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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.

A contractor working for the National Security Agency (NSA) was arrested by the FBI following his alleged theft of “state secrets.” More specifically, the contractor, Harold Thomas Martin, is charged with stealing highly classified source codes developed to covertly hack the networks of foreign governments, according to several senior law enforcement and intelligence officials. The Justice Department has said that these stolen materials were “critical to national security.” Martin was employed by Booz Allen Hamilton, the company responsible for most of the NSA’s most sensitive cyber-operations. Edward Snowden, the most well-known NSA whistleblower, also worked for Booz Allen Hamilton until he fled to Hong Kong in 2013 where he revealed a trove of documents exposing the massive scope of the NSA dragnet surveillance. That surveillance system was shown to have targeted untold numbers of innocent Americans. According to the New York Times, the theft “raises the embarrassing prospect” that an NSA insider managed to steal highly damaging secret information from the NSA for the second time in three years, not to mention the “Shadow Broker” hack this past August, which made classified NSA hacking tools available to the public.

Snowden himself took to Twitter to comment on the arrest. In a tweet, he said the news of Martin’s arrest “is huge” and asked, “Did the FBI secretly arrest the person behind the reports [that the] NSA sat on huge flaws in US products?” It is currently unknown if Martin was connected to those reports as well.

It also remains to be seen what Martin’s motivations were in removing classified data from the NSA. Though many suspect that he planned to follow in Snowden’s footsteps, the government will more likely argue that he had planned to commit espionage by selling state secrets to “adversaries.” According to the New York Times article on the arrest, Russia, China, Iran, and North Korea are named as examples of the “adversaries” who would have been targeted by the NSA codes that Martin is accused of stealing. However, Snowden revealed widespread US spying on foreign governments including several US allies such as France and Germany. This suggests that the stolen “source codes” were likely utilized on a much broader scale.

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.

AMERICAN AND BRITISH spies hacked into the internal computer network of the largest manufacturer of SIM cards in the world, stealing encryption keys used to protect the privacy of cellphone communications across the globe, according to top-secret documents provided to The Intercept by National Security Agency whistleblower Edward Snowden. The hack was perpetrated by a joint unit consisting of operatives from the NSA and its British counterpart Government Communications Headquarters, or GCHQ. The breach, detailed in a secret 2010 GCHQ document, gave the surveillance agencies the potential to secretly monitor a large portion of the world’s cellular communications, including both voice and data. The company targeted by the intelligence agencies, Gemalto, is a multinational firm incorporated in the Netherlands that makes the chips used in mobile phones and next-generation credit cards. Among its clients are AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers around the world. The company operates in 85 countries and has more than 40 manufacturing facilities. One of its three global headquarters is in Austin, Texas and it has a large factory in Pennsylvania. In all, Gemalto produces some 2 billion SIM cards a year. Its motto is “Security to be Free.”

With these stolen encryption keys, intelligence agencies can monitor mobile communications without seeking or receiving approval from telecom companies and foreign governments. Possessing the keys also sidesteps the need to get a warrant or a wiretap, while leaving no trace on the wireless provider’s network that the communications were intercepted. Bulk key theft additionally enables the intelligence agencies to unlock any previously encrypted communications they had already intercepted, but did not yet have the ability to decrypt.

Leading privacy advocates and security experts say that the theft of encryption keys from major wireless network providers is tantamount to a thief obtaining the master ring of a building superintendent who holds the keys to every apartment. “Once you have the keys, decrypting traffic is trivial,” says Christopher Soghoian, the principal technologist for the American Civil Liberties Union. “The news of this key theft will send a shock wave through the security community.”

Pressure on the cellphone industry to introduce technology that could disable stolen smartphones has intensified with the introduction of proposed federal legislation that would mandate such a system.

Pressure on the cellphone industry to introduce technology that could disable stolen smartphones has intensified with the introduction of proposed federal legislation that would mandate such a system.

Senate bill 2032, "The Smartphone Prevention Act," was introduced to the U.S. Senate Wednesday by Amy Klobuchar, a Minnesota Democrat. The bill promises technology that allows consumers to remotely wipe personal data from their smartphones and render them inoperable. But how that will be accomplished is currently unclear. The full text of the bill was not immediately available and the offices of Klobuchar and the bill's co-sponsors were all shut down Thursday due to snow in Washington, D.C.

Sitting inside a medium-security federal prison in Kentucky, Jeremy Hammond looks defiant and frustrated.  “[The FBI] could've stopped me,” he told the Daily Dot last month at the Federal Correctional Institution, Manchester. “They could've. They knew about it. They could’ve stopped dozens of sites I was breaking into.” Hammond is currently serving the remainder of a 10-year prison sentence in part for his role in one of the most high-profile cyberattacks of the early 21st century. His 2011 breach of Strategic Forecasting, Inc. (Stratfor) left tens of thousands of Americans vulnerable to identity theft and irrevocably damaged the Texas-based intelligence firm's global reputation. He was also indicted for his role in the June 2011 hack of an Arizona state law enforcement agency's computer servers.

There's no question of his guilt: Hammond, 29, admittedly hacked into Stratfor’s network and exfiltrated an estimated 60,000 credit card numbers and associated data and millions of emails, information that was later shared with the whistleblower organization WikiLeaks and the hacker collective Anonymous.   Sealed court documents obtained by the Daily Dot and Motherboard, however, reveal that the attack was instigated and orchestrated not by Hammond, but by an informant, with the full knowledge of the Federal Bureau of Investigation (FBI).  In addition to directly facilitating the breach, the FBI left Stratfor and its customers—which included defense contractors, police chiefs, and National Security Agency employees—vulnerable to future attacks and fraud, and it requested knowledge of the data theft to be withheld from affected customers. This decision would ultimately allow for millions of dollars in damages.

Disaster stories involving the Internet of Things are all the rage. They feature cars (both driven and driverless), the power grid, dams, and tunnel ventilation systems. A particularly vivid and realistic one, near-future fiction published last month in New York Magazine, described a cyberattack on New York that involved hacking of cars, the water system, hospitals, elevators, and the power grid. In these stories, thousands of people die. Chaos ensues. While some of these scenarios overhype the mass destruction, the individual risks are all real. And traditional computer and network security isn’t prepared to deal with them.Classic information security is a triad: confidentiality, integrity, and availability. You’ll see it called “CIA,” which admittedly is confusing in the context of national security. But basically, the three things I can do with your data are steal it (confidentiality), modify it (integrity), or prevent you from getting it (availability).

So far, internet threats have largely been about confidentiality. These can be expensive; one survey estimated that data breaches cost an average of $3.8 million each. They can be embarrassing, as in the theft of celebrity photos from Apple’s iCloud in 2014 or the Ashley Madison breach in 2015. They can be damaging, as when the government of North Korea stole tens of thousands of internal documents from Sony or when hackers stole data about 83 million customer accounts from JPMorgan Chase, both in 2014. They can even affect national security, as in the case of the Office of Personnel Management data breach by—presumptively—China in 2015. On the Internet of Things, integrity and availability threats are much worse than confidentiality threats. It’s one thing if your smart door lock can be eavesdropped upon to know who is home. It’s another thing entirely if it can be hacked to allow a burglar to open the door—or prevent you from opening your door. A hacker who can deny you control of your car, or take over control, is much more dangerous than one who can eavesdrop on your conversations or track your car’s location. With the advent of the Internet of Things and cyber-physical systems in general, we've given the internet hands and feet: the ability to directly affect the physical world. What used to be attacks against data and information have become attacks against flesh, steel, and concrete. Today’s threats include hackers crashing airplanes by hacking into computer networks, and remotely disabling cars, either when they’re turned off and parked or while they’re speeding down the highway. We’re worried about manipulated counts from electronic voting machines, frozen water pipes through hacked thermostats, and remote murder through hacked medical devices. The possibilities are pretty literally endless. The Internet of Things will allow for attacks we can’t even imagine.

Amid reports that Moscow is considering handing over NSA whistleblower Edward Snowden as a “gift” to U.S. President Donald Trump, a Russian government spokesperson said Monday that the Kremlin and the White House have not discussed the matter, Russia’s state TASS agency reported. “No, this issue (Snowden’s fate) was not raised,” presidential spokesperson Dmitry Peskov told reporters Monday, adding that Russian officials have not taken a position on whether Snowden should be extradited to the U.S. or granted Russian citizenship. “The issue was not raised (during the Russian-US contacts),” Peskov said. “At the moment it is not among bilateral issues.” The statement comes after Snowden — who has lived in Russia since 2013, first with one-year temporary asylum then a residence permit — revealed in recent days that he is “not afraid” of being handed over to the United States, where he faces espionage charges for his explosive 2013 leak of documents on secret U.S. mass surveillance programs.

However, Snowden also said in an interview with Yahoo News that talk of a possible trade between Moscow and Washington makes him feel “encouraged” because it vindicates him in the face of accusations that he has been a spy for Russia by laying bare the fact that he has always been independent and “worked on behalf of the United States.” “Finally: irrefutable evidence that I never cooperated with Russian intel,” he tweeted on Friday. “No country trades away spies, as the rest would fear they’re next.” In the U.S., Snowden faces charges of theft of government property and violation of the Espionage Act on two counts, which each carry a maximum sentence of 10 years.

“What I am proud of,” Snowden told Yahoo News, “is the fact that every decision that I have made I can defend.” Snowden is set to be eligible to apply for Russian citizenship next year, according to his lawyer. Last month, Moscow extended his residence permit, which is now valid until 2020.

Marriott will cough up $600,000 in penalties after being caught blocking mobile hotspots so that guests would have to pay for its own WiFi services, the FCC has confirmed today. The fine comes after staff at the Gaylord Opryland Hotel and Convention Center in Nashville, Tennessee were found to be jamming individual hotspots and then charging people up to $1,000 per device to get online. Marriott has been operating the center since 2012, and is believed to have been running its interruption scheme since then. The first complaint to the FCC, however, wasn't until March 2013, when one guest warned the Commission that they suspected their hardware had been jammed. An investigation by the FCC's Enforcement Bureau revealed that was, in fact, the case. A WiFi monitoring system installed at the Gaylord Opryland would target access points with de-authentication packets, disconnecting users so that their browsing was interrupted.

The FCC deemed Marriott's behaviors as contravening Section 333 of the Communications Act, which states that "no person shall willfully or maliciously interfere with or cause interference to any radio communications of any station licensed or authorized by or under this chapter or operated by the United States Government." In addition to the $600,000 civil penalty, Marriott will have to cease blocking guests, hand over details of any access point containment features to the FCC across its entire portfolio of owned or managed properties, and finally file compliance and usage reports each quarter for the next three years.

Update: Marriott has issued the following statement on the FCC ruling: "Marriott has a strong interest in ensuring that when our guests use our Wi-Fi service, they will be protected from rogue wireless hotspots that can cause degraded service, insidious cyber-attacks and identity theft. Like many other institutions and companies in a wide variety of industries, including hospitals and universities, the Gaylord Opryland protected its Wi-Fi network by using FCC-authorized equipment provided by well-known, reputable manufacturers. We believe that the Gaylord Opryland's actions were lawful. We will continue to encourage the FCC to pursue a rulemaking in order to eliminate the ongoing confusion resulting from today's action and to assess the merits of its underlying policy."

The Office of Personnel Management (OPM) recently revealed that an estimated 5.6 million government employees were affected by the hack; and not 1.1 million as previously assumed.

Samuel Schumach, spokesman for the OPM, said: “As part of the government’s ongoing work to notify individuals affected by the theft of background investigation records, the Office of Personnel Management and the Department of Defense have been analyzing impacted data to verify its quality and completeness. Of the 21.5 million individuals whose Social Security Numbers and other sensitive information were impacted by the breach, the subset of individuals whose fingerprints have been stolen has increased from a total of approximately 1.1 million to approximately 5.6 million.” This endeavor expended the use of the Department of Defense (DoD), the Department of Homeland Security (DHS), the National Security Agency (NSA), and the Pentagon. Schumer added that “if, in the future, new means are developed to misuse the fingerprint data, the government will provide additional information to individuals whose fingerprints may have been stolen in this breach.” However, we do not need to wait for the future for fingerprint data to be misused and coveted by hackers.

Look no further than the security flaws in Samsung’s new Galaxy 5 smartphone as was demonstrated by researchers at Security Research Labs (SRL) showing how fingerprints, iris scans and other biometric identifiers could be fabricated and yet authenticated by the Apple Touch ID fingerprints scanner. The shocking part of this demonstration is that this hack was achieved less than 2 days after the technology was released to the public by Apple. Ben Schlabs, researcher for SRL explained: “We expected we’d be able to spoof the S5’s Finger Scanner, but I hoped it would at least be a challenge. The S5 Finger Scanner feature offers nothing new except—because of the way it is implemented in this Android device—slightly higher risk than that already posed by previous devices.” Schlabs and other researchers discovered that “the S5 has no mechanism requiring a password when encountering a large number of incorrect finger swipes.” By rebotting the smartphone, Schlabs could force “the handset to accept an unlimited number of incorrect swipes without requiring users to enter a password [and] the S5 fingerprint authenticator [could] be associated with sensitive banking or payment apps such as PayPal.”

Everyone seems to be eager to pin the blame for the Sony hack on North Korea. However, I think it’s unlikely. Here’s why:1. The broken English looks deliberately bad and doesn’t exhibit any of the classic comprehension mistakes you actually expect to see in “Konglish”. i.e it reads to me like an English speaker pretending to be bad at writing English. 2. The fact that the code was written on a PC with Korean locale & language actually makes it less likely to be North Korea. Not least because they don’t speak traditional “Korean” in North Korea, they speak their own dialect and traditional Korean is forbidden. This is one of the key things that has made communication with North Korean refugees difficult. I would find the presence of Chinese far more plausible.

3. It’s clear from the hard-coded paths and passwords in the malware that whoever wrote it had extensive knowledge of Sony’s internal architecture and access to key passwords. While it’s plausible that an attacker could have built up this knowledge over time and then used it to make the malware, Occam’s razor suggests the simpler explanation of an insider. It also fits with the pure revenge tact that this started out as. 4. Whoever did this is in it for revenge. The info and access they had could have easily been used to cash out, yet, instead, they are making every effort to burn Sony down. Just think what they could have done with passwords to all of Sony’s financial accounts? With the competitive intelligence in their business documents? From simple theft, to the sale of intellectual property, or even extortion – the attackers had many ways to become rich. Yet, instead, they chose to dump the data, rendering it useless. Likewise, I find it hard to believe that a “Nation State” which lives by propaganda would be so willing to just throw away such an unprecedented level of access to the beating heart of Hollywood itself.

5. The attackers only latched onto “The Interview” after the media did – the film was never mentioned by GOP right at the start of their campaign. It was only after a few people started speculating in the media that this and the communication from DPRK “might be linked” that suddenly it became linked. I think the attackers both saw this as an opportunity for “lulz” and as a way to misdirect everyone into thinking it was a nation state. After all, if everyone believes it’s a nation state, then the criminal investigation will likely die.

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.