CRYPTO-GRAM

                 May 15, 2012

              by Bruce Schneier
      Chief Security Technology Officer, BT
             [email protected]
            http://www.schneier.com


A free monthly newsletter providing summaries, analyses, insights, and commentaries on security: computer and otherwise.

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In this issue:
     The Trouble with Airport Profiling
     Hawley Channels His Inner Schneier
     TSA Behavioral Detection Statistics
     News
     Stolen Phone Database
     "Liars & Outliers" Update
     Overreacting to Potential Bombs
     A Foiled Terrorist Plot
     Schneier News
     Fear and the Attention Economy
     Amazing Round of "Split or Steal"


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     The Trouble with Airport Profiling



Why do otherwise rational people think it's a good idea to profile people at airports? Recently, neuroscientist and best-selling author Sam Harris related a story of an elderly couple being given the twice-over by the TSA, pointed out how these two were obviously not a threat, and recommended that the TSA focus on the actual threat: "Muslims, or anyone who looks like he or she could conceivably be Muslim."

This is a bad idea. It doesn't make us any safer -- and it actually puts us all at risk.

The right way to look at security is in terms of cost-benefit trade-offs. If adding profiling to airport checkpoints allowed us to detect more threats at a lower cost, than we should implement it. If it didn't, we'd be foolish to do so. Sometimes profiling works. Consider a sheep in a meadow, happily munching on grass. When he spies a wolf, he's going to judge that individual wolf based on a bunch of assumptions related to the past behavior of its species. In short, that sheep is going to profile...and then run away. This makes perfect sense, and is why evolution produced sheep -- and other animals -- that react this way. But this sort of profiling doesn't work with humans at airports, for several reasons.

First, in the sheep's case the profile is accurate, in that all wolves are out to eat sheep. Maybe a particular wolf isn't hungry at the moment, but enough wolves are hungry enough of the time to justify the occasional false alarm. However, it isn't true that almost all Muslims are out to blow up airplanes. In fact, almost none of them are. Post 9/11, we've had 2 Muslim terrorists on U.S airplanes: the shoe bomber and the underwear bomber. If you assume 0.8% (that's one estimate of the percentage of Muslim Americans) of the 630 million annual airplane fliers are Muslim and triple it to account for others who look Semitic, then the chances any profiled flier will be a Muslim terrorist is 1 in 80 million. Add the 19 9/11 terrorists -- arguably a singular event -- that number drops to 1 in 8 million. Either way, because the number of actual terrorists is so low, almost everyone selected by the profile will be innocent. This is called the "base rate fallacy," and dooms any type of broad terrorist profiling, including the TSA's behavioral profiling.

Second, sheep can safely ignore animals that don't look like the few predators they know. On the other hand, to assume that only Arab-appearing people are terrorists is dangerously naive. Muslims are black, white, Asian, and everything else -- most Muslims are not Arab. Recent terrorists have been European, Asian, African, Hispanic, and Middle Eastern; male and female; young and old. Underwear bomber Umar Farouk Abdul Mutallab was Nigerian. Shoe bomber Richard Reid was British with a Jamaican father. One of the London subway bombers, Germaine Lindsay, was Afro-Caribbean. Dirty bomb suspect Jose Padilla was Hispanic-American. The 2002 Bali terrorists were Indonesian. Both Timothy McVeigh and the Unabomber were white Americans. The Chechen terrorists who blew up two Russian planes in 2004 were female. Focusing on a profile increases the risk that TSA agents will miss those who don't match it.

Third, wolves can't deliberately try to evade the profile. A wolf in sheep's clothing is just a story, but humans are smart and adaptable enough to put the concept into practice. Once the TSA establishes a profile, terrorists will take steps to avoid it. The Chechens deliberately chose female suicide bombers because Russian security was less thorough with women. Al Qaeda has tried to recruit non-Muslims. And terrorists have given bombs to innocent -- and innocent-looking -- travelers. Randomized secondary screening is more effective, especially since the goal isn't to catch every plot but to create enough uncertainty that terrorists don't even try.

And fourth, sheep don't care if they offend innocent wolves; the two species are never going to be friends. At airports, though, there is an enormous social and political cost to the millions of false alarms. Beyond the societal harms of deliberately harassing a minority group, singling out Muslims alienates the very people who are in the best position to discover and alert authorities about Muslim plots before the terrorists even get to the airport. This alone is reason enough not to profile.

I too am incensed -- but not surprised -- when the TSA singles out four-year-old girls, children with cerebral palsy, pretty women, the elderly, and wheelchair users for humiliation, abuse, and sometimes theft. Any bureaucracy that processes 630 million people per year will generate stories like this. When people propose profiling, they are really asking for a security system that can apply judgment. Unfortunately, that's really hard. Rules are easier to explain and train. Zero tolerance is easier to justify and defend. Judgment requires better-educated, more expert, and much-higher-paid screeners. And the personal career risks to a TSA agent of being wrong when exercising judgment far outweigh any benefits from being sensible.

The proper reaction to screening horror stories isn't to subject only "those people" to it; it's to subject no one to it. (Can anyone even explain what hypothetical terrorist plot could successfully evade normal security, but would be discovered during secondary screening?) Invasive TSA screening is nothing more than security theater. It doesn't make us safer, and it's not worth the cost. Even more strongly, security isn't our society's only value. Do we really want the full power of government to act out our stereotypes and prejudices? Have we Americans ever done something like this and not been ashamed later? This is what we have a Constitution for: to help us live up to our values and not down to our fears.

This essay previously appeared on Forbes.com and Sam Harris's blog.
http://www.forbes.com/sites/bruceschneier/2012/05/09/the-trouble-with-airport-profiling/ or http://tinyurl.com/c38vxd3
http://www.samharris.org/blog/item/the-trouble-with-profiling

Proponents of profiling:
http://roomfordebate.blogs.nytimes.com/2010/01/04/will-profiling-make-a-difference/ or http://tinyurl.com/yap6ktv http://www.npr.org/2010/11/24/131575316/should-airports-use-racial-and-religious-profiling or http://tinyurl.com/7n36cr8 http://theweek.com/article/index/209869/airport-screening-would-profiling-work or http://tinyurl.com/76cf6tb http://www.thedailybeast.com/articles/2010/11/29/airport-security-lets-profile-muslims.html or http://tinyurl.com/78m5cjh http://www.cbsnews.com/8301-503544_162-57330041-503544/rick-santorum-endorses-muslim-profiling/ or http://tinyurl.com/bnu7njf
http://www.samharris.org/blog/item/in-defense-of-profiling

Animals profiling:
http://www.ncbi.nlm.nih.gov/pubmed/11411177

Muslim population:
http://www.pewforum.org/Mapping-the-Global-Muslim-Population.aspx

Annual fliers:
http://www.transtats.bts.gov/

Base rate fallacy:
http://www.schneier.com/essay-163.html
http://news.bbc.co.uk/2/hi/uk_news/magazine/8153539.stm
http://www.lewrockwell.com/orig7/rudmin1.html
http://www.theatlantic.com/technology/archive/2012/04/homeland-securitys-pre-crime-screening-will-never-work/255971/ or http://tinyurl.com/d5wm4lp

Gaming profiling systems:
http://groups.csail.mit.edu/mac/classes/6.805/student-papers/spring02-papers/caps.htm or http://tinyurl.com/32ntgb9

Al Qaeda recruiting non-Muslims:
http://www.washingtonpost.com/national/bin-ladens-preoccupation-with-us-said-to-be-source-of-friction-with-followers/2011/05/11/AFy8zAuG_story.html or http://tinyurl.com/3q5329m

Islamic terrorists using an innocent European:
http://en.wikipedia.org/wiki/Hindawi_affair

TSA horror stories:
http://www.dailymail.co.uk/news/article-2134280/Weeping-year-old-girl-accused-carrying-GUN-TSA-officers-hugged-grandmother-passing-security.html or http://tinyurl.com/cthjqa9 http://consumerist.com/2012/04/report-tsa-has-no-idea-how-to-screen-a-7-year-old-with-cerebral-palsy.html or http://tinyurl.com/6m2dnem http://newsfeed.time.com/2012/02/16/is-the-tsa-targeting-attractive-women/ or http://tinyurl.com/834else http://www.theatlantic.com/national/archive/2012/04/tsa-to-my-mother-in-law-theres-an-anomaly-in-the-crotch-area/256450/ or http://tinyurl.com/7t968gr http://newsfeed.time.com/2011/12/05/elderly-woman-claims-tsa-agents-strip-searched-her/ or http://tinyurl.com/c37bjw6 http://www.huffingtonpost.com/2012/04/19/omer-petti-tsa-stolen-300-dollars-money_n_1438994.html or http://tinyurl.com/cloh79x

Zero-tolerance security policies:
http://www.schneier.com/blog/archives/2009/11/zero-tolerance.html

Security theater:
http://www.schneier.com/essay-292.html

Airline security:
http://www.schneier.com/essay-395.html


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     Hawley Channels His Inner Schneier



Kip Hawley wrote an essay for the "Wall Street Journal" on airport security. In it, he says so many sensible things that people have been forwarding it to me with comments like "did you ghostwrite this?" and "it looks like you won an argument" and "how did you convince him?"

Hawley:

    Any effort to rebuild TSA and get airport security right in the
    U.S. has to start with two basic principles:

    First, the TSA's mission is to prevent a catastrophic attack on
    the transportation system, not to ensure that every single
    passenger can avoid harm while traveling. Much of the friction in
    the system today results from rules that are direct responses to
    how we were attacked on 9/11. But it's simply no longer the case
    that killing a few people on board a plane could lead to a
    hijacking. Never again will a terrorist be able to breach the
    cockpit simply with a box cutter or a knife. The cockpit doors
    have been reinforced, and passengers, flight crews and air
    marshals would intervene.

This sounds a lot like me in 2005:

    Exactly two things have made airline travel safer since 9/11:
    reinforcement of cockpit doors, and passengers who now know that
    they may have to fight back.

I'm less into sky marshals than he is.

Hawley:

    Second, the TSA's job is to manage risk, not to enforce
    regulations. Terrorists are adaptive, and we need to be adaptive,
    too. Regulations are always playing catch-up, because terrorists
    design their plots around the loopholes.

Me in 2008:

    It's this fetish-like focus on tactics that results in the
    security follies at airports. We ban guns and knives, and
    terrorists use box-cutters. We take away box-cutters and
    corkscrews, so they put explosives in their shoes. We screen
    shoes, so they use liquids. We take away liquids, and they're
    going to do something else. Or they'll ignore airplanes entirely
    and attack a school, church, theatre, stadium, shopping mall,
    airport terminal outside the security area, or any of the other
    places where people pack together tightly.

    These are stupid games, so let's stop playing.

He disses Trusted Traveler programs, where known people are allowed bypass some security measures:

    I had hoped to advance the idea of a Registered Traveler program,
    but the second that you create a population of travelers who are
    considered "trusted," that category of fliers moves to the top of
    al Qaeda's training list, whether they are old, young, white,
    Asian, military, civilian, male or female. The men who bombed the
    London Underground in July 2005 would all have been eligible for
    the Registered Traveler cards we were developing at the time. No
    realistic amount of prescreening can alleviate this threat when al
    Qaeda is working to recruit "clean" agents. TSA dropped the idea
    on my watch -- though new versions of it continue to pop up.

Me in 2004:

    What the Trusted Traveler program does is create two different
    access paths into the airport: high security and low security. The
    intent is that only good guys will take the low-security path, and
    the bad guys will be forced to take the high-security path, but it
    rarely works out that way. You have to assume that the bad guys
    will find a way to take the low-security path.

Hawley's essay ends with a list of recommendations for change, and they are mostly good:

    What would a better system look like? If politicians gave the TSA
    some political cover, the agency could institute the following
    changes before the start of the summer travel season:

    1. No more banned items: Aside from obvious weapons capable
    of fast, multiple killings -- such as guns, toxins and explosive
    devices -- it is time to end the TSA's use of well-trained
    security officers as kindergarten teachers to millions of
    passengers a day. The list of banned items has created an "Easter-
    egg hunt" mentality at the TSA. Worse, banning certain items gives
    terrorists a complete list of what not to use in their next
    attack. Lighters are banned? The next attack will use an electric
    trigger.

Me in 2009:

    Return passenger screening to pre-9/11 levels.

Hawley:

    2. Allow all liquids: Simple checkpoint signage, a small
    software update and some traffic management are all that stand
    between you and bringing all your liquids on every U.S. flight.
    Really.

This is referring to a point he makes earlier in his essay:

    I was initially against a ban on liquids as well, because I
    thought that, with proper briefing, TSA officers could stop al
    Qaeda's new liquid bombs. Unfortunately, al Qaeda's advancing
    skill with hydrogen-peroxide-based bombs made a total liquid ban
    necessary for a brief period and a restriction on the amount of
    liquid one could carry on a plane necessary thereafter.

    Existing scanners could allow passengers to carry on any amount of
    liquid they want, so long as they put it in the gray bins. The
    scanners have yet to be used in this way because of concern for
    the large number of false alarms and delays that they could cause.
    When I left TSA in 2009, the plan was to designate "liquid lanes"
    where waits might be longer but passengers could board with snow
    globes, beauty products or booze. That plan is still sitting on
    someone's desk.

I have been complaining about the liquids ban for years, but Hawley's comment confuses me. He says that hydrogen-peroxide based bombs -- these are the bombs that are too dangerous to bring on board in 4-oz. bottles, but perfectly fine in four 1-oz bottles combined after the checkpoints -- can be detected with *existing scanners*, not with new scanners using new technology. Does anyone know what he's talking about?

Hawley:

    3. Give TSA officers more flexibility and rewards for
    initiative, and hold them accountable: No security agency on
    earth has the experience and pattern-recognition skills of TSA
    officers. We need to leverage that ability. TSA officers should
    have more discretion to interact with passengers and to work in
    looser teams throughout airports. And TSA's leaders must be
    prepared to support initiative even when officers make mistakes.
    Currently, independence on the ground is more likely to lead to
    discipline than reward.

This is a great idea, but it's going to cost money. Being a TSA screener is a pretty lousy job. Morale is poor: "In surveys on employee morale and job satisfaction, TSA often performs poorly compared to other government agencies. In 2010 TSA ranked 220 out of 224 government agency subcomponents for employee satisfaction." Pay is low: "The men and women at the front lines of the battle to keep the skies safe are among the lowest paid of all federal employees, and they have one of the highest injury rates." And there is traditionally a high turnover: 20% in 2008. The 2011 decision allowing TSA workers to unionize will help this somewhat, but for it to really work, the rules can't be this limiting: "the paper outlining his decision precludes negotiations on security policies, pay, pensions and compensation, proficiency testing, job qualifications and discipline standards. It also will prohibit screeners from striking or engaging in work slowdowns."

TSA workers who are smart, flexible, and show initiative will cost money, and that'll be difficult when the TSA's budget is being cut.

Hawley:

    4. Eliminate baggage fees: Much of the pain at TSA checkpoints
    these days can be attributed to passengers overstuffing their
    carry-on luggage to avoid baggage fees. The airlines had their
    reasons for implementing these fees, but the result has been a
    checkpoint nightmare. Airlines might increase ticket prices
    slightly to compensate for the lost revenue, but the main impact
    would be that checkpoint screening for everybody will be faster
    and safer.

Another great idea, but I don't see how we can do it without passing a law forbidding airlines to charge those fees. Over the past few years, airlines have drastically increased fees as a revenue source. Sneaking in extra charges allows them to advertise lower prices, and I don't see that changing anytime soon.

    5. Randomize security: Predictability is deadly. Banned-item
    lists, rigid protocols -- if terrorists know what to expect at the
    airport, they have a greater chance of evading our system.

This would be a disaster. Actually, I'm surprised Hawley even mentions it, given that he wrote this a few paragraphs earlier:

    One brilliant bit of streamlining from the consultants: It turned
    out that if the outline of two footprints was drawn on a mat in
    the area for using metal-detecting wands, most people stepped on
    the feet with no prompting and spread their legs in the most
    efficient stance. Every second counts when you're processing
    thousands of passengers a day.

Randomization would slow checkpoints down to a crawl, as well as anger passengers. Do I have to take my shoes off or not? Does my computer go in the bin or not? (Even the weird but mostly consistent rule about laptops vs. iPads is annoying people.) Yesterday, liquids were allowed -- today they're banned. But at this airport, the TSA is confiscating anything with more than two ounces of aluminum and questioning people carrying Tom Clancy novels.

I'm not even convinced this would be a hardship for the terrorists. I've gotten really good at avoiding lanes with full-body scanners, and presumably the terrorists will simply assume that all security regulations are in force at all times. I'd like to see a cost-benefit analysis of this sort of thing first.

Hawley's concluding paragraph:

    In America, any successful attack -- no matter how small -- is
    likely to lead to a series of public recriminations and witch
    hunts. But security is a series of trade-offs. We've made it
    through the 10 years after 9/11 without another attack, something
    that was not a given. But no security system can be maintained
    over the long term without public support and cooperation. If
    Americans are ready to embrace risk, it is time to strike a new
    balance.

I agree with this. Sadly, I'm not optimistic for change anytime soon. There's one point Hawley makes, but I don't think he makes it strongly enough. He says:

    I wanted to reduce the amount of time that officers spent
    searching for low-risk objects, but politics intervened at every
    turn. Lighters were untouchable, having been banned by an act of
    Congress. And despite the radically reduced risk that knives and
    box cutters presented in the post-9/11 world, allowing them back
    on board was considered too emotionally charged for the American
    public.

This is the fundamental political problem of airport security: it's in nobody's self-interest to take a stand for what might appear to be reduced security. Imagine that the TSA management announces a new rule that box cutters are now okay, and that they respond to critics by explaining that the current risks to airplanes don't warrant prohibiting them. Even if they're right, they're open to attacks from political opponents that they're not taking terrorism seriously enough. And if they're wrong, their careers are over.

It's even worse when it's elected officials who have to make the decision. Which congressman is going to jeopardize his political career by standing up and saying that the cigarette lighter ban is stupid and should be repealed? It's all political risk, and no political gain.

We have the same problem with the no-fly list: Congress mandates that the TSA match passengers against these lists. Rolling this back is politically difficult at the best of times, and impossible in today's climate, even if the TSA decided it wanted to do so.

I am very impressed with Hawley's essay. I do wonder where it came from. This wasn't the same argument Hawley made when I debated him last month on the "Economist" website. This definitely wasn't the same argument he made when I interviewed him in 2007, when he was still head of the TSA. But it's great to read today.

Hopefully, someone is listening. And hopefully, our social climate will change so that these sorts of changes become politically possible.

Hawley's essay:
http://online.wsj.com/article/SB10001424052702303815404577335783535660546.html?mod=wsj_share_tweet_bot or http://tinyurl.com/bszegu5

Me in 2004:
http://www.schneier.com/essay-051.html

Me in 2005:
http://www.schneier.com/essay-096.html

Me in 2008:
http://www.schneier.com/essay-239.html

Me in 2009:
http://www.schneier.com/essay-273.html

Me complaining about the liquids ban:
http://www.schneier.com/essay-245.html

New technology to scan liquids:
http://www.tsa.gov/approach/tech2/sec_tech.shtm#bls

http://www.independent.ie/national-news/scanners-that-sniff-out-liquid-bombs-will-ease-airport-ordeal-3039280.html or http://tinyurl.com/74totzb http://www.telegraph.co.uk/travel/travelnews/9189275/New-scanners-could-end-airline-liquids-ban.html or http://tinyurl.com/7h3v4n5
http://phys.org/news/2010-10-scanner-aims-liquids-planes-safer.html
http://www.homelandsecuritynewswire.com/new-airport-scanner-can-detect-liquid-explosives or http://tinyurl.com/7v8q765 http://www.msnbc.msn.com/id/39660130/ns/travel-news/t/new-airport-scanner-tells-shampoo-explosives/#.T4sf8tnLNUM or http://tinyurl.com/7czks5x

TSA employment, salary, and morale:
http://www.homelandsecuritynewswire.com/airport-screeners-allowed-unionize-and-bargain-collectively or http://tinyurl.com/7gs3bts
http://bestplacestowork.org/BPTW/rankings/overall/sub
http://www.npr.org/templates/story/story.php?storyId=122948752
http://www.usatoday.com/news/washington/2008-02-24-tsa_N.htm
http://www.npr.org/blogs/itsallpolitics/2011/02/04/133503115/tsa-airport-screeners-get-collective-bargaining-rights or http://tinyurl.com/79pmals http://www.homelandsecuritynewswire.com/airport-screeners-allowed-unionize-and-bargain-collectively or http://tinyurl.com/7gs3bts
http://www.cnn.com/2011/TRAVEL/02/04/tsa.collective.bargaining/
http://travel.usatoday.com/flights/post/2012/02/tsa-spending-obama-/627126/1 or http://tinyurl.com/7ae4x9g

Airlines and baggage fees:
http://abcnews.go.com/Travel/airlines-revenue-increase-fees/story?id=14559471 or http://tinyurl.com/5veswdw http://transportationnation.org/2012/03/13/airllines-collected-almost-900-million-in-baggage-fees-and-600-million-in-reservation-change-fees-in-third-quarter-2011/ or http://tinyurl.com/6mvcfme http://www.mainstreet.com/article/lifestyle/travel/airlines-pack-away-34-billion-bag-fees or http://tinyurl.com/7j3caqd

Confusing laptop rules:
http://travel.nytimes.com/2012/04/08/travel/the-mystery-of-the-flying-laptop.html?ref=travel or http://tinyurl.com/7ff4359

Hawley and I debate in 2012:
http://www.economist.com/debate/days/view/820

Hawley and I debate in 2007:
http://www.schneier.com/interview-hawley.html

Slashdot thread:
http://tech.slashdot.org/story/12/04/14/1244209/former-tsa-administrator-speaks or http://tinyurl.com/722hfzt


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     TSA Behavioral Detection Statistics



Interesting data  from the U.S. Government Accountability Office:

    But congressional auditors have questions about other efficiencies
    as well, like having 3,000 "behavior detection" officers assigned
    to question passengers. The officers sidetracked 50,000 passengers
    in 2010, resulting in the arrests of 300 passengers, the GAO
    found. None turned out to be terrorists.

    Yet in the same year, behavior detection teams apparently let at
    least 16 individuals allegedly involved in six subsequent terror
    plots slip through eight different airports. GAO said the
    individuals moved through protected airports on at least 23
    different occasions.

I don't believe the second paragraph. We haven't had six terror plots between 2010 and today. And even if we did, how would the auditors know? But I'm sure the first paragraph is correct: the behavioral detection program is 0% effective at preventing terrorism.

The rest of the article is pretty depressing. The TSA refuses to back down on any of its security theater measures. At the same time, its budget is being cut and more people are flying. The result: longer waiting times at security.

http://www.chron.com/news/houston-texas/article/TSA-budget-cuts-likely-mean-even-longer-airport-3466500.php or http://tinyurl.com/6vouk83


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     News



From the CIA journal "Studies in Intelligence": "Capturing the Potential of Outlier Ideas in the Intelligence Community." https://www.cia.gov/library/center-for-the-study-of-intelligence/csi-publications/csi-studies/studies/vol.-55-no.-4/capturing-the-potential-of-outlier-ideas-in-the-intelligence-community.html or http://tinyurl.com/786wyvd

"Forever-day bugs": a nice turn of phrase.
http://arstechnica.com/business/news/2012/04/rise-of-ics-forever-day-vulnerabiliities-threaten-critical-infrastructure.ars or http://tinyurl.com/c2c3hdv

Password security at Linode.
http://blog.linode.com/2012/04/05/linode-manager-brute-force-protection/ or http://tinyurl.com/c3llyq6 http://blog.linode.com/2012/04/05/events-rss-feed-emails-and-profile-protection/ or http://tinyurl.com/d7eesqk It's nice to see some companies implementing these sorts of security measures.

Brian Krebs writes about smart meter hacks.
http://krebsonsecurity.com/2012/04/fbi-smart-meter-hacks-likely-to-spread/ or http://tinyurl.com/boqz8hz

A burglar was identified by his dance moves, captured on security cameras.
http://www.loweringthebar.net/2012/04/security-cam-records-burglars-signature-dance-moves.html or http://tinyurl.com/726d69f

GCHQ, the UK government's communications headquarters, has released two new -- well, 70 years old, but new to us -- cryptanalysis documents by Alan Turing.
http://www.schneier.com/blog/archives/2012/04/alan_turing_cry.html

Last year, I wrote about how social media sites are making it harder than ever for undercover police officers. This story talks about how biometric passports are making it harder than ever for undercover CIA agents.
http://www.wired.com/dangerroom/2012/04/cia-spies-biometric-tech/
Last year's story:
http://www.schneier.com/blog/archives/2011/08/the_effects_of.html

At the RSA Conference this year, I noticed a trend of companies that have products and services designed to help victims recover from attacks. Kelly Jackson Higgins noticed the same thing: "Damage Mitigation as the New Defense." http://www.darkreading.com/advanced-threats/167901091/security/attacks-breaches/232800395/damage-mitigation-as-the-new-defense.html or http://tinyurl.com/846cdsj

Army General Martin E. Dempsey, the chairman of the Joint Chiefs of Staff, said: "A cyber attack could stop our society in its tracks." Gadzooks. A scared populace is much more willing to pour money into the cyberwar arms race. http://articles.boston.com/2012-04-13/nation/31330084_1_top-military-officer-warfare-cyber-attack or http://tinyurl.com/6omlgcy

I've long advocated investigation, intelligence, and emergency response as the places where we can most usefully spend our counterterrorism dollars. Here's an example where that didn't work. http://www.foreignpolicy.com/articles/2012/04/18/patriot_games?page=0,0 or http://tinyurl.com/7wyehla

Two very interesting points in this essay on cybercrime. The first is that cybercrime isn't as big a problem as conventional wisdom makes it out to be. The second is that exaggerating the effects of cybercrime is a direct result of how the estimates are generated. http://www.nytimes.com/2012/04/15/opinion/sunday/the-cybercrime-wave-that-wasnt.html or http://tinyurl.com/8ylrf7b

The reports are still early, but it seems that a bunch of terrorist planning documents were found embedded in a digital file of a porn movie. http://edition.cnn.com/2012/04/30/world/al-qaeda-documents-future/index.html or http://tinyurl.com/7gnloay

I've often written about the base rate fallacy and how it makes tests for rare events -- like airplane terrorists -- useless because the false positives vastly outnumber the real positives. This essay uses that argument to demonstrate why the TSA's FAST program is useless. http://www.theatlantic.com/technology/archive/2012/04/homeland-securitys-pre-crime-screening-will-never-work/255971/ or http://tinyurl.com/d5wm4lp

Facial recognition of avatars; I suppose this sort of thing might be useful someday. http://www.newscientist.com/article/mg21428596.100-face-recognition-could-catch-bad-avatars.html or http://tinyurl.com/7b93meo

This vendor is selling a tampon-shaped USB drive. Although it's less secure now that there are blog posts about it.
http://www.meninos.us/products.php?product=FLASH.DRIVE
http://www.gadgetbox.msnbc.msn.com/technology/gadgetbox/tampon-shaped-flash-drive-disguises-data-730831 or http://tinyurl.com/8yyhohm

With all the talk about airborne drones like the Predator, it's easy to forget that drones can be in the water as well. Meet the Common Unmanned Surface Vessel (CUSV).
http://m.phys.org/news/2012-04-unmanned-vessel-navy.html

RuggedCom inserted a backdoor into its products.
http://www.wired.com/threatlevel/2012/04/ruggedcom-backdoor/
RuggedCom's response:
http://www.ruggedcom.com/productbulletin/ros-security-page/

Funny security fail.
http://www.frontlinesentinel.com/2012/05/mlb-security-fail-lol-worthy.html or http://tinyurl.com/85fstsl

MobileScope looks like a great tool for monitoring and controlling what information third parties get from your smart phone apps. http://www.techrepublic.com/blog/security/ashkan-soltani-introduces-mobilescope-an-innovative-approach-to-online-privacy/7815 or http://tinyurl.com/cronwd3

The U.S. is exporting terrorism fears. "United States Secretary of Homeland Security Janet Napolitano has warned the New Zealand Government about the latest terrorist threat known as 'body bombers.'" Further in the article: "Do we have specific credible evidence of a [body bomb] threat today? I would not say that we do, however, the importance is that we all lean forward." Why the headline of this article is "NZ warned over 'body bombers,'" and not "Napolitano admits 'no credible evidence' of body bomber threat" is beyond me.
http://tvnz.co.nz/travel-news/nz-warned-over-body-bombers-4861651



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     Stolen Phone Database



This article talks about a database of stolen cell phone IDs that will be used to deny service. While I think this is a good idea, I don't know how much it would deter cell phone theft. As long as there are countries that don't implement blocking based on the IDs in the databases -- and surely there will always be -- there will be a market for stolen cell phones.

Plus, think of the possibilities for a denial-of-service attack. Can I report your cell phone as stolen and have it turned off? Surely no political party will think of doing that to the phones of all the leaders of a rival party the weekend before a major election.

http://www.smartplanet.com/blog/business-brains/database-would-help-render-stolen-mobile-phones-useless/23353?tag=nl.e660 or http://tinyurl.com/78cukzr


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     "Liars and Outliers" Update



"Liars and Outliers" has been available for about two months, and is selling well both in hardcover and e-book formats. More importantly, I'm very pleased with the book's reception. The reviews I've gotten have been great, and I read a lot of tweets from people who have enjoyed the book. My goal was to give people new ways to think about trust and society -- and by extension security and society -- and it looks like I've succeeded.

Some samplings:

InfoWorld: "The fact that 'Liars and Outliers' prompted me to go back and update my own thinking is truly the measure of Schneier's latest book." http://www.infoworld.com/d/security/book-review-liars-and-outliers-enabling-the-trust-society-needs-thrive-185355 or http://tinyurl.com/7uxfsqz

ComputerWeekly.com: "I used to think that Bruce Schneier was out of touch with industry CISOs, but now I think that they are out of touch with him." http://www.computerweekly.com/blogs/david_lacey/2012/02/trust_and_society.html or http://tinyurl.com/7fxjtsw

Slashdot: "the reader will find that Schneier is one of the most original thinkers around." http://books.slashdot.org/story/12/02/22/1955201/book-review-liars-and-outliers or http://tinyurl.com/6u5o7wq

CSO: "If you get a chance to read Schneier's book (beg, borrow or steal a copy--although I'm not sure what that says about trust if you steal it), you should do so...trust me!"
http://www.csoonline.com/article/703257/trust-me-

I'm really proud of the book. I think it's the best thing I've written. If you haven't read the book yet, please give it a look. It's the synthesis of a lot of my security thinking to date. I really believe you will enjoy it, and that you'll think differently after you read it.

So far, though, my readership has mostly been within the security community: people who already know my writing. What I need help with is getting the word out to people outside the circles of computer security or this blog. Anyone who has read the book, I would really appreciate a review somewhere. On your blog if you have one, on Amazon, anywhere. If you know of a venue that reviews, or otherwise discusses books and authors, I would appreciate an introduction.

Also, if there are any companies that would like me to do a book signing at their booth or reception at a conference -- surely there's someone hosting a reception at the Gartner Security Expo next month, or Black Hat in July -- please contact me. Giving away copies of my book is a very effective lead generation tool.

Thank you.

http://www.schneier.com/lo.html


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     Overreacting to Potential Bombs



This is a ridiculous overreaction:

    The police bomb squad was called to 2 World Financial Center in
    lower Manhattan at midday when a security guard reported a package
    that seemed suspicious. Brookfield Properties, which runs the
    property, ordered an evacuation as a precaution.

That's the entire building, a 44-story, 2.5-million-square-foot office building. And why?

    The bomb squad determined the package was a fake explosive that
    looked like a 1940s-style pineapple grenade. It was mounted on a
    plaque that said "Complaint department: Take a number," with a
    number attached to the pin.

    It was addressed to someone at one of the financial institutions
    housed there and discovered by someone in the mail room.

If the grenade had been real, it could have destroyed -- what? -- a room. Of course, there's no downside to Brookfield Properties overreacting.

http://www.crainsnewyork.com/article/20120412/REAL_ESTATE/120419958


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     A Foiled Terrorist Plot



We don't know much, but here were my predictions from May 8:

1.  There's a lot more hyperbole to this story than reality.

2. The explosive would have either 1) been caught by pre-9/11 security, or 2) not been caught by post-9/11 security.

3.  Nonetheless, it will be used to justify more invasive airport security.

Since then, we've learned that the plot was foiled by a police informant. So we don't even know to what extent the informant created the plot, and whether it could have ever reached fruition were it not for the informant.

http://edition.cnn.com/2012/05/07/world/meast/yemen-qaeda-plot/index.html or http://tinyurl.com/8x4y8uj


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     Schneier News



I'm speaking at Hack-in-the-Box in Amsterdam on May 25.
http://conference.hitb.org/hitbsecconf2012ams/

I'm speaking at ITSecuDay in Geneva, also on May 25.
http://www.gri-portal.ch/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=47&cntnt01detailtemplate=dtplEVENTS&cntnt01returnid=116 or http://tinyurl.com/c5jx8ax

I'm speaking at Positive Hack Days Forum in Moscow on May 30.
http://www.phdays.com/


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     Fear and the Attention Economy



danah boyd is thinking about -- in a draft essay, and as a recording of a presentation -- fear and the attention economy. Basically, she is making the argument that the attention economy magnifies the culture of fear because fear is a good way to get attention, and that this is being made worse by the rise of social media.

A lot of this isn't new. Fear has been used to sell products and policy ("Remember the Maine!" "Remember the Alamo! "Remember 9/11!") since forever. Newspapers have used fear to attract readers since there were readers. Long before there were child predators on the Internet, irrational panics swept society. Shark attacks in the 1970s. Marijuana in the 1950s. boyd relates a story from Glassner's "The Culture of Fear" about elderly women being mugged in the 1990s.

These fears have largely been driven from the top down: from political leaders, from the news media. What's new today -- and I agree this is very interesting -- is that in addition to these traditional top-down fears, we're also seeing fears come from the bottom up. Social media are allowing all of us to sow fear and, because fear gets attention, is enticing us to do so. Rather than fostering empathy and bringing us all together, social media might be pushing us further apart.

A lot of this is related to my own writing about trust. Fear causes us to mistrust a group we're fearful of, and to more strongly trust the group we're a part of. It's natural, and it can be manipulated. It can be amplified, and it can be dampened. How social media are both enabling and undermining trust is a really important thing for us to understand. As boyd says: "What we design and how we design it matters. And how our systems are used also matters, even if those uses aren't what we intended."

Draft essay:
http://www.danah.org/papers/talks/2012/SXSW2012.html

Recording:
http://talks.webstock.org.nz/speakers/danah-boyd/

My writing on fear:
http://www.schneier.com/essay-232.html
http://www.schneier.com/essay-294.html


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     Amazing Round of "Split or Steal"



In "Liars and Outliers," I use the metaphor of the Prisoner's Dilemma to exemplify the conflict between group interest and self-interest. There are a gazillion academic papers on the Prisoner's Dilemma from a good dozen different academic disciplines, but the weirdest dataset on real people playing the game is from a British game show called "Golden Balls."

In the final round of the game, called "Split or Steal," two contestants play a one-shot Prisoner's Dilemma -- technically, it's a variant -- choosing to either cooperate (and split a jackpot) or defect (and try to steal it). If one steals and the other splits, the stealer gets the whole jackpot. And, of course, if both contestants steal then both end up with nothing. There are lots of videos from the show on YouTube. (There are even two papers that analyze data from the game.) The videos are interesting to watch, not just to see how players cooperate and defect, but to watch their conversation beforehand and their reactions afterwards. I wrote a few paragraphs about this game for "Liars and Outliers," but I ended up deleting them.

This is the weirdest, most surreal round of "Split or Steal" I have ever seen. The more I think about the psychology of it, the more interesting it is. I want you to watch it before I say more. Really.

http://www.youtube.com/watch?v=S0qjK3TWZE8

Think about Nick's strategy. He can't trust that Ibrahim will split. More importantly, he can't trust that Ibrahim will do what he said, because it's in Ibrahim's best interest to say one thing and do another. So he changes the game. He offers to split the pot outside the game -- set up a meta-game of sorts -- and removes Ibrahim's incentive to lie.

In effect, Nick turns the Prisoner's Dilemma, where both players make their decisions simultaneously, into a sort of Trust game: where one player makes a decision, and then the other does. In a classic Trust game, Player A gets a pot of money. He gives some percentage of it to Player B. It is then multiplied by some amount, and Player B gives some percentage of it back to Player A. In a classic rational self-interest model, it makes no sense for Player B to give any of the money back to Player A. Given that, it makes no sense for Player A to give any of the money to Player B in the first place. But if Player A gives player B 100%, and Player B gives Player A back 50% of the increased pot, they both end up the happiest.

Nick sets himself up as Player B, promising to give Ibrahim 50% of the jackpot outside of the game. Ibrahim is now Player A, deciding whether to give Nick the money in the first place. But unlike a classic Trust game, Ibrahim can't keep the money if he doesn't give it to Nick. So he might as well give the money to Nick. The game is turned on its head; trusting Nick now means letting him have all the money. Not trusting Nick means...well, it doesn't mean anything anymore. All that's left is not letting Nick have the money out of spite -- and that emotion seems out of place in the conversation. Ibrahim decides to trust Nick, because it's the only option that makes any sense. (Although the process is funny to watch. Ibrahim can't figure out what's going on. He tries to steer the conversation back to mutual trust -- how important his word is -- but it's no longer relevant. And, at the end, he first picks up the "Steal" ball before saying "okay, I'll tell you what, I'm going to go with you" and changing his mind. That bit of honesty demonstrates how effectively subterfuge was removed from Ibrahim's game.)

Nick, for his part, having removed the subterfuge from the game, can safely choose "Split." Although notice that he does so before Ibrahim chooses, so he's sure his psychological manipulation worked. I wouldn't have been so cocky.

"Golden Balls":
http://en.wikipedia.org/wiki/Golden_Balls

Videos of "Split or Steal":
http://www.youtube.com/watch?v=tBtr8-VMj0E
http://www.youtube.com/watch?v=U2la85p--eo
http://www.youtube.com/watch?v=JB1kOFGZD2Y
http://www.youtube.com/watch?v=yM38mRHY150
http://www.youtube.com/watch?v=y6GhbT-zEfc
http://www.youtube.com/watch?v=hbS_1s985NA
http://www.youtube.com/watch?v=lzPKspCj1i4

Academic papers on "Split or Steal":
http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0033344 or http://tinyurl.com/78w29bl
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1592456

Economic analysis of the episode:
http://www.tutor2u.net/blog/index.php/economics/comments/game-show-game-theory or http://tinyurl.com/73lo4p2

Lots more discussion in the blog comments.
http://www.schneier.com/blog/archives/2012/04/amazing_round_o.html


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Since 1998, CRYPTO-GRAM has been a free monthly newsletter providing summaries, analyses, insights, and commentaries on security: computer and otherwise. You can subscribe, unsubscribe, or change your address on the Web at <http://www.schneier.com/crypto-gram.html>. Back issues are also available at that URL.

Please feel free to forward CRYPTO-GRAM, in whole or in part, to colleagues and friends who will find it valuable. Permission is also granted to reprint CRYPTO-GRAM, as long as it is reprinted in its entirety.

CRYPTO-GRAM is written by Bruce Schneier. Schneier is the author of the best sellers "Schneier on Security," "Beyond Fear," "Secrets and Lies," and "Applied Cryptography," and an inventor of the Blowfish, Twofish, Threefish, Helix, Phelix, and Skein algorithms. He is the Chief Security Technology Officer of BT BCSG, and is on the Board of Directors of the Electronic Privacy Information Center (EPIC). He is a frequent writer and lecturer on security topics. See <http://www.schneier.com>.

Crypto-Gram is a personal newsletter. Opinions expressed are not necessarily those of BT.

Copyright (c) 2012 by Bruce Schneier.

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