Re: Lack of fraud reporting paths considered harmful.

2008-01-27 Thread Ian G

John Ioannidis wrote:

Perry E. Metzger wrote:


That's not practical. If you're a large online merchant, and your
automated systems are picking up lots of fraud, you want an automated
system for reporting it. Having a team of people on the phone 24x7
talking to your acquirer and reading them credit card numbers over the
phone, and then expecting the acquirer to do something with them when
they don't have an automated system either, is just not reasonable.




But how can the issuer know that the merchant's fraud detection systems 
work, for any value of work? This could just become one more avenue 
for denial of service, where a hacked online merchant suddenly reports 
millions of cards as compromised.  I'm sure there is some interesting 
work to be done here.



There is an interesting analogue in the area of SAR 
(suspicious activity report) filings through financial 
services.  This has been in place with various providers for 
maybe a decade or so.  I'm not aware of any serious economic 
analysis that would suggest copying the lessons, though.


There is a philosophical problem with suggesting an 
automated protocol method for reporting fraud, in that one 
might be better off ... fixing the underlying fraud.


iang

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Re: German Government Skype interception methods leaked...

2008-01-27 Thread Stephan Somogyi

At 10:24 -0500 26.01.2008, Perry E. Metzger wrote:


Wikileaks has released documents from the German police revealing
Skype interception technology. The leaks are currently creating a
storm in the German press[...]


I've skimmed some of the coverage and I can't help but think that 
this is being hyped in large part because Skype is mentioned.


What's being described seems to require running DigiTask's code on an 
endpoint. If you're installed on the machine anyway, rather than 
grabbing packets on the wire, all you'd need to do is get the data -- 
eg by inserting yourself into standard OS audio and HID APIs -- 
before Skype's code processes it. Such an approach would never have 
to deal with encrypted bits, and really has nothing to do with Skype 
at all.


NB also that unless they've implemented specific countermeasures in 
the mean time, Skype remains vulnerable to traffic analysis, cf. 
http://arstechnica.com/news.ars/post/20060824-7582.html.


s.

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Re: Lack of fraud reporting paths considered harmful.

2008-01-27 Thread Anne Lynn Wheeler

Perry E. Metzger wrote:

This evening, a friend of mine who shall remain nameless who works for
a large company that regularly processes customer credit card payments
informed me of an interesting fact.

His firm routinely discovers attempted credit card fraud. However,
since there is no way for them to report attempted fraud to the credit
card network (the protocol literally does not allow for it), all they
can do is refuse the transaction -- they literally have no mechanism
to let the issuing bank know that the card number was likely stolen.

This seems profoundly bad. I hope that someone on the list has the
right contacts to get the right people to do something about this.

   


some chance they are doing this to save money on transactions that aren't
likely to be approved ... i.e. rather than be charged for a transaction that
they send thru to the issuer that they are sure to be rejected ... they
reject it upfront.

now the associations have standard procedure to perform stand-in when
the network accepts a transaction from an acquirer but isn't able to forward
it to the issuer. stand-in allows the network to decide whether to approve
or reject the transaction using simplified rules. later, when contact is
re-established with the issuer ... the issuer has to be informed of all
the stand-in activity.

a possible simplified mechanism is to be able to generate a simulated 
stand-in

report of rejected transactions. the issue then in such a simulated stand-in
role ... for all the reasons that they chose to reject a transaction ... 
do they map

into the standard iso 8583 codes for reasons that the issuer would reject
the transaction.

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malware in digital photo frames infects users computers

2008-01-27 Thread Alex Alten
Great.  What next?  I guess air-gap transfer of flash memory might be the 
best solution.


Malware's new infection route: photo frames
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2008/01/26/MNE7UHOOQ.DTL

- Alex
--

Alex Alten
[EMAIL PROTECTED]



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Re: [tahoe-dev] Surely M$ can patent this process?

2008-01-27 Thread zooko
[adding Cc: p2p-hackers and cryptography mailing lists as explained  
below; Please trim your follow-ups as appropriate.]


Dear Gary Sumner:


On Jan 26, 2008, at 9:44 PM, Gary Sumner wrote:
I was researching on the weekend and came across Tahoe…very  
exciting and can’t wait to delve in and understand more in detail.


I was reading over Plank’s work around erasure encoding and that  
lead me to Tahoe. One thing that I was really looking for was to be  
able to encrypt the data before storing it  and so was very excited  
when I read your architecture doc and it says “When a file is to be  
added to the grid, it is first encrypted using a key that is  
derived from the hash of the file itself.” This seems perfectly  
logical and natural way to apply this technique. However,  
researching also lead me to a patent M$ has been granted on this  
exact process:


Encryption Systems and Methods for Identifying and Coalescing  
Identical Objects Encrypted with Different Keys - http:// 
patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2Sect2=HITOFFp=1u=% 
2Fnetahtml%2FPTO%2Fsearch- 
bool.htmlr=1f=Gl=50co1=ANDd=PTXTs1=6983365.PN.OS=PN/ 
6983365RS=PN/6983365




I haven't read that patent, so I can't say whether it applies to what  
allmydata.org Tahoe does or not.  By default, for immutable files  
(but not for mutable files or directories), Tahoe sets the encryption  
key equal to the tagged hash of the file contents.  (A tagged hash is  
simply a hash of the data prefixed by a tag to distinguish it from  
other uses of hash functions).  You don't have to use Tahoe this way,  
however:



The encryption before storing is critical for my application.

If, for any reason, you don't want to let your encryption key be  
produced from the secure hash of the file contents, then Tahoe can  
instead use a randomly-generated encryption key.  The drawback of  
doing it this way -- with a random encryption key -- is that you lose  
the deduplication feature: two people who independently store the  
same file contents will use twice as much space, instead of each of  
them having a pointer to a single stored copy.  The advantages of  
doing it with a random encryption key are that you get a stronger  
guarantee about the confidentiality of the contents of your files,  
and it is faster as you don't need to process the whole file (in  
order to generate the encryption key) before beginning to upload the  
file.


Surely there must be prior art on this technique to refute this  
patent?




That's an interesting question, and I'm carbon-copying the p2p- 
hackers and cryptography mailing lists to ask if anyone knows.  I  
learned about this technique from Jim McCoy and Doug Barnes in their  
design of Mojo Nation.  I don't remember whether this technique was  
mentioned in Jim McCoy's personal communication of Mojo Nation to me  
in the summer of 1998, but it was definitely present in the design  
when I started working for Jim and Doug on Mojo Nation in 1999, and  
when Mojo Nation was first announced to the world at DefCon in July  
2000 [1, 2].  I don't know if Jim came up with the idea ex nihilo or  
was exposed to it in the swirling soup of ideas that we lived in at  
the time: cypherpunks / Electric Communities (which had many ideas  
gleaned from Xanadu) / Financial Cryptography / etc..


I remember reading about the newly announced Freenet project in 2000  
and being surprised at how many similarities its design had to our  
unannounced Mojo Nation project.  The influential Freenet paper [3]  
was published in July, 2000 -- one month too late to count as prior  
art for that patent, which was filed May 2000.  However, that paper  
was based on Ian Clarke's master's thesis, which was published in  
1999.  Let's see...  A there it is: [4].  Hm, no it does not seem to  
contain the notion that the 2000 Freenet paper would popularize as  
Content Hash Keys.


I've also just now re-read The Eternity Service (Anderson, 1996) [5],  
and it, like Clarke 1999, omits details of encryption.


It's an interesting puzzle of intellectual history.  The idea  
certainly seems to have been in the air, as both Mojo Nation and  
Freenet were working on it before the May 2000 patent submission by  
Doceur et al., but Mojo Nation and Freenet each published the idea  
shortly after May 2000.  According to my limited understanding of  
patent law, this means that they don't count as prior art on that  
patent.


Regards,

Zooko

[1] http://www.mccullagh.org/image/950-12/jim-mccoy-mojonation.html
[2] http://web.archive.org/web/20001118214000/http:// 
www.mojonation.net/docs/technical_overview.shtml

[3] http://citeseer.ist.psu.edu/420356.html
[4] http://citeseer.ist.psu.edu/380453.html
[5] http://citeseer.ist.psu.edu/anderson96eternity.html
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Re: Lack of fraud reporting paths considered harmful.

2008-01-27 Thread Perry E. Metzger

Ian G [EMAIL PROTECTED] writes:
 There is a philosophical problem with suggesting an automated protocol
 method for reporting fraud, in that one might be better off ... fixing
 the underlying fraud.

Lets say you're a big company like Amazon or someone similar. You're
pretty sure someone is trying to use a stolen credit card. How do you
fix the underlying fraud? Last I checked, Amazon had no police
force. Lets say that the miscreants are in any one of several Eastern
European countries. Even reporting the fraud to the police in the
originating country won't fix it because the foreign police will do
absolutely nothing.

Perhaps you argue that the credit card system itself is flawed. I
agree, but as a company like Amazon you're not in a position to fix
that, either.

The point of providing a feedback channel is so the issuing bank can
be alerted to an attempted fraud, call the customer, say hi, did you
try to buy a container consumer electronics and have it shipped to
Belarus, hear back no, and issue a new credit card. This is done
right now when the issuing bank notices suspicious activity, but there
is a hole in the system in which a merchant might refuse a suspicious
charge and yet have no way of telling the issuing bank about it.

The call-the-customer-and-reissue mechanism is a mediocre solution to
the fraud problem, but it is the one we have these days. As it stands,
a merchant can't easily tell the issuing bank that it should have a
look to see if a card is being used fraudulently, so the merchant can
know that something weird is happening but the issuing bank can remain
ignorant. This is not a good situation. That is why a feedback path
would be of use.

I had long assumed such a feedback path already existed, and I was
rather shocked to discover it did not.

Perry

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