Re: [cryptography] Must have seemed like a good idea at the time

2013-07-25 Thread Jeffrey Walton
On Tue, Jul 23, 2013 at 4:54 AM, ianG i...@iang.org wrote:
 ...

 Banks will say that international wires are irreversible, but it isn't true.
 If the banks cooperate they can do a return of funds.  It all depends...

This was kind of interesting: According to Li, the larger problem [of
Chinese car theft fraud] is the Chinese financial system, which
requires every bank-to-bank transaction to be routed through the
central government’s banking authority. As a result, anti-fraud
measures are usually slower than criminals. Stopping a payment could
take as long as three days, by which time the money is usually
unrecoverable.
http://www.theverge.com/2013/7/24/4549124/how-google-uncovered-a-chinese-ring-of-car-thieves.

Jeff
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Re: [cryptography] Must have seemed like a good idea at the time

2013-07-23 Thread Karsten Nohl

On Jul 22, 2013, at 7:48 , ianG i...@iang.org wrote:

 On 22/07/13 02:27 AM, James A. Donald wrote:
 On 2013-07-22 9:01 AM, Randall Webmail wrote:
 
 [SNIP]
 To derive a DES OTA key, an attacker starts by sending a binary SMS to
 a target device. The SIM does not execute the improperly signed OTA
 command, but does in many cases respond to the attacker with an error
 code carrying a cryptographic signature, once again sent over binary
 SMS.
 
 Wait -- using the same signing DES key as that which it uses to accept the 
 OTA (over-the-air) java applet???

The key use is indeed fully symmetric -- the same key is used to sign messages 
in both directions.

 A rainbow table resolves this plaintext-signature tuple to a
 56-bit DES key within two minutes on a standard computer.
 
 OK, but how does one acquire the rainbow table?  Does one have to send 2^64 
 attempts to the SMS, and does it shut down after the 3rd ... or did they 
 forget that part too?

The plaintext of the error messages is predictable among a small set of 
possible values. A rainbow table computes the signature one one of these texts 
for (some of) the 2^56 possible keys. Computing tables for the relevant 
plaintexts with reasonable coverage after removing mergers takes the equivalent 
computing time of a handful of brute force computations. Each lookup thereafter 
is on the order of a few billion DES operations.

Cheers,

 -Karsten

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Re: [cryptography] Must have seemed like a good idea at the time

2013-07-22 Thread Florian Weimer
* James A. Donald:

 This not all that fatal, as the money is traceable, but it means that
 the financial institution needs an apparatus to reverse cell phone
 transactions, and that cell phone money is therefore soft on the may
 scale.

This has been the case for giro payments for a while, and some
national banking systems stipulate that *all* direct debit
transactions can be rolled back for some time after the transaction.
(Lines of credit automatically enforced by banking systems already
take this into account, for obvious reasons.)

So all this isn't as bad as it may sound.  (The phone as a second
factor is an endangered species, but for other reasons.)
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Re: [cryptography] Must have seemed like a good idea at the time

2013-07-21 Thread James A. Donald

On 2013-07-22 9:01 AM, Randall Webmail wrote:


[SNIP]
To derive a DES OTA key, an attacker starts by sending a binary SMS to 
a target device. The SIM does not execute the improperly signed OTA 
command, but does in many cases respond to the attacker with an error 
code carrying a cryptographic signature, once again sent over binary 
SMS. A rainbow table resolves this plaintext-signature tuple to a 
56-bit DES key within two minutes on a standard computer.


*Deploying SIM malware.* The cracked DES key enables an attacker to 
send properly signed binary SMS, which download Java applets onto the 
SIM. Applets are allowed to send SMS, change voicemail numbers, and 
query the phone location, among many other predefined functions. These 
capabilities alone provide plenty of potential for abuse. [SNIP]


https://srlabs.de/rooting-sim-cards/



A number of projects have been launched to use cell phones as a money 
device, a smart card.  I am pretty sure if your malware can send sms, it 
can transfer funds.


This not all that fatal, as the money is traceable, but it means that 
the financial institution needs an apparatus to reverse cell phone 
transactions, and that cell phone money is therefore soft on the may scale.
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Re: [cryptography] Must have seemed like a good idea at the time

2013-07-21 Thread grarpamp
 A number of projects have been launched to use cell phones as a money
 device, a smart card.  I am pretty sure if your malware can send sms, it can
 transfer funds.

 This not all that fatal, as the money is traceable, but it means that the
 financial institution needs an apparatus to reverse cell phone transactions,
 and that cell phone money is therefore soft on the may scale.

Bitcoin does not necessarily have or desire these properties.
Device security and open devices are important.
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