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Feds tell Web firms to turn over user account passwords <http://groups.google.com/group/sid-l/t/8128441ce5667ff1>

   Sid Shniad <shn...@gmail.com> Jul 26 12:05PM -0700

   *
   
http://news.cnet.com/8301-13578_3-57595529-38/feds-tell-web-firms-to-turn-over-user-account-passwords/

   CNET July 25, 2013

   Feds tell Web firms to turn over user account passwords

   Secret demands mark escalation in Internet surveillance by the federal
   government through gaining access to user passwords, which are typically
   stored in encrypted form.

   by Declan McCullagh*

   The U.S. government has demanded that major Internet companies divulge
   users' stored passwords, according to two industry sources familiar with
   these orders, which represent an escalation in surveillance
   techniques that
   has not previously been disclosed.

   If the government is able to determine a person's password, which is
   typically stored in encrypted form, the credential could be used to
   log in
   to an account to peruse confidential correspondence or even
   impersonate the
   user. Obtaining it also would aid in deciphering encrypted devices in
   situations where passwords are reused.

   "I've certainly seen them ask for passwords," said one Internet industry
   source who spoke on condition of anonymity. "We push back."

   A second person who has worked at a large Silicon Valley company
   confirmed
   that it received legal requests from the federal government for stored
   passwords. Companies "really heavily scrutinize" these requests, the
   person
   said. "There's a lot of 'over my dead body.'"

   Some of the government orders demand not only a user's password but also
   the encryption algorithm and the so-called salt, according to a person
   familiar with the requests. A salt is a random string of letters or
   numbers
   used to make it more difficult to reverse the encryption process and
   determine the original password. Other orders demand the secret question
   codes often associated with user accounts.
   "This is one of those unanswered legal questions: Is there any
   circumstance under which they could get password information?"
   --Jennifer Granick, Stanford University

   A Microsoft spokesperson would not say whether the company has received
   such requests from the government. But when asked whether Microsoft
   would
   divulge passwords, salts, or algorithms, the spokesperson replied:
   "No, we
   don't, and we can't see a circumstance in which we would provide it."

   Google also declined to disclose whether it had received requests
   for those
   types of data. But a spokesperson said the company has "never"
   turned over
   a user's encrypted password, and that it has a legal team that
   frequently
   pushes back against requests that are fishing expeditions or are
   otherwise
   problematic. "We take the privacy and security of our users very
   seriously," the spokesperson said.

   A Yahoo spokeswoman would not say whether the company had received such
   requests. The spokeswoman said: "If we receive a request from law
   enforcement for a user's password, we deny such requests on the grounds
   that they would allow overly broad access to our users' private
   information. If we are required to provide information, we do so only in
   the strictest interpretation of what is required by law."

   Apple, Facebook, AOL, Verizon, AT&T, Time Warner Cable, and Comcast
   did not
   respond to queries about whether they have received requests for users'
   passwords and how they would respond to them.

   Richard Lovejoy, a director of the Opera Software subsidiary that
   operates
   FastMail <https://www.fastmail.fm/>, said he doesn't recall
   receiving any
   such requests but that the company still has a relatively small
   number of
   users compared with its larger rivals. Because of that, he said, "we
   don't
   get a high volume" of U.S. government demands.

   The FBI declined to comment.

   Some details remain unclear, including when the requests began and
   whether
   the government demands are always targeted at individuals or seek entire
   password database dumps. The Patriot Act has been used to demand entire
   database
   
dumps<http://news.cnet.com/8301-13578_3-57587929-38/nsa-secretly-vacuumed-up-verizon-phone-records/>of
   phone call logs, and critics have suggested its use is broader. "The
   authority of the government is essentially limitless" under that
   law, Sen.
   Ron Wyden, an Oregon Democrat who serves on the Senate Intelligence
   committee, said at a Washington
   
event<http://www.americanprogressaction.org/events/2013/07/16/69750/senator-ron-wyden-on-domestic-data-collection-and-privacy-rights/>this
   week.

   Large Internet companies have resisted the government's requests by
   arguing
   that "you don't have the right to operate the account as a person,"
   according to a person familiar with the issue. "I don't know what
   happens
   when the government goes to smaller providers and demands user
   passwords,"
   the person said.

   An attorney who represents Internet companies said he has not fielded
   government password requests, but "we've certainly had reset
   requests -- if
   you have the device in your possession, than a password reset is the
   easier
   way."

   Source code to a C implementation of bcrypt, a popular algorithm
   used for
   password hashing. (Credit: Photo by Declan McCullagh)

   *Cracking the codes*
   Even if the National Security Agency or the FBI successfully obtains an
   encrypted password, salt, and details about the algorithm used,
   unearthing
   a user's original password is hardly guaranteed. The odds of success
   depend
   in large part on two factors: the type of algorithm and the
   complexity of
   the password.

   Algorithms, known as hash functions, that are viewed as suitable for
   scrambling stored passwords are designed to be difficult to reverse. One
   popular hash function called MD5, for instance, transforms the phrase
   "National Security Agency" into this string of seemingly random
   characters:
   84bd1c27b26f7be85b2742817bb8d43b. Computer scientists believe that, if a
   hash function is well-designed, the original phrase cannot be
   derived from
   the output.

   But modern computers, especially ones equipped with high-performance
   video
   cards, can test passwords scrambled with MD5 and other well-known hash
   algorithms at the rate of billions a
   second<http://hashcat.net/oclhashcat-lite/#performance>.
   One system using 25 Radeon-powered GPUs that was
   
demonstrated<http://www.zdnet.com/25-gpus-devour-password-hashes-at-up-to-348-billion-per-second-7000008368/>at
   a conference last December tested 348 billion hashes per second,
   meaning
   it would crack a 14-character Windows XP password in six minutes.

   The best practice among Silicon Valley companies is to adopt far slower
   hash algorithms -- designed to take a large fraction of a second to
   scramble a password -- that have been intentionally crafted to make
   it more
   difficult and expensive for the NSA and other attackers to test every
   possible combination.

   One popular algorithm, used by Twitter and LinkedIn, is called bcrypt. A
   2009 paper (PDF <http://www.tarsnap.com/scrypt/scrypt.pdf>) by computer
   scientist Colin Percival <http://www.daemonology.net/> estimated that it
   would cost a mere $4 to crack, in an average of one year, an 8-character
   bcrypt password composed only of letters. To do it in an average of one
   day, the hardware cost would jump to approximately $1,500.

   But if a password of the same length included numbers, asterisks,
   punctuation marks, and other special characters, the cost-per-year
   leaps to
   $130,000. Increasing the length to any 10 characters, Percival
   estimated in
   2009, brings the estimated cracking cost to a staggering $1.2 billion.

   As computers have become more powerful, the cost of cracking bcrypt
   passwords has decreased. "I'd say as a rough ballpark, the current cost
   would be around 1/20th of the numbers I have in my paper," said
   Percival,
   who founded a company called Tarsnap Backup <http://www.tarsnap.com/>,
   which offers "online backups for the truly paranoid." Percival added
   that a
   government agency would likely use ASICs -- application-specific
   integrated
   circuits -- for password cracking because it's "the most
   cost-efficient --
   at large scale -- approach."

   While developing Tarsnap, Percival devised an algorithm called
   scrypt<http://www.tarsnap.com/scrypt.html>,
   which he estimates can make the "cost of a hardware brute-force attack"
   against a hashed password as much as 4,000 times greater than bcrypt.

   Bcrypt was introduced
   (PDF<https://www.usenix.org/legacy/event/usenix99/provos/provos.pdf>)
   at a 1999 Usenix conference by Niels Provos <http://www.provos.org/>,
   currently a distinguished engineer in Google's infrastructure group,
   and David
   Mazières <http://www.scs.stanford.edu/%7Edm/>, an associate professor of
   computer science at Stanford University.

   With the computers available today, "bcrypt won't pipeline very well in
   hardware," Mazières said, so it would "still be very expensive to do
   widespread cracking."

   Even if "the NSA is asking for access to hashed bcrypt passwords,"
   Mazières
   said, "that doesn't necessarily mean they are cracking them." Easier
   approaches, he said, include an order to extract them from the server or
   network when the user logs in -- which has been done
   before<http://www.wired.com/threatlevel/2007/11/encrypted-e-mai>-- or
   installing a keylogger
   at the client <http://news.cnet.com/8301-10784_3-9741357-7.html>.

   Sen. Ron Wyden, who warned this week that "the authority of the
   government
   is essentially limitless" under the Patriot Act's business records
   provision. (Credit: Getty Images)

   *Questions of law*


   Whether the National Security Agency or FBI has the legal authority to
   demand that an Internet company divulge a hashed password, salt, and
   algorithm remains murky.

   "This is one of those unanswered legal questions: Is there any
   circumstance
   under which they could get password information?" said Jennifer
   Granick<http://cyberlaw.stanford.edu/about/people/jennifer-granick>,
   director of civil liberties at Stanford University's Center for Internet
   and Society. "I don't know."

   Granick said she's not aware of any precedent for an Internet
   company "to
   provide passwords, encrypted or otherwise, or password algorithms to the
   government -- for the government to crack passwords and use them
   unsupervised." If the password will be used to log in to the
   account, she
   said, that's "prospective surveillance," which would require a wiretap
   order or Foreign Intelligence Surveillance Act order.

   If the government can subsequently determine the password, "there's a
   concern that the provider is enabling unauthorized access to the user's
   account if they do that," Granick said. That could, she said, raise
   legal
   issues under the Stored Communications Act and the Computer Fraud
   and Abuse
   Act.

   The Justice Department has argued in court proceedings before that
   it has
   broad legal authority to obtain passwords. In 2011, for instance,
   federal
   prosecutors sent a grand jury subpoena demanding the password that would
   unlock files encrypted with the TrueCrypt
   <http://www.truecrypt.org/>utility.

   The Florida man who received the subpoena claimed the Fifth Amendment,
   which protects his right to avoid self-incrimination, allowed him to
   refuse
   the prosecutors' demand. In February 2012, the U.S. Court of Appeals for
   the Eleventh Circuit agreed, saying that because prosecutors could
   bring a
   criminal prosecution against him based on the contents of the decrypted
   files, the man "could not be compelled to decrypt the drives."

   In January 2012, a federal district judge in Colorado reached the
   opposite
   conclusion, ruling that a criminal defendant could be compelled
   under the
   All Writs Act to type in the password that would unlock a Toshiba
   Satellite
   laptop.

   Both of those cases, however, deal with criminal proceedings when the
   password holder is the target of an investigation -- and don't
   address when
   a hashed password is stored on the servers of a company that's an
   innocent
   third party.

   "If you can figure out someone's password, you have the ability to reuse
   the account," which raises significant privacy concerns, said Seth
   Schoen<https://www.eff.org/about/staff/seth-schoen>,
   a senior staff technologist at the Electronic Frontier
   Foundation<https://www.eff.org/>.


   Last updated at 8:00 p.m. PT with comment from Yahoo, which
   responded after
   this article was published.

   *Disclosure: McCullagh is married to a Google employee not involved with
   this issue.*

   Declan McCullagh <http://www.mccullagh.org/> is the chief political
   correspondent for CNET. Declan previously was a reporter for Time
   and the
   Washington bureau chief for Wired and wrote the Taking Liberties section
and Other People's Money column for CBS News' Web site.


--
---------------------
Michael A. Lebowitz
Professor Emeritus
Economics Department
Simon Fraser University
8888 University Drive
Burnaby, B.C., Canada V5A 1S6
Home:   Phone 604-689-9510
Cell: 604-789-4803




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