Category Archives: Banking security

The security of the banking system, as well as hardware and software commonly used in such installations

Pushing the limits: acoustic side channels

How far can we go with acoustic snooping on data?

Seven years ago we showed that you could use a phone camera to measure the phone’s motion while typing and use that to recover PINs. Four years ago we showed that you could use interrupt timing to recover text entered using gesture typing. Last year we showed how a gaming app can steal your banking PIN by listening to the vibration of the screen as your finger taps it. In that attack we used the on-phone microphones, as they are conveniently located next to the screen and can hear the reverberations of the screen glass.

This year we wondered whether voice assistants can hear the same taps on a nearby phone as the on-phone microphones could. We knew that voice assistants could do acoustic snooping on nearby physical keyboards, but everyone had assumed that virtual keyboards were so quiet as to be invulnerable.

Almos Zarandy, Ilia Shumailov and I discovered that attacks are indeed possible. In Hey Alexa what did I just type? we show that when sitting up to half a meter away, a voice assistant can still hear the taps you make on your phone, even in presence of noise. Modern voice assistants have two to seven microphones, so they can do directional localisation, just as human ears do, but with greater sensitivity. We assess the risk and show that a lot more work is needed to understand the privacy implications of the always-on microphones that are increasingly infesting our work spaces and our homes.

The Changing Cost of Cybercrime

In 2012 we presented the first systematic study of the costs of cybercrime. We have now repeated our study, to work out what’s changed in the seven years since then.

Measuring the Changing Cost of Cybercrime will appear on Monday at WEIS. The period has seen huge changes, with the smartphone replacing as PC and laptop as the consumer terminal of choice, with Android replacing Windows as the most popular operating system, and many services moving to the cloud. Yet the overall pattern of cybercrime is much the same.

We know a lot more than we did then. Back in 2012, we guessed that cybercrime was about half of all crime, by volume and value; we now know from surveys in several countries that this is the case. Payment fraud has doubled, but fallen slightly as a proportion of payment value; the payment system has got larger, and slightly more efficient.

So what’s changed? New cybercrimes include ransomware and other offences related to cryptocurrencies; travel fraud has also grown. Business email compromise and its cousin, authorised push payment fraud, are also growth areas. We’ve also seen serious collateral damage from cyber-weapons such as the NotPetya worm. The good news is that crimes that infringe intellectual property – from patent-infringing pharmaceuticals to copyright-infringing software, music and video – are down.

Our conclusions are much the same as in 2012. Most cyber-criminals operate with impunity, and we have to fix this. We need to put a lot more effort into catching and punishing the perpetrators.

Our new paper is here. For comparison the 2012 paper is here, while a separate study on the emotional cost of cybercrime is here.

Does security advice discriminate against women?

Security systems are often designed by geeks who assume that the users will also be geeks, and the same goes for the advice that users are given when things start to go wrong. For example, banks reacted to the growth of phishing in 2006 by advising their customers to parse URLs. That’s fine for geeks but most people don’t do that, and in particular most women don’t do that. So in the second edition of my Security Engineering book, I asked (in chapter 2, section 2.3.4, pp 27-28): “Is it unlawful sex discrimination for a bank to expect its customers to detect phishing attacks by parsing URLs?”

Tyler Moore and I then ran the experiment, and Tyler presented the results at the first Workshop on Security and Human Behaviour that June. We recruited 132 volunteers between the ages of 18 and 30 (77 female, 55 male) and tested them to see whether they could spot phishing websites, as well as for systematising quotient (SQ) and empathising quotient (EQ). These measures were developed by Simon Baron-Cohen in his work on Asperger’s; most men have SQ > EQ while for most women EQ > SQ. The ability to parse URLs is correlated with SQ-EQ and independently with gender. A significant minority of women did badly at URL parsing. We didn’t get round to publishing the full paper at the time, but we’ve mentioned the results in various talks and lectures.

We have now uploaded the original paper, How brain type influences online safety. Given the growing interest in gender HCI, we hope that our study might spur people to do research in the gender aspects of security as well. It certainly seems like an open goal!

Could a gaming app steal your bank PIN?

Have you ever wondered whether one app on your phone could spy on what you’re typing into another? We have. Five years ago we showed that you could use the camera to measure the phone’s motion during typing and use that to recover PINs. Then three years ago we showed that you could use interrupt timing to recover text entered using gesture typing. So what other attacks are possible?

Our latest paper shows that one of the apps on the phone can simply record the sound from its microphones and work out from that what you’ve been typing.

Your phone’s screen can be thought of as a drum – a membrane supported at the edges. It makes slightly different sounds depending on where you tap it. Modern phones and tablets typically have two microphones, so you can also measure the time difference of arrival of the sounds. The upshot is that can recover PIN codes and short words given a few measurements, and in some cases even long and complex words. We evaluate the new attack against previous ones and show that the accuracy is sometimes even better, especially against larger devices such as tablets.

This paper is based on Ilia Shumailov’s MPhil thesis project.

Symposium on Post-Bitcoin Cryptocurrencies

I am at the Symposium on Post-Bitcoin Cryptocurrencies in Vienna and will try to liveblog the talks in follow-ups to this post.

The introduction was by Bernhard Haslhofer of AIT, who maintains the graphsense.info toolkit and runs the Titanium project on bitcoin forensics jointly with Rainer Boehme of Innsbruck. Rainer then presented an economic analysis arguing that criminal transactions were pretty well the only logical app for bitcoin as it’s permissionless and trustless; if you have access to the courts then there are better ways of doing things. However in the post-bitcoin world of ICOs and smart contracts, it’s not just the anti-money-laundering agencies who need to understand cryptocurrency but the securities regulators and the tax collectors. Yet there is a real policy tension. Governments hype blockchains; Austria uses them to auction sovereign bonds. Yet the only way in for the citizen is through the swamp. How can the swamp be drained?

How Protocols Evolve

Over the last thirty years or so, we’ve seen security protocols evolving in different ways, at different speeds, and at different levels in the stack. Today’s TLS is much more complex than the early SSL of the mid-1990s; the EMV card-payment protocols we now use at ATMs are much more complex than the ISO 8583 protocols used in the eighties when ATM networking was being developed; and there are similar stories for GSM/3g/4g, SSH and much else.

How do we make sense of all this?

Reconciling Multiple Objectives – Politics or Markets? was particularly inspired by Jan Groenewegen’s model of innovation according to which the rate of change depends on the granularity of change. Can a new protocol be adopted by individuals, or does it need companies to adopt it en masse for internal use, or does it need to spread through a whole ecosystem, or – the hardest case of all – does it require a change in culture, norms or values?

Security engineers tend to neglect such “soft” aspects of engineering, and we probably shouldn’t. So we sketch a model of the innovation stack for security and draw a few lessons.

Perhaps the most overlooked need in security engineering, particularly in the early stages of a system’s evolution, is recourse. Just as early ATM and point-of-sale system operators often turned away fraud victims claiming “Our systems are secure so it must have been your fault”, so nowadays people who suffer abuse on social media can find that there’s nowhere to turn. A prudent engineer should anticipate disputes, and give some thought in advance to how they should be resolved.

Reconciling Multiple Objectives appeared at Security Protocols 2017. I forgot to put the accepted version online and in the repository after the proceedings were published in late 2017. Sorry about that. Fortunately the REF rule that papers must be made open access within three months doesn’t apply to conference proceedings that are a book series; it may be of value to others to know this!

Bitcoin Redux: crypto crime, and how to tackle it

Bitcoin Redux explains what’s going wrong in the world of cryptocurrencies. The bitcoin exchanges are developing into a shadow banking system, which do not give their customers actual bitcoin but rather display a “balance” and allow them to transact with others. However if Alice sends Bob a bitcoin, and they’re both customers of the same exchange, it just adjusts their balances rather than doing anything on the blockchain. This is an e-money service, according to European law, but is the law enforced? Not where it matters. We’ve been looking at the details.

In March we wrote about how to trace stolen bitcoin, describing new tools that enable us to track crime proceeds on the blockchain with more precision than before. We waited for victims of bitcoin theft and fraud to come to us, so we could test our tools on real cases. However in most of them it was not clear that the victims had ever owned any bitcoin at all.

There are basically three ways you could try to hold a bitcoin. You could buy one from an exchange and get them to send it to a wallet you host yourself, but almost nobody does that.

You could buy one from an exchange and get the exchange to keep the keys for you, so that the asset was unique to you and they were only guarding it for you – just like when you buy gold and the bullion merchant then charges you a fee to guard your gold in his vault. If the merchant goes bust, you can turn up at the vault with your receipt and demand your gold back.

Or you could buy one from an exchange and have them owe you a bitcoin – just as when you put your money in the bank. The bank doesn’t have a stack of banknotes in the vault with your name on it; and if it goes bust you have to stand in line with the other creditors.

It seems that most people who buy bitcoin think that they’re operating under the gold merchant model, while most exchanges operate under the bank model. This raises a whole host of issues around solvency, liquidity, accounting practices, money laundering, risk and trust. The details matter, and the more we look at them, the worse it seems.

This paper will appear at the Workshop on the Economics of Information Security later this month. It contains eight recommendations for what governments should be doing to clean up this mess.