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Regulating Bitcoin

Ross Anderson has a new paper on cryptocurrency exchanges. From his blog:

Bitcoin Redux explains what’s going wrong in the world of cryptocurrencies. The bitcoin exchanges are developing into a shadow banking system, which do not give their customers actual bitcoin but rather display a “balance” and allow them to transact with others. However if Alice sends Bob a bitcoin, and they’re both customers of the same exchange, it just adjusts their balances rather than doing anything on the blockchain. This is an e-money service, according to European law, but is the law enforced? Not where it matters. We’ve been looking at the details.

The paper.

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Friday Squid Blogging: Do Cephalopods Contain Alien DNA?

Maybe not DNA, but biological somethings.

Cause of Cambrian explosion — Terrestrial or Cosmic?“:

Abstract: We review the salient evidence consistent with or predicted by the Hoyle-Wickramasinghe (H-W) thesis of Cometary (Cosmic) Biology. Much of this physical and biological evidence is multifactorial. One particular focus are the recent studies which date the emergence of the complex retroviruses of vertebrate lines at or just before the Cambrian Explosion of ~500 Ma. Such viruses are known to be plausibly associated with major evolutionary genomic processes. We believe this coincidence is not fortuitous but is consistent with a key prediction of H-W theory whereby major extinction-diversification evolutionary boundaries coincide with virus-bearing cometary-bolide bombardment events. A second focus is the remarkable evolution of intelligent complexity (Cephalopods) culminating in the emergence of the Octopus. A third focus concerns the micro-organism fossil evidence contained within meteorites as well as the detection in the upper atmosphere of apparent incoming life-bearing particles from space. In our view the totality of the multifactorial data and critical analyses assembled by Fred Hoyle, Chandra Wickramasinghe and their many colleagues since the 1960s leads to a very plausible conclusion — life may have been seeded here on Earth by life-bearing comets as soon as conditions on Earth allowed it to flourish (about or just before 4.1 Billion years ago); and living organisms such as space-resistant and space-hardy bacteria, viruses, more complex eukaryotic cells, fertilised ova and seeds have been continuously delivered ever since to Earth so being one important driver of further terrestrial evolution which has resulted in considerable genetic diversity and which has led to the emergence of mankind.

Two commentaries.

This is almost certainly not true.

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Read my blog posting guidelines here.

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Detecting Lies through Mouse Movements

Interesting research: “The detection of faked identity using unexpected questions and mouse dynamics,” by Merulin Monaro, Luciano Gamberini, and Guiseppe Sartori.

Abstract: The detection of faked identities is a major problem in security. Current memory-detection techniques cannot be used as they require prior knowledge of the respondent’s true identity. Here, we report a novel technique for detecting faked identities based on the use of unexpected questions that may be used to check the respondent identity without any prior autobiographical information. While truth-tellers respond automatically to unexpected questions, liars have to “build” and verify their responses. This lack of automaticity is reflected in the mouse movements used to record the responses as well as in the number of errors. Responses to unexpected questions are compared to responses to expected and control questions (i.e., questions to which a liar also must respond truthfully). Parameters that encode mouse movement were analyzed using machine learning classifiers and the results indicate that the mouse trajectories and errors on unexpected questions efficiently distinguish liars from truth-tellers. Furthermore, we showed that liars may be identified also when they are responding truthfully. Unexpected questions combined with the analysis of mouse movement may efficiently spot participants with faked identities without the need for any prior information on the examinee.

Boing Boing post.

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LC4: Another Pen-and-Paper Cipher

Interesting symmetric cipher: LC4:

Abstract: ElsieFour (LC4) is a low-tech cipher that can be computed by hand; but unlike many historical ciphers, LC4 is designed to be hard to break. LC4 is intended for encrypted communication between humans only, and therefore it encrypts and decrypts plaintexts and ciphertexts consisting only of the English letters A through Z plus a few other characters. LC4 uses a nonce in addition to the secret key, and requires that different messages use unique nonces. LC4 performs authenticated encryption, and optional header data can be included in the authentication. This paper defines the LC4 encryption and decryption algorithms, analyzes LC4’s security, and describes a simple appliance for computing LC4 by hand.

Almost two decades ago I designed Solitaire, a pen-and-paper cipher that uses a deck of playing cards to store the cipher’s state. This algorithm uses specialized tiles. This gives the cipher designer more options, but it can be incriminating in a way that regular playing cards are not.

Still, I like seeing more designs like this.

Hacker News thread.

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COPPA Compliance

Interesting research: “‘Won’t Somebody Think of the Children?’ Examining COPPA Compliance at Scale“:

Abstract: We present a scalable dynamic analysis framework that allows for the automatic evaluation of the privacy behaviors of Android apps. We use our system to analyze mobile apps’ compliance with the Children’s Online Privacy Protection Act (COPPA), one of the few stringent privacy laws in the U.S. Based on our automated analysis of 5,855 of the most popular free children’s apps, we found that a majority are potentially in violation of COPPA, mainly due to their use of third-party SDKs. While many of these SDKs offer configuration options to respect COPPA by disabling tracking and behavioral advertising, our data suggest that a majority of apps either do not make use of these options or incorrectly propagate them across mediation SDKs. Worse, we observed that 19% of children’s apps collect identifiers or other personally identifiable information (PII) via SDKs whose terms of service outright prohibit their use in child-directed apps. Finally, we show that efforts by Google to limit tracking through the use of a resettable advertising ID have had little success: of the 3,454 apps that share the resettable ID with advertisers, 66% transmit other, non-resettable, persistent identifiers as well, negating any intended privacy-preserving properties of the advertising ID.

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Subverting Backdoored Encrryption

This is a really interesting research result. This paper proves that two parties can create a secure communications channel using a communications system with a backdoor. It’s a theoretical result, so it doesn’t talk about how easy that channel is to create. And the assumptions on the adversary are pretty reasonable: that each party can create his own randomness, and that the government isn’t literally eavesdropping on every single part of the network at all times.

This result reminds me a lot of the work about subliminal channels from the 1980s and 1990s, and the notions of how to build an anonymous communications system on top of an identified system. Basically, it’s always possible to overlay a system around and outside any closed system.

How to Subvert Backdoored Encryption: Security Against Adversaries that Decrypt All Ciphertexts,” by Thibaut Horel and Sunoo Park and Silas Richelson and Vinod Vaikuntanathan.

Abstract: In this work, we examine the feasibility of secure and undetectable point-to-point communication in a world where governments can read all the encrypted communications of their citizens. We consider a world where the only permitted method of communication is via a government-mandated encryption scheme, instantiated with government-mandated keys. Parties cannot simply encrypt ciphertexts of some other encryption scheme, because citizens caught trying to communicate outside the government’s knowledge (e.g., by encrypting strings which do not appear to be natural language plaintexts) will be arrested. The one guarantee we suppose is that the government mandates an encryption scheme which is semantically secure against outsiders: a perhaps reasonable supposition when a government might consider it advantageous to secure its people’s communication against foreign entities. But then, what good is semantic security against an adversary that holds all the keys and has the power to decrypt?

We show that even in the pessimistic scenario described, citizens can communicate securely and undetectably. In our terminology, this translates to a positive statement: all semantically secure encryption schemes support subliminal communication. Informally, this means that there is a two-party protocol between Alice and Bob where the parties exchange ciphertexts of what appears to be a normal conversation even to someone who knows the secret keys and thus can read the corresponding plaintexts. And yet, at the end of the protocol, Alice will have transmitted her secret message to Bob. Our security definition requires that the adversary not be able to tell whether Alice and Bob are just having a normal conversation using the mandated encryption scheme, or they are using the mandated encryption scheme for subliminal communication.

Our topics may be thought to fall broadly within the realm of steganography: the science of hiding secret communication within innocent-looking messages, or cover objects. However, we deal with the non-standard setting of an adversarially chosen distribution of cover objects (i.e., a stronger-than-usual adversary), and we take advantage of the fact that our cover objects are ciphertexts of a semantically secure encryption scheme to bypass impossibility results which we show for broader classes of steganographic schemes. We give several constructions of subliminal communication schemes under the assumption that key exchange protocols with pseudorandom messages exist (such as Diffie-Hellman, which in fact has truly random messages). Each construction leverages the assumed semantic security of the adversarially chosen encryption scheme, in order to achieve subliminal communication.

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Another Branch Prediction Attack

When Spectre and Meltdown were first announced earlier this year, pretty much everyone predicted that there would be many more attacks targeting branch prediction in microprocessors. Here’s another one:

In the new attack, an attacker primes the PHT and running branch instructions so that the PHT will always assume a particular branch is taken or not taken. The victim code then runs and makes a branch, which is potentially disturbing the PHT. The attacker then runs more branch instructions of its own to detect that disturbance to the PHT; the attacker knows that some branches should be predicted in a particular direction and tests to see if the victim’s code has changed that prediction.

The researchers looked only at Intel processors, using the attacks to leak information protected using Intel’s SGX (Software Guard Extensions), a feature found on certain chips to carve out small sections of encrypted code and data such that even the operating system (or virtualization software) cannot access it. They also described ways the attack could be used against address space layout randomization and to infer data in encryption and image libraries.

Research paper.

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