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Paul Merrell

Facebook unveils cryptocurrency Libra | Time - 0 views

  • As it continues to explore new business models that may work in a world focused on privacy rather than broadly sharing data online, Facebook on Tuesday revealed plans for its own global digital currency, Libra, which aims to allow users to make purchases or send money with close to zero transaction fees. Facebook said it hopes Libra will make it easier for the estimated 1.7 billion unbanked adults worldwide to access banking services and transfer money electronically. “Just as people can use their phones to message friends anywhere in the world today, with Libra, the same can be done with money — instantly, securely and at a low cost,” Facebook said in a Libra white paper.
  • Users will be able to make transactions with Libra by 2020, Facebook says, both through a standalone app called Calibra as well as with Facebook’s own family of apps. Unlike bitcoin and some similar offerings, the price of Libra is tied to low-risk assets, which should prevent the speculative behavior and wild price swings plaguing other digital currencies. The currency will be overseen by the Libra Association, a Switzerland-based collective of more than a dozen companies, including Visa, Uber and Mastercard, each of whom have invested at least $10 million in the technology. Users of Libra will pay $1 to use Libra which will sit in a bank account and earn interest which will pay the Libra Association.
Gonzalo San Gil, PhD.

"Media: when oligarchs go shopping" - RSF's latest report | RSF - 0 views

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    "It was in Russia that the word "oligarchs" was first used to denote very rich businessmen. Reporters Without Borders (RSF) has adopted the term to refer to billionaires who create or take over media empires to serve their business or political interests. There is a worldwide trend towards increasingly concentrated ownership of conglomerates that combine media outlets (TV channels, radio stations, newspapers and news websites) with banks, telecoms, property firms and construction companies. All this suits the rulers of countries such as China that espoused capitalism in order to better suppress democracy. "
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    "It was in Russia that the word "oligarchs" was first used to denote very rich businessmen. Reporters Without Borders (RSF) has adopted the term to refer to billionaires who create or take over media empires to serve their business or political interests. There is a worldwide trend towards increasingly concentrated ownership of conglomerates that combine media outlets (TV channels, radio stations, newspapers and news websites) with banks, telecoms, property firms and construction companies. All this suits the rulers of countries such as China that espoused capitalism in order to better suppress democracy. "
Gonzalo San Gil, PhD.

Be Happy: Software Patents Are Rapidly Disappearing Thanks To The Supreme Court | Techdirt - 1 views

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    "from the another-one-gone-and-another-one-gone dept We've written a few times lately about the fact that the Supreme Court's decision in Alice v. CLS Bank seems to have finally broken the dam in getting courts to recognize that most software isn't patentable."
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    "from the another-one-gone-and-another-one-gone dept We've written a few times lately about the fact that the Supreme Court's decision in Alice v. CLS Bank seems to have finally broken the dam in getting courts to recognize that most software isn't patentable."
Gonzalo San Gil, PhD.

3 Financial Companies Innovating With Open Source | Linux.com - 0 views

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    "The financial industry is on the verge of an open source breakthrough, say three companies on the cutting edge of the trend. Traditionally very secretive about their technology, banks, hedge funds and other financial services companies have begun in the past few years to talk about how they use open source software in their infrastructure and product development."
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    "The financial industry is on the verge of an open source breakthrough, say three companies on the cutting edge of the trend. Traditionally very secretive about their technology, banks, hedge funds and other financial services companies have begun in the past few years to talk about how they use open source software in their infrastructure and product development."
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • Did the Commission co-operate with the United States on this case? The Commission and the United States Federal Trade Commission have kept each other regularly and closely informed on the state of play of their respective Intel investigations. These discussions have been held in a co-operative and friendly atmosphere, and have been substantively fruitful in terms of sharing experiences on issues of common interest.
  • Where does the money go? Once final judgment has been delivered in any appeals before the Court of First Instance (CFI) and the Court of Justice, the money goes into the EU’s central budget, thus reducing the contributions that Member States pay to the EU. Does Intel have to pay the fine if it appeals to the European Court of First Instance (CFI)? Yes. In case of appeals to the CFI, it is normal practice that the fine is paid into a blocked bank account pending the final outcome of the appeals process. Any fine that is provisionally paid will produce interest based on the interest rate applied by the European Central Bank to its main refinancing operations. In exceptional circumstances, companies may be allowed to cover the amount of the fine by a bank guarantee at a higher interest rate. What percentage of Intel's turnover does the fine represent? The fine represents 4.15 % of Intel's turnover in 2008. This is less than half the allowable maximum, which is 10% of a company's annual turnover.
  • How long is the Decision? The Decision is 542 pages long. When is the Decision going to be published? The Decision in English (the official language version of the Decision) will be made available as soon as possible on DG Competition’s website (once relevant business secrets have been taken out). French and German translations will also be made available on DG Competition’s website in due course. A summary of the Decision will be published in the EU's Official Journal L series in all languages (once the translations are available).
Paul Merrell

Australia bans reporting of multi-nation corruption case involving Malaysia, Indonesia ... - 0 views

  • Today, 29 July 2014, WikiLeaks releases an unprecedented Australian censorship order concerning a multi-million dollar corruption case explicitly naming the current and past heads of state of Indonesia, Malaysia and Vietnam, their relatives and other senior officials. The super-injunction invokes “national security” grounds to prevent reporting about the case, by anyone, in order to “prevent damage to Australia's international relations”. The court-issued gag order follows the secret 19 June 2014 indictment of seven senior executives from subsidiaries of Australia's central bank, the Reserve Bank of Australia (RBA). The case concerns allegations of multi-million dollar inducements made by agents of the RBA subsidiaries Securency and Note Printing Australia in order to secure contracts for the supply of Australian-style polymer bank notes to the governments of Malaysia, Indonesia, Vietnam and other countries. Read the full press release here. Download the full Australia-wide censorship order for corruption case involving Malaysia, Indonesia and Vietnam.
Gonzalo San Gil, PhD.

How an unprecedented face-to-face meeting of 11 geeks will make the internet more secur... - 0 views

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    "Six months ago, when the Heartbleed bug threatened your bank account, your passwords, and your online life, people suddenly cared about OpenSSL, the open source version of crucial security standards that keep safe huge swathes of the internet. They wanted to know what it all meant and who was responsible for keeping them safe. (As it happens, the people most closely involved were two middle-aged guys called Steve.)" # ! #Geek #Power
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    "Six months ago, when the Heartbleed bug threatened your bank account, your passwords, and your online life, people suddenly cared about OpenSSL, the open source version of crucial security standards that keep safe huge swathes of the internet. They wanted to know what it all meant and who was responsible for keeping them safe. (As it happens, the people most closely involved were two middle-aged guys called Steve.)" # ! #Geek #Power
Gonzalo San Gil, PhD.

Spread of internet has not conquered 'digital divide' between rich and poor - report | ... - 0 views

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    "Study by World Bank praises potential of technology to transform lives, but warns of risk of creating a 'new underclass' of the disconnected"
Gonzalo San Gil, PhD.

Alert: Our Privacy About to be Destroyed in Brussels? | La Quadrature du Net - 0 views

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    [ Submitted on 22 Jan 2013 - 14:35 data protection press release Printer-friendly version Send by email Paris, 22 January 2013 - The consideration of the "data protection" privacy regulation is in progress in the European Parliament, with a vote in the consumers committee (IMCO) on Wednesday. It is the object of an unprecedented lobbying campaign, mostly driven by US companies. If citizens don't act, banks, insurance companies and Internet service operators will have a free hand to collect, process, store and sell all of our personal data, which will enable them to know and direct all that we do online and offline. ...]
Paul Merrell

German Parliament Says No More Software Patents | Electronic Frontier Foundation - 0 views

  • The German Parliament recently took a huge step that would eliminate software patents (PDF) when it issued a joint motion requiring the German government to ensure that computer programs are only covered by copyright. Put differently, in Germany, software cannot be patented. The Parliament's motion follows a similar announcement made by New Zealand's government last month (PDF), in which it determined that computer programs were not inventions or a manner of manufacture and, thus, cannot be patented.
  • The crux of the German Parliament's motion rests on the fact that software is already protected by copyright, and developers are afforded "exploitation rights." These rights, however, become confused when broad, abstract patents also cover general aspects of computer programs. These two intellectual property systems are at odds. The clearest example of this clash is with free software. The motion recognizes this issue and therefore calls upon the government "to preserve the precedence of copyright law so that software developers can also publish their work under open source license terms and conditions with legal security." The free software movement relies upon the fact that software can be released under a copyright license that allows users to share it and build upon others' works. Patents, as Parliament finds, inhibit this fundamental spread.
  • Just like in the New Zealand order, the German Parliament carved out one type of software that could be patented, when: the computer program serves merely as a replaceable equivalent for a mechanical or electro-mechanical component, as is the case, for instance, when software-based washing machine controls can replace an electromechanical program control unit consisting of revolving cylinders which activate the control circuits for the specific steps of the wash cycle This allows for software that is tied to (and controls part of) another invention to be patented. In other words, if a claimed process is purely a computer program, then it is not patentable. (New Zealand's order uses a similar washing machine example.) The motion ends by calling upon the German government to push for this approach to be standard across all of Europe. We hope policymakers in the United States will also consider fundamental reform that deals with the problems caused by low-quality software patents. Ultimately, any real reform must address this issue.
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    Note that an unofficial translation of the parliamentary motion is linked from the article. This adds substantially to the pressure internationally to end software patents because Germany has been the strongest defender of software patents in Europe. The same legal grounds would not apply in the U.S. The strongest argument for the non-patentability in the U.S., in my opinion, is that software patents embody embody both prior art and obviousness. A general purpose computer can accomplish nothing unforeseen by the prior art of the computing device. And it is impossible for software to do more than cause different sequences of bit register states to be executed. This is the province of "skilled artisans" using known methods to produce predictable results. There is a long line of Supreme Court decisions holding that an "invention" with such traits is non-patentable. I have summarized that argument with citations at . 
Paul Merrell

Venezuelan Intelligence Services Arrest Credicard Directors - nsnbc international | nsn... - 0 views

  • Venezuelan President Nicolas Maduro confirmed Saturday that the state intelligence service SEBIN arrested several directors from the Credicard financial transaction company on Friday night. 
  • The financial consortium is accused of having deliberately taken advantage of a series of cyber attacks on state internet provider CANTV Friday to paralyse its online payment platform–responsible for the majority of the country’s accredited financial transactions, according to its website. “We have proof that it was a deliberate act what Credicard did yesterday. Right now the main people responsible for Credicard are under arrest,” confirmed the president. The government says that millions of attempted purchases using in-store credit and debit card payment machines provided by the company were interrupted after its platform went down for the most part of the day. Authorities also maintain that the company waited longer than the established protocol of one hour before responding to the issues.
  • According to CANTV President Manuel Fernandez, Venezuela’s internet platform suffered at least three attacks from an external source on Friday, one of which was aimed at state oil company PDVSA. CANTV was notified of the attacks by international provider LANautilus, which belongs to Telecom Italia. Nonetheless, Fernandez denied that Credicard’s platform was affected by the interferences to CANTV’s service, underscoring that other financial transaction companies that rely on the state enterprise continued to be operative.
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  • On Friday SEBIN Director Gustavo Gonzalez Lopez also openly accused members of the rightwing coalition, the Democratic Unity Roundtable (MUD), of being implicated in the incident. “Members of the MUD involved in the attack on electronic banking service,” he tweeted. “The financial war continues inside and outside the country, internally they are damaging banking operability,” he added. Venezuelan news source La Iguana has reported that the server administrator of Credicard is the company Dayco Host, which belongs to the D’Agostino family. Diana D’Angostino is married to veteran opposition politician, Henry Ramos Allup, president of the National Assembly. On Saturday, the government-promoted Productive Economy Council held an extraordinary meeting of political and business representatives to reject the attack on the country’s financial system.
Gonzalo San Gil, PhD.

Tools | La Quadrature du Net - 1 views

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    [ Who are we? FAQ Tools Contact Press room English Français La Quadrature du Net La Quadrature du Net Internet & Libertés Participate Support us Newsletter RSS Identi.ca Twitter Dossiers Net Neutrality ACTA Anti-sharing directive - IPRED Net filtering Online Services Directive Proposals Tools general Printer-friendly version Send to friend Français Political Memory Political Memory is a toolbox designed to help reach members of the European Parliament (MEPs) and track their voting records. You may find the list of Members of the European Parliament: by alphabetical order by country by political group by committee For each Member of Parliament or European MP are listed contact details, mandates, as well as their votes and how they stand on subjects touched on by La Quadrature du Net. If you have telephony software installed on your computer, you can call them directly by clicking on "click to call". Wiki The wiki is the collaborative part of this website where anyone can create or modify content. This is where information on La Quadrature's campaigns (such as those about the written statement on ACTA or the IPRED Consultation), highlights of the National Assembly1 debates, pages relating to ongoing issues tracked by La Quadrature, as well as analyses, illustrations and more can be found. Mediakit The Mediakit is an audio and video data bank. It contains interventions of La Quadrature's spokespeople in the media as well as reports about issues La Quadrature closely follows. All these media can be viewed and downloaded in different formats. Press Review The Press Review is a collection of press articles about La Quadrature du Net's issues. It is compiled by a team of volunteers and comes in two languages: English and French. Articles written in other languages appear in both press re
Gonzalo San Gil, PhD.

International Open Data Hackathon | Feb 22, 2014 - 0 views

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    "The Open Data Day Hackathon is Saturday, February 22, 2014 Open Data + You + Your Community + Your Timezone = Open Around the World You're Invited. Again. Stay tuned for more website and wiki updates. Join our team to get prepared and help translate. Open data is global. See the Open Data Index or Open Data Barometer. Even organizations like the World Bank and the United Nations are leading the charge to open data."
Gonzalo San Gil, PhD.

Good News: US Patent Office Now Rejecting A Lot More Software Patents | Techdirt - 0 views

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    "The impact of the Supreme Court's ruling in Alice v. CLS Bank continues to reverberate around the industry. We've already noted that courts have been rapidly invalidating a bunch of patents, and that related lawsuits appear to be dropping rapidly as well. And, now, a new analysis from a (pro-patent) law firm suggests that the US Patent Office is rejecting a lot more software patents as well. "
Gonzalo San Gil, PhD.

Virtual Reality & Open Source | FOSS Force - 0 views

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    "Hunter Banks When the Oculus Rift first debuted as a kickstarter project in 2012 it brought the possibility of virtual reality (VR) gaming back to the public at large. Nintendo tried it's hands at virtual reality when it released its Virtual Boy in 1995."
Paul Merrell

The coming merge of human and machine intelligence - 0 views

  • Now, as the Internet revolution unfolds, we are seeing not merely an extension of mind but a unity of mind and machine, two networks coming together as one. Our smaller brains are in a quest to bypass nature's intent and grow larger by proxy. It is not a stretch of the imagination to believe we will one day have all of the world's information embedded in our minds via the Internet.
  • BCI stands for brain-computer interface, and Jan is one of only a few people on earth using this technology, through two implanted chips attached directly to the neurons in her brain. The first human brain implant was conceived of by John Donoghue, a neuroscientist at Brown University, and implanted in a paralyzed man in 2004. These dime-sized computer chips use a technology called BrainGate that directly connects the mind to computers and the Internet. Having served as chairman of the BrainGate company, I have personally witnessed just how profound this innovation is. BrainGate is an invention that allows people to control electrical devices with nothing but their thoughts. The BrainGate chip is implanted in the brain and attached to connectors outside of the skull, which are hooked up to computers that, in Jan Scheuermann's case, are linked to a robotic arm. As a result, Scheuermann can feed herself chocolate by controlling the robotic arm with nothing but her thoughts.
  • Mind meld But imagine the ways in which the world will change when any of us, disabled or not, can connect our minds to computers.
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  • Back in 2004, Google's founders told Playboy magazine that one day we'd have direct access to the Internet through brain implants, with "the entirety of the world's information as just one of our thoughts." A decade later, the road map is taking shape. While it may be years before implants like BrainGate are safe enough to be commonplace—they require brain surgery, after all—there are a host of brainwave sensors in development for use outside of the skull that will be transformational for all of us: caps for measuring driver alertness, headbands for monitoring sleep, helmets for controlling video games. This could lead to wearable EEGs, implantable nanochips or even technology that can listen to our brain signals using the electromagnetic waves that pervade the air we breathe. Just as human intelligence is expanding in the direction of the Internet, the Internet itself promises to get smarter and smarter. In fact, it could prove to be the basis of the machine intelligence that scientists have been racing toward since the 1950s.
  • Neurons may be good analogs for transistors and maybe even computer chips, but they're not good building blocks of intelligence. The neural network is fundamental. The BrainGate technology works because the chip attaches not to a single neuron, but to a network of neurons. Reading the signals of a single neuron would tell us very little; it certainly wouldn't allow BrainGate patients to move a robotic arm or a computer cursor. Scientists may never be able to reverse engineer the neuron, but they are increasingly able to interpret the communication of the network. It is for this reason that the Internet is a better candidate for intelligence than are computers. Computers are perfect calculators composed of perfect transistors; they are like neurons as we once envisioned them. But the Internet has all the quirkiness of the brain: it can work in parallel, it can communicate across broad distances, and it makes mistakes. Even though the Internet is at an early stage in its evolution, it can leverage the brain that nature has given us. The convergence of computer networks and neural networks is the key to creating real intelligence from artificial machines. It took millions of years for humans to gain intelligence, but with the human mind as a guide, it may only take a century to create Internet intelligence.
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    Of course once the human brain is interfaced with the internet, then we will be able to do the Vulcan mind-meld thing. And NSA will be busily crawling the Internet for fresh brain dumps to their data center, which then encompasses the entire former state of Utah. Conventional warfare is a thing of the past as the cyberwar commands of great powers battle for control of the billions of minds making up BrainNet, the internet's successor.  Meanwhile, a hackers' Reaper malware trawls BrainNet for bank account numbers and paswords that it forwards for automated harvesting of personal funds. "Ah, Houston ... we have a problem ..."  
David Corking

Work on Stuff that Matters: First Principles - O'Reilly Radar - 0 views

  • For example, a bank that loans money to a small business sees that business grow, perhaps borrow more money, hire employees who make deposits and take out loans, and so on. The power of this cycle to lift people out of poverty has been demonstrated by microfinance institutions like the Grameen Bank.
    • David Corking
       
      It is hard to choose a sentence to highlight from this inspirational yet non-ideological article. Thanks, Tim!
Paul Merrell

NSA Spying Inspires ProtonMail 'End-to-End' Encrypted Email Service | NDTV Gadgets - 0 views

  • ne new email service promising "end-to-end" encryption launched on Friday, and others are being developed while major services such as Google Gmail and Yahoo Mail have stepped up security measures.A major catalyst for email encryption were revelations about widespread online surveillance in documents leaked by Edward Snowden, the former National Security Agency contractor."A lot of people were upset with those revelations, and that coalesced into this effort," said Jason Stockman, a co-developer of ProtonMail, a new encrypted email service which launched Friday with collaboration of scientists from Harvard, the Massachusetts Institute of Technology and the European research lab CERN.Stockman said ProtonMail aims to be as user-friendly as the major commercial services, but with extra security, and with its servers located in Switzerland to make it more difficult for US law enforcement to access.
  • "Our vision is to make encryption and privacy mainstream by making it easy to use," Stockman told AFP. "There's no installation. Everything happens behind the scenes automatically."Even though email encryption using special codes or keys, a system known as PGP, has been around for two decades, "it was so complicated," and did not gain widespread adoption, Stockman said.After testing over the past few months, ProtonMail went public Friday using a "freemium" model a basic account will be free with some added features for a paid account.
  • As our users from China, Iran, Russia, and other countries around the world have shown us in the past months, ProtonMail is an important tool for freedom of speech and we are happy to finally be able to provide this to the whole world," the company said in a blog post.Google and Yahoo recently announced efforts to encrypt their email communications, but some specialists say the effort falls short."These big companies don't want to encrypt your stuff because they spy on you, too," said Bruce Schneier, a well-known cryptographer and author who is chief technology officer for CO3 Systems."Hopefully, the NSA debate is creating incentives for people to build more encryption."Stockman said that with services like Gmail, even if data is encrypted, "they have the key right next to it if you have the key and lock next to each other, so it's pretty much useless."
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  • By locating in Switzerland, ProtonMail hopes to avoid the legal woes of services like Lavabit widely believed to be used by Snowden which shut down rather than hand over data to the US government, and which now faces a contempt of court order.Even if a Swiss court ordered data to be turned over, Stockman said, "we would hand over piles of encrypted data. We don't have a key. We never see the password."
  • Lavabit founder Ladar Levison meanwhile hopes to launch a new service with other developers in a coalition known as the "Dark Mail Alliance."Levison told AFP he hopes to have a new encrypted email system in testing within a few months and widely available later this year."The goal is to make it ubiquitous, so people don't have to turn it on," he said.But he added that the technical hurdles are formidable, because the more user-friendly the system becomes, "the more susceptible it is to a sophisticated attacker with fake or spoofed key information."Levison said he hopes Dark Mail will become a new open standard that can be adopted by other email services.
  • on Callas, a cryptographer who developed the PGP standard and later co-founded the secure communications firm Silent Circle, cited challenges in making a system that is both secure and ubiquitous."If you are a bank you have to have an email system that complies with banking regulations," Callas told AFP, which could allow, for example, certain emails to be subject to regulatory or court review."Many of the services on the Internet started with zero security. We want to start with a system that is totally secure and let people dial it down."The new email system would complement Silent Circle's existing secure messaging system and encrypted mobile phone, which was launched earlier this year."If we start competing for customers on the basis of maximum privacy, that's good for everybody," Callas said.
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    They're already so swamped that you have to reserve your user name and wait for an invite. They say they have to add servers. Web site is at https://protonmail.ch/ "ProtonMail works on all devices, including desktops, laptops, tablets, and smartphones. It's as simple as visiting our site and logging in. There are no plugins or apps to install - simply use your favorite web browser." "ProtonMail works on all devices, including desktops, laptops, tablets, and smartphones.
Paul Merrell

Obama to propose legislation to protect firms that share cyberthreat data - The Washing... - 0 views

  • President Obama plans to announce legislation Tuesday that would shield companies from lawsuits for sharing computer threat data with the government in an effort to prevent cyber­attacks. On the heels of a destructive attack at Sony Pictures Entertainment and major breaches at JPMorgan Chase and retail chains, Obama is intent on capitalizing on the heightened sense of urgency to improve the security of the nation’s networks, officials said. “He’s been doing everything he can within his executive authority to move the ball on this,” said a senior administration official who spoke on the condition of anonymity to discuss legislation that has not yet been released. “We’ve got to get something in place that allows both industry and government to work more closely together.”
  • The legislation is part of a broader package, to be sent to Capitol Hill on Tuesday, that includes measures to help protect consumers and students against ­cyberattacks and to give law enforcement greater authority to combat cybercrime. The provision’s goal is to “enshrine in law liability protection for the private sector for them to share specific information — cyberthreat indicators — with the government,” the official said. Some analysts questioned the need for such legislation, saying there are adequate measures in place to enable sharing between companies and the government and among companies.
  • “We think the current information-sharing regime is adequate,” said Mark Jaycox, legislative analyst at the Electronic Frontier Foundation, a privacy group. “More companies need to use it, but the idea of broad legal immunity isn’t needed right now.” The administration official disagreed. The lack of such immunity is what prevents many companies from greater sharing of data with the government, the official said. “We have heard that time and time again,” the official said. The proposal, which builds on a 2011 administration bill, grants liability protection to companies that provide indicators of cyberattacks and threats to the Department of Homeland Security.
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  • But in a provision likely to raise concerns from privacy advocates, the administration wants to require DHS to share that information “in as near real time as possible” with other government agencies that have a cybersecurity mission, the official said. Those include the National Security Agency, the Pentagon’s ­Cyber Command, the FBI and the Secret Service. “DHS needs to take an active lead role in ensuring that unnecessary personal information is not shared with intelligence authorities,” Jaycox said. The debates over government surveillance prompted by disclosures from former NSA contractor Edward Snowden have shown that “the agencies already have a tremendous amount of unnecessary information,” he said.
  • It would reaffirm that federal racketeering law applies to cybercrimes and amends the Computer Fraud and Abuse Act by ensuring that “insignificant conduct” does not fall within the scope of the statute. A third element of the package is legislation Obama proposed Monday to help protect consumers and students against cyberattacks. The theft of personal financial information “is a direct threat to the economic security of American families, and we’ve got to stop it,” Obama said. The plan, unveiled in a speech at the Federal Trade Commission, would require companies to notify customers within 30 days after the theft of personal information is discovered. Right now, data breaches are handled under a patchwork of state laws that the president said are confusing and costly to enforce. Obama’s plan would streamline those into one clear federal standard and bolster requirements for companies to notify customers. Obama is proposing closing loopholes to make it easier to track down cybercriminals overseas who steal and sell identities. “The more we do to protect consumer information and privacy, the harder it is for hackers to damage our businesses and hurt our economy,” he said.
  • Efforts to pass information-sharing legislation have stalled in the past five years, blocked primarily by privacy concerns. The package also contains provisions that would allow prosecution for the sale of botnets or access to armies of compromised computers that can be used to spread malware, would criminalize the overseas sale of stolen U.S. credit card and bank account numbers, would expand federal law enforcement authority to deter the sale of spyware used to stalk people or commit identity theft, and would give courts the authority to shut down botnets being used for criminal activity, such as denial-of-service attacks.
  • The administration official stressed that the legislation will require companies to remove unnecessary personal information before furnishing it to the government in order to qualify for liability protection. It also will impose limits on the use of the data for cybersecurity crimes and instances in which there is a threat of death or bodily harm, such as kidnapping, the official said. And it will require DHS and the attorney general to develop guidelines for the federal government’s use and retention of the data. It will not authorize a company to take offensive cyber-measures to defend itself, such as “hacking back” into a server or computer outside its own network to track a breach. The bill also will provide liability protection to companies that share data with private-sector-developed organizations set up specifically for that purpose. Called information sharing and analysis organizations, these groups often are set up by particular industries, such as banking, to facilitate the exchange of data and best practices.
  • In October, Obama signed an order to protect consumers from identity theft by strengthening security features in credit cards and the terminals that process them. Marc Rotenberg, executive director of the Electronic Privacy Information Center, said there is concern that a federal standard would “preempt stronger state laws” about how and when companies have to notify consumers. The Student Digital Privacy Act would ensure that data entered would be used only for educational purposes. It would prohibit companies from selling student data to third-party companies for purposes other than education. Obama also plans to introduce a Consumer Privacy Bill of Rights. And the White House will host a summit on cybersecurity and consumer protection on Feb. 13 at Stanford University.
Paul Merrell

Cy Vance's Proposal to Backdoor Encrypted Devices Is Riddled With Vulnerabilities | Jus... - 0 views

  • Less than a week after the attacks in Paris — while the public and policymakers were still reeling, and the investigation had barely gotten off the ground — Cy Vance, Manhattan’s District Attorney, released a policy paper calling for legislation requiring companies to provide the government with backdoor access to their smartphones and other mobile devices. This is the first concrete proposal of this type since September 2014, when FBI Director James Comey reignited the “Crypto Wars” in response to Apple’s and Google’s decisions to use default encryption on their smartphones. Though Comey seized on Apple’s and Google’s decisions to encrypt their devices by default, his concerns are primarily related to end-to-end encryption, which protects communications that are in transit. Vance’s proposal, on the other hand, is only concerned with device encryption, which protects data stored on phones. It is still unclear whether encryption played any role in the Paris attacks, though we do know that the attackers were using unencrypted SMS text messages on the night of the attack, and that some of them were even known to intelligence agencies and had previously been under surveillance. But regardless of whether encryption was used at some point during the planning of the attacks, as I lay out below, prohibiting companies from selling encrypted devices would not prevent criminals or terrorists from being able to access unbreakable encryption. Vance’s primary complaint is that Apple’s and Google’s decisions to provide their customers with more secure devices through encryption interferes with criminal investigations. He claims encryption prevents law enforcement from accessing stored data like iMessages, photos and videos, Internet search histories, and third party app data. He makes several arguments to justify his proposal to build backdoors into encrypted smartphones, but none of them hold water.
  • Before addressing the major privacy, security, and implementation concerns that his proposal raises, it is worth noting that while an increase in use of fully encrypted devices could interfere with some law enforcement investigations, it will help prevent far more crimes — especially smartphone theft, and the consequent potential for identity theft. According to Consumer Reports, in 2014 there were more than two million victims of smartphone theft, and nearly two-thirds of all smartphone users either took no steps to secure their phones or their data or failed to implement passcode access for their phones. Default encryption could reduce instances of theft because perpetrators would no longer be able to break into the phone to steal the data.
  • Vance argues that creating a weakness in encryption to allow law enforcement to access data stored on devices does not raise serious concerns for security and privacy, since in order to exploit the vulnerability one would need access to the actual device. He considers this an acceptable risk, claiming it would not be the same as creating a widespread vulnerability in encryption protecting communications in transit (like emails), and that it would be cheap and easy for companies to implement. But Vance seems to be underestimating the risks involved with his plan. It is increasingly important that smartphones and other devices are protected by the strongest encryption possible. Our devices and the apps on them contain astonishing amounts of personal information, so much that an unprecedented level of harm could be caused if a smartphone or device with an exploitable vulnerability is stolen, not least in the forms of identity fraud and credit card theft. We bank on our phones, and have access to credit card payments with services like Apple Pay. Our contact lists are stored on our phones, including phone numbers, emails, social media accounts, and addresses. Passwords are often stored on people’s phones. And phones and apps are often full of personal details about their lives, from food diaries to logs of favorite places to personal photographs. Symantec conducted a study, where the company spread 50 “lost” phones in public to see what people who picked up the phones would do with them. The company found that 95 percent of those people tried to access the phone, and while nearly 90 percent tried to access private information stored on the phone or in other private accounts such as banking services and email, only 50 percent attempted contacting the owner.
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  • Vance attempts to downplay this serious risk by asserting that anyone can use the “Find My Phone” or Android Device Manager services that allow owners to delete the data on their phones if stolen. However, this does not stand up to scrutiny. These services are effective only when an owner realizes their phone is missing and can take swift action on another computer or device. This delay ensures some period of vulnerability. Encryption, on the other hand, protects everyone immediately and always. Additionally, Vance argues that it is safer to build backdoors into encrypted devices than it is to do so for encrypted communications in transit. It is true that there is a difference in the threats posed by the two types of encryption backdoors that are being debated. However, some manner of widespread vulnerability will inevitably result from a backdoor to encrypted devices. Indeed, the NSA and GCHQ reportedly hacked into a database to obtain cell phone SIM card encryption keys in order defeat the security protecting users’ communications and activities and to conduct surveillance. Clearly, the reality is that the threat of such a breach, whether from a hacker or a nation state actor, is very real. Even if companies go the extra mile and create a different means of access for every phone, such as a separate access key for each phone, significant vulnerabilities will be created. It would still be possible for a malicious actor to gain access to the database containing those keys, which would enable them to defeat the encryption on any smartphone they took possession of. Additionally, the cost of implementation and maintenance of such a complex system could be high.
  • Privacy is another concern that Vance dismisses too easily. Despite Vance’s arguments otherwise, building backdoors into device encryption undermines privacy. Our government does not impose a similar requirement in any other context. Police can enter homes with warrants, but there is no requirement that people record their conversations and interactions just in case they someday become useful in an investigation. The conversations that we once had through disposable letters and in-person conversations now happen over the Internet and on phones. Just because the medium has changed does not mean our right to privacy has.
  • In addition to his weak reasoning for why it would be feasible to create backdoors to encrypted devices without creating undue security risks or harming privacy, Vance makes several flawed policy-based arguments in favor of his proposal. He argues that criminals benefit from devices that are protected by strong encryption. That may be true, but strong encryption is also a critical tool used by billions of average people around the world every day to protect their transactions, communications, and private information. Lawyers, doctors, and journalists rely on encryption to protect their clients, patients, and sources. Government officials, from the President to the directors of the NSA and FBI, and members of Congress, depend on strong encryption for cybersecurity and data security. There are far more innocent Americans who benefit from strong encryption than there are criminals who exploit it. Encryption is also essential to our economy. Device manufacturers could suffer major economic losses if they are prohibited from competing with foreign manufacturers who offer more secure devices. Encryption also protects major companies from corporate and nation-state espionage. As more daily business activities are done on smartphones and other devices, they may now hold highly proprietary or sensitive information. Those devices could be targeted even more than they are now if all that has to be done to access that information is to steal an employee’s smartphone and exploit a vulnerability the manufacturer was required to create.
  • Vance also suggests that the US would be justified in creating such a requirement since other Western nations are contemplating requiring encryption backdoors as well. Regardless of whether other countries are debating similar proposals, we cannot afford a race to the bottom on cybersecurity. Heads of the intelligence community regularly warn that cybersecurity is the top threat to our national security. Strong encryption is our best defense against cyber threats, and following in the footsteps of other countries by weakening that critical tool would do incalculable harm. Furthermore, even if the US or other countries did implement such a proposal, criminals could gain access to devices with strong encryption through the black market. Thus, only innocent people would be negatively affected, and some of those innocent people might even become criminals simply by trying to protect their privacy by securing their data and devices. Finally, Vance argues that David Kaye, UN Special Rapporteur for Freedom of Expression and Opinion, supported the idea that court-ordered decryption doesn’t violate human rights, provided certain criteria are met, in his report on the topic. However, in the context of Vance’s proposal, this seems to conflate the concepts of court-ordered decryption and of government-mandated encryption backdoors. The Kaye report was unequivocal about the importance of encryption for free speech and human rights. The report concluded that:
  • States should promote strong encryption and anonymity. National laws should recognize that individuals are free to protect the privacy of their digital communications by using encryption technology and tools that allow anonymity online. … States should not restrict encryption and anonymity, which facilitate and often enable the rights to freedom of opinion and expression. Blanket prohibitions fail to be necessary and proportionate. States should avoid all measures that weaken the security that individuals may enjoy online, such as backdoors, weak encryption standards and key escrows. Additionally, the group of intelligence experts that was hand-picked by the President to issue a report and recommendations on surveillance and technology, concluded that: [R]egarding encryption, the U.S. Government should: (1) fully support and not undermine efforts to create encryption standards; (2) not in any way subvert, undermine, weaken, or make vulnerable generally available commercial software; and (3) increase the use of encryption and urge US companies to do so, in order to better protect data in transit, at rest, in the cloud, and in other storage.
  • The clear consensus among human rights experts and several high-ranking intelligence experts, including the former directors of the NSA, Office of the Director of National Intelligence, and DHS, is that mandating encryption backdoors is dangerous. Unaddressed Concerns: Preventing Encrypted Devices from Entering the US and the Slippery Slope In addition to the significant faults in Vance’s arguments in favor of his proposal, he fails to address the question of how such a restriction would be effectively implemented. There is no effective mechanism for preventing code from becoming available for download online, even if it is illegal. One critical issue the Vance proposal fails to address is how the government would prevent, or even identify, encrypted smartphones when individuals bring them into the United States. DHS would have to train customs agents to search the contents of every person’s phone in order to identify whether it is encrypted, and then confiscate the phones that are. Legal and policy considerations aside, this kind of policy is, at the very least, impractical. Preventing strong encryption from entering the US is not like preventing guns or drugs from entering the country — encrypted phones aren’t immediately obvious as is contraband. Millions of people use encrypted devices, and tens of millions more devices are shipped to and sold in the US each year.
  • Finally, there is a real concern that if Vance’s proposal were accepted, it would be the first step down a slippery slope. Right now, his proposal only calls for access to smartphones and devices running mobile operating systems. While this policy in and of itself would cover a number of commonplace devices, it may eventually be expanded to cover laptop and desktop computers, as well as communications in transit. The expansion of this kind of policy is even more worrisome when taking into account the speed at which technology evolves and becomes widely adopted. Ten years ago, the iPhone did not even exist. Who is to say what technology will be commonplace in 10 or 20 years that is not even around today. There is a very real question about how far law enforcement will go to gain access to information. Things that once seemed like merely science fiction, such as wearable technology and artificial intelligence that could be implanted in and work with the human nervous system, are now available. If and when there comes a time when our “smart phone” is not really a device at all, but is rather an implant, surely we would not grant law enforcement access to our minds.
  • Policymakers should dismiss Vance’s proposal to prohibit the use of strong encryption to protect our smartphones and devices in order to ensure law enforcement access. Undermining encryption, regardless of whether it is protecting data in transit or at rest, would take us down a dangerous and harmful path. Instead, law enforcement and the intelligence community should be working to alter their skills and tactics in a fast-evolving technological world so that they are not so dependent on information that will increasingly be protected by encryption.
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