[Just as many people are implementing HTTPS, a sobering review of its 
governance weaknesses. -DV]

Axel Arnbak, Hadi Asghari, Michel Van Eeten, Nico Van Eijk, 
"Security Collapse in the HTTPS Market" - Assessing legal and technical 
solutions to secure HTTPS, 
ACM Queue, vol. 12, no. 8, Aug 2014. 
<http://queue.acm.org/detail.cfm?id=2673311>
<http://dl.acm.org/citation.cfm?id=2673311>


HTTPS (Hypertext Transfer Protocol Secure) has evolved into the de facto 
standard for secure Web browsing. Through the certificate-based authentication 
protocol, Web services and Internet users first authenticate one another 
("shake hands") using a TLS/SSL certificate, encrypt Web communications 
end-to-end, and show a padlock in the browser to signal that a communication is 
secure. In recent years, HTTPS has become an essential technology to protect 
social, political, and economic activities online.

At the same time, widely reported security incidents—such as DigiNotar's 
breach, Apple's #gotofail, and OpenSSL's Heartbleed—have exposed systemic 
security vulnerabilities of HTTPS to a global audience. The Edward Snowden 
revelations—notably around operation BULLRUN, MUSCULAR, and the lesser-known 
FLYING PIG program to query certificate metadata on a dragnet scale—have driven 
the point home that HTTPS is both a major target of government hacking and 
eavesdropping, as well as an effective measure against dragnet content 
surveillance when Internet traffic traverses global networks. HTTPS, in short, 
is an absolutely critical but fundamentally flawed cybersecurity technology.

While the Heartbleed incident illuminated severe flaws in a widely used 
crypto-library of HTTPS (OpenSSL), the focus here is on the systemic security 
vulnerabilities in the HTTPS authentication model that precedes end-to-end 
encryption. Although some of these vulnerabilities have been known for years, 
the 2011 security breach at the small Dutch CA (certificate authority) known as 
DigiNotar was a watershed moment, demonstrating these theoretical 
man-in-the-middle vulnerabilities in the wild. Meanwhile, large CAs such as 
Comodo and Verisign have experienced breaches as well but didn't suffer similar 
consequences to DigiNotar. In fact, some large CAs actually benefited from the 
increased sense of HTTPS insecurity.

Policymakers and technologists are increasingly advocating various solutions to 
address the security collapse of HTTPS. The European Union is halfway through 
adopting the world's first comprehensive legislation on HTTPS. It will acquire 
immediate binding force in the legal systems of 28 European member states. As 
most large CAs operate (also) under E.U. jurisdiction, the legislation will 
impact HTTPS governance globally. In the U.S., on the other hand, attention has 
focused on technological solutions and industry self-regulation. 

To evaluate both legal and technological solutions, an understanding of the 
economic incentives of the stakeholders in the HTTPS ecosystem, most notably 
the CAs, is essential.2,3 This article outlines the systemic vulnerabilities of 
HTTPS, maps the thriving market for certificates, and analyzes the suggested 
regulatory and technological solutions on both sides of the Atlantic. The 
findings show existing yet surprising market patterns and perverse incentives: 
not unlike the financial sector, the HTTPS market is full of information 
asymmetries and negative externalities, as a handful of CAs dominate the market 
and have become "too big to fail." Unfortunately, the proposed E.U. legislation 
will reinforce systemic vulnerabilities, and the proposed technological 
solutions are far from being adopted at scale. The systemic vulnerabilities in 
this crucial technology are likely to persist for years to come.

[ ... 25 pages ... ]

Conclusion

Recent breaches at CAs have exposed several systemic vulnerabilities and market 
failures inherent in the current HTTPS authentication model: the security of 
the entire ecosystem suffers if any of the hundreds of CAs is compromised 
(weakest link); browsers are unable to revoke trust in major CAs ("too big to 
fail"); CAs manage to conceal security incidents (information asymmetry); and 
ultimately customers and end users bear the liability and damages of security 
incidents (negative externalities). 

Understanding the market and value chain for HTTPS is essential to address 
these systemic vulnerabilities. The market is highly concentrated, with very 
large price differences among suppliers and limited price competition. 
Paradoxically, the current vulnerabilities benefit rather than hurt the 
dominant CAs, because among others, they are too big to fail.

In terms of solutions, the E.U. has opted for a regulatory response, while the 
preference in the U.S. is for industry self-regulation and technological 
solutions. In general, the technological solutions aim to solve the 
weakest-link security problem of the HTTPS ecosystem. Several proposals are 
promising, but none is near large-scale adoption. Industry self-regulation has 
only augmented market failures, rather than solving them. 

The proposed E.U. regulation does not consider the role of all stakeholders in 
the HTTPS ecosystem, thus reinforcing systemic vulnerabilities by creating new 
long-term institutional dependencies on market-leading CAs. The April 2014 E.U. 
Parliament amendments make matters much worse. The E.U. Parliament seems to 
have been successfully captured by CA lobbying efforts.

Regardless of major cybersecurity incidents such as CA breaches, and even the 
Snowden revelations, a sense of urgency to secure HTTPS seems nonexistent. As 
it stands, major CAs continue business as usual. For the foreseeable future, a 
fundamentally flawed authentication model underlies an absolutely critical 
technology used every second of every day by every Internet user. On both sides 
of the Atlantic, one wonders what cybersecurity governance really is about.



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