The following message is a courtesy copy of an article
that has been posted to bit.listserv.ibm-main as well.

[EMAIL PROTECTED] (Tom Schmidt) writes:
> I once heard a former CIA spook say that any POS system can be hacked
> from a truck parked at the curb, if the price/value is right.
> (Speaking from a previous lifetime in marketing research.)  Maybe
> somebody built a proof-of- concept device???  (Think: TEMPEST)

re:
http://www.garlic.com/~lynn/2007h.html#56 T.J. Maxx data theft worse than first 
reported

... don't think individual POS terminals sitting on the counter
... think corporate POS concentrator ... where all POS transactions for
the whole corporation passes thru on the way to the financial network.

this is slightly analogous to the internet payment gateway (we
periodically claim is the original SOA)

long ago, and far away, we were called in to consult with this small
client/server startup that had this technology called SSL and wanted to
do payment transactions on their server. 
http://www.garlic.com/~lynn/aadsm5.htm#asrn2
http://www.garlic.com/~lynn/aadsm5.htm#asrn3

a "payment gateway" was developed and deployed ... it is somewhat
analogous to a corporate POS concentrator ... but can be used by lots of
different (small) webservers any place on the web (as opposed to
webservers in large corporation that frequently just aggregate into a
corporate POS concentrator).

as before ... there are all kinds of evesdropping technology (some may
or may not require some sort of physical operation) ... and then use the
harvested information for fraudulent transactions in various kinds of
"replay attacks" (being able to use information harvested from previous
transactions ... in new fraudulent transactions)
http://www.garlic.com/~lynn/subintegrity.html#harvest

as an aside ... it isn't too unusual to see such trucks parked all over
the place around silicon valley ... they are brought in for regular
audits for leaking/stray emissions. they typically don't bother to
disquise external antennas

for some topic drift ... posts about trade secret litigation and some
question about whether the security was proportional to the risk
(i.e. had to demonstrate security procedures that were proportional to
the claimed value of the stuff at risk):
http://www.garlic.com/~lynn/2001d.html#42 IBM was/is: Imitation...
http://www.garlic.com/~lynn/2002d.html#8 Security Proportional to Risk (was: 
IBM Mainframe at home)
http://www.garlic.com/~lynn/2003i.html#62 Wireless security
http://www.garlic.com/~lynn/2005r.html#7 DDJ Article on "Secure" Dongle
http://www.garlic.com/~lynn/2006r.html#29 Intel abandons USEnet news
http://www.garlic.com/~lynn/2007e.html#9 The Genealogy of the IBM PC
http://www.garlic.com/~lynn/2007f.html#45 The Perfect Computer - 36 bits?
http://www.garlic.com/~lynn/2007f.html#46 The Perfect Computer - 36 bits?
http://www.garlic.com/~lynn/2007f.html#57 Is computer history taught now?

part of the web case ... was that the existing infrastructure is
extremely vulnerable to replay attacks.

from security acronym PAIN

P - privacy (sometimes CAIN, confidential)
A - authentication
I - integrity
N - non-repudiation

in the case of the payment gateway, SSL was used for
privacy/confidentiality of the transaction transmitting thru the
internet ... i.e. achieving "security" with encryption as countermeasure
to evesdropping (as part of replay attacks). However, as we've
frequently noted was that the most of the harvesting exploits appear to
happen at the end-points ... as opposed to while the transaction is
actually being transmitted.

now, in the mid-90s, the x9a10 financial standard working had been
given the requirement to preserve the integrity of the financial
infrastructure for all retail payments. the result was x9.59 
financial transaction standard
http://www.garlic.com/~lynn/x959.html#x959

in effect, the x9.59 financial standard substituted end-to-end
"authentication" and "integrity" (for privacy, confidentiality,
encryption) to achieve "security".  providing end-to-end
"authentication" and "integrity" eliminated evesdropping as a risk or
compromise ... since information from existing transactions could no
longer be used for fraudulent transactions in replay attacks i.e. x9.59
transactions aren't vulnerable to evesdropping, skimming, harvesting
exploits ... whether "at-rest" or "in-transit".

we've claimed that the largest use of SSL has been the e-commerce stuff
that we previously worked on ... as part of hiding transactions during
transmission.  x9.59 eliminates the requirement for hiding transactions
(and therefor eliminates one of the major uses for SSL).

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