Monthly Archives: October 2009

TV coverage of online banking card-reader vulnerabilities

Academic papers, Banking security, Hardware & signals, News coverage, Security economics

This evening (Monday 26th October 2009, at 19:30 UTC), BBC Inside Out will show Saar Drimer and I demonstrating how the use of smart card readers, being issued in the UK to authenticate online banking transactions, can be circumvented. The programme will be broadcast on BBC One, but only in the East of England and Cambridgeshire, however it should also be available on iPlayer.

In this programme, we demonstrate how a tampered Chip & PIN terminal could collect an authentication code for Barclays online banking, while a customer thinks they are buying a sandwich. The criminal could then, at their leisure, use this code and the customer’s membership number to fraudulently transfer up to £10,000.

Similar attacks are possible against all other banks which use the card readers (known as CAP devices) for online banking. We think that this type of scenario is particularly practical in targeted attacks, and circumvents any anti-malware protection, but criminals have already been seen using banking trojans to attack CAP on a wide scale.

Further information can be found on the BBC online feature, and our research summary. We have also published an academic paper on the topic, which was presented at Financial Cryptography 2009.

Update (2009-10-27): The full programme is now on BBC iPlayer for the next 6 days, and the segment can also be found on YouTube.

BBC Inside Out, Monday 26th October 2009, 19:30, BBC One (East)

Security psychology

Academic papers, Security engineering

I have put together a web page on psychology and security. There is a fascinating interplay between these two subjects, and their intersection is now emerging as a new research discipline, encompassing deception, risk perception, security usability and a number of other important topics. I hope that the new web page will be as useful in spreading the word as my security economics page has been in that field.

apComms backs ISP cleanup activity

Legal issues, News coverage, Politics, Security economics

The All Party Parliamentary Communications Group (apComms) recently published their report into an inquiry entitled “Can we keep our hands off the net?”

They looked at a number of issues, from “network neutrality” to how best to deal with child sexual abuse images. Read the report for the all the details; in this post I’m just going to draw attention to one of the most interesting, and timely, recommendations:

51. We recommend that UK ISPs, through Ofcom, ISPA or another appropriate
organisation, immediately start the process of agreeing a voluntary code for
detection of, and effective dealing with, malware infected machines in the UK.
52. If this voluntary approach fails to yield results in a timely manner, then we further recommend that Ofcom unilaterally create such a code, and impose it upon the UK ISP industry on a statutory basis.

The problem is that although ISPs are pretty good these days at dealing with incoming badness (spam, DDoS attacks etc) they can be rather reluctant to deal with customers who are malware infected, and sending spam, DDoS attacks etc to other parts of the world.

From a “security economics” point of view this isn’t too surprising (as I and colleagues pointed out in a report to ENISA). Customers demand effective anti-spam, or they leave for another ISP. But talking to customers and holding their hand through a malware infection is expensive for the ISP, and customers may just leave if hassled, so the ISPs have limited incentives to take any action.

When markets fail to solve problems, then you regulate… and what apComms is recommending is that a self-regulatory solution be given a chance to work. We shall have to see whether the ISPs seize this chance, or if compulsion will be required.

This UK-focussed recommendation is not taking place in isolation, there’s been activity all over the world in the past few weeks — in Australia the ISPs are consulting on a Voluntary Code of Practice for Industry Self-regulation in the Area of e-Security, in the Netherlands the main ISPs have signed an “Anti-Botnet Treaty“, and in the US the main cable provider, Comcast, has announced that its “Constant Guard” programme will in future detect if their customer machines become members of a botnet.

ObDeclaration: I assisted apComms as a specialist adviser, but the decision on what they wished to recommend was theirs alone.

Economics of peer-to-peer systems

Academic papers, Internet censorship, Security economics

A new paper, Olson’s Paradox Revisited: An Empirical Analysis of File-Sharing Behaviour in P2P Communities, finds a positive correlation between the size of a BitTorrent file-sharing community and the amount of content shared, despite a reduced individual propensity to share in larger groups, and deduces from this that file-sharing communities provide a pure (non-rival) public good. Forcing users to upload results in a smaller catalogue; but private networks provide both more and better content, as do networks aimed at specialised communities.

George Danezis and I produced a theoretical model of this five years ago in The Economics of Censorship Resistance. It’s nice to see that the data, now collected, bear us out