion B”).
A cookie is a small file placed on a user’s computer by a website that stores settings, previous activities and other small amounts of information needed by the site. They are sent to the site on each visit and can therefore be used to identify a user’s computer and track their movements across the web.
“We collect information when you visit or use third-party websites and apps that use our services. This includes information about the websites and apps you visit, your use of our services on those websites and apps, as well as information the developer or publisher of the app or website provides to you or us,” states Facebook’s data usage policy, which was updated this year.
Facebook’s tracking practices have ‘no legal basis’
An opinion published by Article 29, the pan-European data regulator working party, in 2012 stated that unless delivering a service specifically requested by the user, social plug-ins must have consent before placing a cookie. “Since by definition social plug-ins are destined to members of a particular social network, they are not of any use for non-members, and therefore do not match ‘criterion B’ for those users.”
The same applies for users of Facebook who are logged out at the time, while logged-in users should only be served a “session cookie” that expires when the user logs out or closes their browser, according to Article 29.
The Article 29 working party has also said that cookies set for “security purposes” can only fall under the consent exemptions if they are essential for a service explicitly requested by the user – not general security of the service.
The social network tracks its users for advertising purposes across non-Facebook sites by default. Users can opt out of ad tracking, but an opt-out mechanism “is not an adequate mechanism to obtain average users informed consent”, according to Article 29.
“European legislation is really quite clear on this point. To be legally valid, an individual’s consent towards online behavioural advertising must be opt-in,” explained Brendan Van Alsenoy, a researcher at ICRI and one of the report’s author.
“Facebook cannot rely on users’ inaction (ie not opting out through a third-party website) to infer consent. As far as non-users are concerned, Facebook really has no legal basis whatsoever to justify its current tracking practices.”
Opt-out mechanism actually enables tracking for the non-tracked
The researchers also analysed the opt-out mechanism used by Facebook and many other internet companies including Google and Microsoft.
Users wanting to opt out of behavioural tracking are directed to sites run by the Digital Advertising Alliance in the US, Digital Advertising Alliance of Canada in Canada or the European Digital Advertising Alliance in the EU, each of which allow bulk opting-out from 100 companies.
But the researchers discovered that far from opting out of tracking, Facebook places a new cookie on the computers of users who have not been tracked before.
“If people who are not being tracked by Facebook use the ‘opt out’ mechanism proposed for the EU, Facebook places a long-term, uniquely identifying cookie, which can be used to track them for the next two years,” explained Günes Acar from Cosic, who also co-wrote the report. “What’s more, we found that Facebook does not place any long-term identifying cookie on the opt-out sites suggested by Facebook for US and Canadian users.”
The finding was confirmed by Steven Englehardt, a researcher at Princeton University’s department of computer science who was not involved in the report: “I started with a fresh browsing session and received an additional ‘datr’ cookie that appears capable of uniquely identifying users on the UK version of the European opt-out site. This cookie was not present during repeat tests with a fresh session on the US or Canadian version.”
Facebook sets an opt-out cookie on all the opt-out sites, but this cookie cannot be used for tracking individuals since it does not contain a unique identifier. Why Facebook places the “datr” cookie on computers of EU users who opt out is unknown.
For users worried about tracking, third-party browser add-ons that block tracking are available, says Acar: “Examples include Privacy Badger, Ghostery and Disconnect. Privacy Badger replaces social plug-ins with privacy preserving counterparts so that users can still use social plug-ins, but not be tracked until they actually click on them.
“We argue that it is the legal duty of Facebook to design its services and components in a privacy-friendly way,” Van Alsenoy added. “This means designing social plug-ins in such a way that information about individual’s personal browsing activities outside of Facebook are not unnecessarily exposed.”
A Facebook spokesperson said: “This report contains factual inaccuracies. The authors have never contacted us, nor sought to clarify any assumptions upon which their report is based. Neither did they invite our comment on the report before making it public. We have explained in detail the inaccuracies in the earlier draft report (after it was published) directly to the Belgian DPA, who we understand commissioned it, and have offered to meet with them to explain why it is incorrect, but they have declined to meet or engage with us. However, we remain willing to engage with them and hope they will be prepared to update their work in due course.”
“Earlier this year we updated our terms and policies to make them more clear and concise, to reflect new product features and to highlight how we’re expanding people’s control over advertising. We’re confident the updates comply with applicable laws including EU law.”
Van Alsenoy and Acar, authors of the study, told the Guardian: “We welcome comments via the contact email address listed within the report. Several people have already reached out to provide suggestions and ideas, which we really appreciate.”
“To date, we have not been contacted by Facebook directly nor have we received any meeting request. We’re not surprised that Facebook holds a different opinion as to what European data protection laws require. But if Facebook feels today’s releases contain factual errors, we’re happy to receive any specific remarks it would like to make.”
Let’s continue on the Facebook topic from yesterday and hear it this time from software freedom activist and computer programmer Richard Stallman (also known as rms).
Do you need convincing reasons to leave Facebook for good? Look no further than this video clip and Guardian article below.
To be honest, I signed up to Facebook only late last year but used it exclusively to promote this blog. Yet, I’m always having second thoughts…
Leave Facebook if you don’t want to be spied on, warns EU
European Commission admits Safe Harbour framework cannot ensure privacy of EU citizens’ data when sent to the US by American internet firms
Thursday 26 March 2015 19.11 GMT
The European Commission has warned EU citizens that they should close their Facebook accounts if they want to keep information private from US security services, finding that current Safe Harbour legislation does not protect citizen’s data.
The comments were made by EC attorney Bernhard Schima in a case brought by privacy campaigner Maximilian Schrems, looking at whether the data of EU citizens should be considered safe if sent to the US in a post-Snowden revelation landscape.
“You might consider closing your Facebook account, if you have one,” Schima told attorney general Yves Bot in a hearing of the case at the European court of justice in Luxembourg.
When asked directly, the commission could not confirm to the court that the Safe Harbour rules provide adequate protection of EU citizens’ data as it currently stands.
The US no longer qualifies
The case, dubbed “the Facebook data privacy case”, concerns the current Safe Harbour framework, which covers the transmission of EU citizens’ data across the Atlantic to the US. Without the framework, it is against EU law to transmit private data outside of the EU. The case collects complaints lodged against Apple, Facebook, Microsoft, Microsoft-owned Skype and Yahoo.
Schrems maintains that companies operating inside the EU should not be allowed to transfer data to the US under Safe Harbour protections – which state that US data protection rules are adequate if information is passed by companies on a “self-certify” basis – because the US no longer qualifies for such a status.
The case argues that the US government’s Prism data collection programme, revealed by Edward Snowden in the NSA files, which sees EU citizens’ data held by US companies passed on to US intelligence agencies, breaches the EU’s Data Protection Directive “adequacy” standard for privacy protection, meaning that the Safe Harbour framework no longer applies.
Poland and a few other member states as well as advocacy group Digital Rights Ireland joined Schrems in arguing that the Safe Harbour framework cannot ensure the protection of EU citizens’ data and therefore is in violation of the two articles of the Data Protection Directive.
The commission, however, argued that Safe Harbour is necessary both politically and economically and that it is still a work in progress. The EC and the Ireland data protection watchdog argue that the EC should be left to reform it with a 13-point plan to ensure the privacy of EU citizens’ data.
“There have been a spate of cases from the ECJ and other courts on data privacy and retention showing the judiciary as being more than willing to be a disrupting influence,” said Paula Barrett, partner and data protection expert at law firm Eversheds. “Bringing down the safe harbour mechanism might seem politically and economically ill-conceived, but as the decision of the ECJ in the so-called ‘right to be forgotten’ case seems to reinforce that isn’t a fetter which the ECJ is restrained by.”
An opinion on the Safe Harbour framework from the ECJ is expected by 24 June.
Facebook declined to comment.
You may want to think twice about the new MacBook.
Apple may have ideas about its newly introduced USB-C but widely reported vulnerabilities of USB devices amplify big troubles ahead, as the following article explains.
The NSA Is Going to Love These USB-C Charging Cables
Thanks to Apple’s new MacBook and Google’s new Chromebook Pixel, USB-C has arrived. A single flavor of cable for all your charging and connectivity needs? Hell yes. But that convenience doesn’t come without a cost; our computers will be more vulnerable than ever to malware attacks, from hackers and surveillance agencies alike.
The trouble with USB-C stems from the fact that the USB standard isn’t very secure. Last year, researchers wrote a piece of malware called BadUSB which attaches to your computer using USB devices like phone chargers or thumb drives. Once connected, the malware basically takes over a computer imperceptibly. The scariest part is that the malware is written directly to the USB controller chip’s firmware, which means that it’s virtually undetectable and so far, unfixable.
Before USB-C, there was a way to keep yourself somewhat safe. As long as you kept tabs on your cables, and never stuck random USB sticks into your computer, you could theoretically keep it clean. But as The Verge points out, the BadUSB vulnerability still hasn’t been fixed in USB-C, and now the insecure port is the slot where you connect your power supply. Heck, it’s shaping up to be the slot where you connect everything. You have no choice but to use it every day. Think about how often you’ve borrowed a stranger’s power cable to get charged up. Asking for a charge from a stranger is like having unprotected sex with someone you picked up at the club.
What the Verge fails to mention however, is that it’s potentially much worse than that. If everyone is using the same power charger, it’s not just renegade hackers posing as creative professionals in coffee shops that you need to worry about. With USB-C, the surveillance establishment suddenly has a huge incentive to figure out how to sneak a compromised cable into your power hole.
It might seem alarmist and paranoid to suggest that the NSA would try to sneak a backdoor into charging cables through manufacturers, except that the agency has been busted trying exactly this kind of scheme. Last year, it was revealed that the NSA paid security firm RSA $10 million to leave a backdoor in their encryption unpatched. There’s no telling if or when or how the NSA might try to accomplish something similar with USB-C cables, but it stands to reason they would try.
We live in a world where we plug in with abandon, and USB-C’s flexibility is designed to make plugging in easier than ever. Imagine never needing to guess whether or not your aunt’s house will have a charger for your phone. USB-C could become so common that this isn’t even a question. Of course she has one! With that ubiquity and convenience comes a risk that the tech could become exploited—not just by criminals, but also by the government’s data siphoning machine.
Ever wonder what happens when one’s hacked?
Here’s an insightful chilling account of how one victim attempted to trace the hacker who invaded into his onlife life and Bitcoin wallet.
Anatomy of a Hack
In the early morning hours of October 21st, 2014, Partap Davis lost $3,000. He had gone to sleep just after 2AM in his Albuquerque, New Mexico, home after a late night playing World of Tanks. While he slept, an attacker undid every online security protection he set up. By the time he woke up, most of his online life had been compromised: two email accounts, his phone, his Twitter, his two-factor authenticator, and most importantly, his bitcoin wallets.
Davis was careful when it came to digital security. He chose strong passwords and didn’t click on bogus links. He used two-factor authentication with Gmail, so when he logged in from a new computer, he had to type in six digits that were texted to his phone, just to make sure it was him. He had made some money with the rise of bitcoin and held onto the bitcoin in three protected wallets, managed by Coinbase, Bitstamp, and BTC-E. He also used two-factor with the Coinbase and BTC-E accounts. Any time he wanted to access them, he had to verify the login with Authy, a two-factor authenticator app on his phone.
Other than the bitcoin, Davis wasn’t that different from the average web user. He makes his living coding, splitting time between building video education software and a patchwork of other jobs. On the weekends, he snowboards, exploring the slopes around Los Alamos. This is his 10th year in Albuquerque; last year, he turned 40.
After the hack, Davis spent weeks tracking down exactly how it had happened, piecing together a picture from access logs and reluctant customer service reps. Along the way, he reached out to The Verge, and we added a few more pieces to the puzzle. We still don’t know everything — in particular, we don’t know who did it — but we know enough to say how they did it, and the points of failure sketch out a map of the most glaring vulnerabilities of our digital lives.
It started with Davis’ email. When he was first setting up an email account, Davis found that Partap@gmail.com was taken, so he chose a Mail.com address instead, setting up Partap@mail.com to forward to a less memorably named Gmail address.
Some time after 2AM on October 21st, that link was broken. Someone broke into Davis’ mail.com account and stopped the forwarding. Suddenly there was a new phone number attached to the account — a burner Android device registered in Florida. There was a new backup email too, firstname.lastname@example.org, which is still the closest thing we have to the attacker’s name.
For simplicity’s sake, we’ll call her Eve.
How did Eve get in? We can’t say for sure, but it’s likely that she used a script to target a weakness in Mail.com’s password reset page. We know such a script existed. For months, users on the site Hackforum had been selling access to a script that reset specific account passwords on Mail.com. It was an old exploit by the time Davis was targeted, and the going rate was $5 per account. It’s unclear how the exploit worked and whether it has been closed in the months since, but it did exactly what Eve needed. Without any authentication, she was able to reset Davis’ password to a string of characters that only she knew.
Eve’s next step was to take over Partap’s phone number. She didn’t have his AT&T password, but she just pretended to have forgotten it, and ATT.com sent along a secure link to email@example.com to reset it. Once inside the account, she talked a customer service rep into forwarding his calls to her Long Beach number. Strictly speaking, there are supposed to be more safeguards required to set up call forwarding, and it’s supposed to take more than a working email address to push it through. But faced with an angry client, customer service reps will often give way, putting user satisfaction over the colder virtues of security.
Once forwarding was set up, all of Davis’ voice calls belonged to Eve. Davis still got texts and emails, but every call was routed straight to the attacker. Davis didn’t realize what had happened until two days later, when his boss complained that Davis wasn’t picking up the phone.
Google and Authy
Next, Eve set her sights on Davis’ Google account. Experts will tell you that two-factor authentication is the best protection against attacks. A hacker might get your password or a mugger might steal your phone, but it’s hard to manage both at once. As long as the phone is a physical object, that system works. But people replace their phones all the time, and they expect to be able to replace the services, too. Accounts have to be reset 24 hours a day, and two-factor services end up looking like just one more account to crack.
Davis hadn’t set up Google’s Authenticator app, the more secure option, but he had two-factor authentication enabled — Google texted him a confirmation code every time he logged in from a new computer. Call forwarding didn’t pass along Davis’ texts, but Eve had a back door: thanks to Google’s accessibility functions, she could ask for the confirmation code to be read out loud over the phone.
Authy should have been harder to break. It’s an app, like Authenticator, and it never left Davis’ phone. But Eve simply reset the app on her phone using a mail.com address and a new confirmation code, again sent by a voice call. A few minutes after 3AM, the Authy account moved under Eve’s control.
It was the same trick that had fooled Google: as long as she had Davis’ email and phone, two-factor couldn’t tell the difference between them. At this point, Eve had more control over Davis’s online life than he did. Aside from texting, all digital roads now led to Eve.
At 3:19AM, Eve reset Davis’s Coinbase account, using Authy and his Mail.com address. At 3:55AM, she transferred the full balance (worth roughly $3,600 at the time) to a burner account she controlled. From there, she made three withdrawals — one 30 minutes after the account was opened, then another 20 minutes later, and another five minutes after that. After that, the money disappeared into a nest of dummy accounts, designed to cover her tracks. Less than 90 minutes after his Mail.com account was first compromised, Davis’ money was gone for good.
Authy might have known something was up. The service keeps an eye out for fishy behavior, and while they’re cagey about what they monitor, it seems likely that an account reset to an out-of-state number in the middle of the night would have raised at least a few red flags. But the number wasn’t from a known fraud center like Russia or Ukraine, even if Eve might have been. It would have seemed even more suspicious when Eve logged into Coinbase from the Canadian IP. Could they have stopped her then? Modern security systems like Google’s ReCAPTCHA often work this way, adding together small indicators until there’s enough evidence to freeze an account — but Coinbase and Authy each only saw half the picture, and neither had enough to justify freezing Partap’s account.
BTC-E and Bitstamp
When Davis woke up, the first thing he noticed was that his Gmail had mysteriously logged out. The password had changed, and he couldn’t log back in. Once he was back in the account, he saw how deep the damage went. There were reset emails from each account, sketching out a map of the damage. When he finally got into his Coinbase account, he found it empty. Eve had made off with 10 bitcoin, worth more than $3,000 at the time. It took hours on the phone with customer service reps and a faxed copy of his driver’s license before he could convince them he was the real Partap Davis.
What about the two other wallets? There was $2,500 worth of bitcoin in them, with no advertised protections that the Coinbase wallet didn’t have. But when Davis checked, both accounts were still intact. BTC-e had put a 48-hour hold on the account after a password change, giving him time to prove his identity and recover the account. Bitstamp had an even simpler protection: when Eve emailed to reset Davis’s authentication token, they had asked for an image of his driver’s license. Despite all Eve’s access, it was one thing she didn’t have. Davis’ last $2,500 worth of bitcoin was safe.
It’s been two months now since the attack, and Davis has settled back into his life. The last trace of the intrusion is Davis’ Twitter account, which stayed hacked for weeks after the other accounts. @Partap is a short handle, which makes it valuable, so Eve held onto it, putting in a new picture and erasing any trace of Davis. A few days after the attack, she posted a screenshot of a hacked Xfinity account, tagging another handle. The account didn’t belong to Davis, but it belonged to someone. She had moved onto the next target, and was using @partap as a disposable accessory to her next theft, like a stolen getaway car.
Who was behind the attack? Davis has spent weeks looking for her now — whole afternoons wasted on the phone with customer service reps — but he hasn’t gotten any closer. According to account login records, Eve’s computer was piping in from a block of IP addresses in Canada, but she may have used Tor or a VPN service to cover her tracks. Her phone number belonged to an Android device in Long Beach, California, but that phone was most likely a burner. There are only a few tracks to follow, and each one peters out fast. Wherever she is, Eve got away with it.
Why did she choose Partap Davis? She knew about the wallets upfront, we can assume. Why else would she have spent so much time digging through the accounts? She started at the mail.com account too, so we can guess that somehow, Eve came across a list of bitcoin users with Davis’ email address on it. A number of leaked Coinbase customer lists are floating around the internet, although I couldn’t find Davis’ name on any of them. Or maybe his identity came from an equipment manufacturer or a bitcoin retailer. Leaks are commonplace these days, and most go unreported.
Davis is more careful with bitcoin these days, and he’s given up on the mail.com address — but otherwise, not much about his life has changed. Coinbase has given refunds before, but this time they declined, saying the company’s security wasn’t at fault. He filed a report with the FBI, but the bureau doesn’t seem interested in a single bitcoin theft. What else is there to do? He can’t stop using a phone or give up the power to reset an account. There were just so many accounts, so many ways to get in. In the security world, they call this the attack surface. The bigger the surface, the harder it is to defend.
Most importantly, resetting a password is still easy, as Eve discovered over and over again. When a service finally stopped her, it wasn’t an elaborate algorithm or a fancy biometric. Instead, one service was willing to make customers wait 48 hours before authorizing a new password. On a technical level, it’s a simple fix, but a costly one. Companies are continuously balancing the small risk of compromise against the broad benefits of convenience. A few people may lose control of their account, but millions of others are able to keep using the service without a hitch. In the fight between security and convenience, security is simply outgunned.
3/5 11:10am ET: Updated to clarify Bitstamp security protocols.
It’s mid-week… thought I should share something light for a change: an alternative comic look into privacy and the government takeover of the internet in our daily lives.
Use only end-to-end encryption programs and apps like SpiderOak, Signal, RedPhone and TextSecure, according to Snowden – see article below.
And never ever anything like Dropbox, Facebook and Google, as he has previously stressed (watch this video clip):
The apps Edward Snowden recommends to protect your privacy online
Mar 05, 2015 9:57 AM ET
Andrea Bellemare, CBC News
There are a host of free, easy-to-use apps and programs that can help protect your privacy online, and if everybody uses them it can provide a sort of “herd immunity” said Edward Snowden in a live video chat from Russia on Wednesday.
Snowden appeared via teleconference in an event hosted by Ryerson University and Canadian Journalists For Expression, to launch the CJFE’s online database that compiles all of the publicly released classified documents the former U.S. National Security Agency contractor leaked. In response to a Twitter question,Snowden expanded on what tools he recommends for privacy.
“I hardly touch communications for anything that could be considered sensitive just because it’s extremely risky,” said Snowden.
But Snowden did go on to outline a few free programs that can help protect your privacy.
“You need to ensure your communications are protected in transit,” said Snowden. “It’s these sort of transit interceptions that are the cheapest, that are the easiest, and they scale the best.”
Snowden recommended using programs and apps that provide end-to-end encryption for users, which means the computer on each end of the transaction can access the data, but not any device in between, and the information isn’t stored unencrypted on a third-party server.
”SpiderOak doesn’t have the encryption key to see what you’ve uploaded,” said Snowden, who recommends using it instead of a file-sharing program like Dropbox. “You don’t have to worry about them selling your information to third parties, you don’t have to worry about them providing that information to governments.”
“For the iPhone, there’s a program called Signal, by Open Whisper Systems, it’s very good,” said Snowden.
He also recommended RedPhone, which allows Android users to make encrypted phone calls, and TextSecure, a private messenging app by Open Whisper Systems.
“I wouldn’t trust your lives with any of these things, they don’t protect you from metadata association but they do strongly protect your content from precisely this type of in-transit interception,” said Snowden.
He emphasized that encryption is for everyone, not just people with extremely sensitive information.
“The more you do this, the more you get your friends, your family, your associates to adopt these free and easy-to-use technologies, the less stigma is associated with people who are using encrypted communications who really need them,” said Snowden. “We’re creating a kind of herd immunity that helps protect everybody, everywhere.”
Sending an email message is like sending a postcard. That’s the message Hillary Clinton probably now wish she heard earlier.
Andy Yen, a scientist at CERN – the European Organization for Nuclear Research – co-founded ProtonMail, an encrypted email startup based in Geneva, Switzerland. As he explained in this TEDTalk, it is easy to make encryption easy for all to use and keep all email private.
But curiously, it seems so much like PGP.
“Those kinds of restrictive practices I think would ironically hurt the Chinese economy over the long term because I don’t think there is any US or European firm, any international firm, that could credibly get away with that wholesale turning over of data, personal data, over to a government.”
That’s a quote from Obama reported in The Guardian (see article below).
Oh great, so Obama actually understood the consequences of government gaining backdoors into encryption? He should give the same advice to his NSA director Mike Rogers who somehow struggled when asked about the issue recently.
Building backdoors into encryption isn’t only bad for China, Mr President
Wednesday 4 March 2015 16.15 GMT
Want to know why forcing tech companies to build backdoors into encryption is a terrible idea? Look no further than President Obama’s stark criticism of China’s plan to do exactly that on Tuesday. If only he would tell the FBI and NSA the same thing.
In a stunningly short-sighted move, the FBI – and more recently the NSA – have been pushing for a new US law that would force tech companies like Apple and Google to hand over the encryption keys or build backdoors into their products and tools so the government would always have access to our communications. It was only a matter of time before other governments jumped on the bandwagon, and China wasted no time in demanding the same from tech companies a few weeks ago.
As President Obama himself described to Reuters, China has proposed an expansive new “anti-terrorism” bill that “would essentially force all foreign companies, including US companies, to turn over to the Chinese government mechanisms where they can snoop and keep track of all the users of those services.”
Obama continued: “Those kinds of restrictive practices I think would ironically hurt the Chinese economy over the long term because I don’t think there is any US or European firm, any international firm, that could credibly get away with that wholesale turning over of data, personal data, over to a government.”
Bravo! Of course these are the exact arguments for why it would be a disaster for US government to force tech companies to do the same. (Somehow Obama left that part out.)
As Yahoo’s top security executive Alex Stamos told NSA director Mike Rogers in a public confrontation last week, building backdoors into encryption is like “drilling a hole into a windshield.” Even if it’s technically possible to produce the flaw – and we, for some reason, trust the US government never to abuse it – other countries will inevitably demand access for themselves. Companies will no longer be in a position to say no, and even if they did, intelligence services would find the backdoor unilaterally – or just steal the keys outright.
For an example on how this works, look no further than last week’s Snowden revelation that the UK’s intelligence service and the NSA stole the encryption keys for millions of Sim cards used by many of the world’s most popular cell phone providers. It’s happened many times before too. Ss security expert Bruce Schneier has documented with numerous examples, “Back-door access built for the good guys is routinely used by the bad guys.”
Stamos repeatedly (and commendably) pushed the NSA director for an answer on what happens when China or Russia also demand backdoors from tech companies, but Rogers didn’t have an answer prepared at all. He just kept repeating “I think we can work through this”. As Stamos insinuated, maybe Rogers should ask his own staff why we actually can’t work through this, because virtually every technologist agrees backdoors just cannot be secure in practice.
(If you want to further understand the details behind the encryption vs. backdoor debate and how what the NSA director is asking for is quite literally impossible, read this excellent piece by surveillance expert Julian Sanchez.)
It’s downright bizarre that the US government has been warning of the grave cybersecurity risks the country faces while, at the very same time, arguing that we should pass a law that would weaken cybersecurity and put every single citizen at more risk of having their private information stolen by criminals, foreign governments, and our own.
Forcing backdoors will also be disastrous for the US economy as it would be for China’s. US tech companies – which already have suffered billions of dollars of losses overseas because of consumer distrust over their relationships with the NSA – would lose all credibility with users around the world if the FBI and NSA succeed with their plan.
The White House is supposedly coming out with an official policy on encryption sometime this month, according to the New York Times – but the President can save himself a lot of time and just apply his comments about China to the US government. If he knows backdoors in encryption are bad for cybersecurity, privacy, and the economy, why is there even a debate?
This is bizarre (see article below) but a good sign that what Mega offers in encrypted communications is the real deal and the authorities are certainly not impressed, thus the pressures on credit card companies to force Paypal to block out Mega, as they did previously with WikiLeaks.
BUT don’t forget Kim Dotcom’s newly launched end-to-end encrypted voice calling service “MegaChat” comes in both free and paid versions – see my earlier piece on how to register for MegaChat.
Under U.S. Pressure, PayPal Nukes Mega For Encrypting Files
on February 27, 2015
After coming under intense pressure PayPal has closed the account of cloud-storage service Mega. According to the company, SOPA proponent Senator Patrick Leahy personally pressured Visa and Mastercard who in turn called on PayPal to terminate the account. Bizarrely, Mega’s encryption is being cited as a key problem.
During September 2014, the Digital Citizens Alliance and Netnames teamed up to publish a brand new report. Titled ‘Behind The Cyberlocker Door: A Report How Shadowy Cyberlockers Use Credit Card Companies to Make Millions,’ it offered insight into the finances of some of the world’s most popular cyberlocker sites.
The report had its issues, however. While many of the sites covered might at best be considered dubious, the inclusion of Mega.co.nz – the most scrutinized file-hosting startup in history – was a real head scratcher. Mega conforms with all relevant laws and responds quickly whenever content owners need something removed. By any standard the company lives up to the requirements of the DMCA.
“We consider the report grossly untrue and highly defamatory of Mega,” Mega CEO Graham Gaylard told TF at the time. But now, just five months on, Mega’s inclusion in the report has come back to bite the company in a big way.
Speaking via email with TorrentFreak this morning, Gaylard highlighted the company’s latest battle, one which has seen the company become unable to process payments from customers. It’s all connected with the NetNames report and has even seen the direct involvement of a U.S. politician.
According to Mega, following the publication of the report last September, SOPA and PIPA proponent Senator Patrick Leahy (Vermont, Chair Senate Judiciary Committee) put Visa and MasterCard under pressure to stop providing payment services to the ‘rogue’ companies listed in the NetNames report.
Following Leahy’s intervention, Visa and MasterCard then pressured PayPal to cease providing payment processing services to MEGA. As a result, Mega is no longer able to process payments.
“It is very disappointing to say the least. PayPal has been under huge pressure,” Gaylard told TF.
The company did not go without a fight, however.
“MEGA provided extensive statistics and other evidence showing that MEGA’s business is legitimate and legally compliant. After discussions that appeared to satisfy PayPal’s queries, MEGA authorised PayPal to share that material with Visa and MasterCard. Eventually PayPal made a non-negotiable decision to immediately terminate services to MEGA,” the company explains.
paypalWhat makes the situation more unusual is that PayPal reportedly apologized to Mega for its withdrawal while acknowledging that company’s business is indeed legitimate.
However, PayPal also advised that Mega’s unique selling point – it’s end-to-end-encryption – was a key concern for the processor.
“MEGA has demonstrated that it is as compliant with its legal obligations as USA cloud storage services operated by Google, Microsoft, Apple, Dropbox, Box, Spideroak etc, but PayPal has advised that MEGA’s ‘unique encryption model’ presents an insurmountable difficulty,” Mega explains.
As of now, Mega is unable to process payments but is working on finding a replacement. In the meantime the company is waiving all storage limits and will not suspend any accounts for non-payment. All accounts have had their subscriptions extended by two months, free of charge.
Mega indicates that it will ride out the storm and will not bow to pressure nor compromise the privacy of its users.
“MEGA supplies cloud storage services to more than 15 million registered customers in more than 200 countries. MEGA will not compromise its end-to-end user controlled encryption model and is proud to not be part of the USA business network that discriminates against legitimate international businesses,” the company concludes.
Photo (above) credit: US-China Perception Monitor.
It’s not like the NSA has not been warned and China may just be the first of many to come.
The United States Is Angry That China Wants Crypto Backdoors, Too
February 27, 2015 // 03:44 PM EST
When the US demands technology companies install backdoors for law enforcement, it’s okay. But when China demands the same, it’s a whole different story.
The Chinese government is about to pass a new counter terrorism law that would require tech companies operating in the country to turn over encryption keys and include specially crafted code in their software and hardware so that chinese authorities can defeat security measures at will.
Technologists and cryptographers have long warned that you can’t design a secure system that will enable law enforcement—and only law enforcement—to bypass the encryption. The nature of a backdoor door is that it is also a vulnerability, and if discovered, hackers or foreign governments might be able to exploit it, too.
Yet, over the past few months, several US government officials, including the FBI director James Comey, outgoing US Attorney General Eric Holder, and NSA Director Mike Rogers, have all suggested that companies such as Apple and Google should give law enforcement agencies special access to their users’ encrypted data—while somehow offering strong encryption for their users at the same time.
“If the US forces tech companies to install backdoors in encryption, then tech companies will have no choice but to go along with China when they demand the same power.”
Their fear is that cops and feds will “go dark,” an FBI term for a potential scenario where encryption makes it impossible to intercept criminals’ communications.
But in light of China’s new proposals, some think the US’ own position is a little ironic.
“You can’t have it both ways,” Trevor Timm, the co-founder and the executive director of the Freedom of the Press Foundation, told Motherboard. “If the US forces tech companies to install backdoors in encryption, then tech companies will have no choice but to go along with China when they demand the same power.”
He’s not the only one to think the US government might end up regretting its stance.
Someday US officials will look back and realize how much global damage they’ve enabled with their silly requests for key escrow.
— Matthew Green (@matthew_d_green) February 27, 2015
Matthew Green, a cryptography professor at Johns Hopkins University, tweeted that someday US officials will “realize how much damage they’ve enabled” with their “silly requests” for backdoors.
Matthew Green, a cryptography professor at Johns Hopkins University, tweeted that someday US officials will “realize how much damage they’ve enabled” with their “silly requests” for backdoors.
Ironically, the US government sent a letter to China expressing concern about its new law. “The Administration is aggressively working to have China walk back from these troubling regulations,” US Trade Representative Michael Froman said in a statement.
A White House spokesperson did not respond to a request for comment from Motherboard.
“It’s stunningly shortsighted for the FBI and NSA not to realize this,” Timm added. “By demanding backdoors, these US government agencies are putting everyone’s cybersecurity at risk.”
In an oft-cited examples of “if you build it, they will come,” hackers exploited a system designed to let police tap phones to spy on more than a hundred Greek cellphones, including that of the prime minister.
At the time, Steven Bellovin, a computer science professor at Columbia University, wrote that this incident shows how “built-in wiretap facilities and the like are really dangerous, and are easily abused.”
That hasn’t stopped other from asking though. Several countries, including India, Kuwait and UAE, requested BlackBerry to include a backdoor in its devices so that authorities could access encrypted communications. And a leaked document in 2013 revealed that BlackBerry’s lawful interception system in India was “ready for use.”
NSA Director Admiral Michael Rogers said at a cyber security conference in Washington DC Monday this week that the government needs to develop a “framework” so that the NSA and law enforcement agencies could read encrypted data when they need and he was immediately challenged by top security experts from the tech industry, most notably Yahoo’s chief information security officer Alex Stamos (see transcript).
I’m a self-confessed hardcore fan of the good old IBM Thinkpad laptops but I’ve shied away from the black box ever since the Lenovo acquisition in 2005. And this (see video clips below) is one of those reasons. My tilt these days is towards those laptops with no parts made in China…
This is probably the most telling moment of how US President Barack Obama is still on the wrong frequency on cyber matters…
Obama blamed the “impact on their [the tech companies] bottom lines” for the mistrust between the government and Silicon Valley in the aftermath of the Snowden revelations. These were his words, straight from the POTUSA mouth rather than reading from the scripts, in an exclusive interview with Re/code’s Kara Swisher (see video below) following the well publicized cybersecurity summit at Stanford University last Friday, when he signed an executive order to encourage the private sector to share cybersecurity threat information with other companies and the US government.
Contrast that with the high-profile speech by Apple CEO Tim Cook (see video below), who warned about “life and death” and “dire consequences” in sacrificing the right to privacy as technology companies had a duty to protect their customers.
His speech was delivered before Obama’s address to the summit – which the White House organized to foster better cooperation and the sharing of private information with Silicon Valley – best remembered for the absence of leaders from tech giants like Google, Yahoo and Facebook who gave Obama the snub amid growing tensions between Silicon Valley and the Obama administration. Heavyweights whom Obama counted as “my friends” in the Re/code interview (watch closely his expression at the 39th second of the clip above).
Popular search engines like Google, Yahoo and Bing can only access 5 percent of all the contents in the internet space. So that’s one good reason to be excited about the new breed search engine Memex, now at beta stage, developed by the US military’s Defense Advanced Research Projects Agency (DARPA) which is capable of ploughing through the entire web space including the Dark Web, that part (much of the other 95 percent) of the cyber ecosystem where criminals operate in the shadows to buy, sell and advertise their illegal trades such as weapons and sex trafficking.
Find out more about MEMEX from this exclusive 60 Minutes clip:
And more about the Dark Web:
This is really nothing new but I’m posting it because similar “news” resurfaced again the past week.
If you’ve already bought one, the easy solution is to cover the webcam with a duct tape unless you need to use it.
This is bad news with far-reaching global implications – and it’s affecting not just only those based in China.
News has surfaced over the weekend that some foreign-based virtual private network (VPN) vendors found their services in China had been disrupted following a government crackdown – which the authorities labeled as an “upgrade” of its Internet censorship – to block the use of VPNs as a way to escape the so-called Great Firewall.
Many China-based internet users use VPNs to access external news sources but this is also bad news for companies and government offices based in China as well as anyone visiting the Chinese mainland – as many businessmen and executives use VPNs, as part of their company (and security) practice, on their business trips. Many foreigners and businesses residing in China also use VPNs for their day-to-day communications.
The VPNs provide an encrypted pipe between a computer or smartphone and an overseas server such that any communications would be channeled through the designated pipe, which effectively shield internet traffic from government filters that have set criteria on what sites can be accessed.
Find out more about this news below – And as China is fast moving beyond the “factories of the world” tag to become a global economic powerhouse and important trading partner to many developed and developing countries, this is one development to keep a close watch on.
Following up on an earlier post on the same topic: