Re: Retailers try to push data responsibilities back to banks

2007-10-05 Thread Anne & Lynn Wheeler

some number of other recent notes on the subject:

Customer Service: Consumer Confidence at Stake in Retail, Credit Card
Industry Clash
http://www.ecommercetimes.com/story/59670.html
Retailer PCI Rebellion: 'No More Storing Credit Card Numbers'
http://www.darkreading.com/document.asp?doc_id=135602
Retailers Fighting To No Longer Store Credit Data
http://it.slashdot.org/it/07/10/05/192250.shtml
Retail group takes a swipe at PCI
http://www.infoworld.com/article/07/10/05/Retail-group-takes-a-swipe-at-PCI_1.html
Retailers Challenge the Networks’ Card-Data Storage Requirements
http://www.digitaltransactions.net/newsstory.cfm?newsid=1536
NRF to Credit Card Companies: Stop Forcing Retailers to Store Credit Card Data
http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=380
Retail group takes a swipe at PCI, puts card companies 'on notice'
http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonomyName=security&articleId=9040958&taxonomyId=17
Rethinking the Assumptions Behind PCI-DSS
http://www.paymentsnews.com/2007/10/rethinking-the-.html
PCI Is Here: Keeping the barbarians outside the cyber gates
http://www.practicalecommerce.com/articles/580/Caveat-Vendor-PCI-Is-Here/
Retailers, Credit Card Industry Clash
http://www.physorg.com/news110781861.html

 


we had been called in to consult with this small client/server startup that
wanted to do payment transactions. this required some amount of translating
technology into business critical data processing ... which has somewhat
come to be referred to as "electronic commerce". This including technology
invention that they called SSL ... and among other things we had to do
some detailed audits of these supporting infrastructures that were calling
themselves certification authorities ... various past posts on the subject
http://www.garlic.com/~lynn/subnetwork.html#gateway

in the mid-90s we got involved in the x9a10 financial standard working group
that had been given the requirement to preserve the integrity of the
financial infrastructure for all retail payments. we drew on our experience
having previously done "electronic commerce" as well as some detailed
vulnerability studies and threat models. having been given the requirement
for all retail payments ... we had to look at a standard that was lightweight
enuf that could be easily deployed in both point-of-sale as well as internet
environments ... and provide end-to-end security and integrity with 
countermeasures
for both "data-in-flight" vulnerabilities (aka transaction transmission)
as well as "data-at-rest" vulnerabilities (aka transaction logs and databases).
part of the issue was some studies that claimed as much as 70 percent
of ("data-in-flight" and "data-at-rest") compromises involved "insiders"
(aka countermeasures had to recognize that majority of compromises
possibly involved individuals with legitimate access to the information).

the resulting financial standard was x9.59
http://www.garlic.com/~lynn/x959.html#x959

the x9.59 approach was to eliminate fraudulent transactions resulting
evesdropping and data breach compromises ... aka it didn't eliminate
evesdropping and data breach compromises ... but it eliminated the
ability of attackers (insiders or outsiders) to use the information 
that they had obtained for purposes of doing fraudulent transactions.


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Re: Undocumented Bypass in PGP Whole Disk Encryption

2007-10-05 Thread Victor Duchovni
On Thu, Oct 04, 2007 at 02:37:21PM -0500, [EMAIL PROTECTED] wrote:

> http://it.slashdot.org/article.pl?sid=07/10/04/1639224&from=rss
> 
> Interesting quote:
> 
> Jon Callas, CTO and CSO of PGP Corp., responded that this [previously
> undocumented] feature was required by unnamed customers and that
> competing products have similar functionality.

The article is sensational nonsense. The quote is right on the money,
businesses require disk encryption companies to support one time unprotected
reboot (enabled securely before reboot) to support automated rebuilds.

Without this requirement, the Windows desktop support teams refuse to
field the products. The problem is not interesting, the feature cannot
be enabled after the fact.

-- 
Viktor.

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Re: Retailers try to push data responsibilities back to banks

2007-10-05 Thread Jack Lloyd
On Thu, Oct 04, 2007 at 06:48:49PM -0400, Leichter, Jerry wrote:
> Prat Moghe, founder and CTO of Tizor Systems Inc., a Maynard,
> Mass.-based security firm, called the NRF's demand political posturing
> and said it would do little to improve retail security anytime soon.
> 
> "I think a lot of this is about moving culpability back to the credit
> card companies and saying don't make this my problem alone," Moghe
> said. "They seem to have realized that going on the defense as an
> industry doesn't help. There is just more and more they have to do."

Amazingly, Tizor Systems does PCI reviews (actually they entirely seem
to do C&A work), and I'm sure Prat would prefer to see the PCI gravy
train stay around. (I don't know the current state of the industry,
but when I was working in a consulting group 2004-2005, PCI reviews
were our most profitable engagement type by a large margin - and
non-technical enough that you can put a person with a few months of
security training on them and they'll do fine).

-Jack

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Re: Seagate announces hardware FDE for laptop and desktop machines

2007-10-05 Thread Ali, Saqib
> I think the really interesting question is what happens when you lose
> a FDE-ed hard drive.  Do you still need to publish the incident and
> contact potentially affected individuals?  If the answer is "no", I'm
> sure this technology will be quickly adopted, independently of its
> actual implementation.

California Senate Bill CA1386 provides a "Get Out of Jail Free" Card
if you are using "reasonable" means to protect the confidentiality of
data. However you still have to proof it


saqib
http://security-basics.blogspot.com/

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Retailers try to push data responsibilities back to banks

2007-10-05 Thread Leichter, Jerry

Retail group takes a swipe at PCI, puts card companies 'on notice'
Jaikumar Vijayan

October 04, 2007 (Computerworld) Simmering discontent within the retail
industry over the payment card industry (PCI) data security standards
erupted into the open this week with the National Retail Federation
(NRF) asking credit card companies to stop forcing retailers to store
payment card data.

In a tersely worded letter to the PCI Security Standards Council, which
oversees implementation of the standard, NRF CIO David Hogan asked
credit card companies to stop making retailers "jump through hoops to
create an impenetrable fortress" to protect card data. Instead,
"retailers want to eliminate the incentive for hackers to break into
their systems in the first place."

"With this letter, we are officially putting the credit card industry on
notice," Hogan said in a statement. The NRF, a trade association whose
membership includes most of the major retailers in the U.S., is the
national voice for about 1.4 million U.S retail establishments.

In an interview with Computerworld this morning, Hogan said the letter
was provoked by a "lot of frustration" in the industry about PCI
guidelines and the deadlines associated with implementing them. If the
goal of PCI is to protect credit card data, the easiest and most common
sense approach is to stop requiring merchants to store the data in the
first place, he said.

PCI is a data security standard mandated by Visa International Inc.,
MasterCard International Inc., American Express Co., Discover and the
Japan Credit Bureau. It requires companies to implement a set of
prescribed security controls for protecting cardholder data. Though the
requirements went into affect more than two years ago, a large number of
big retailers are still noncompliant because of a variety of issues that
include legacy system challenges, rules interpretation issues and
continuously evolving guidelines.

According to Hogan, credit card companies require retailers and others
accepting payment card transactions to store certain card data sometimes
for up to 18 months so that it can be retrieved in the event of
chargebacks and other disputes.

But rather than have thousands of retailers store the data, credit card
companies and their banks should do so, Hogan said. Retailers only need
an authorization code provided at the time of a sale to validate a
charge, and a receipt with truncated credit card information to handle
returns and refunds. If that were done, he said, most retailers probably
wouldn't store any cardholder data.

According to Hogan, under the current process, credit card companies and
their banks already have the information needed for retrieval purposes
and it should be their responsibility to store and protect the data. "It
is a very fundamental shift. But if you think about it, it is a very
common-sense approach."

PCI mandates are challenging retailers to build fortresses around credit
card data, he said. "We build these higher walls and the hackers bring
in taller ladders and this kind of keeps scaling up all the time."

Gartner Inc. analyst Avivah Litan said that the NRF letter makes a
"sound argument.

"It's totally reasonable to tell the banking system and payment system
that 'we don't want to store this data anymore,'" she said. "If they
aren't storing this data, many of these [PCI] requirements go away and
the scope of the compliance effort is much more restricted.

In an e-mailed comment, Bob Russo, general manager of the PCI security
standards council, said the body received the NRF letter yesterday and
will respond after reviewing it further. "However, it must be recognized
that the payment brands -- and not the Council -- operate the systems
underlying the payments process, as well as the compliance
programs. Because of this, Mr. Hogan should be directing his concerns to
those individual brands."

Jon Hurst, president of the Retailers Association of Massachusetts,
backed the NRF's position. With all of the attention paid to PCI, what's
gone unnoticed is the fact that card companies themselves require
certain amounts of data to be stored because of disputed transactions,
he said. If not for that requirement, many retailers -- especially the
large ones -- would probably not keep data and therefore wouldn't be
pressed to secure it, he said.

Prat Moghe, founder and CTO of Tizor Systems Inc., a Maynard,
Mass.-based security firm, called the NRF's demand political posturing
and said it would do little to improve retail security anytime soon.

"I think a lot of this is about moving culpability back to the credit
card companies and saying don't make this my problem alone," Moghe
said. "They seem to have realized that going on the defense as an
industry doesn't help. There is just more and more they have to do." By
speaking out aggressively at a time when retail industry information
security practices are under scrutiny by consumers and lawmakers, the
NRF is hoping to spread the liability 

ECC vs. D/H or RSA

2007-10-05 Thread travis+ml-cryptography
Does anyone have information on:

1) The ECAES weakness that led to ECIES
2) Any known weaknesses of ECIES
3) Relative performance figures between ECC routines like ECIES
   and D/H (or possibly RSA, though IES is based on EC-DH)

I can generate the last if these figures are not available.

BTW, I noticed that the latest OpenSSL has some EC functions,
including EC-DH IIRC.  It does not have ECAES or ECIES though.

References:
http://en.wikipedia.org/wiki/ECIES
http://www.secg.org/download/aid-385/sec1_final.pdf
-- 
http://www.subspacefield.org/~travis/> Tat Tvam Asi
For a good time on my UBE blacklist, email [EMAIL PROTECTED]


pgpvAz1RvHImk.pgp
Description: PGP signature


Undocumented Bypass in PGP Whole Disk Encryption

2007-10-05 Thread travis+ml-cryptography
http://it.slashdot.org/article.pl?sid=07/10/04/1639224&from=rss

Interesting quote:

Jon Callas, CTO and CSO of PGP Corp., responded that this [previously
undocumented] feature was required by unnamed customers and that
competing products have similar functionality.
-- 
http://www.subspacefield.org/~travis/> Tat Tvam Asi
For a good time on my UBE blacklist, email [EMAIL PROTECTED]


pgpUavsYRK20D.pgp
Description: PGP signature


Re: Bid on a SnakeOil Crypto Algorithm Patent

2007-10-05 Thread [EMAIL PROTECTED]
On 10/4/07, [EMAIL PROTECTED] <[EMAIL PROTECTED]> wrote:
> On 10/3/07, Saqib Ali <[EMAIL PROTECTED]> wrote:
> [SNIP]
> or both private keys but that never seems to get mentioned
>
I take it back, there is only one private key but math makes multiple
temporary public keys out of it.

-Michael

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Re: Bid on a SnakeOil Crypto Algorithm Patent

2007-10-05 Thread [EMAIL PROTECTED]
On 10/3/07, Saqib Ali <[EMAIL PROTECTED]> wrote:
> http://www.freepatentauction.com/patent.php?nb=950
>
> Snake Oil Keywords:
> 1) Breach-proof Encryption,
> 2) landmark invention in Cryptography and Information Security
>
The basic details seem to be that data in flight gets protected by
splitting the message, encrypting each half protected by a different
RSA key, and sending each half along a different route using source
routing.

This means that if an attacker gets the stream on one route, they
cannot get the message even if they have one private key (or both
private keys but that never seems to get mentioned in the docs). This
is where "breach proof" comes from.

-Michael Heyman

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Re: Seagate announces hardware FDE for laptop and desktop machines

2007-10-05 Thread Florian Weimer
* Ivan Krstić:

> On Oct 3, 2007, at 4:39 AM, Florian Weimer wrote:
>> But this exhibits an issue with disk-based encryption: you can't
>> really know what they are doing, and if they are doing it right.
>> (Given countless examples of badly-deployed cryptography, this isn't
>> just paranoia, but a real concern.)
>
> Precisely. If you're keeping secrets from your nosy siblings and
> coworkers, hardware FDE is more than adequate. If you have reason to
> believe someone skilled and resourceful might really want your data,
> you almost certainly have no business using a blackbox encryption
> system operating in a way that's not publicly documented -- even if
> the system is buzzword-compliant -- and implemented by a company
> (hard disk vendor) where crypto is about as far from their core
> competency as you can get.

I think the really interesting question is what happens when you lose
a FDE-ed hard drive.  Do you still need to publish the incident and
contact potentially affected individuals?  If the answer is "no", I'm
sure this technology will be quickly adopted, independently of its
actual implementation.

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Re: fyi: Storm Worm botnet numbers, via Microsoft

2007-10-05 Thread Peter Gutmann
[EMAIL PROTECTED] writes:

>food for consideration. yes, #s are from MSFT as he notes, but are the only
>ones we have presently wrt actual Storm extent, yes? If not, pls post
>pointers...

I have two problems with this report.  Firstly, I don't think this is a very
representative sampling technique compared to the estimates from security
companies.  If you look at the sample that's being used, "Windows machines
that have automatic updates turned on", then the typical machine is going to
be configured with something like Windows XP SP2 with all available hotfixes
and updates applied, in other words the very systems that are (one would hope
:-) the *least* likely to be affected by malware.  If you take the rule-of-
thumb estimate that's sometimes used on MSDN blogs of 1B Windows machines out
there then 2.6M machines is < 0.3% of that total.  Now this in itself wouldn't
be so bad if it was an unbiased sample, but in fact it's probably a rather
non-representative 0.3%.  Although some of the numbers from security companies
for infections may be just guesswork, they also use broad sampling across all
Windows machines (not just ones with Windows Defender), honeypots, monitoring
of botnet traffic patterns, and other methods as well.  So while it's valid to
say that this provides data for Storm on fully patched, up-to-date machines
running Windows Defender, I don't think this generalises for all Windows
machines.

Secondly, the text completely contradicts the figures given.  If the figures
really are accurate and not a typo, then 274K machines infected out of 2.6M
puts Storm on 10% of Windows PCs, which would make the worldwide infection
rate 100M systems, or ten times larger than the previous worst-possible case
estimate.  Storm may be big, but it's not *that* big.  I think there's
something wrong with the figures.

Peter.

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Re: Bid on a SnakeOil Crypto Algorithm Patent

2007-10-05 Thread Dave Howe

Saqib Ali wrote:

http://www.freepatentauction.com/patent.php?nb=950


googlepatent gives me:
http://www.google.com/patents?id=HaN6EBAJ&dq=7,088,821

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Re: Seagate announces hardware FDE for laptop and desktop machines

2007-10-05 Thread Ivan Krstić

On Oct 3, 2007, at 4:39 AM, Florian Weimer wrote:

But this exhibits an issue with disk-based encryption: you can't
really know what they are doing, and if they are doing it right.
(Given countless examples of badly-deployed cryptography, this isn't
just paranoia, but a real concern.)


Precisely. If you're keeping secrets from your nosy siblings and  
coworkers, hardware FDE is more than adequate. If you have reason to  
believe someone skilled and resourceful might really want your data,  
you almost certainly have no business using a blackbox encryption  
system operating in a way that's not publicly documented -- even if  
the system is buzzword-compliant -- and implemented by a company  
(hard disk vendor) where crypto is about as far from their core  
competency as you can get.


--
Ivan Krstić <[EMAIL PROTECTED]> | http://radian.org
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