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Paul Merrell

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

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

NSA Director Finally Admits Encryption Is Needed to Protect Public's Privacy - 0 views

  • NSA Director Finally Admits Encryption Is Needed to Protect Public’s Privacy The new stance denotes a growing awareness within the government that Americans are not comfortable with the State’s grip on their data. By Carey Wedler | AntiMedia | January 22, 2016 Share this article! https://mail.google.com/mail/?view=cm&fs=1&to&su=NSA%20Director%20Finally%20Admits%20Encryption%20Is%20Needed%20to%20Protect%20Public%E2%80%99s%20Privacy&body=http%3A%2F%2Fwww.mintpress
  • Rogers cited the recent Office of Personnel Management hack of over 20 million users as a reason to increase encryption rather than scale it back. “What you saw at OPM, you’re going to see a whole lot more of,” he said, referring to the massive hack that compromised the personal data about 20 million people who obtained background checks. Rogers’ comments, while forward-thinking, signify an about face in his stance on encryption. In February 2015, he said he “shares [FBI] Director [James] Comey’s concern” about cell phone companies’ decision to add encryption features to their products. Comey has been one loudest critics of encryption. However, Rogers’ comments on Thursday now directly conflict with Comey’s stated position. The FBI director has publicly chastised encryption, as well as the companies that provide it. In 2014, he claimed Apple’s then-new encryption feature could lead the world to “a very dark place.” At a Department of Justice hearing in November, Comey testified that “Increasingly, the shadow that is ‘going dark’ is falling across more and more of our work.” Though he claimed, “We support encryption,” he insisted “we have a problem that encryption is crashing into public safety and we have to figure out, as people who care about both, to resolve it. So, I think the conversation’s in a healthier place.”
  • At the same hearing, Comey and Attorney General Loretta Lynch declined to comment on whether they had proof the Paris attackers used encryption. Even so, Comey recently lobbied for tech companies to do away with end-to-end encryption. However, his crusade has fallen on unsympathetic ears, both from the private companies he seeks to control — and from the NSA. Prior to Rogers’ statements in support of encryption Thursday, former NSA chief Michael Hayden said, “I disagree with Jim Comey. I actually think end-to-end encryption is good for America.” Still another former NSA chair has criticized calls for backdoor access to information. In October, Mike McConnell told a panel at an encryption summit that the United States is “better served by stronger encryption, rather than baking in weaker encryption.” Former Department of Homeland Security chief, Michael Chertoff, has also spoken out against government being able to bypass encryption.
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  • Regardless of these individual defenses of encryption, the Intercept explained why these statements may be irrelevant: “Left unsaid is the fact that the FBI and NSA have the ability to circumvent encryption and get to the content too — by hacking. Hacking allows law enforcement to plant malicious code on someone’s computer in order to gain access to the photos, messages, and text before they were ever encrypted in the first place, and after they’ve been decrypted. The NSA has an entire team of advanced hackers, possibly as many as 600, camped out at Fort Meade.”
  • Rogers statements, of course, are not a full-fledged endorsement of privacy, nor can the NSA be expected to make it a priority. Even so, his new stance denotes a growing awareness within the government that Americans are not comfortable with the State’s grip on their data. “So spending time arguing about ‘hey, encryption is bad and we ought to do away with it’ … that’s a waste of time to me,” Rogers said Thursday. “So what we’ve got to ask ourselves is, with that foundation, what’s the best way for us to deal with it? And how do we meet those very legitimate concerns from multiple perspectives?”
Gonzalo San Gil, PhD.

US government won't seek encryption-backdoor legislation | Ars Technica UK [# ! Note] - 0 views

    • Gonzalo San Gil, PhD.
       
      # ! Presidential Elections 2016 coming...
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    "FBI Director James Comey told a congressional panel that the Obama administration won't ask Congress for legislation requiring the tech sector to install backdoors into their products so the authorities can access encrypted data."
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    "FBI Director James Comey told a congressional panel that the Obama administration won't ask Congress for legislation requiring the tech sector to install backdoors into their products so the authorities can access encrypted data."
Paul Merrell

Obama administration opts not to force firms to decrypt data - for now - The Washington Post - 1 views

  • After months of deliberation, the Obama administration has made a long-awaited decision on the thorny issue of how to deal with encrypted communications: It will not — for now — call for legislation requiring companies to decode messages for law enforcement. Rather, the administration will continue trying to persuade companies that have moved to encrypt their customers’ data to create a way for the government to still peer into people’s data when needed for criminal or terrorism investigations. “The administration has decided not to seek a legislative remedy now, but it makes sense to continue the conversations with industry,” FBI Director James B. Comey said at a Senate hearing Thursday of the Homeland Security and Governmental Affairs Committee.
  • The decision, which essentially maintains the status quo, underscores the bind the administration is in — balancing competing pressures to help law enforcement and protect consumer privacy. The FBI says it is facing an increasing challenge posed by the encryption of communications of criminals, terrorists and spies. A growing number of companies have begun to offer encryption in which the only people who can read a message, for instance, are the person who sent it and the person who received it. Or, in the case of a device, only the device owner has access to the data. In such cases, the companies themselves lack “backdoors” or keys to decrypt the data for government investigators, even when served with search warrants or intercept orders.
  • The decision was made at a Cabinet meeting Oct. 1. “As the president has said, the United States will work to ensure that malicious actors can be held to account — without weakening our commitment to strong encryption,” National Security Council spokesman Mark Stroh said. “As part of those efforts, we are actively engaged with private companies to ensure they understand the public safety and national security risks that result from malicious actors’ use of their encrypted products and services.” But privacy advocates are concerned that the administration’s definition of strong encryption also could include a system in which a company holds a decryption key or can retrieve unencrypted communications from its servers for law enforcement. “The government should not erode the security of our devices or applications, pressure companies to keep and allow government access to our data, mandate implementation of vulnerabilities or backdoors into products, or have disproportionate access to the keys to private data,” said Savecrypto.org, a coalition of industry and privacy groups that has launched a campaign to petition the Obama administration.
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  • To Amie Stepanovich, the U.S. policy manager for Access, one of the groups signing the petition, the status quo isn’t good enough. “It’s really crucial that even if the government is not pursuing legislation, it’s also not pursuing policies that will weaken security through other methods,” she said. The FBI and Justice Department have been talking with tech companies for months. On Thursday, Comey said the conversations have been “increasingly productive.” He added: “People have stripped out a lot of the venom.” He said the tech executives “are all people who care about the safety of America and also care about privacy and civil liberties.” Comey said the issue afflicts not just federal law enforcement but also state and local agencies investigating child kidnappings and car crashes — “cops and sheriffs . . . [who are] increasingly encountering devices they can’t open with a search warrant.”
  • One senior administration official said the administration thinks it’s making enough progress with companies that seeking legislation now is unnecessary. “We feel optimistic,” said the official, who spoke on the condition of anonymity to describe internal discussions. “We don’t think it’s a lost cause at this point.” Legislation, said Rep. Adam Schiff (D-Calif.), is not a realistic option given the current political climate. He said he made a recent trip to Silicon Valley to talk to Twitter, Facebook and Google. “They quite uniformly are opposed to any mandate or pressure — and more than that, they don’t want to be asked to come up with a solution,” Schiff said. Law enforcement officials know that legislation is a tough sell now. But, one senior official stressed, “it’s still going to be in the mix.” On the other side of the debate, technology, diplomatic and commerce agencies were pressing for an outright statement by Obama to disavow a legislative mandate on companies. But their position did not prevail.
  • Daniel Castro, vice president of the Information Technology & Innovation Foundation, said absent any new laws, either in the United States or abroad, “companies are in the driver’s seat.” He said that if another country tried to require companies to retain an ability to decrypt communications, “I suspect many tech companies would try to pull out.”
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    # ! upcoming Elections...
Paul Merrell

Surveillance scandal rips through hacker community | Security & Privacy - CNET News - 0 views

  • One security start-up that had an encounter with the FBI was Wickr, a privacy-forward text messaging app for the iPhone with an Android version in private beta. Wickr's co-founder Nico Sell told CNET at Defcon, "Wickr has been approached by the FBI and asked for a backdoor. We said, 'No.'" The mistrust runs deep. "Even if [the NSA] stood up tomorrow and said that [they] have eliminated these programs," said Marlinspike, "How could we believe them? How can we believe that anything they say is true?" Where does security innovation go next? The immediate future of information security innovation most likely lies in software that provides an existing service but with heightened privacy protections, such as webmail that doesn't mine you for personal data.
  • Wickr's Sell thinks that her company has hit upon a privacy innovation that a few others are also doing, but many will soon follow: the company itself doesn't store user data. "[The FBI] would have to force us to build a new app. With the current app there's no way," she said, that they could incorporate backdoor access to Wickr users' texts or metadata. "Even if you trust the NSA 100 percent that they're going to use [your data] correctly," Sell said, "Do you trust that they're going to be able to keep it safe from hackers? What if somebody gets that database and posts it online?" To that end, she said, people will start seeing privacy innovation for services that don't currently provide it. Calling it "social networks 2.0," she said that social network competitors will arise that do a better job of protecting their customer's privacy and predicted that some that succeed will do so because of their emphasis on privacy. Abine's recent MaskMe browser add-on and mobile app for creating disposable e-mail addresses, phone numbers, and credit cards is another example of a service that doesn't have access to its own users' data.
  • The issue with balancing privacy and surveillance is that the wireless carriers are not interested in privacy, he said. "They've been providing wiretapping for 100 years. Apple may in the next year protect voice calls," he said, and said that the best hope for ending widespread government surveillance will be the makers of mobile operating systems like Apple and Google. Not all upcoming security innovation will be focused on that kind of privacy protection. Security researcher Brandon Wiley showed off at Defcon a protocol he calls Dust that can obfuscate different kinds of network traffic, with the end goal of preventing censorship. "I only make products about letting you say what you want to say anywhere in the world," such as content critical of governments, he said. Encryption can hide the specifics of the traffic, but some governments have figured out that they can simply block all encrypted traffic, he said. The Dust protocol would change that, he said, making it hard to tell the difference between encrypted and unencrypted traffic. It's hard to build encryption into pre-existing products, Wiley said. "I think people are going to make easy-to-use, encrypted apps, and that's going to be the future."
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  • Stamos predicted changes in services that companies with cloud storage offer, including offering customers the ability to store their data outside of the U.S. "If they want to stay competitive, they're going to have to," he said. But, he cautioned, "It's impossible to do a cloud-based ad supported service." Soghoian added, "The only way to keep a service running is to pay them money." This, he said, is going to give rise to a new wave of ad-free, privacy protective subscription services.
  • Companies could face severe consequences from their security experts, said Stamos, if the in-house experts find out that they've been lied to about providing government access to customer data. You could see "lots of resignations and maybe publicly," he said. "It wouldn't hurt their reputations to go out in a blaze of glory." Perhaps not surprisingly, Marlinspike sounded a hopeful call for non-destructive activism on Defcon's 21st anniversary. "As hackers, we don't have a lot of influence on policy. I hope that's something that we can focus our energy on," he said.
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    NSA as the cause of the next major disruption in the social networking service industry?  Grief ahead for Google? Note the point made that: "It's impossible to do a cloud-based ad supported service" where the encryption/decryption takes place on the client side. 
Paul Merrell

Upgrade Your iPhone Passcode to Defeat the FBI's Backdoor Strategy - 0 views

  • It’s true that ordering Apple to develop the backdoor will fundamentally undermine iPhone security, as Cook and other digital security advocates have argued. But it’s possible for individual iPhone users to protect themselves from government snooping by setting strong passcodes on their phones — passcodes the FBI would not be able to unlock even if it gets its iPhone backdoor. The technical details of how the iPhone encrypts data, and how the FBI might circumvent this protection, are complex and convoluted, and are being thoroughly explored elsewhere on the internet. What I’m going to focus on here is how ordinary iPhone users can protect themselves. The short version: If you’re worried about governments trying to access your phone, set your iPhone up with a random, 11-digit numeric passcode. What follows is an explanation of why that will protect you and how to actually do it.
Paul Merrell

Even the Former Director of the NSA Hates the FBI's New Surveillance Push - The Daily Beast - 0 views

  • The head of the FBI has spent the last several months in something of a panic, warning anyone who will listen that terrorists are “going dark”—using encrypted communications to hide from the FBI—and insisting that the bureau needs some kind of electronic back door to get access to those chats.It’s an argument that civil libertarians and technology industry executives have largely rejected. And now, members of the national security establishment—veterans of both the Obama and Bush administrations—are beginning to speak out publicly against FBI Director Jim Comey’s call to give the government a skeleton key to your private talks.
  • The encryption issue was also one of several small, but telling, ways in which Comey seemed out of sync with some of his fellow members of the national security establishment here at the Aspen Security Forum.
  • This isn’t the first intra-government fight over encryption, Chertoff noted. The last time an administration insisted on a technological back door—in the 1990s—Congress shot down the idea. And despite cries of “going dark” back then, the government found all kinds of new ways to spy. “We collected more than ever. We found ways to deal with that issue,” Chertoff told the forum.
Paul Merrell

Cameron Calls June 23 EU Referendum as Cabinet Fractures - Bloomberg Business - 0 views

  • In a secret meeting convened by the White House around Thanksgiving, senior national security officials ordered agencies across the U.S. government to find ways to counter encryption software and gain access to the most heavily protected user data on the most secure consumer devices, including Apple Inc.’s iPhone, the marquee product of one of America’s most valuable companies, according to two people familiar with the decision.The approach was formalized in a confidential National Security Council “decision memo,” tasking government agencies with developing encryption workarounds, estimating additional budgets and identifying laws that may need to be changed to counter what FBI Director James Comey calls the “going dark” problem: investigators being unable to access the contents of encrypted data stored on mobile devices or traveling across the Internet. Details of the memo reveal that, in private, the government was honing a sharper edge to its relationship with Silicon Valley alongside more public signs of rapprochement.
  • On Tuesday, the public got its first glimpse of what those efforts may look like when a federal judge ordered Apple to create a special tool for the FBI to bypass security protections on an iPhone 5c belonging to one of the shooters in the Dec. 2 terrorist attack in San Bernardino, California that killed 14 people. Apple Chief Executive Officer Tim Cook has vowed to fight the order, calling it a “chilling” demand that Apple “hack our own users and undermine decades of security advancements that protect our customers.” The order was not a direct outcome of the memo but is in line with the broader government strategy.White House spokesman Josh Earnest said Wednesday that the Federal Bureau of Investigation and Department of Justice have the Obama administration’s “full” support in the matter. The government is “not asking Apple to redesign its product or to create a new backdoor to their products,” but rather are seeking entry “to this one device,” he said.
Paul Merrell

Hacking Team Asks Customers to Stop Using Its Software After Hack | Motherboard - 1 views

  • But the hack hasn’t just ruined the day for Hacking Team’s employees. The company, which sells surveillance software to government customers all over the world, from Morocco and Ethiopia to the US Drug Enforcement Agency and the FBI, has told all its customers to shut down all operations and suspend all use of the company’s spyware, Motherboard has learned. “They’re in full on emergency mode,” a source who has inside knowledge of Hacking Team’s operations told Motherboard.
  • A source told Motherboard that the hackers appears to have gotten “everything,” likely more than what the hacker has posted online, perhaps more than one terabyte of data. “The hacker seems to have downloaded everything that there was in the company’s servers,” the source, who could only speak on condition of anonymity, told Motherboard. “There’s pretty much everything here.” It’s unclear how the hackers got their hands on the stash, but judging from the leaked files, they broke into the computers of Hacking Team’s two systems administrators, Christian Pozzi and Mauro Romeo, who had access to all the company’s files, according to the source. “I did not expect a breach to be this big, but I’m not surprised they got hacked because they don’t take security seriously,” the source told me. “You can see in the files how much they royally fucked up.”
  • Hacking Team notified all its customers on Monday morning with a “blast email,” requesting them to shut down all deployments of its Remote Control System software, also known as Galileo, according to multiple sources. The company also doesn’t have access to its email system as of Monday afternoon, a source said. On Sunday night, an unnamed hacker, who claimed to be the same person who breached Hacking Team’s competitor FinFisher last year, hijacked its Twitter account and posted links to 400GB of internal data. Hacking Team woke up to a massive breach of its systems.
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  • For example, the source noted, none of the sensitive files in the data dump, from employees passports to list of customers, appear to be encrypted. “How can you give all the keys to your infrastructure to a 20-something who just joined the company?” he added, referring to Pozzi, whose LinkedIn shows he’s been at Hacking Team for just over a year. “Nobody noticed that someone stole a terabyte of data? You gotta be a fuckwad,” the source said. “It means nobody was taking care of security.”
  • The future of the company, at this point, it’s uncertain. Employees fear this might be the beginning of the end, according to sources. One current employee, for example, started working on his resume, a source told Motherboard. It’s also unclear how customers will react to this, but a source said that it’s likely that customers from countries such as the US will pull the plug on their contracts. Hacking Team asked its customers to shut down operations, but according to one of the leaked files, as part of Hacking Team’s “crisis procedure,” it could have killed their operations remotely. The company, in fact, has “a backdoor” into every customer’s software, giving it ability to suspend it or shut it down—something that even customers aren’t told about. To make matters worse, every copy of Hacking Team’s Galileo software is watermarked, according to the source, which means Hacking Team, and now everyone with access to this data dump, can find out who operates it and who they’re targeting with it.
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