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How to Punish Cybercriminals

Interesting policy paper by Third Way: “To Catch a Hacker: Toward a comprehensive strategy to identify, pursue, and punish malicious cyber actors“:

In this paper, we argue that the United States currently lacks a comprehensive overarching strategic approach to identify, stop and punish cyberattackers. We show that:

  • There is a burgeoning cybercrime wave: A rising and often unseen crime wave is mushrooming in America. There are approximately 300,000 reported malicious cyber incidents per year, including up to 194,000 that could credibly be called individual or system-wide breaches or attempted breaches. This is likely a vast undercount since many victims don’t report break-ins to begin with. Attacks cost the US economy anywhere from $57 billion to $109 billion annually and these costs are increasing.

  • There is a stunning cyber enforcement gap: Our analysis of publicly available data shows that cybercriminals can operate with near impunity compared to their real-world counterparts. We estimate that cyber enforcement efforts are so scattered that less than 1% of malicious cyber incidents see an enforcement action taken against the attackers.

  • There is no comprehensive US cyber enforcement strategy aimed at the human attacker: Despite the recent release of a National Cyber Strategy, the United States still lacks a comprehensive strategic approach to how it identifies, pursues, and punishes malicious human cyberattackers and the organizations and countries often behind them. We believe that the United States is as far from this human attacker strategy as the nation was toward a strategic approach to countering terrorism in the weeks and months before 9/11.

In order to close the cyber enforcement gap, we argue for a comprehensive enforcement strategy that makes a fundamental rebalance in US cybersecurity policies: from a heavy focus on building better cyber defenses against intrusion to also waging a more robust effort at going after human attackers. We call for ten US policy actions that could form the contours of a comprehensive enforcement strategy to better identify, pursue and bring to justice malicious cyber actors that include building up law enforcement, enhancing diplomatic efforts, and developing a measurable strategic plan to do so.

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China’s Hacking of the Border Gateway Protocol

This is a long — and somewhat technical — paper by Chris C. Demchak and Yuval Shavitt about China’s repeated hacking of the Internet Border Gateway Protocol (BGP): “China’s Maxim ­ Leave No Access Point Unexploited: The Hidden Story of China Telecom’s BGP Hijacking.”

BGP hacking is how large intelligence agencies manipulate Internet routing to make certain traffic easier to intercept. The NSA calls it “network shaping” or “traffic shaping.” Here’s a document from the Snowden archives outlining how the technique works with Yemen.

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Another Bloomberg Story about Supply-Chain Hardware Attacks from China

Bloomberg has another story about hardware surveillance implants in equipment made in China. This implant is different from the one Bloomberg reported on last week. That story has been denied by pretty much everyone else, but Bloomberg is sticking by its story and its sources. (I linked to other commentary and analysis here.)

Again, I have no idea what’s true. The story is plausible. The denials are about what you’d expect. My lone hesitation to believing this is not seeing a photo of the hardware implant. If these things were in servers all over the US, you’d think someone would have come up with a photograph by now.

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New Variants of Cold-Boot Attack

If someone has physical access to your locked — but still running — computer, they can probably break the hard drive’s encryption. This is a “cold boot” attack, and one we thought solved. We have not:

To carry out the attack, the F-Secure researchers first sought a way to defeat the the industry-standard cold boot mitigation. The protection works by creating a simple check between an operating system and a computer’s firmware, the fundamental code that coordinates hardware and software for things like initiating booting. The operating system sets a sort of flag or marker indicating that it has secret data stored in its memory, and when the computer boots up, its firmware checks for the flag. If the computer shuts down normally, the operating system wipes the data and the flag with it. But if the firmware detects the flag during the boot process, it takes over the responsibility of wiping the memory before anything else can happen.

Looking at this arrangement, the researchers realized a problem. If they physically opened a computer and directly connected to the chip that runs the firmware and the flag, they could interact with it and clear the flag. This would make the computer think it shut down correctly and that the operating system wiped the memory, because the flag was gone, when actually potentially sensitive data was still there.

So the researchers designed a relatively simple microcontroller and program that can connect to the chip the firmware is on and manipulate the flag. From there, an attacker could move ahead with a standard cold boot attack. Though any number of things could be stored in memory when a computer is idle, Segerdahl notes that an attacker can be sure the device’s decryption keys will be among them if she is staring down a computer’s login screen, which is waiting to check any inputs against the correct ones.

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Security Risks of Government Hacking

Some of us — myself included — have proposed lawful government hacking as an alternative to backdoors. A new report from the Center of Internet and Society looks at the security risks of allowing government hacking. They include:

  • Disincentive for vulnerability disclosure
  • Cultivation of a market for surveillance tools
  • Attackers co-opt hacking tools over which governments have lost control
  • Attackers learn of vulnerabilities through government use of malware
  • Government incentives to push for less-secure software and standards
  • Government malware affects innocent users.

These risks are real, but I think they’re much less than mandating backdoors for everyone. From the report’s conclusion:

Government hacking is often lauded as a solution to the “going dark” problem. It is too dangerous to mandate encryption backdoors, but targeted hacking of endpoints could ensure investigators access to same or similar necessary data with less risk. Vulnerabilities will never affect everyone, contingent as they are on software, network configuration, and patch management. Backdoors, however, mean everybody is vulnerable and a security failure fails catastrophically. In addition, backdoors are often secret, while eventually, vulnerabilities will typically be disclosed and patched.

The key to minimizing the risks is to ensure that law enforcement (or whoever) report all vulnerabilities discovered through the normal process, and use them for lawful hacking during the period between reporting and patching. Yes, that’s a big ask, but the alternatives are worse.

This is the canonical lawful hacking paper.

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Using Hacked IoT Devices to Disrupt the Power Grid

This is really interesting research: “BlackIoT: IoT Botnet of High Wattage Devices Can Disrupt the Power Grid“:

Abstract: We demonstrate that an Internet of Things (IoT) botnet of high wattage devices — such as air conditioners and heaters — gives a unique ability to adversaries to launch large-scale coordinated attacks on the power grid. In particular, we reveal a new class of potential attacks on power grids called the Manipulation of demand via IoT (MadIoT) attacks that can leverage such a botnet in order to manipulate the power demand in the grid. We study five variations of the MadIoT attacks and evaluate their effectiveness via state-of-the-art simulators on real-world power grid models. These simulation results demonstrate that the MadIoT attacks can result in local power outages and in the worst cases, large-scale blackouts. Moreover, we show that these attacks can rather be used to increase the operating cost of the grid to benefit a few utilities in the electricity market. This work sheds light upon the interdependency between the vulnerability of the IoT and that of the other networks such as the power grid whose security requires attention from both the systems security and power engineering communities.

I have been collecting examples of surprising vulnerabilities that result when we connect things to each other. This is a good example of that.

Wired article.

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Using a Smartphone’s Microphone and Speakers to Eavesdrop on Passwords

It’s amazing that this is even possible: “SonarSnoop: Active Acoustic Side-Channel Attacks“:

Abstract: We report the first active acoustic side-channel attack. Speakers are used to emit human inaudible acoustic signals and the echo is recorded via microphones, turning the acoustic system of a smart phone into a sonar system. The echo signal can be used to profile user interaction with the device. For example, a victim’s finger movements can be inferred to steal Android phone unlock patterns. In our empirical study, the number of candidate unlock patterns that an attacker must try to authenticate herself to a Samsung S4 Android phone can be reduced by up to 70% using this novel acoustic side-channel. Our approach can be easily applied to other application scenarios and device types. Overall, our work highlights a new family of security threats.

News article.

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Hacking Police Bodycams

Suprising no one, the security of police bodycams is terrible.

Mitchell even realized that because he can remotely access device storage on models like the Fire Cam OnCall, an attacker could potentially plant malware on some of the cameras. Then, when the camera connects to a PC for syncing, it could deliver all sorts of malicious code: a Windows exploit that could ultimately allow an attacker to gain remote access to the police network, ransomware to spread across the network and lock everything down, a worm that infiltrates the department’s evidence servers and deletes everything, or even cryptojacking software to mine cryptocurrency using police computing resources. Even a body camera with no Wi-Fi connection, like the CeeSc, can be compromised if a hacker gets physical access. “You know not to trust thumb drives, but these things have the same ability,” Mitchell says.

BoingBoing post.

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How the US Military Can Better Keep Hackers

Interesting commentary:

The military is an impossible place for hackers thanks to antiquated career management, forced time away from technical positions, lack of mission, non-technical mid- and senior-level leadership, and staggering pay gaps, among other issues.

It is possible the military needs a cyber corps in the future, but by accelerating promotions, offering graduate school to newly commissioned officers, easing limited lateral entry for exceptional private-sector talent, and shortening the private/public pay gap, the military can better accommodate its most technical members now.

The model the author uses is military doctors.

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