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Re: Banks Test ID Device for Online Security

[Janusz A. Urbanowicz]

On Tue, Jan 04, 2005 at 03:24:56PM -0500, Trei, Peter wrote:
> R.A. Hettinga wrote:
> 
> > Okay. So AOL and Banks are *selling* RSA keys???
> > Could someone explain this to me?
> > No. Really. I'm serious...
> > 
> > Cheers,
> > RAH
> > 
> 
> The slashdot article title is really, really misleading.
> In both cases, this is SecurID.

In some cases this also may be VASCO DigiPass, which is system very similar
to SecurID, only cheaper. This technology seems to be quite popular in
Europe as couple banks in Poland routinely issue tokens, both VASCO and
SecurID to their customers for online authorization, and the tokens are used
both in password generation (as described in article) and challenge-response
modes.

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Globalization and 'Contract Culture'

[R.A. Hettinga]

Tech Central Station

Globalization and 'Contract Culture'

By Christopher Lingle
 Published 
 01/05/2005 


It is obvious that the process of globalization inspires great disagreement
concerning its nature and impact. Despite acts of terrorism and labor
disputes that have marked this public discussion, one point of agreement is
that this process is seemingly irresistible.

 A sober assessment of the merits of the arguments in this debate requires
identifying some essential elements behind this momentum. One place to
start is to discard an important misinterpretation.

  

Globalization should not be confused with Westernization or Americanization
of economies and cultures. Perhaps this muddled thinking arises from an
observed sense of convergence towards certain norms or rules that are
associated with Western cultures, especially concerning commercial
considerations. Promoting this misconception adds to an unwelcome
divisiveness. It also implicitly assigns a sense of domination or
superiority of American or Western culture over others, itself a patently
foolish assertion.

  

The view offered here is that this convergence is a natural and
evolutionary procedure. In this sense, global convergence arises from
voluntary choices by citizens and their governments to engage in worldwide
markets to achieve some individual and collective goals, including shared
prosperity. Indeed, the overpowering nature that some observers find so
troubling is actually the outcome of choices made by most other members of
their own communities. In the end, the movement is towards the
establishment of and guidance by the legal bounds that govern contracts. As
will be argued, exposure to contracts has important impacts on cultures
since it imposes greater accountability on businesses as well as
governments.

 

As such, globalization should not be viewed as the outcome of anonymous,
outside and mysterious forces. Instead, an important source of globalizing
influences in a local economy arises from choices made by most of ones'
compatriots who prefer better or cheaper products that are imports rather
than shoddy or higher priced ones produced locally. In this narrow
interpretation, globalization can be seen as a universal application of
democracy. Opposition to these results is tantamount to an elitist loathing
of thy neighbor, or at least their choices.

 

In all events, the spreading of the benefits of globalization depends upon
how well markets function, because competitive markets are a force that
empowers consumers and humbles producers. And well-functioning markets
require and inspire a certain attitude towards agreements that can be
identified as a "contract culture".

 

A contract culture exists when all parties in an agreement are predictably
treated as equals whenever there is a legal dispute or a need for
interpretation of the conditions behind the pact. Markets both depend upon
and set the stage for the emergence of a contract culture as well as
providing an impetus for the emergence of a commercial morality and a wider
application of trust.  In turn, institutional frameworks evolve to
reinforce and reward or punish actions in reference to the agreements and
the legal institutions that support them. This convergence is inspired by
globalization.

 

While most may think that the discussion only involves private contracts
concerning commercial transactions, it also covers social contracts like
constitutions that specify duties and obligations of citizens and rulers.
Markets inspire the development of a contract culture where the spirit of
compromise becomes part of human interaction. In such a setting, equals are
treated as equals just as unequals must also be treated as equals before
the law. Governments or large corporations should not receive special
treatment in the courts over individual citizens while domestic interests
should not override those of foreign claimants. At the same time,
interactions within a community where contracts are widely negotiated can
bring about a greater appreciation for compromise and humility that might
undermine future claims for authoritarian leadership.

 

Viewed from this vantage point, capitalism and free markets are seen to
provide a necessary underpinning for democracy's success rather than merely
a sufficient one. It is through individualist-based institutions associated
with and arising from markets that people exercise true self-ownership to
pursue their own chosen goals.

 

The importance of establishing a contract culture cuts deep.  It is an
intangible element in the measurement of growth factors, but it is
certainly an essential element of the institutional framework for an active
player in the global economy. Apart from promoting political stability due
to greater fairness, the contract culture is also associated with
"middle-class values" like the importance of education, thrift and moral
values that promote hard work a

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Re: FreeBSD's urandom versus random

[R.A. Hettinga]

--- begin forwarded text


Delivered-To: cryptography@metzdowd.com
To: Ian G <[EMAIL PROTECTED]>
Cc: cryptography@metzdowd.com
Subject: Re: FreeBSD's urandom versus random
From: "Perry E. Metzger" <[EMAIL PROTECTED]>
Date: Wed, 05 Jan 2005 18:08:31 -0500
User-Agent: Gnus/5.1006 (Gnus v5.10.6) Emacs/21.3 (berkeley-unix)
Sender: [EMAIL PROTECTED]


Ian G <[EMAIL PROTECTED]> writes:
> While we're on the subject of /dev/[u]random, has anyone
> looked at the new FreeBSD 5.3 version?

Not the 5.3 version but I have looked a bit at earlier versions. I was
pretty scared, frankly.

The author gave a talk at a BSDCon where he displayed both a profound
set of misunderstandings about what the papers he had read meant and
an extremely strong amount of arrogance. Among other things, he
claimed that Schneier and Co. had proven the security of Yarrow (which
of course they never had claimed), and that his changes to Yarrow made
it better (very dubious). He also obviously didn't understand crypto
very well. I wouldn't have minded so much if he hadn't been extremely
belligerent about defending his beliefs.

Anyway, after the talk I took a look at the code, and I didn't feel
very comfortable with it. It has been too many years now for me to
remember specifics, and it may have been changed a lot in the interim
-- in any case, you may want to examine it if you are contemplating
using it in something where it would be dangerous not to have very
solid random numbers available.

FreeBSD has some other crypto toys that I'm dubious about. It now has
a crypto file system widget that uses a bunch of odd ad hoc modes
invented by the author. Some quick analysis shows that most of the
complexity they add does not add actual cryptographic strength and
does add possible attack vectors, which is worrisome.  I'm always
against attempting to be clever under such circumstances, but a lot of
people don't seem to have the same fear of innovating in cryptography
without very careful analysis that I do.  It also doesn't protect very
well against brute forcing of the file system passphrase, which is (in
most cases) the likely way people will break such a thing. (Actually
the author claims that you would have to do tremendous disk i/o to
break the passphrase, but you can do a time/space tradeoff with RAM
that bypasses his hack.)

None of this should say that I'm entirely comfortable with the
security of, say, NetBSD's /dev/random. Even though I should have,
I've never properly audited the whole thing, which is more than mildly
embarrassing. Shades of the shoemaker's children and such. For all I
know, we've got big flaws, too.


Perry

-
The Cryptography Mailing List
Unsubscribe by sending "unsubscribe cryptography" to [EMAIL PROTECTED]

--- end forwarded text


-- 
-
R. A. Hettinga 
The Internet Bearer Underwriting Corporation 
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
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Re: Banks Test ID Device for Online Security

[Anne & Lynn Wheeler]

Bill Stewart wrote:
Yup.  It's the little keychain frob that gives you a string of numbers,
updated every 30 seconds or so, which stays roughly in sync with a server,
so you can use them as one-time passwords
instead of storing a password that's good for a long term.
So if the phisher cons you into handing over your information,
they've got to rip you off in nearly-real-time with a MITM game
instead of getting a password they can reuse, sell, etc.
That's still a serious risk for a bank,
since the scammer can use it to log in to the web site
and then do a bunch of transactions quickly;
it's less vulnerable if the bank insists on a new SecurID hit for
every dangerous transaction, but that's too annoying for most customers.
in general, it is "something you have" authentication as opposed to the 
common shared-secret "something you know" authentication.

while a window of vulnerability does exist (supposedly something that 
prooves you are in possession of "something you have"), it is orders of 
magnitude smaller than the shared-secret "something you know" 
authentication.

there are two scenarios for shared-secret "something you know" 
authentication

1) a single shared-secret used across all security domains ... a 
compromise of the shared-secret has a very wide window of vulnerability 
plus a potentially very large scope of vulnerability

2) a unique shaerd-secret for each security domain ... which helps limit 
the scope of a shared-secret compromise. this potentially worked with 
one or two security domains ... but with the proliferation of the 
electronic world ... it is possible to have scores of security domains, 
resulting in scores of unique shared-secrets. scores of unique 
shared-secrets typically results exceeded human memory capacity with the 
result that all shared-secrets are recorded someplace; which in turn 
becomes a new exploit/vulnerability point.

various financial shared-secret exploits are attactive because with 
modest effort it may be possible to harvest tens of thousands of 
shared-secrets.

In one-at-a-time, real-time social engineering, may take compareable 
effort ... but only yields a single piece of authentication material 
with a very narrow time-window and the fraud ROI might be several orders 
of magnitude less. It may appear to still be large risk to individuals 
... but for a financial institution, it may be relatively small risk to 
cover the situation ... compared to criminal being able to compromise 
50,000 accounts with compareable effort.

In some presentation there was the comment made that the only thing that 
they really needed to do is make it more attactive for the criminals to 
attack somebody else.

It would be preferabale to have a "something you have" authentication 
resulting in a unique value ... every time the device was used. Then no 
amount of social engineering could result in getting the victim to give 
up information that results in compromise. However, even with relatively 
narrow window of vulnerability ... it still could reduce risk/fraud to 
financial institutions by several orders of magnitude (compared to 
existing prevalent shared-secret "something you know" authentication 
paradigms).

old standby posting about security proportional to risk
http://www.garlic.com/~lynn/2001h.html#61