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The NSA and Britain's GCHQ hacked the world's biggest SIM card maker to harvest the encryption keys needed to silently and effortlessly eavesdrop on potentially millions of people. That's according to documents obtained by surveillance whistleblower Edward Snowden and leaked to the web on Thursday. "Wow. This is huge – it's one of the most significant findings of the Snowden files so far," computer security guru Bruce Schneier told The Register this afternoon. "We always knew that they would occasionally steal SIM keys. But all of them? The odds that they just attacked this one firm are extraordinarily low and we know the NSA does like to steal keys where it can." The damning slides, published by Snowden's chums at The Intercept, detail the activities of the as-yet unheard-of Mobile Handset Exploitation Team (MHET), run by the US and UK. The group targeted Gemalto, which churns out about two billion SIM cards each year for use around the world, and targeted it in an operation dubbed DAPINO GAMMA.

Gemalto's hacking may also bring into question some of its other security products as well. The company supplies chips for electronic passports issued by the US, Singapore, India, and many European states, and is also involved in the NFC and mobile banking sector. It's important to note that this is useful for tracking the phone activity of a target, but the mobile user can still use encryption on the handset itself to ensure that some communications remain private. "Ironically one of your best defenses against a hijacked SIM is to use software encryption," Jon Callas, CTO of encrypted chat biz Silent Circle told The Register. "In our case there's a TCP/IP cloud between Alice and Bob and that can deal with compromised routers along the path as well as SIM issues, and the same applies to similar mobile software."

On Wednesday the UK government admitted that its intelligence agencies had in fact broken the ECHR when spying on communications between lawyers and those suing the British state, so GCHQ might want to reconsider that statement.

Germany announced Thursday it is canceling its contract with Verizon Communications over concerns about the role of U.S. telecom corporations in National Security Agency spying. “The links revealed between foreign intelligence agencies and firms after the N.S.A. affair show that the German government needs a high level of security for its essential networks,” declared Germany’s Interior Ministry in a statement released Thursday. The Ministry said it is engaging in a communications overhaul to strengthen privacy protections as part of the process of severing ties with Verizon. The announcement follows revelations, made possible by NSA whistleblower Edward Snowden, that Germany is a prime target of NSA spying. This includes surveillance of German Chancellor Angela Merkel’s mobile phone communications, as well as a vast network of centers that secretly collect information across the country. Yet, many have accused Germany of being complicit in NSA spying, in addition to being targeted by it. The German government has refused to grant Snowden political asylum, despite his contribution to the public record about U.S. spying on Germany.

When I first started reading Ars Technica, performance of a processor was measured in megahertz, and the major manufacturers were rushing to squeeze as many of them as possible into their latest silicon. Shortly thereafter, however, the energy needs and heat output of these beasts brought that race crashing to a halt. More recently, the number of processing cores rapidly scaled up, but they quickly reached the point of diminishing returns. Now, getting the most processing power for each Watt seems to be the key measure of performance. None of these things happened because the companies making processors ran up against hard physical limits. Rather, computing power ended up being constrained because progress in certain areas—primarily energy efficiency—was slow compared to progress in others, such as feature size. But could we be approaching physical limits in processing power? In this week's edition of Nature, The University of Michigan's Igor Markov takes a look at the sorts of limits we might face.

The elusive Shadow Brokers didn't have much luck selling the NSA's hacking tools, so they're giving more of the software away -- to everyone. In a Medium post, the mysterious team supplied the password for an encrypted file containing many of the Equation Group surveillance tools swiped back in 2016. Supposedly, the group posted the content in "protest" at President Trump turning his back on the people who voted for him. The leaked data appears to check out, according to researchers, but some of it is a couple of decades old and focused on platforms like Linux. If anything, the leak might backfire. Edward Snowden notes that while the leak is "nowhere near" representing the NSA's complete tool set, there's enough that the NSA should "instantly identify" where and how the kit leaked. This doesn't mean the Shadow Brokers themselves are about to face capture. However, this may give the agency info it needs to both connect the dots (how much of a role did NSA contractor Harold Thomas Martin III play in the online leak, for instance?) and prevent a repeat incident.Does this open a can of worms? It's hard to say -- researchers are still combing over the data. If there are any hacks that can be made useful, though, this could be problematic for server operators worried about cybercrime. If nothing else, it shows that the Shadow Brokers didn't reveal their full hand.

The White House on Wednesday made public for the first time the rules by which the government decides to disclose or keep secret software flaws that can be turned into cyberweapons — whether by U.S. agencies hacking for foreign intelligence, money-hungry criminals or foreign spies seeking to penetrate American computers. The move to publish an un­classified charter responds to years of criticism that the process was unnecessarily opaque, fueling suspicion that it cloaked a stockpile of software flaws that the National Security Agency was hoarding to go after foreign targets but that put Americans’ cyber­security at risk.

The rules are part of the “Vulnerabilities Equities Process,” which the Obama administration revamped in 2014 as a multi­agency forum to debate whether and when to inform companies such as Microsoft and Juniper that the government has discovered or bought a software flaw that, if weaponized, could affect the security of their product. The Trump administration has mostly not altered the rules under which the government reaches a decision but is disclosing its process. Under the VEP, an “equities review board” of at least a dozen national security and civilian agencies will meet monthly — or more often, if a need arises — to discuss newly discovered vulnerabilities. Besides the NSA, the CIA and the FBI, the list includes the Treasury, Commerce and State departments, and the Office of Management and Budget. The priority is on disclosure, the policy states, to protect core Internet systems, the U.S. economy and critical infrastructure, unless there is “a demonstrable, overriding interest” in using the flaw for intelligence or law enforcement purposes. The government has long said that it discloses the vast majority — more than 90 percent — of the vulnerabilities it discovers or buys in products from defense contractors or other sellers. In recent years, that has amounted to more than 100 a year, according to people familiar with the process. But because the process was classified, the National Security Council, which runs the discussion, was never able to reveal any numbers. Now, Joyce said, the number of flaws disclosed and the number retained will be made public in an annual report. A classified version will be sent to Congress, he said.

"What has been left out of the CISPA debate thus far is the FBI's long time workaround for information sharing with private industry: 'In 1997, long-time FBI agent Dan Larkin helped set up a non-profit based in Pittsburgh that "functions as a conduit between private industry and law enforcement."