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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.

6. Whoever is doing this is VERY net and social media savvy. That, and the sophistication of the operation, do not match with the profile of DPRK up until now. Grugq did an excellent analysis of this aspect his findings are here – http://0paste.com/6875#md 7. Finally, blaming North Korea is the easy way out for a number of folks, including the security vendors and Sony management who are under the microscope for this. Let’s face it – most of today’s so-called “cutting edge” security defenses are either so specific, or so brittle, that they really don’t offer much meaningful protection against a sophisticated attacker or group of attackers.

8. It probably also suits a number of political agendas to have something that justifies sabre-rattling at North Korea, which is why I’m not that surprised to see politicians starting to point their fingers at the DPRK also. 9. It’s clear from the leaked data that Sony has a culture which doesn’t take security very seriously. From plaintext password files, to using “password” as the password in business critical certificates, through to just the shear volume of aging unclassified yet highly sensitive data left out in the open. This isn’t a simple slip-up or a “weak link in the chain” – this is a serious organization-wide failure to implement anything like a reasonable security architecture.

The reality is, as things stand, Sony has little choice but to burn everything down and start again. Every password, every key, every certificate is tainted now and that’s a terrifying place for an organization to find itself. This hack should be used as the definitive lesson in why security matters and just how bad things can get if you don’t take it seriously. 10. Who do I think is behind this? My money is on a disgruntled (possibly ex) employee of Sony.

EDIT: This appears (at least in part) to be substantiated by a conversation the Verge had with one of the alleged hackers – http://www.theverge.com/2014/11/25/7281097/sony-pictures-hackers-say-they-want-equality-worked-with-staff-to-break-in Finally for an EXCELLENT blow by blow analysis of the breach and the events that followed, read the following post by my friends from Risk Based Security – https://www.riskbasedsecurity.com/2014/12/a-breakdown-and-analysis-of-the-december-2014-sony-hack EDIT: Also make sure you read my good friend Krypt3ia’s post on the hack – http://krypt3ia.wordpress.com/2014/12/18/sony-hack-winners-and-losers/

Also revealed in today’s report is the number of times the government has queried the controversial phone records database it created by collecting the phone records of every subscriber from U.S. providers. According to the report, the government used 423 “selectors” to search its massive phone records database, which includes records going back to at least 2006 when the program began. A search involves querying a specific phone number or device ID that appears in the database. The government has long maintained that its collection of phone records isn’t a violation of its authority, since it only views the records of specific individuals targeted in an investigation. But such searches, even if targeted at phone numbers used by foreigners, would include calls made to and from Americans as well as calls exchanged with people two or three hops out from the targeted number.

In its report, the government indicated that the 423 selectors involved just 248 “known or presumed” Americans whose information was collected by the agency in the database. But Opsahl says that both of these numbers are deceptive given what we know about the database and how it’s been used. “We know it’s affecting millions of people,” he points out. But “then we have estimated numbers of affected people [that are just] in the three digits. That requires some effort [on the government's part] to find a way to do the definition of the number [in such a way] to make it as small as possible.”

One additional figure today’s report covers is the number of National Security Letters the government issued last year to businesses to obtain data on accountholders and users—19,212. NSLs are written demands from the FBI that compel internet service providers, credit companies, financial institutions and others to hand over confidential records about their customers, such as subscriber information, phone numbers and e-mail addresses, websites visited, and more. These letters are a powerful tool because they do not require court approval, and they come with a built-in gag order, preventing recipients from disclosing to anyone that they have received an NSL. An FBI agent looking into a possible anti-terrorism case can self-issue an NSL to a credit bureau, ISP, or phone company with only the sign-off of the Special Agent in Charge of their office. The FBI has merely to assert that the information is “relevant” to an investigation into international terrorism or clandestine intelligence activities.

The FBI has issued hundreds of thousands of NSLs over the years and has been reprimanded for abusing them. Last year a federal judge ruled that the use of NSLs is unconstitutional, due to the gag order that accompanies them, and ordered the government to stop using them. Her ruling, however, was stayed pending the government’s appeal.

According to the government’s report today, the 19,000 NSLs issued last year involved more than 38,000 requests for information.

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.

The agency notes in the document that it is storing large amounts of “passively tapped network traffic” for “days to months,” encompassing the contents of emails, attachments and other online activity. It adds that it stores some kinds of metadata — data showing who has contacted whom and when, but not the content of the message — for “months to years.” The document says that CSE has “excellent access to full take data” as part of its cyber operations and is receiving policy support on “use of intercepted private communications.” The term “full take” is surveillance-agency jargon that refers to the bulk collection of both content and metadata from Internet traffic. Another top-secret document on the surveillance dated from 2010 suggests the agency may be obtaining at least some of the data by covertly mining it directly from Canadian Internet cables. CSE notes in the document that it is “processing emails off the wire.”

That the New Zealand government engages in precisely the mass surveillance activities Key vehemently denied is now barely in dispute. Indeed, a former director of GCSB under Key, Sir Bruce Ferguson, while denying any abuse of New Zealander’s communications, now admits that the agency engages in mass surveillance.

Meanwhile, Russel Norman, the head of the country’s Green Party, said in response to these stories that New Zealand is “committing crimes” against its neighbors in the Pacific by subjecting them to mass surveillance, and insists that the Key government broke the law because that dragnet necessarily includes the communications of New Zealand citizens when they travel in the region.

So now that it’s proven that New Zealand does exactly that which Prime Minister Key vowed would cause him to resign if it were proven, is he preparing his resignation speech? No: that’s something a political official with a minimal amount of integrity would do. Instead — even as he now refuses to say what he has repeatedly said before: that GCSB does not engage in mass surveillance — he’s simply retracting his pledge as though it were a minor irritant, something to be casually tossed aside:

When asked late last week whether New Zealanders have a right to know what their government is doing in the realm of digital surveillance, the Prime Minister said: “as a general rule, no.” And he expressly refuses to say whether New Zealand is doing that which he swore repeatedly it was not doing, as this excellent interview from Radio New Zealand sets forth: Interviewer: “Nicky Hager’s revelations late last week . . . have stoked fears that New Zealanders’ communications are being indiscriminately caught in that net. . . . The Prime Minister, John Key, has in the past promised to resign if it were found to be mass surveillance of New Zealanders . . . Earlier, Mr. Key was unable to give me an assurance that mass collection of communications from New Zealanders in the Pacific was not taking place.” PM Key: “No, I can’t. I read the transcript [of former GCSB Director Bruce Ferguson’s interview] – I didn’t hear the interview – but I read the transcript, and you know, look, there’s a variety of interpretations – I’m not going to critique–”

Interviewer: “OK, I’m not asking for a critique. Let’s listen to what Bruce Ferguson did tell us on Friday:” Ferguson: “The whole method of surveillance these days, is sort of a mass collection situation – individualized: that is mission impossible.” Interviewer: “And he repeated that several times, using the analogy of a net which scoops up all the information. . . . I’m not asking for a critique with respect to him. Can you confirm whether he is right or wrong?” Key: “Uh, well I’m not going to go and critique the guy. And I’m not going to give a view of whether he’s right or wrong” . . . . Interviewer: “So is there mass collection of personal data of New Zealand citizens in the Pacific or not?” Key: “I’m just not going to comment on where we have particular targets, except to say that where we go and collect particular information, there is always a good reason for that.”

From “I will resign if it’s shown we engage in mass surveillance of New Zealanders” to “I won’t say if we’re doing it” and “I won’t quit either way despite my prior pledges.” Listen to the whole interview: both to see the type of adversarial questioning to which U.S. political leaders are so rarely subjected, but also to see just how obfuscating Key’s answers are. The history of reporting from the Snowden archive has been one of serial dishonesty from numerous governments: such as the way European officials at first pretended to be outraged victims of NSA only for it to be revealed that, in many ways, they are active collaborators in the very system they were denouncing. But, outside of the U.S. and U.K. itself, the Key government has easily been the most dishonest over the last 20 months: one of the most shocking stories I’ve seen during this time was how the Prime Minister simultaneously plotted in secret to exploit the 2013 proposed law to implement mass surveillance at exactly the same time that he persuaded the public to support it by explicitly insisting that it would not allow mass surveillance. But overtly reneging on a public pledge to resign is a new level of political scandal. Key was just re-elected for his third term, and like any political official who stays in power too long, he has the despot’s mentality that he’s beyond all ethical norms and constraints. But by the admission of his own former GCSB chief, he has now been caught red-handed doing exactly that which he swore to the public would cause him to resign if it were proven. If nothing else, the New Zealand media ought to treat that public deception from its highest political official with the level of seriousness it deserves.

"The presumption of openness requires the presumption of posting," said Archive director Tom Blanton. "For the new generation, if it's not online, it does not exist." The National Security Archive has conducted fourteen FOIA Audits since 2002. Modeled after the California Sunshine Survey and subsequent state "FOI Audits," the Archive's FOIA Audits use open-government laws to test whether or not agencies are obeying those same laws. Recommendations from previous Archive FOIA Audits have led directly to laws and executive orders which have: set explicit customer service guidelines, mandated FOIA backlog reduction, assigned individualized FOIA tracking numbers, forced agencies to report the average number of days needed to process requests, and revealed the (often embarrassing) ages of the oldest pending FOIA requests. The surveys include:

The federal government has made some progress moving into the digital era. The National Security Archive's last E-FOIA Audit in 2007, " File Not Found," reported that only one in five federal agencies had put online all of the specific requirements mentioned in the E-FOIA amendments, such as guidance on making requests, contact information, and processing regulations. The new E-FOIA Audit finds the number of agencies that have checked those boxes is now much higher — 100 out of 165 — though many (66 in 165) have posted just the bare minimum, especially when posting FOIA responses. An additional 33 agencies even now do not post these types of records at all, clearly thwarting the law's intent.

The FOIAonline Members (Department of Commerce, Environmental Protection Agency, Federal Labor Relations Authority, Merit Systems Protection Board, National Archives and Records Administration, Pension Benefit Guaranty Corporation, Department of the Navy, General Services Administration, Small Business Administration, U.S. Citizenship and Immigration Services, and Federal Communications Commission) won their "E-Star" by making past requests and releases searchable via FOIAonline. FOIAonline also allows users to submit their FOIA requests digitally.

THE E-DELINQUENTS: WORST OVERALL AGENCIES In alphabetical order

Key Findings

Excuses Agencies Give for Poor E-Performance

Justice Department guidance undermines the statute. Currently, the FOIA stipulates that documents "likely to become the subject of subsequent requests" must be posted by agencies somewhere in their electronic reading rooms. The Department of Justice's Office of Information Policy defines these records as "frequently requested records… or those which have been released three or more times to FOIA requesters." Of course, it is time-consuming for agencies to develop a system that keeps track of how often a record has been released, which is in part why agencies rarely do so and are often in breach of the law. Troublingly, both the current House and Senate FOIA bills include language that codifies the instructions from the Department of Justice. The National Security Archive believes the addition of this "three or more times" language actually harms the intent of the Freedom of Information Act as it will give agencies an easy excuse ("not requested three times yet!") not to proactively post documents that agency FOIA offices have already spent time, money, and energy processing. We have formally suggested alternate language requiring that agencies generally post "all records, regardless of form or format that have been released in response to a FOIA request."

Disabilities Compliance. Despite the E-FOIA Act, many government agencies do not embrace the idea of posting their FOIA responses online. The most common reason agencies give is that it is difficult to post documents in a format that complies with the Americans with Disabilities Act, also referred to as being "508 compliant," and the 1998 Amendments to the Rehabilitation Act that require federal agencies "to make their electronic and information technology (EIT) accessible to people with disabilities." E-Star agencies, however, have proven that 508 compliance is no barrier when the agency has a will to post. All documents posted on FOIAonline are 508 compliant, as are the documents posted by the Department of Defense and the Department of State. In fact, every document created electronically by the US government after 1998 should already be 508 compliant. Even old paper records that are scanned to be processed through FOIA can be made 508 compliant with just a few clicks in Adobe Acrobat, according to this Department of Homeland Security guide (essentially OCRing the text, and including information about where non-textual fields appear). Even if agencies are insistent it is too difficult to OCR older documents that were scanned from paper, they cannot use that excuse with digital records.

Privacy. Another commonly articulated concern about posting FOIA releases online is that doing so could inadvertently disclose private information from "first person" FOIA requests. This is a valid concern, and this subset of FOIA requests should not be posted online. (The Justice Department identified "first party" requester rights in 1989. Essentially agencies cannot use the b(6) privacy exemption to redact information if a person requests it for him or herself. An example of a "first person" FOIA would be a person's request for his own immigration file.) Cost and Waste of Resources. There is also a belief that there is little public interest in the majority of FOIA requests processed, and hence it is a waste of resources to post them. This thinking runs counter to the governing principle of the Freedom of Information Act: that government information belongs to US citizens, not US agencies. As such, the reason that a person requests information is immaterial as the agency processes the request; the "interest factor" of a document should also be immaterial when an agency is required to post it online. Some think that posting FOIA releases online is not cost effective. In fact, the opposite is true. It's not cost effective to spend tens (or hundreds) of person hours to search for, review, and redact FOIA requests only to mail it to the requester and have them slip it into their desk drawer and forget about it. That is a waste of resources. The released document should be posted online for any interested party to utilize. This will only become easier as FOIA processing systems evolve to automatically post the documents they track. The State Department earned its "E-Star" status demonstrating this very principle, and spent no new funds and did not hire contractors to build its Electronic Reading Room, instead it built a self-sustaining platform that will save the agency time and money going forward.

Among the programs said to have been operating were Turbine, which automates the injection of data and can infect millions of machines and Warrior Pride, which enables microphones on iPhones and Android devices to be remotely activated.

According to one secret GCHQ slide, the British intelligence agency penetrated Gemalto’s internal networks, planting malware on several computers, giving GCHQ secret access. We “believe we have their entire network,” the slide’s author boasted about the operation against Gemalto. Additionally, the spy agency targeted unnamed cellular companies’ core networks, giving it access to “sales staff machines for customer information and network engineers machines for network maps.” GCHQ also claimed the ability to manipulate the billing servers of cell companies to “suppress” charges in an effort to conceal the spy agency’s secret actions against an individual’s phone. Most significantly, GCHQ also penetrated “authentication servers,” allowing it to decrypt data and voice communications between a targeted individual’s phone and his or her telecom provider’s network. A note accompanying the slide asserted that the spy agency was “very happy with the data so far and [was] working through the vast quantity of product.”

The U.S. and British intelligence agencies pulled off the encryption key heist in great stealth, giving them the ability to intercept and decrypt communications without alerting the wireless network provider, the foreign government or the individual user that they have been targeted. “Gaining access to a database of keys is pretty much game over for cellular encryption,” says Matthew Green, a cryptography specialist at the Johns Hopkins Information Security Institute. The massive key theft is “bad news for phone security. Really bad news.”

Despite growing opposition in some quarters to ending the NSA’s program, a “clean” authorization — one that would enable its continuation without any changes — is unlikely, lawmakers from both parties say. Sen. Ron Wyden (D-Ore.), a leading opponent of the NSA’s program in its current format, said he would be “surprised if there are 60 votes” in the Senate for that. In the House, where there is bipartisan support for reining in surveillance, it’s a longer shot still. “It’s a toxic vote back in your district to reauthorize the Patriot Act, if you don’t get some reforms” with it, said Rep. Thomas Massie (R-Ky.). The House last fall passed the USA Freedom Act, which would have ended the NSA program, but the Senate failed to advance its own version.The House and Senate judiciary committees are working to come up with new bipartisan legislation to be introduced soon.

The tech firms and privacy groups’ demands are a baseline, they say. Besides ending bulk collection, they want companies to have the right to be more transparent in reporting on national security requests and greater declassification of opinions by the Foreign Intelligence Surveillance Court.

Some legal experts have pointed to a little-noticed clause in the Patriot Act that would appear to allow bulk collection to continue even if the authority is not renewed. Administration officials have conceded privately that a legal case probably could be made for that, but politically it would be a tough sell. On Tuesday, a White House spokesman indicated the administration would not seek to exploit that clause. “If Section 215 sunsets, we will not continue the bulk telephony metadata program,” National Security Council spokesman Edward Price said in a statement first reported by Reuters. Price added that allowing Section 215 to expire would result in the loss of a “critical national security tool” used in investigations that do not involve the bulk collection of data. “That is why we have underscored the imperative of Congressional action in the coming weeks, and we welcome the opportunity to work with lawmakers on such legislation,” he said.