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Click Here: <A
HREF="http://www.zdnet.com/intweek/stories/news/0,4164,2417628,00.html">ZDNet:
 Inter@ctive Week: Encryption Keys Vulner…</A>
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Encryption Keys Vulnerable, Researchers Warn
By Doug Brown, Inter@ctive Week
January 5, 2000 5:38 PM ET

Researchers at an English company announced Wednesday that they found a way
to pluck from Web servers "keys" that provide access to private data stored
on servers, such as credit-card numbers.

The revelation that hackers can break into servers and steal encryption keys
could have repercussions throughout the electronic commerce landscape.
Companies have long struggled with ensuring customers' privacy in the face of
increasing hacker ingenuity, but encryption keys were generally believed to
dwell in a safe haven.

"It's a pretty big deal," said Tom Hopcroft, president of the Massachusetts
Electronic Commerce Association. "Currently, people feel that their keys for
credit-card numbers are pretty safe, because they are on a server with a lot
of other data, where they might be hard to find."

In light of the discovery that encryption keys are readily open to attack,
companies must find ways to prevent their discovery, Hopcroft added. "The
loss of consumer confidence could cripple the phenomenal growth of electronic
commerce," he said. "A lot of that [growth] is because we don't have a fear
of giving out our credit-card numbers over the Internet."

Alex Van Someren, president of nCipher in Cambridge, England, said the
discovery of a method for retrieving encryption keys revolves around research
conducted by his brother Nicko, chief technology officer and co-founder of
nCipher, and Adi Shamir of the Weizmann Institute in Israel, co-inventor of
the RSA encryption system, the base for much current encryption technology.
The researchers published their initial findings at the Financial
Cryptography '99 conference in February 1999. The research, Alex Van Someren
said, laid a theoretical framework for an encryption key retrieval method.

Now, he said, the researchers have demonstrated a concrete method for finding
and stealing encryption keys from servers.

The technology centers on this: There is a general assumption that encryption
keys will be impossible to find because they are buried in servers crowded
with similar strings of code. What the researchers discovered, however, is
that encryption keys are more random than other data stored in servers. To
find the encryption key, one need only search for abnormally random data.
Hopcroft compared the method to classic Cold War tactics.

"The United States developed quieter and quieter submarines, but they made
them so quiet it was quieter than the ambient noise around them," he said.
"So the Soviets could search for quiet spots."

The problem could be particularly nettlesome for smaller companies, because
many of them run their Web businesses on servers shared by other companies.

All a hacker would have to do, Hopcroft said, is set up an account with an
Internet service provider hosting a company's Web site, "go into that server
and root around looking for the keys of other companies. With [the key] there
is no way for me to be distinguished from a legitimate business owner."

Van Someren said nCipher decided to go after encryption keys because "we make
products that redress these problems." The company offers a hardware solution
to the problem of encryption-key security.

Van Someren noted that it's possible that others - hackers, in particular -
already have discovered the path to the once-hidden encryption keys.

"We haven't seen any evidence of real attacks occurring, but if it were to
occur, there would not necessarily be any trace left behind that it had
occurred," he said.

Peter Neumann, a computer security researcher at SRI International in Menlo
Park, Calif., said the discovery stands as just one more demonstration of
"how flaky our infrastructure is."

"Every operating system can be broken into one way or another, and the
servers aren't an exception," he added. "We need a great deal more security
than we have at the moment as we enter into electronic commerce. And the
bottom line is we should be a little bit more cautious about depending upon
cryptography as the answer to all of our problems, because it isn't. It's
very difficult to embed it properly into a system."

Bruce Schneier, a world-renowned cryptography expert and chief technology
officer at Counterpane Internet Security in San Jose, echoed Neumann.

"Security vulnerabilities are inevitable, because of the complexity of the
product, the rush to market, all of these things," he said. "So the
vulnerabilities, we see them every week. The only solution is to build
security processes that take into account the fallibility of the products."
Of the nCipher discovery, he said: "Let's say we fix this one. We're not
magically better. We've fixed one little thing."


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