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Paul Merrell

Apple's New Challenge: Learning How the U.S. Cracked Its iPhone - The New York Times - 0 views

  • Now that the United States government has cracked open an iPhone that belonged to a gunman in the San Bernardino, Calif., mass shooting without Apple’s help, the tech company is under pressure to find and fix the flaw.But unlike other cases where security vulnerabilities have cropped up, Apple may face a higher set of hurdles in ferreting out and repairing the particular iPhone hole that the government hacked.The challenges start with the lack of information about the method that the law enforcement authorities, with the aid of a third party, used to break into the iPhone of Syed Rizwan Farook, an attacker in the San Bernardino rampage last year. Federal officials have refused to identify the person, or organization, who helped crack the device, and have declined to specify the procedure used to open the iPhone. Apple also cannot obtain the device to reverse-engineer the problem, the way it would in other hacking situations.
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    It would make a very interesting Freedom of Information Act case if Apple sued under that Act to force disclosure of the security hole iPhone product defect the FBI exploited. I know of no interpretation of the law enforcement FOIA exemption that would justify FBI disclosure of the information. It might be alleged that the information is the trade secret of the company that disclosed the defect and exploit to the the FBI, but there's a very strong argument that the fact that the information was shared with the FBI waived the trade secrecy claim. And the notion that government is entitled to collect product security defects and exploit them without informing the exploited product's company of the specific defect is extremely weak.  Were I Tim Cook, I would have already told my lawyers to get cracking on filing the FOIA request with the FBI to get the legal ball rolling. 
Paul Merrell

European Lawmakers Demand Answers on Phone Key Theft - The Intercept - 0 views

  • European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”
  • “If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.
  • According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.
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  • While Gemalto was indeed another casualty in Western governments’ sweeping effort to gather as much global intelligence advantage as possible, the leaked documents make clear that the company was specifically targeted. According to the materials published Thursday, GCHQ used a specific codename — DAPINO GAMMA — to refer to the operations against Gemalto. The spies also actively penetrated the email and social media accounts of Gemalto employees across the world in an effort to steal the company’s encryption keys. Evidence of the Gemalto breach rattled the digital security community. “Almost everyone in the world carries cell phones and this is an unprecedented mass attack on the privacy of citizens worldwide,” said Greg Nojeim, senior counsel at the Center for Democracy & Technology, a non-profit that advocates for digital privacy and free online expression. “While there is certainly value in targeted surveillance of cell phone communications, this coordinated subversion of the trusted technical security infrastructure of cell phones means the US and British governments now have easy access to our mobile communications.”
  • For Gemalto, evidence that their vaunted security systems and the privacy of customers had been compromised by the world’s top spy agencies made an immediate financial impact. The company’s shares took a dive on the Paris bourse Friday, falling $500 million. In the U.S., Gemalto’s shares fell as much 10 percent Friday morning. They had recovered somewhat — down 4 percent — by the close of trading on the Euronext stock exchange. Analysts at Dutch financial services company Rabobank speculated in a research note that Gemalto could be forced to recall “a large number” of SIM cards. The French daily L’Express noted today that Gemalto board member Alex Mandl was a founding trustee of the CIA-funded venture capital firm In-Q-Tel. Mandl resigned from In-Q-Tel’s board in 2002, when he was appointed CEO of Gemplus, which later merged with another company to become Gemalto. But the CIA connection still dogged Mandl, with the French press regularly insinuating that American spies could infiltrate the company. In 2003, a group of French lawmakers tried unsuccessfully to create a commission to investigate Gemplus’s ties to the CIA and its implications for the security of SIM cards. Mandl, an Austrian-American businessman who was once a top executive at AT&T, has denied that he had any relationship with the CIA beyond In-Q-Tel. In 2002, he said he did not even have a security clearance.
  • AT&T, T-Mobile and Verizon could not be reached for comment Friday. Sprint declined to comment. Vodafone, the world’s second largest telecom provider by subscribers and a customer of Gemalto, said in a statement, “[W]e have no further details of these allegations which are industrywide in nature and are not focused on any one mobile operator. We will support industry bodies and Gemalto in their investigations.” Deutsche Telekom AG, a German company, said it has changed encryption algorithms in its Gemalto SIM cards. “We currently have no knowledge that this additional protection mechanism has been compromised,” the company said in a statement. “However, we cannot rule out this completely.”
  • Update: Asked about the SIM card heist, White House press secretary Josh Earnest said he did not expect the news would hurt relations with the tech industry: “It’s hard for me to imagine that there are a lot of technology executives that are out there that are in a position of saying that they hope that people who wish harm to this country will be able to use their technology to do so. So, I do think in fact that there are opportunities for the private sector and the federal government to coordinate and to cooperate on these efforts, both to keep the country safe, but also to protect our civil liberties.”
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    Watch for massive class action product defect litigation to be filed against the phone companies.and mobile device manufacturers.  In most U.S. jurisdictions, proof that the vendors/manufacturers  knew of the product defect is not required, only proof of the defect. Also, this is a golden opportunity for anyone who wants to get out of a pricey cellphone contract, since providing a compromised cellphone is a material breach of warranty, whether explicit or implied..   
Gonzalo San Gil, PhD.

Parallel Conduct: How ISPs Make The Consolidated Internet Service Market Even Worse | T... - 0 views

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    "These companies don't have to agree in writing to carry this out or even raise their prices; they can simply, within their separate geographic and product territories, bundle and tie their services, buy up inputs that a competitor might need, and refuse to connect to competitors - among many other potential tactics. It's in their interest for these local monopolists to cooperate, because any defection would make the whole system crumble."
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    "These companies don't have to agree in writing to carry this out or even raise their prices; they can simply, within their separate geographic and product territories, bundle and tie their services, buy up inputs that a competitor might need, and refuse to connect to competitors - among many other potential tactics. It's in their interest for these local monopolists to cooperate, because any defection would make the whole system crumble."
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    "These companies don't have to agree in writing to carry this out or even raise their prices; they can simply, within their separate geographic and product territories, bundle and tie their services, buy up inputs that a competitor might need, and refuse to connect to competitors - among many other potential tactics. It's in their interest for these local monopolists to cooperate, because any defection would make the whole system crumble."
Paul Merrell

FBI's secret method of unlocking iPhone may never reach Apple | Reuters - 0 views

  • The FBI may be allowed to withhold information about how it broke into an iPhone belonging to a gunman in the December San Bernardino shootings, despite a U.S. government policy of disclosing technology security flaws discovered by federal agencies. Under the U.S. vulnerabilities equities process, the government is supposed to err in favor of disclosing security issues so companies can devise fixes to protect data. The policy has exceptions for law enforcement, and there are no hard rules about when and how it must be applied.Apple Inc has said it would like the government to share how it cracked the iPhone security protections. But the Federal Bureau of Investigation, which has been frustrated by its inability to access data on encrypted phones belonging to criminal suspects, might prefer to keep secret the technique it used to gain access to gunman Syed Farook's phone. The referee is likely to be a White House group formed during the Obama administration to review computer security flaws discovered by federal agencies and decide whether they should be disclosed.
  • Stewart Baker, former general counsel of the NSA and now a lawyer with Steptoe & Johnson, said the review process could be complicated if the cracking method is considered proprietary by the third party that assisted the FBI.Several security researchers have pointed to the Israel-based mobile forensics firm Cellebrite as the likely third party that helped the FBI. That company has repeatedly declined comment.
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    The article is wide of the mark, based on analysis of Executive Branch policy rather than the governing law such as the Freedom of Information Act. And I still find it somewhat ludicrous that a third party with knowledge of the defect could succeed in convincing a court that knowledge of a defect in a company's product is trade-secret proprietary information. "Your honor, my client has discovered a way to break into Mr. Tim Cook's house without a key to his house. That is a valuable trade secret that this Court must keep Mr. Cook from learning." Pow! The Computer Fraud and Abuse Act makes it a crime to access a computer that can connect to the Internet by exploiting a software bug. 
Paul Merrell

CPSC files lawsuit against Amazon to force it to recall dangerous products, including f... - 1 views

  • Federal safety regulators filed a lawsuit against Amazon on Wednesday that accuses the retail giant of refusing to recognize regulators’ authority to force the company to recall defective and unsafe products, setting up a fight over how much responsibility Amazon should take for the products it sells on its website.Support our journalism. Subscribe today.arrow-rightThe action by the Consumer Product Safety Commission comes after months of behind-the-scenes negotiations between regulators and Amazon as the agency tried to persuade the company to follow the CPSC’s rules for getting dangerous products off the market, according to a senior agency official who spoke on the condition of anonymity to comment on internal discussions.The official said Amazon officials refused to acknowledge that the CPSC has the authority to compel the company to remove unsafe products.A lawsuit was viewed as a last resort, the official added.
Paul Merrell

Internet Giants Erect Barriers to Spy Agencies - NYTimes.com - 0 views

  • As fast as it can, Google is sealing up cracks in its systems that Edward J. Snowden revealed the N.S.A. had brilliantly exploited. It is encrypting more data as it moves among its servers and helping customers encode their own emails. Facebook, Microsoft and Yahoo are taking similar steps.
  • After years of cooperating with the government, the immediate goal now is to thwart Washington — as well as Beijing and Moscow. The strategy is also intended to preserve business overseas in places like Brazil and Germany that have threatened to entrust data only to local providers. Google, for example, is laying its own fiber optic cable under the world’s oceans, a project that began as an effort to cut costs and extend its influence, but now has an added purpose: to assure that the company will have more control over the movement of its customer data.
  • A year after Mr. Snowden’s revelations, the era of quiet cooperation is over. Telecommunications companies say they are denying requests to volunteer data not covered by existing law. A.T.&T., Verizon and others say that compared with a year ago, they are far more reluctant to cooperate with the United States government in “gray areas” where there is no explicit requirement for a legal warrant.
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  • Eric Grosse, Google’s security chief, suggested in an interview that the N.S.A.'s own behavior invited the new arms race.“I am willing to help on the purely defensive side of things,” he said, referring to Washington’s efforts to enlist Silicon Valley in cybersecurity efforts. “But signals intercept is totally off the table,” he said, referring to national intelligence gathering.“No hard feelings, but my job is to make their job hard,” he added.
  • In Washington, officials acknowledge that covert programs are now far harder to execute because American technology companies, fearful of losing international business, are hardening their networks and saying no to requests for the kind of help they once quietly provided.Continue reading the main story Robert S. Litt, the general counsel of the Office of the Director of National Intelligence, which oversees all 17 American spy agencies, said on Wednesday that it was “an unquestionable loss for our nation that companies are losing the willingness to cooperate legally and voluntarily” with American spy agencies.
  • Many point to an episode in 2012, when Russian security researchers uncovered a state espionage tool, Flame, on Iranian computers. Flame, like the Stuxnet worm, is believed to have been produced at least in part by American intelligence agencies. It was created by exploiting a previously unknown flaw in Microsoft’s operating systems. Companies argue that others could have later taken advantage of this defect.Worried that such an episode undercuts confidence in its wares, Microsoft is now fully encrypting all its products, including Hotmail and Outlook.com, by the end of this year with 2,048-bit encryption, a stronger protection that would take a government far longer to crack. The software is protected by encryption both when it is in data centers and when data is being sent over the Internet, said Bradford L. Smith, the company’s general counsel.
  • Mr. Smith also said the company was setting up “transparency centers” abroad so that technical experts of foreign governments could come in and inspect Microsoft’s proprietary source code. That will allow foreign governments to check to make sure there are no “back doors” that would permit snooping by United States intelligence agencies. The first such center is being set up in Brussels.Microsoft has also pushed back harder in court. In a Seattle case, the government issued a “national security letter” to compel Microsoft to turn over data about a customer, along with a gag order to prevent Microsoft from telling the customer it had been compelled to provide its communications to government officials. Microsoft challenged the gag order as violating the First Amendment. The government backed down.
  • Hardware firms like Cisco, which makes routers and switches, have found their products a frequent subject of Mr. Snowden’s disclosures, and their business has declined steadily in places like Asia, Brazil and Europe over the last year. The company is still struggling to convince foreign customers that their networks are safe from hackers — and free of “back doors” installed by the N.S.A. The frustration, companies here say, is that it is nearly impossible to prove that their systems are N.S.A.-proof.
  • In one slide from the disclosures, N.S.A. analysts pointed to a sweet spot inside Google’s data centers, where they could catch traffic in unencrypted form. Next to a quickly drawn smiley face, an N.S.A. analyst, referring to an acronym for a common layer of protection, had noted, “SSL added and removed here!”
  • Facebook and Yahoo have also been encrypting traffic among their internal servers. And Facebook, Google and Microsoft have been moving to more strongly encrypt consumer traffic with so-called Perfect Forward Secrecy, specifically devised to make it more labor intensive for the N.S.A. or anyone to read stored encrypted communications.One of the biggest indirect consequences from the Snowden revelations, technology executives say, has been the surge in demands from foreign governments that saw what kind of access to user information the N.S.A. received — voluntarily or surreptitiously. Now they want the same.
  • The latest move in the war between intelligence agencies and technology companies arrived this week, in the form of a new Google encryption tool. The company released a user-friendly, email encryption method to replace the clunky and often mistake-prone encryption schemes the N.S.A. has readily exploited.But the best part of the tool was buried in Google’s code, which included a jab at the N.S.A.'s smiley-face slide. The code included the phrase: “ssl-added-and-removed-here-; - )”
Paul Merrell

Save Firefox! | Electronic Frontier Foundation - 0 views

  • The World Wide Web Consortium (W3C), once the force for open standards that kept browsers from locking publishers to their proprietary capabilities, has changed its mission. Since 2013, the organization has provided a forum where today's dominant browser companies and the dominant entertainment companies can collaborate on a system to let our browsers control our behavior, rather than the other way. This system, "Encrypted Media Extensions" (EME) uses standards-defined code to funnel video into a proprietary container called a "Content Decryption Module." For a new browser to support this new video streaming standard -- which major studios and cable operators are pushing for -- it would have to convince those entertainment companies or one of their partners to let them have a CDM, or this part of the "open" Web would not display in their new browser. This is the opposite of every W3C standard to date: once, all you needed to do to render content sent by a server was follow the standard, not get permission. If browsers had needed permission to render a page at the launch of Mozilla, the publishers would have frozen out this new, pop-up-blocking upstart. Kiss Firefox goodbye, in other words.
  • The W3C didn't have to do this. No copyright law says that making a video gives you the right to tell people who legally watch it how they must configure their equipment. But because of the design of EME, copyright holders will be able to use the law to shut down any new browser that tries to render the video without their permission. That's because EME is designed to trigger liability under section 1201 of the Digital Millennium Copyright Act (DMCA), which says that removing a digital lock that controls access to a copyrighted work without permission is an offense, even if the person removing the lock has the right to the content it restricts. In other words, once a video is sent with EME, a new company that unlocks it for its users can be sued, even if the users do nothing illegal with that video. We proposed that the W3C could protect new browsers by making their members promise not to use the DMCA to attack new entrants in the market, an idea supported by a diverse group of W3C members, but the W3C executive overruled us saying the work would go forward with no safeguards for future competition. It's even worse than at first glance. The DMCA isn't limited to the USA: the US Trade Representative has spread DMCA-like rules to virtually every country that does business with America. Worse still: the DMCA is also routinely used by companies to threaten and silence security researchers who reveal embarrassing defects in their products. The W3C also declined to require its members to protect security researchers who discover flaws in EME, leaving every Web user vulnerable to vulnerabilities whose disclosure can only safely take place if the affected company decides to permit it.
  • The W3C needs credibility with people who care about the open Web and innovation in order to be viable. They are sensitive to this kind of criticism. We empathize. There are lots of good people working there, people who genuinely, passionately want the Web to stay open to everyone, and to be safe for its users. But the organization made a terrible decision when it opted to provide a home for EME, and an even worse one when it overruled its own members and declined protection for security research and new competitors. It needs to hear from you now. Please share this post, and spread the word. Help the W3C be the organization it is meant to be.
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