Peter Jay Salzman wrote:

However, it should be pointed out that once someone gets access to your LAN,
even ssh, sshd and gnupg are all suspects.

I disagree. Were this the case, then you could not use ssh or sshd over the internet; or gnupg while connected to the internet. There's little difference between them. And in the specific case of using ssh for X port-forwarding on the very same machine, nothing's going over the wire anyway.

Now, if someone gets remote access to your /host/, and you don't have reasonable measures in place, that's another matter. If someone gets physical access to your host in any way, of course you can't be sure of anything.

But for instance: if I specifically allow someone access to my home LAN--say, a neighbor--and do not know him well enough to be sure that he wouldn't try to sniff passwords or packets, I am still very safe in using ssh, whether on one computer or between two; provided he doesn't have inappropriate access to either host.

-Micah

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