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British and Canadian spy agencies accumulated sensitive data on smartphone users, including location, app preferences, and unique device identifiers, by piggybacking on ubiquitous software from advertising and analytics companies, according to a document obtained by NSA whistleblower Edward Snowden. The document, included in a trove of Snowden material released by Der Spiegel on January 17, outlines a secret program run by the intelligence agencies called BADASS. The German newsweekly did not write about the BADASS document, attaching it to a broader article on cyberwarfare. According to The Intercept‘s analysis of the document, intelligence agents applied BADASS software filters to streams of intercepted internet traffic, plucking from that traffic unencrypted uploads from smartphones to servers run by advertising and analytics companies.

Programmers frequently embed code from a handful of such companies into their smartphone apps because it helps them answer a variety of questions: How often does a particular user open the app, and at what time of day? Where does the user live? Where does the user work? Where is the user right now? What’s the phone’s unique identifier? What version of Android or iOS is the device running? What’s the user’s IP address? Answers to those questions guide app upgrades and help target advertisements, benefits that help explain why tracking users is not only routine in the tech industry but also considered a best practice. For users, however, the smartphone data routinely provided to ad and analytics companies represents a major privacy threat. When combined together, the information fragments can be used to identify specific users, and when concentrated in the hands of a small number of companies, they have proven to be irresistibly convenient targets for those engaged in mass surveillance. Although the BADASS presentation appears to be roughly four years old, at least one player in the mobile advertising and analytics space, Google, acknowledges that its servers still routinely receive unencrypted uploads from Google code embedded in apps.

Director of National Intelligence James Clapper this morning released a report detailing new rules aimed at reforming the way signals intelligence is collected and stored by certain members of the United States Intelligence Community (IC). The long-awaited changes follow up on an order announced by President Obama one year ago that laid out the White House’s principles governing the collection of signals intelligence. That order, commonly known as PPD-28, purports to place limits on the use of data collected in bulk and to increase privacy protections related to the data collected, regardless of nationality. Accordingly, most of the changes presented as “new” by Clapper’s office  (ODNI) stem directly from the guidance provided in PPD-28, and so aren’t truly new. And of the biggest changes outlined in the report, there are still large exceptions that appear to allow the government to escape the restrictions with relative ease. Here’s a quick rundown.

National security letters (NSLs). The report also states that the FBI’s gag orders related to NSLs expire three years after the opening of a full-blown investigation or three years after an investigation’s close, whichever is earlier. However, these expiration dates can be easily overridden by by an FBI Special Agent in Charge or a Deputy Assistant FBI Director who finds that the statutory standards for secrecy about the NSL continue to be satisfied (which at least one court has said isn’t a very high bar). This exception also doesn’t address concerns that NSL gag orders lack adequate due process protections, lack basic judicial oversight, and may violate the First Amendment.

Retention policy for non-U.S. persons. The new rules say that the IC must now delete information about “non-U.S. persons” that’s been gathered via signals intelligence after five-years. However, there is a loophole that will let spies hold onto that information indefinitely whenever the Director of National Intelligence determines (after considering the views of the ODNI’s Civil Liberties Protection Officer) that retaining information is in the interest of national security. The new rules don’t say whether the exceptions will be directed at entire groups of people or individual surveillance targets.  Section 215 metadata. Updates to the rules concerning the use of data collected under Section 215 of the Patriot Act includes the requirement that the Foreign Intelligence Surveillance Court (rather than authorized NSA officials) must determine spies have “reasonable, articulable suspicion” prior to query Section 215 data, outside of emergency circumstances. What qualifies as an emergency for these purposes? We don’t know. Additionally, the IC is now limited to two “hops” in querying the database. This means that spies can only play two degrees of Kevin Bacon, instead of the previously allowed three degrees, with the contacts of anyone targeted under Section 215. The report doesn’t explain what would prevent the NSA (or other agency using the 215 databases) from getting around this limit by redesignating a phone number found in the first or second hop as a new “target,” thereby allowing the agency to continue the contact chain.

Alleged leaked documents about the NSA's XKeyscore snooping software appear to show the paranoid agency is targeting Tor and Tails users, Linux Journal readers – and anyone else interested in online privacy.Apparently, this configuration file for XKeyscore is in the divulged data, which was obtained and studied by members of the Tor project and security specialists for German broadcasters NDR and WDR. <a href="http://pubads.g.doubleclick.net/gampad/jump?iu=/6978/reg_security/front&sz=300x250%7C300x600&tile=3&c=33U7ZK6qwQrMkAACSrTugAAAP1&t=ct%3Dns%26unitnum%3D3%26unitname%3Dwww_top_mpu%26pos%3Dtop%26test%3D0" target="_blank"> <img src="http://pubads.g.doubleclick.net/gampad/ad?iu=/6978/reg_security/front&sz=300x250%7C300x600&tile=3&c=33U7ZK6qwQrMkAACSrTugAAAP1&t=ct%3Dns%26unitnum%3D3%26unitname%3Dwww_top_mpu%26pos%3Dtop%26test%3D0" alt=""></a> In their analysis of the alleged top-secret documents, they claim the NSA is, among other things:Specifically targeting Tor directory servers Reading email contents for mentions of Tor bridges Logging IP addresses used to search for privacy-focused websites and software And possibly breaking international law in doing so. We already know from leaked Snowden documents that Western intelligence agents hate Tor for its anonymizing abilities. But what the aforementioned leaked source code, written in a rather strange custom language, shows is that not only is the NSA targeting the anonymizing network Tor specifically, it is also taking digital fingerprints of any netizens who are remotely interested in privacy.

These include readers of the Linux Journal site, anyone visiting the website for the Tor-powered Linux operating system Tails – described by the NSA as "a comsec mechanism advocated by extremists on extremist forums" – and anyone looking into combining Tails with the encryption tool Truecrypt.If something as innocuous as Linux Journal is on the NSA's hit list, it's a distinct possibility that El Reg is too, particularly in light of our recent exclusive report on GCHQ – which led to a Ministry of Defence advisor coming round our London office for a chat.

If you take even the slightest interest in online privacy or have Googled a Linux Journal article about a broken package, you are earmarked in an NSA database for further surveillance, according to these latest leaks.This is assuming the leaked file is genuine, of course.Other monitored sites, we're told, include HotSpotShield, FreeNet, Centurian, FreeProxies.org, MegaProxy, privacy.li and an anonymous email service called MixMinion. The IP address of computer users even looking at these sites is recorded and stored on the NSA's servers for further analysis, and it's up to the agency how long it keeps that data.The XKeyscore code, we're told, includes microplugins that target Tor servers in Germany, at MIT in the United States, in Sweden, in Austria, and in the Netherlands. In doing so it may not only fall foul of German law but also the US's Fourth Amendment.

Verizon users might want to start looking for another provider. In an effort to better serve advertisers, Verizon Wireless has been silently modifying its users' web traffic on its network to inject a cookie-like tracker. This tracker, included in an HTTP header called X-UIDH, is sent to every unencrypted website a Verizon customer visits from a mobile device. It allows third-party advertisers and websites to assemble a deep, permanent profile of visitors' web browsing habits without their consent.Verizon apparently created this mechanism to expand their advertising programs, but it has privacy implications far beyond those programs. Indeed, while we're concerned about Verizon's own use of the header, we're even more worried about what it allows others to find out about Verizon users. The X-UIDH header effectively reinvents the cookie, but does so in a way that is shockingly insecure and dangerous to your privacy. Worse still, Verizon doesn't let users turn off this "feature." In fact, it functions even if you use a private browsing mode or clear your cookies. You can test whether the header is injected in your traffic by visiting lessonslearned.org/sniff or amibeingtracked.com over a cell data connection.How X-UIDH Works, and Why It's a Problem

To compound the problem, the header also affects more than just web browsers. Mobile apps that send HTTP requests will also have the header inserted. This means that users' behavior in apps can be correlated with their behavior on the web, which would be difficult or impossible without the header. Verizon describes this as a key benefit of using their system. But Verizon bypasses the 'Limit Ad Tracking' settings in iOS and Android that are specifically intended to limit abuse of unique identifiers by mobile apps.

Because the header is injected at the network level, Verizon can add it to anyone using their towers, even those who aren't Verizon customers.

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.

The first (and thus far only) roll-back of post-9/11 surveillance authorities was implemented over the weekend: The National Security Agency shuttered its program for collecting and holding the metadata of Americans’ phone calls under Section 215 of the Patriot Act. While bulk collection under Section 215 has ended, the government can obtain access to this information under the procedures specified in the USA Freedom Act. Indeed, some experts have argued that the Agency likely has access to more metadata because its earlier dragnet didn’t cover cell phones or Internet calling. In addition, the metadata of calls made by an individual in the United States to someone overseas and vice versa can still be collected in bulk — this takes place abroad under Executive Order 12333. No doubt the NSA wishes that this was the end of the surveillance reform story and the Paris attacks initially gave them an opening. John Brennan, the Director of the CIA, implied that the attacks were somehow related to “hand wringing” about spying and Sen. Tom Cotton (R-Ark.) introduced a bill to delay the shut down of the 215 program. Opponents of encryption were quick to say: “I told you so.”

But the facts that have emerged thus far tell a different story. It appears that much of the planning took place IRL (that’s “in real life” for those of you who don’t have teenagers). The attackers, several of whom were on law enforcement’s radar, communicated openly over the Internet. If France ever has a 9/11 Commission-type inquiry, it could well conclude that the Paris attacks were a failure of the intelligence agencies rather than a failure of intelligence authorities. Despite the passage of the USA Freedom Act, US surveillance authorities have remained largely intact. Section 702 of the FISA Amendments Act — which is the basis of programs like PRISM and the NSA’s Upstream collection of information from Internet cables — sunsets in the summer of 2017. While it’s difficult to predict the political environment that far out, meaningful reform of Section 702 faces significant obstacles. Unlike the Section 215 program, which was clearly aimed at Americans, Section 702 is supposedly targeted at foreigners and only picks up information about Americans “incidentally.” The NSA has refused to provide an estimate of how many Americans’ information it collects under Section 702, despite repeated requests from lawmakers and most recently a large cohort of advocates. The Section 215 program was held illegal by two federal courts (here and here), but civil attempts to challenge Section 702 have run into standing barriers. Finally, while two review panels concluded that the Section 215 program provided little counterterrorism benefit (here and here), they found that the Section 702 program had been useful.

There is, nonetheless, some pressure to narrow the reach of Section 702. The recent decision by the European Court of Justice in the safe harbor case suggests that data flows between Europe and the US may be restricted unless the PRISM program is modified to protect the information of Europeans (see here, here, and here for discussion of the decision and reform options). Pressure from Internet companies whose business is suffering — estimates run to the tune of $35 to 180 billion — as a result of disclosures about NSA spying may also nudge lawmakers towards reform. One of the courts currently considering criminal cases which rely on evidence derived from Section 702 surveillance may hold the program unconstitutional either on the basis of the Fourth Amendment or Article III for the reasons set out in this Brennan Center report. A federal district court in Colorado recently rejected such a challenge, although as explained in Steve’s post, the decision did not seriously explore the issues. Further litigation in the European courts too could have an impact on the debate.

Until just last week, the U.S. government kept up the charade that its use of a stockpile of security vulnerabilities for hacking was a closely held secret.1 In fact, in response to EFF’s FOIA suit to get access to the official U.S. policy on zero days, the government redacted every single reference to “offensive” use of vulnerabilities. To add insult to injury, the government’s claim was that even admitting to offensive use would cause damage to national security. Now, in the face of EFF’s brief marshaling overwhelming evidence to the contrary, the charade is over. In response to EFF’s motion for summary judgment, the government has disclosed a new version of the Vulnerabilities Equities Process, minus many of the worst redactions. First and foremost, it now admits that the “discovery of vulnerabilities in commercial information technology may present competing ‘equities’ for the [government’s] offensive and defensive mission.” That might seem painfully obvious—a flaw or backdoor in a Juniper router is dangerous for anyone running a network, whether that network is in the U.S. or Iran. But the government’s failure to adequately weigh these “competing equities” was so severe that in 2013 a group of experts appointed by President Obama recommended that the policy favor disclosure “in almost all instances for widely used code.” [.pdf].

The newly disclosed version of the Vulnerabilities Equities Process (VEP) also officially confirms what everyone already knew: the use of zero days isn’t confined to the spies. Rather, the policy states that the “law enforcement community may want to use information pertaining to a vulnerability for similar offensive or defensive purposes but for the ultimate end of law enforcement.” Similarly it explains that “counterintelligence equities can be defensive, offensive, and/or law enforcement-related” and may “also have prosecutorial responsibilities.” Given that the government is currently prosecuting users for committing crimes over Tor hidden services, and that it identified these individuals using vulnerabilities called a “Network Investigative Technique”, this too doesn’t exactly come as a shocker. Just a few weeks ago, the government swore that even acknowledging the mere fact that it uses vulnerabilities offensively “could be expected to cause serious damage to the national security.” That’s a standard move in FOIA cases involving classified information, even though the government unnecessarily classifies documents at an astounding rate. In this case, the government relented only after nearly a year and a half of litigation by EFF. The government would be well advised to stop relying on such weak secrecy claims—it only risks undermining its own credibility.

The new version of the VEP also reveals significantly more information about the general process the government follows when a vulnerability is identified. In a nutshell, an agency that discovers a zero day is responsible for invoking the VEP, which then provides for centralized coordination and weighing of equities among all affected agencies. Along with a declaration from an official at the Office of the Director of National Intelligence, this new information provides more background on the reasons why the government decided to develop an overarching zero day policy in the first place: it “recognized that not all organizations see the entire picture of vulnerabilities, and each organization may have its own equities and concerns regarding the prioritization of patches and fixes, as well as its own distinct mission obligations.” We now know the VEP was finalized in February 2010, but the government apparently failed to implement it in any substantial way, prompting the presidential review group’s recommendation to prioritize disclosure over offensive hacking. We’re glad to have forced a little more transparency on this important issue, but the government is still foolishly holding on to a few last redactions, including refusing to name which agencies participate in the VEP. That’s just not supportable, and we’ll be in court next month to argue that the names of these agencies must be disclosed. 

Earlier this March, cyber-security firm Kaspersky Labs released information on a newly discovered, highly advanced piece of malware dubbed Slingshot. The malware targeted Latvian-made Internet routers popular in the Middle East, Africa, and Southeast Asia. Kaspersky’s reports reveal that the malware had been active since at least 2012, and speculates that it was government-made, owing to its sophistication and its use of novel techniques rarely seen elsewhere. Those investigating the matter further have drawn the conclusion that Slingshot was developed by the U.S. government, with some reports quoting former officials as connecting it to the Pentagon’s JSOC special forces. For those following the cyber security and malware sphere, this is a huge revelation, putting the U.S. government in the hot seat for deploying cyber attacks that harm a much greater range of innocent users beyond their intended targets. Kaspersky’s own findings note that the code was written in English, using a driver flaw to allow the implanting of various types of spyware. Among those mentioned by Moscow-based Kaspersky was an implant named “GOLLUM,” which notably was mentioned in one of the leaked Edward Snowden documents. Further findings suggest that Slingshot had common code with only two other known pieces of software, both malwares, which were attributed to the NSA and CIA, respectively, by analysts. Though various U.S. agencies are all denying comment, things are clearly pointing uncomfortably in their direction.

The U.S. Department of Homeland Security (DHS) is quietly building what will likely become the largest database of biometric and biographic data on citizens and foreigners in the United States. The agency’s new Homeland Advanced Recognition Technology (HART) database will include multiple forms of biometrics—from face recognition to DNA, data from questionable sources, and highly personal data on innocent people. It will be shared with federal agencies outside of DHS as well as state and local law enforcement and foreign governments. And yet, we still know very little about it.The records DHS plans to include in HART will chill and deter people from exercising their First Amendment protected rights to speak, assemble, and associate. Data like face recognition makes it possible to identify and track people in real time, including at lawful political protests and other gatherings. Other data DHS is planning to collect—including information about people’s “relationship patterns” and from officer “encounters” with the public—can be used to identify political affiliations, religious activities, and familial and friendly relationships. These data points are also frequently colored by conjecture and bias.

DHS currently collects a lot of data. Its legacy IDENT fingerprint database contains information on 220-million unique individuals and processes 350,000 fingerprint transactions every day. This is an exponential increase from 20 years ago when IDENT only contained information on 1.8-million people. Between IDENT and other DHS-managed databases, the agency manages over 10-billion biographic records and adds 10-15 million more each week.

DHS’s new HART database will allow the agency to vastly expand the types of records it can collect and store. HART will support at least seven types of biometric identifiers, including face and voice data, DNA, scars and tattoos, and a blanket category for “other modalities.” It will also include biographic information, like name, date of birth, physical descriptors, country of origin, and government ID numbers. And it will include data we know to by highly subjective, including information collected from officer “encounters” with the public and information about people’s “relationship patterns.”

The UK government is secretly planning to force technology companies to build backdoors into their products, to enable intelligence agencies to read people’s private messages. A draft document leaked by the Open Rights Group details extreme new surveillance proposals, which would enable government agencies to spy on one in 10,000 citizens – around 6,500 people – at any one time.  The document, which follows the controversial Investigatory Powers Act, reveals government plans to force mobile operators and internet service providers to provide real-time communications of customers to the government “in an intelligible form”, and within one working day.

This would effectively ban encryption, an important security measure used by a wide range of companies, including WhatsApp and major banks, to keep people’s private data private and to protect them from hackers and cyber criminals.