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From:	 Bruce Schneier <schneier@counterpane.com>
To:	 crypto-gram@chaparraltree.com
Subject: CRYPTO-GRAM, September 15, 2001
Date:	 Sat, 15 Sep 2001 11:41:36 -0500

                  CRYPTO-GRAM

               September 15, 2001

               by Bruce Schneier
                Founder and CTO
       Counterpane Internet Security, Inc.
            schneier@counterpane.com
          <http://www.counterpane.com>


A free monthly newsletter providing summaries, analyses, insights, and 
commentaries on computer security and cryptography.

Back issues are available at 
<http://www.counterpane.com/crypto-gram.html>.  To subscribe or 
unsubscribe, see below.


Copyright (c) 2001 by Counterpane Internet Security, Inc.


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

In this issue:
      11 September 2001
      NSA's Dual Counter Mode
      Corrections and Explanations
      Crypto-Gram Reprints
      News
      Counterpane Internet Security News
      The Doghouse: Shyfile
      New Microsoft Root Certificate Program
      Comments from Readers


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

            11 September 2001



Both sides of the calendar debate were wrong; the new century began on 11 
September 2001.

All day I fielded phone calls from reporters looking for the "computer 
security angle" to the story.  I couldn't find one, although I expect 
several to come out of the aftermath.

Calls for increased security began immediately.  Unfortunately, the 
quickest and easy way to satisfy those demands is by decreasing 
liberties.  This is always short sighted; real security solutions exist 
that preserve the free society that we all hold dear, but they're harder to 
find and require reasoned debate.  Strong police forces without 
Constitutional limitations might appeal to those wanting immediate safety, 
but the reality is the opposite.  Laws that limit police power can increase 
security, by enforcing honesty, integrity, and fairness.  It is our very 
liberties that make our society as safe as it is.

In times of crisis it's easy to disregard these liberties or, worse, to 
actively attack them and stigmatize those who support them.  We've already 
seen government proposals for increased wiretapping capabilities and 
renewed rhetoric about encryption limitations.  I fully expect more 
automatic surveillance of ordinary citizens, limits on information flow and 
digital-security technologies, and general xenophobia.  I do not expect 
much debate about their actual effectiveness, or their effects on freedom 
and liberty.  It's easier just to react.  In 1996, TWA Flight 800 exploded 
and crashed in the Atlantic.  Originally people thought it was a missile 
attack.  The FBI demanded, and Congress passed, a law giving law 
enforcement greater abilities to expel aliens from the country.  Eventually 
we learned the crash was caused by a mechanical malfunction, but the law 
still stands.

We live in a world where nation states are not the only institutions which 
wield power.  International bodies, corporations, non-governmental 
organizations, pan-national ethnicities, and disparate political groups all 
have the ability to affect the world in an unprecedented manner.  As we 
adjust to this new reality, it is important that we don't become the very 
forces we abhor.  I consider the terrorist attacks on September 11th to be 
an attack against America's ideals.  If our freedoms erode because of those 
attacks, then the terrorists have won.

The ideals we uphold during a crisis define who we are.  Freedom and 
liberty have a price, and that price is constant vigilance so it not be 
taken from us in the name of security.  Ben Franklin said something that 
was often repeated during the American Revolutionary War: "They that can 
give up essential liberty to obtain a little temporary safety deserve 
neither liberty nor safety."  It is no less true today.


Senate Amendment 1562, adopted Thursday, will expand Federal wiretapping 
powers:
<http://www.cdt.org/security/091101response.shtml/>

Calls to ban encryption:
<http://www.wired.com/news/politics/0,1283,46816,00.html>
<http://www.msnbc.com/news/627390.asp>

Re-emergence of Carnivore:
<http://www.wired.com/news/politics/0,1283,46747,00.html>
<http://latimes.com/business/la-000073542sep12.story>

Erosions of civil liberties are coming:
<http://www.wired.com/news/politics/0,1283,46784,00.html>

Other essays:
<http://www.crypto.com/wtc.html>
<http://groups.yahoo.com/group/wtcattack/message/93>
<http://www.cdt.org/security/cdtstatement.shtml>

"Americans must rethink how to safeguard the country without bartering away 
the rights and privileges of the free society that we are defending. The 
temptation will be great in the days ahead to write draconian new laws that 
give law enforcement agencies - or even military forces - a right to 
undermine the civil liberties that shape the character of the United 
States. President Bush and Congress must carefully balance the need for 
heightened security with the need to protect the constitutional rights of 
Americans."
             - The New York Times, 12 Sep 01

"Our values, our resolve, our commitment, our sense of community will serve 
us well. I am confident that, as a nation, we will seek and serve justice. 
Our Nation, my neighbors and friends in Vermont demand no less, but we must 
not let the terrorists win. If we abandon our democracy to battle them, 
they win. If we forget our role as the world's leader to defeat them, they 
win. And we will win. We will maintain our democracy, and with justice, we 
will use our strength."
             - Sen. Patrick Leahy, 12 Sep 01

"History teaches that grave threats to liberty often come in times of 
urgency, when constitutional rights seem too extravagant to endure."
             - Justice Thurgood Marshall, 1989


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

            NSA's Dual Counter Mode



Last month I mentioned that NIST is soliciting new modes of operation for 
AES.  One of the modes submitted was "Dual Counter Mode," by Mike Boyle and 
Chris Salter of the National Security Agency.  Within days of publication, 
there were at least two successful cryptanalyses of the mode.  (One of them 
is linked to below.  The other, by Phillip Rogaway, has not been 
published.)  Just over a week later, NSA withdrew the mode from consideration.

As cryptographers, we tend to be sloppy with the word "break."  There's a 
world of difference between an academic break and a practical break.  I 
wrote about this extensively during the AES process.  Academic breaks are 
the ones that force you to change things in the design process; practical 
breaks force you to change things in fielded equipment.  This work is 
clearly of the academic-break variety.

This is not to minimize it; it's great work.  Donescu, Gligor, and Wagner 
broke both the security and integrity properties of the mode.  That is, 
they showed that the NSA claims for this mode were not true.

NSA documentation stated they have been working on this mode for 18 
months.  Honestly, I don't know whether to believe them.  DCM is poorly 
specified, a sloppiness that I would expect the NSA to have caught as the 
mode moved from office to office for review.

The meta-moral here is that security proofs are important.  For 20 years, 
people tried to build "two-for-the-price-of-one" modes that gave integrity 
for free, and essentially all such schemes were broken.  As a result, the 
conventional wisdom was that this was hopeless.  Then Charanjit Jutla 
published a paper showing that it was possible; he gave a proof of 
correctness.  Since then, all new "two-for-one" modes from the research 
community come with proofs, whereas the NSA's mode came with no 
proof.  When taken in the context of all the previous failed attempts to 
build such a mode, it should not be terribly surprising to find that yet 
another unproven mode got broken.  The lesson is clear.  If you're going to 
build a new mode of operation, for heaven's sake, make sure you've got a 
proof of security for it.

In summary, the attacks are real and impressive, but not practical in the 
real world.  Still, the NSA really should have caught them.  They were 
right to withdraw the mode.


NIST Proposed Modes:
<http://csrc.nist.gov/encryption/modes/proposedmodes/>

NSA's Dual Counter Mode:
<http://csrc.nist.gov/encryption/modes/proposedmodes/dctr/dctr-spec.pdf>

The cryptanalysis paper:
<http://www.cs.berkeley.edu/~daw/papers/dcm-prelim.ps>

Other documentation, including NSA's retraction:
<http://cryptome.org/nsa-dcm.htm>


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

         Corrections and Explanations



I've received some reports that Dmitry Sklyarov handed out copies of 
Elcomsoft's eBook-security-cracking software at DefCon.  If this is true, 
it certainly muddies the whole issue.  The DMCA isn't any better a law, but 
distributing such software within the U.S. is clearly in violation of it.


There has been a vicious rumor floating around that Ed Felten signed an NDA 
before he evaluated the various RIAA technologies, and he violated that NDA 
by publishing.  This is completely false.  The RIAA had a click-through 
license on their Web page, stating that any researchers breaking the 
technology would have to sign an NDA to claim the prize.  Felten never 
claimed the prize, and never signed an NDA.  Here is the agreement:
<http://www.cs.princeton.edu/sip/sdmi/clickthru.pdf>


I've also received considerable mail about my news item poking fun at 
Microsoft for sending out signed security bulletins that fail 
verification.  I know that PGP uses a web of trust, and that the only way 
to verify a signature is to have the public key signed by some mutually 
trusted party.  My complaint with Microsoft is that they sign their 
bulletins with a public key that is unsigned, by anybody.  Hence it is 
impossible to verify the signature.

One way to think of PGP is that every user is also a CA.  By asking someone 
to sign your key, you are asking that person to be a CA on your behalf.  By 
choosing to trust keys signed by someone, you are choosing to trust him or 
her as a CA.  When Microsoft uses a public key without any signatures, they 
bypass this mechanism.  You can verify the signature on Microsoft security 
bulletins; the signature might be valid, but you still have no way of 
knowing that the signing key actually belongs to Microsoft.  You can use 
some non-cryptographic means to verify they key -- you got it off the 
Microsoft Web site, all Microsoft bulletins are signed with the same key, 
etc. -- but that has a set of non-cryptographic risks that you may not want 
to accept.  Were you fooled by those fake Microsoft service bulletins or 
CNN news reports that have gone by in the last year or so?

The way for Microsoft to solve this is to get their key signed by a variety 
of trusted organizations, thereby getting itself immersed into PGP's web of 
trust.  The fact that Microsoft doesn't understand this is what I was 
poking fun at.

On the other hand, someone else pointed out that SANS and CERT advisories 
suffer from the same problem.  Oops.


The "Code Red III" report out of Korea seems to have been a false alarm, at 
least at the time I wrote that piece on Code Red last month.  But since 
then, there's been at least one other Code Red variant, so my point stands.


And about a zillion people sent e-mail to tell me that the Code Red worm 
was not based on an eEye vulnerability announcement, but on an older worm 
without a sexy name.  (Oddly enough, eEye never contacted me to 
complain.)  I was wrong, and I unjustly laid some of the blame for Code Red 
onto eEye.  Apologies to them.

A much larger issue -- and also one I received a boatload of mail about -- 
is whether people and companies who disclose vulnerabilities are 
blameworthy when hackers write exploits that target that 
vulnerability.  More than one person pointed out the irony of me blaming 
eEye in one part of Crypto-Gram, and then praising Sklyarov in 
another.  One person's reaction was included as comments in a piece of 
exploit code (+10 points for style, but I prefer e-mail).

In general, I am a strong proponent of full disclosure.  It is a 
long-standing tradition in cryptography, and has done more to improve 
computer and network security than anything previously tried.  However, 
there is a fine line between full disclosure and arming criminals, and it's 
not at all obvious where that line is at all times.  Sometimes I'm not even 
sure that I know.  And when it is not obvious, I tend to side with openness.

I plan on talking about this in a future issue of Crypto-Gram.


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

              Crypto-Gram Reprints



Full disclosure and the Window of Exposure:
<http://www.counterpane.com/crypto-gram-0009.html#1>

Open-source and security:
<http://www.counterpane.com/crypto-gram-9909.html#OpenSourceandSecurity>

Factoring a 512-bit number:
<http://www.counterpane.com/crypto-gram-9909.html#Factoringa512-bitNumber>


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

                        News



GCHQ (the British military crypto research facility that independently 
invented public-key cryptography in the 1970s) has a new identity-based 
public-key scheme.  The details, and source code, are published.
<http://www.cesg.gov.uk/id-pkc/>

Microsoft's initial Code Red patch didn't necessarily work.  I believe this 
has been fixed in later versions of the patch.
<http://archives.neohapsis.com/archives/incidents/2001-08/0218.html>

This story about computerized car-security devices doesn't talk about the 
safety issues.  What if there's a short-circuit in the auto when the real 
owner is driving, and the door-locks go into "prisoner" mode.   What if the 
engine-kill feature in a stolen car goes into effect when the car is on a 
busy highway, simply because there's a police station nearby.   I don't 
think computer security is reliable enough for this kind of stuff.
<http://www.eetimes.com/story/technology/OEG20010612S0059>

Viruses and instant messaging:
<http://news.cnet.com/news/0-1005-200-6873022.html?tag=tp_pr>

A Senate report on the NSA says they're not doing well in the face of 
technological advances.
<http://www.theregister.co.uk/content/55/21047.html>
<http://news.bbc.co.uk/hi/english/sci/tech/newsid_1491000/1491102.stm>

Niels Ferguson says he's broken Intel's HDCP Digital Video Encryption 
System, but won't reveal details because he's afraid of being arrested 
under the DMCA.  I know Niels, and have always found his honesty 
unimpeachable.  If he says he can break HDCP, he can.  Intel can claim that 
the break is only theoretical and not practical, and nothing to worry 
about, but I believe Niels is telling the truth.  Kind of sounds like the 
security world before full disclosure: without revealing details, the 
affected companies simply lie and say there's nothing to worry about.
<http://www.securityfocus.com/news/236>
<http://www.wired.com/news/politics/0,1283,46091,00.html>
Ferguson's essay on the topic:
<http://www.macfergus.com/niels/dmca/index.html>

Yet another 802.11 wireless security flaw:
<http://www.eetimes.com/story/OEG20010803S0082>
<http://www.eyetap.org/~rguerra/toronto2001/rc4_ksaproc.pdf>
AirSnort is a new hacking tool for wireless networks.  It grabs network 
traffic and recovers the master encryption password, using some of the 
vulnerabilities previously published.  One interesting feature is that you 
don't need to sniff all the packets in one sitting.  Instead, you can 
accumulate small increments over a long period of time to accomplish the 
same goal.  This can even be done with a program that runs when the laptop 
is apparently asleep.  That is, someone can quietly be sniffing your 
network, even when they aren't actively using their computer.  Maybe 
they're just sitting in your lobby, waiting for a job interview, or 
something equally innocuous.
<http://www.wired.com/news/wireless/0,1382,46187,00.html>
The next step is for someone to port it to a wireless PDA.

The crackdown on people with security knowledge continues.  Brian West, 
working at an ISP, was testing a banner advertisement at a local 
newspaper.  He inadvertently discovered a massive security hole in the 
newspaper's Web software.  After calling the newspaper to notify them, he 
was arrested by the FBI.  The more you read about this story, the weirder 
it is.
<http://www.linuxfreak.org/post.php/08/17/2001/134.html>
<http://salon.com/tech/feature/2001/08/29/west/index.html>
FBI's side of the story:
<http://www.theregister.co.uk/content/4/21288.html>

A good essay supporting full disclosure:
<http://www.securityfocus.com/news/238>

Flash worms.  Thirty seconds to infect the Internet.  (This is an 
improvement of the Warhol Worm idea I linked to last month, which can 
infect the Internet in fifteen minutes.)
<http://www.silicondefense.com/flash/>

Really interesting paper on the likely future development of worms and viruses.
<http://www.crimelabs.net/docs/worm.html>

Secure your computer by filling it with concrete.  It works, too.
<http://www.uoe.dk/csworld/security.html>

The "European Copyright Directive," basically the European equivalent of 
the DMCA:
<http://www.eurorights.org/eudmca/CopyrightDirective.html>

One insurance company charges you more if you use Microsoft IIS:
<http://www.zdnet.com/intweek/stories/news/0,4164,2805929,00.html>

Under the DMCA, you're guilty until proven innocent.
<http://www.salon.com/tech/feature/2001/08/23/pirate/index.html>

For more than five years, McDonald's prize games have been rigged.  This is 
a great story about internal attacks and how damaging they can be.
<http://www.cnn.com/2001/LAW/08/21/monopoly.arrests/index.html>

The NSA has released a new version of Security Enhanced Linux, based on the 
2.4.9 kernel.
<http://www.nsa.gov/selinux/>

Yet another eBook reader, this one by Microsoft, cracked:
<http://www.technologyreview.com/web/roush/roush083001.asp>
<http://www.zdnet.com/zdnn/stories/news/0,4586,2809412,00.html>

Interesting article about the liability of hacking victims.  If, for 
example, a brokerage company's network is hacked, preventing its customers 
from making trades, can those customers sue the brokerage company?
<http://www.nytimes.com/2001/08/24/technology/24CYBERLAW.html>
See these more scholarly papers on the same topic:
<http://www.sidley.com/cyberlaw/features/liability.asp?print=yes>
<http://www.mazunetworks.com/radin-toc.html>

Yet another Code Red variant.  I hope no one thinks these sorts of worms 
are ever going to go away.
<http://www.zdnet.com/zdnn/stories/news/0,4586,2807674,00.html>

Flooz hack.  People were buying Flooz with fake credit card numbers, and 
then redeeming the currency at legitimate merchants:
<http://www.nytimes.com/2001/08/27/technology/ebusiness/27ECOMMERCE.html>

Really good opinion piece on the fallacy of perfect security and the 
importance of risk management:
<http://www.osopinion.com/perl/story/13092.html>

The newly accused spy Brian Regan appears to have chosen a bad crypto 
scheme to protect his secrets; the FBI was able to decrypt his files.  My 
guess is that he choose a good crypto algorithm, but that he used a 
guessable key.
<http://www.securityfocus.com/news/245>

Here's an interesting risk.  Increasingly, people are taking corporate PCs 
for home use; for example, as compensation in lieu of pay from failing 
dot-coms.  And they're not changing the security settings.  Hence, 
computers that are configured for use behind a firewall are now being used 
with no firewall.
<http://www.wired.com/news/culture/0,1284,46417,00.html>
My favorite quote: "Most [people] are totally unaware that computers can't 
just be turned on and left to their own devices."

Russian hackers and organized crime:
<http://www.zdnet.com/zdnn/stories/news/0,4586,2784950,00.html>

Nasty new virus.  This one is disguised as an e-mail warning from 
Microsoft: they fake the e-mail "from" address.  The text tries to convince 
the user to run the executable, which then encrypts all executable files, 
rendering them unusable.
<http://computerworld.com/nlt/0%2C3590%2CNAV65-663_STO63419_NLTSEC%2C00.html>
<http://www.cnn.com/2001/TECH/internet/09/03/virus.exe.idg/>

Security flaw found in the Gauntlet firewall.  This is a big deal: someone 
discovered a vulnerability in this brand of firewall that would allow a 
hacker to take control of the box.  Network Associates shouldn't be singled 
out here; vulnerabilities have been discovered in other security 
products.  Again, I want to stress the importance of real-time monitoring 
and defense in depth.  It's the only way to get resilient security.
<http://www.securityfocus.com/news/248>

We're already seeing attacks against Windows XP, and the product hasn't 
even been released yet.
<http://www.wired.com/news/infostructure/0,1377,46531,00.html>

Interesting Code Red footnote.  It seems the FBI discovered a test version 
of the worm in April, but decided not to warn people.  Here's a good 
example of how full disclosure could have helped.
<http://news.cnet.com/news/0-1003-200-7078908.html?tag=mn_hd>

Another worm, a "cure" for Code Red:
<http://www.secadministrator.com/articles/index.cfm?articleid=22381>

Online casinos hacked:
<http://dailynews.yahoo.com/h/nm/20010910/tc/tech_gambling_hacking_dc_1.html>

More IDSs vulnerable to Unicode attacks:
<http://www.theregister.co.uk/content/55/21573.html>

Son of DCMA.  The SSSCA aims to make copyright protection manditory in all 
computer hardware.  This would be a disaster on all fronts: for privacy, 
for security, and for the unfettered ability for technology to prosper.
<http://www.wired.com/news/politics/0,1283,46655,00.html>
<http://www.wired.com/news/politics/0,1283,46671,00.html>
Text of bill:
<http://www.politechbot.com/docs/hollings.090701.html>
This is something I predicted months ago:
<http://www.counterpane.com/crypto-gram-0105.html#3>


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

       Counterpane Internet Security News



Bruce Schneier submitted a brief in the Felten vs. RIAA case:
<http://www.eff.org/IP/DMCA/Felten_v_RIAA/20010813_schneier_decl.html>

Schneier is speaking at the ConSec conference in Austin, TX, on 24 September:
<http://www.consec.org/index.html>

Schneier is speaking at the ISSE Conference in London, on 26 September:
<http://www.eema.org/isse/>

Counterpane Internet Security, Inc. provides Managed Security Monitoring 
services to large and medium enterprise networks.  I formed the company 
because I believe that expert human monitoring is the only way to provide 
effective security, and that outsourcing this kind of service is the only 
cost-effective way to provide it.  This CERT document provides a different 
perspective on the difficulty of an enterprise managing network security by 
itself, and discusses some of the implications of Counterpane's 
service.  (Actually, the whole site is really useful, but the particular 
document goes through a specific methodology for building a reasonable 
enterprise-wide audit infrastructure.  I believe that anyone who seriously 
considers doing this themselves will quickly see the benefits -- both in 
cost and quality -- of outsourcing to Counterpane.)
<http://www.cert.org/security-improvement/practices/p091.html>
<http://www.cert.org/security-improvement>


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

             The Doghouse: Shyfile



I guess we're back to shooting fish in a barrel; this is another snake-oil 
alert.  Shyfile claims to have a "self-decrypting JavaScript" that performs 
6144-bit encryption on your e-mail to make it "hacker-proof."  According to 
their Web site (which has a bad-music soundtrack): "No generally known 
algorithms such as AES, DES, IDEA or those used by encryption software 
developers such as RSA, PGP or DEMCOM are integrated into ShyFile but only 
its own (exclusively developed) enhanced TL6144D algorithm."  They talk a 
little bit about the algorithm, and it doesn't look too good.

There's even a contest.  If you manage to decrypt a specific file, they'll 
give you $1000.  The contest expires in 2011; no word about the company.

<http://www.shyfile.net/>


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

     New Microsoft Root Certificate Program


"New root certificates are no longer available with Microsoft Internet 
Explorer.  Any new roots accepted by Microsoft are available to Windows XP 
clients through Windows Update.  When a user visits a secure Web site (that 
is, by using HTTPS), reads a secure e-mail (that is, S/MIME), or downloads 
an ActiveX control that uses a new root certificate, the Windows XP 
certificate chain verification software checks the appropriate Windows 
Update location and downloads the necessary root certificate.  To the user, 
the experience is seamless.  The user does not see any security dialog 
boxes or warnings.  The download happens automatically, behind the scenes."

This is the kind of thing that worries me.  What exactly is this 
process.   What happens when it fails.   Why does everyone have to trust a 
root certificate, just because Microsoft does.   And if the user doesn't 
see any security dialog boxes or warnings, the effects of any failure are 
likely to be catastrophic.

For a while now I have talked about the differences between vulnerability 
and risk.  Something can be very vulnerable, but not risky because there is 
so little at stake.  As Microsoft continues to centralize security, 
authentication, permissions, etc., risk rises dramatically because the 
effect of a single vulnerability is magnified.

<http://www.microsoft.com/TechNet/itsolutions/security/news/rootcert.asp>


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

             Comments from Readers



From: Ryan Russell <ryan@securityfocus.com>
Subject: eEye and Code Red

It sounds an awful lot like you've been listening to people who keep trying 
to convince us that eEye essentially released an exploit.  They 
didn't.  Have you looked at their 
post.   <http://www.securityfocus.com/archive/1/191873>
Despite a comment in there about releasing a test exploit later, they 
didn't.  What they did do was give an academic discussion about how to 
preserve shell code in a Unicode conversion environment, with no code 
samples.  Based on what you had to say about Sklyarov later in the same 
Crypto-Gram, you would appear to be in support of such discussions.

Now take a look at the Code Red disassembly.  Notice that the general 
techniques discussed in the Bugtraq post were not used.

The hints that eEye gave didn't help the people who needed help writing 
their overflows, and the people who understood what they were saying didn't 
need help in the first place.  The Code Red authors (the first version) 
didn't need any help from eEye, that's for sure.  The comments eEye made 
about the exploit were little more than an in-joke for people who already 
knew enough to figure it out themselves.  This would be like you dropping 
hints about S-box design; it wouldn't do a thing to help me replicate Twofish.

I'll repeat what I said when you made similar disparaging comments about 
Mixter in the wake of the first DDoS attacks:  "Would you rather have had 
the month to act before Code Red was written, or not.   Would you rather 
have had the Microsoft patch, IDS rules, and details of the level of access 
gained by the hole, or not?"

I agree with you about the complexity and speed of the Internet.  We're 
eventually going to get to the point where the next big worm is using 0-day 
exploits that we haven't seen before.  In fact, there was a blip on the 
radar not too long ago; the precursor to Code Red, actually.  It used an 
unknown exploit.  Fortunately, the author hadn't perfected his spreading 
technique yet.

Given the choice, I'll take the month's warning, please.  I'd rather have 
eEye tell me than Mr. Worm.

 > eEye is going too far.

They did free research for Microsoft, waited for Microsoft to release a 
patch, didn't release an exploit, created a product that can help block 
these kinds of attacks, wrote a free scanner to help people look for 
vulnerable servers, stayed up all night on several occasions to disassemble 
two worms for free (and the world was in serious need of those 
disassemblies at that point) and then did what they could to help spread 
the word to the media to try and get everyone to patch their servers.  What 
do you want from these guys?



From: Seth Arnold <sarnold@wirex.com>
Subject: eEye and Code Red

I am baffled why you badmouthed eEye in this month's crypto-gram.  Marc 
Maiffret at eEye posted a note to bugtraq, which should explain why eEye is 
the last group that should be blamed for Code Red.  (Mainly, that Code Red 
used a different technique to exploit the problem than the one discussed by 
eEye.)

Note especially that eEye coordinated a release with Microsoft, to ensure 
that a patch was available *before* release.  Note that Microsoft would not 
have known about the .ida vulnerability without eEye alerting 
Microsoft.  (Read: we have no idea how long this problem has been known in 
the hacker community.)

I am especially surprised at your position for one very basic reason: you 
are underestimating the hacking community.  You of all people should know 
that keeping the details closely hidden will work for only so long before 
attackers get all the details.  If eEye could find this problem, chances 
are good hundreds or even thousands of people could have found the problem 
just as easily -- had any of them bothered to check.



From: "Ian Alexander" <ialexander@touchnetnw.com>
Subject: Microsoft and Code Red

It's funny that Culp at Microsoft told the Eastside Journal that only a few 
MSN servers were affected.  A friend of mine who works at Microsoft in 
Redmond was telling me how their corporate network was toast for close to a 
full day.  It hit Microsoft a lot harder than they were comfortably 
divulging to the newspaper.



From: Kee Hinckley <nazgul@somewhere.com>
Subject: Code Red and Personal Web Servers

One thing you don't mention about Code Red: it has triggered something 
which I've been expecting for a while -- the segregation of the 
Internet.  A number of ISPs, mostly cable but some DSL, have blocked 
incoming port 80 connections and show no signs of ever turning them back 
on.  Last week Mediaone/AT&T/@Home turned off incoming port 80 with no 
warning whatsoever.  To the press they claimed that consumers weren't 
allowed to run Web servers anyway (something that is contradicted by their 
Terms of Service, which specifically states that customers may run Web or 
ftp servers at their own risk).  To their customers they've said nothing at 
all.

The fact of the matter is that keeping a server secure on the Internet is a 
more than most individuals and small companies can handle.  I spend a 
significant amount of time every day tracking security lists, and while I 
can justify it as part of my consulting business, most people can't.  I 
think what we're going to see is two types of Internet access.  Companies 
with IT staffs will be able to afford a raw Internet connection, but most 
people are going to sit behind ISP firewalls that block virtually all 
incoming connections and many outgoing ones.  The Internet as the great 
equalizer, where "anyone can publish what they want" is going to fade 
away.  Perhaps some ISPs will provide limited open connections for extra 
cost, but the configuration and support issues are such that I think it's 
unlikely.



From: "Enright,  John" <johne@mail.webaccess.net>
Subject: Software Liability

There are several fundamental differences between tires and 
software.  Tires must hold up under a very limited, well-defined set of 
tests.  For a complicated software system, one simply can't test 
everything, or all possible uses of the system; let alone try to think of 
all ways a hacker might break through to create a security problem in one's 
software.  You yourself have said many times that hacking is a different 
mindset; the security algorithm designer isn't generally able to break 
his/her own system as well as others will be able to.  It's difficult for 
the builder to wear both hats.  Most large software companies/corporations 
have quality testing departments, but we can't expect them to catch everything.

The next very fundamental difference here is something you just pointed 
out: tires are directly related to the safety of persons.  Software 
generally does not fall into this category, unless you start looking at the 
medical field.  Where lives may be at stake, you can bet that software is 
very, very well tested (and there may indeed be accountability in this area).

You know, in a roundabout way, the market is more of a driving force to 
make sure that a company's tires are of sufficient quality than the 
accountability regulations themselves.  Firestone/Bridgestone (and 
similarly Ford) are undergoing very large financial burdens because of 
this.  It's not just the accounting for poor quality, it's the damage they 
incur from such a public incident and loss of reputation.  That will stick 
with them for years to come.

So I guess we're comparing hardware safety regulations to software security 
flaws.  I don't see them as very similar.  Maybe if you more clearly 
defined what you mean by "accountability," I would better understand 
you.  It's absurd to demand accountability for every piece of software out 
there.  The lawyers would have a field day, and the software industry would 
just stop.  You'd have lawsuits on everything from carpal tunnel syndrome, 
to eyestrain (from font size, etc.), to headaches, to security 
breaches.  Then software companies would start getting around this by 
requiring that you sign some sort of waiver (more than that absurd and 
annoying EULA everyone clicks through without reading now).  Accountability 
would have to be clearly defined.  It's a bureaucratic nightmare.



From: Tim Kordas <timk@filanet.com>
Subject: Lockpicks and the DMCA

Lock picks are an excellent example.  In all jurisdictions that I'm 
familiar with, lock picking tools are on a list of "burglar's tools" (which 
also includes things like vice-lock pliers, screwdrivers and 
flashlights).  Possession of burglar's tools alone isn't 
illegal.  Instructional manuals about how to pick locks aren't illegal (and 
are clearly protected by the First Amendment), and are widely 
available.  Buying locks to pick isn't illegal either.

Possession of lock picking tools along with "criminal intent" to use them 
in the commission of a crime is the illegal part; possession also can be 
taken into account in sentencing on conviction (apparently they make the 
possessor seem like a professional criminal).  Presumably publishing 
papers, and giving talks about the advantages or disadvantages of some 
particular locking technology would be allowed (provided it didn't qualify 
as libel).

The DMCA seems to grant an unprecedented set of previously nonexistent 
"rights" to inventors of copyright technology.  The provisions in the law 
that make exceptions for "legitimate security research" specify that such 
research cannot take the form of material which can be used to circumvent 
the security measures!  The easiest (if not best) way to show, in a 
legitimate security research context, that any particular security measure 
is in adequate is to provide at least a detailed description of a means to 
circumvent the security.

There is no practical way of allowing legitimate security research to 
proceed while disallowing invention of circumvention measures.



From: jjordan@unitechsys.com (Jason Jordan)
Subject: Adobe, Elcomsoft, and the DMCA

This is a scary quote from U.S. Attorney General John Ashcroft:  "There are 
many people of poor and evil motivations who are seeking to disrupt 
business and government and exploit any vulnerabilities in the digital 
universe."
<http://news.bbc.co.uk/low/english/sci/tech/newsid_1454000/1454489.stm>

There are many people of good intentions who are seeking to help business 
and government by exploiting vulnerabilities in the digital 
universe.  Let's face it, if what Sklyarov did was "of poor and evil 
motivations," he would have kept it quiet and not gone public with it.  He 
basically told Adobe that their e-book security was flawed.  Instead of 
Adobe saying something like, thanks, we'll improve it.  They said, 
government help! Instead of people taking the time and effort of making a 
security system correctly, they make third-rate security systems and depend 
upon laws to protect them from those who point out the flaws.  If this was 
the way security worked, we'd still have doorknobs on safes in banks, and 
turning a doorknob would be illegal.



From: Jeff Tucker <jefft@wciatl.com>
Subject: Microsoft's Untrusted PGP Signatures

 >This story is too weird for words.  Microsoft
 >adds PGP signatures at the bottom of its security
 >bulletins, for verification.  But if you try to
 >verify the signatures, they fail.

This one I think you've got wrong.  The problem is a ridiculous choice of 
words chosen by PGP (now Network Associates), not Microsoft.  This 
particular issue (not specific to Microsoft) has been hashed out many times 
on the PGP newsgroup.

The problem is that in PGP there is no central key issuing authority, as 
you know.  Everything is based on the "web of trust."  Thus, I will 
personally trust a few keys.  If a person who I trust has signed your key, 
I will trust you.

The problem arises because of the terminology PGP uses.  If it decodes the 
signature, but the key isn't trusted, PGP says that the key is "Invalid." 
Obviously, this is ridiculous.  A better choice of words would be 
untrusted, unverified, whatever.

Microsoft can't do anything about this.  PGP ships by default with NO keys 
trusted.  Keys can be manually trusted by individual users.  Thus, if you 
download the MS key from their secure Web site and figure it's the right 
key, you really should sign the key with your own key.  This will allow you 
to trust the key, and the Invalid goes away.  If you were to send me a 
message with your own key today, I'd get the same thing: Invalid.  Unless 
one of the 20 keys I trust happened to sign yours.

This has lead to an amazing example, though, of how users can't be trusted 
to understand cryptography and identity verification.  At least one person 
on the PGP newsgroup said that he knew how to get rid of all the 
Invalids.  He just routinely signs every key on his keyring and, voila, the 
Invalid is gone.  He might as well uninstall PGP, it would have the same 
effect.



From: Jaap-Henk Hoepman <hoepman@cs.utwente.nl>
Subject: Council of Europe CyberCrime Treaty

Although the CoE treaty on cybercrime has improved, I would not call it 
"kind of neat" yet.  The treaty still makes it illegal to produce, sell, 
etc. devices whose primary purpose is to circumvent protection schemes 
without right.  As you state elsewhere in the same issue of Crypto-Gram:

 > Elcomsoft created and marketed a product that circumvented
 > Adobe's product.  This kind of software is often required in
 > Russia, where people have a legal right to make personal backups.

There is no way really to tell whether the primary purpose of a device is 
to make personal backups or illegal copies.  So the CoE CyberCrime treaty 
suffers from the same problem as the DMCA in this respect.

More worrisome is the fact that the treaty fails to consistently require 
dual criminality as a condition for mutual assistance.  This means that in 
certain cases, states have to cooperate in a criminal investigation against 
a citizen of that state even if that state does not consider the act under 
investigation a criminal offence.



From: Adam Wagman <adam.wagman@cognex.com>
Subject: SirCam Worm

A worm that disseminates people's personal information was first described 
in John Brunner's 1975 novel, "The Shockwave Rider."  Brunner coined the 
term "worm" in that novel.



From: Steve Andrews <sjandrews@chantilley.com>
Subject: Chantilley Data Security

I've read your recent comments in Crypto-Gram and have posted a reply:
<http://www.chantilley.com/Html/News12.htm>

In my reply I finish by inviting you to come to us in the UK and examine 
our technology, or alternatively we can come to you.  I do hope you will 
accept my invitation so we can prove to you that our technology is sound 
and that we do know what we're doing.



From: Eric Young <eay@pobox.com>
Subject: Computer/Telephony Integration

The telco security/privacy rot has already begun in Australia.  One of the 
long distance carriers -- AAPT <www.aapt.com.au> -- allows one to view 
one's account information online, make payments, list all phone calls, 
etc.  Your login name and password.   Account/customer number and 
password/invoice number -- both of which happen to be consecutive lines on 
your monthly paper statement.

What is worse is that this lets you sign up for ISP services, change all 
your phone numbers over to AAPT, etc.  It is also not possible to opt 
out.  Every AAPT subscriber is automatically on the Web.  I sent some 
e-mail complaining about this and asking how I could opt out.  No response, 
but there is now a mechanism to change the password to 5-8 characters, no 
spaces, symbols or case sensitivity.  When I originally complained, there 
was no way to change the "password."

Total access for the effort of intercepting one monthly statement from the 
mailbox.  And any statement, no matter how old, will give a working 
login/password.



From: John Giannandrea <jg@meer.net>
Subject: Computer/Telephony Integration

One thing you omitted from your "Phone Hacking: The Next Generation" 
article is VoiceXML, a new markup language from W3C which will control all 
manner of automated voice interactions:  <http://www.w3.org/Voice/>.  The 
combination of VoiceXML and VoIP will be particularly vulnerable to 
security attacks.



From: Operations@Digitour.com
Subject: Computer/Telephony Integration

A private telephone line is protected by the fourth amendment.  The 
Internet is a shared network, with no implied privacy.  If these two are 
mixed, do we all lose our fourth amendment rights on the telephone?



From: Markus Schumacher <ms@ito.tu-darmstadt.de>
Subject: Computer/Telephony Integration

We identified some vulnerabilities of a H.323 based IP telephony
scenario that incorporates gatekeepers and gateways.  During our tests we 
could:

	* get control of an end-system
	* perform DoS-Attacks using IP telephony signaling
	* perform DoS-Attacks using general means
	* attack the users' privacy
	* attack infrastructure components

Those vulnerabilities are not due to limitations or shortcomings within 
technology, architectures and signaling protocols.  Again the main reasons 
are severe flaws in design, implementation and policies of products.

You can find more details here:
<http://www.ito.tu-darmstadt.de/publs/papers/cms2001.pdf>



From: McNelis@aol.com
Subject: Copyright in History

Sorry to butt in to a conversation among IT professionals, but as a 
professor of medieval British literature I have to take issue with Richard 
Straub's interpretation of the history of publishing and copyright.

The argument that copyright was not needed by Chaucer or Shakespeare is 
irrelevant in Chaucer's case, and misleading in Shakespeare's.  Chaucer did 
not write with any expectation that anyone, including himself, would ever 
make money selling copies of his works -- except a manuscript shop which 
might make one to order every now and then.  Contrary to the assertion that 
medieval books were all expensive and hand-copied by monks "in papal 
states" (whatever that is supposed to imply), secular manuscript shops were 
mass-producing books of wide interest as early as the 1100s in Paris, as 
well as books needed for university students.  Money was made by those who 
made the physical books and sold them, but not by those who wrote them -- 
the critical problem from a modern point of view.

Shakespeare would have liked to have copyright protection, since in his 
time plays were routinely stolen and performed without remuneration to the 
company which created them.  The only defense was to restrict each actor to 
his own copy of the play he was performing, one which included only his own 
part and no others.  Garbled copies of plays nonetheless would be cobbled 
together and shown in performances which were not sanctioned by, and 
returned no box office receipts to, the actual authors.

Cervantes, author of "Don Quixote," watched helplessly as his book became 
one of the most popular ever known in Europe without a dime coming his way 
(from the original, that is).  But since the 18th century, it has been 
possible for people to make money as writers of drama or of novels -- only 
because they receive payment for their work, passed on by booksellers, 
publishers, or what have you under some sort of contractual 
arrangement.  The proposal that "rich citizens can afford to commission 
works directly" sets the clock right back to Chaucer's time.



From: mercuri@gradient.cis.upenn.edu
Subject: Copyright and Radio

As a long-time member of the Musician's Union, I'd like to contradict your 
statement that when radio was invented that folks didn't bemoan the fact 
that people could listen to things for free.  Actually, the Musician's 
Union was highly concerned about copyright issues regarding radio 
broadcasts, both for the performers and the composers of the works.  What 
they established (after lengthy negotiations) was a scheme whereby funds 
were provided for airplays (in very small amounts per play), and placed 
into pools that could be used to provide royalties and also pay for live 
performances.  In fact, when the phonograph became popular, and more 
recently when electronic synthesizers became popular, musicians were 
concerned again that live music would be replaced by recordings.  In fact 
some of this is true, but recorded music and synthesis has created other 
opportunities for musicians, and expanded audience interest in 
concerts.  So although I totally agree with you that there needs to be a 
better model for distribution of copyrighted works, perhaps even leaving it 
for the market to decide might turn out to have beneficial side effects, 
the example you provided about radio is not true to what actually happened 
in the music industry in that regard.


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CRYPTO-GRAM is written by Bruce Schneier.  Schneier is founder and CTO of 
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"Applied Cryptography," and an inventor of the Blowfish, Twofish, and 
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Counterpane Internet Security, Inc. is the world leader in Managed Security 
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Copyright (c) 2001 by Counterpane Internet Security, Inc.