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Tuesday, June 16, 2009

Virtual Identities

By Adrian Lane

I am starting to hear stories from friends in the Phoenix area more and more about identity theft and account hijacking. Two weeks ago we got a phone call from a friend in the wee hours of the morning. She called to ask if we knew if a mutual friend, we’ll call her ‘Stacy’ for the purpose of this post, was in England. Our friend had received an email from Stacy stating she was in trouble and asking for money. We know Stacy pretty well and we assured out friend that she was not in England and was certainly not requesting $2000.00 be wired to her. Seems that everyone Stacy knew received a similar email claiming distress and requesting significant sums of money.

Later in the afternoon we called Stacy and verified that she had in fact not been to England and was not in distress. But she had found that her Yahoo! account had been hijacked and she was getting calls from friends and family all morning who had received the same request. She admittedly had a very weak password, not unlike most of the people we know, and have never even thought someone would be interested in gaining access to the account. We spoke with Stacy again today, and jokingly asked her how much money she has made. She did not find this very funny because, after a dozen or so hours on the phone with the overseas ‘technical’ support , she still has not been able to restore her account nor stop the emails. It seems that the first thing the hijackers did was change the account verification questions as well as the password, both locking Stacy out of the account and removing any way for her to restore it. The funny part of this is the phone calls Stacy has had with the support team, which go pretty much like this:

Stacy: “Hi, my email account has been taken over and they are sending out emails under my name requesting money.”
Support: “OK, just go in and reset your password. I will email you a change password request.”
Stacy: “I can’t do that. They changed the password so I cannot get email from this account. I am locked out.”
Support: “OK Stacy, we will just need to ask you a few questions to restore your account … Can you tell us where you went on your honeymoon?”
Stacy: “Yes, I honeymooned in Phoenix.”
Support: “I am sorry, that is not the answer we have.”
Stacy: “Of course not. They changed the information. That is why I am calling you.”
Support: “Would you like another guess?”
Stacy: “What?”
Support: “I asked would you like another guess on where you spent your honeymoon?”
Stacy: “I don’t need to guess, I was there. I honeymooned in Phoenix. Whatever answer you have is wrong because ….”
Support: “I am sorry, that is not correct.”

And so it goes. Like a bad game of “Who’s on First?”. How to prove you are really you, in a virtual environment, is a really hard security problem to solve. More often than not companies want to deal with our virtual images and identities rather than our real selves, and automate as much as they can to cut costs and raise profits. If you need something out of the ordinary fixed, it is often far easier to simply abandon the troubled account and start over again. At least you can do that with a Yahoo! email account. You bank account is another matter entirely. But we can do a lot better than a single (weak) password being the keys to the kingdom. This is a subject I would not normally even blog about except a) I found the dialog funny and b) it is becoming so common I think think we periodically need a reminder that if you are using a weak password on any account you care about, change it now! If you have two-factor authentication at your disposal, use it!

–Adrian Lane

Monday, June 15, 2009

Project Quant: Prioritize and Schedule Phase

By Rich

Yes folks, it’s time for yet more patch management goodness!

Since our goal in Project Quant is to complete a first draft here by late June/July, I’m going to be posting all the draft phases of the cycle over the next week or so. As I’ve mentioned before, our goal here is to identify the steps of each patch management cycle phase, with any associated cost variables.

I felt a bit like I was drawing at straws to get into the details on this one, since the times & costs involved are pretty straightforward. You have to go through a prioritization exercise, match that to assets, then develop a schedule.

image

I think the main variables here are around the quality of your asset lists, patch and asset documentation, and so on. In other words, if you don’t have a list of assets by value, it makes it harder to develop a prioritized schedule. If you don’t have a lot of asset types or assets covered by the patch, you’ll need more time.

Seems straightforward to me, but let me know what you think. Part of me wonders if we need to add a “meeting factor” for all the time many organizations waste trying to pull everyone together to agree on patch priorities. Seriously, we all know that can consume half or more of the time needed to schedule.

–Rich

Patch Management: Fixed (Non-Process) Costs

By Rich

In working on Project Quant and assigning variables to the patch management process phases, I realized there are certain fixed costs that aren’t necessarily tied to a specific phase of the project. For example:

  • Any patch management tools costs.
  • Configuration or vulnerability management tools costs.
  • Software maintenance licenses (since some platforms require a support contract to get patches).
  • Patch tracking tool/service costs (for third party tools/services, when not part of the patch management tool).

These are just a few off the top of my head – any other ideas? Remember, this is for costs not necessarily tied completely to any single phase of the patch management process.

–Rich

Database Encryption, Part 3: Transparent Encryption

By Adrian Lane

  • Rich
  • Adrian Lane
  • In our previous post in this Database Encryption series (Introduction, Part 2) we provided a decision tree for selecting a database encryption strategy. Our goal in this process is to map the encryption selection process to the security threats to protect against. Yes, that sounds simple enough, but it is tough to wade through vendor claims, especially when everyone from network storage to database vendors claims to provide the same value. We need to understand how to deal with the threats conceptually before we jump into the more complex technical and operational issues that can confuse your choices. In this post we are going to dig into the first branch of the tree, Non-credentialed threats – protecting against attacks from the outside, rather than from authenticated database users. We call this “Transparent/External Encryption”, since we don’t have to muck with database user accounts, and the encryption can sometimes occur outside the datbase. Transparent Encryption won’t protect sensitive content in the database if someone has access to it thought legitimate credentials, but it will protect the information on storage and in archives, and provides a significant advantage as it is deployed independent of your business applications. If you need to protect things like credit card numbers where you need to restrict even an administrator’s ability to see them, this option isn’t for you. If you are only worried about lost media, stolen files, a compromised host platform, or insecure storage, then Transparent Encryption is a good option. By not having to muck around with the internal database structures and application logic, it often provides huge savings in time and investment over more involved techniques.

    We have chosen the term Transparent Encryption, as many of the database vendors have, to describe the capability to encrypt data stored in the database without modification to the applications using that database. We’ve also added “External” to distinguish from external encryption at the file or media level. If you have a database then you already have access controls that protect that data from unwanted viewing through database communications. The database itself screens queries or applications to make sure that only appropriate users or groups are permitted to examine and use data. The threat we want to address here is protecting data from physical loss or theft (including some forms of virtual theft) through means that are outside the scope of access controls. Keep in mind that even though the data is “in” a database, that database maintains permanent records on disk drives, with data being archived to many different types of low cost, long term storage. There are many ways for data to be accessed without credentials being supplied at all. These are cases where the database engine is by-passed altogether – for example, examination of data on backup tapes, disks, offline redo log files, transaction logs, or any other place data resides on storage media.

    Transparent/External Encryption for protecting database data uses the following techniques & technologies:

    • Native Database Object (Transparent) Encryption: Database management systems, such as Oracle, Microsoft SQL Server, and IBM DB2, include capabilities to encrypt either internal database objects (tables and other structures) or the data stores (files). These encryption operations are managed from within the database, using native encryption functions built into the database, with keys being stored internally by default. This is good overall option in many scenarios as long as performance meets requirements. Depending on the platform, you may be able to offload key management to an external key management solution. The disadvantage is that it is specific to each database platform, and isn’t always available.
    • External File/Folder Encryption: The database files are encrypted using an external (third party) file/folder encryption tool. Assuming the encryption is configured properly, this protects the database files from unauthorized access on the server and those files are typically still protected as they are backed up, copied, or moved. Keys should be stored off the server and no access provided to local accounts, which protect against the server becoming compromised by an external attacker. Some file encryption tools, such as Vormetric and BitArmor, can also restrict access to the protected files based on application. Thus only the database processes can access the file, and even if an attacker compromises the database’s user account, they will only be able to access the decrypted data through the database itself. File/folder encryption of the database files is a good option as long as performance is acceptable and keys can be managed externally. Any file/folder encryption tool supports this option (including Microsoft EFS), but performance needs to be tested since there is wide variation among the different tools. Remember that any replication or distribution of data handled from within the database won’t be protected unless you also encrypt those destinations.
    • Media encryption: This includes full drive encryption or SAN encryption; the entire storage media is encrypted, and thus the database files are protected. Depending on the method used and the specifics of your environment, this may or may not provide protection for the data as it moves to other data stores, including archival (tape) storage. For example, depending on your backup agent, you may be backing up the unencrypted files or the encrypted storage blocks. This is best suited for high performance databases where the primary concern is physical loss of the media (e.g., a database on a managed SAN where the service provider handles failed drives potentially containing sensitive data). Any media encryption product supports this option.

    Which option to choose depends on your performance requirements, threat model, exiting architecture, and security requirements. Unless you have a high-performance system that exceeds the capabilities of file/folder encryption, we recommend you look there first. If you are managing heterogeneous databases, you will likely look at a third party product over native encryption. In both cases, it’s very important to use external key management and not allow access by any local accounts. We will outline selection criteria and use cases to support the decision process in a future post.

    You will notice that, depending upon which technique you choose, the initiation of the encryption, the engine that performs the encryption, and the key management server may all reside in different places. In fact, the latter two techniques encrypt the database but are not in the database at all; the engine that performs the encryption, as well as the processes responsible for managing the encryption operations, are outside of the database. In all three cases encryption remains transparent to business processing functions. Using the three technology variables (eEngine location, key management location, and who orchestrates) we introduced in Part Two of this series will help guide you in differentiating vendor offerings, and understand the strengths and weaknesses of each variation.

    Next up we will discuss the techniques for securing data against credentialed users and some implementation considerations for user encryption.

    –Adrian Lane

  • Rich
  • Adrian Lane
  • Friday, June 12, 2009

    Elephants, the Grateful Dead, and the Friday Summary - June 12, 2009

    By Rich

    Back before Jerry Garcia moved on to the big pot cloud in the sky, I managed security at a couple of Dead shows in Boulder/Denver. In those days I was the assistant director for event security at the University of Colorado (before a short stint as director), and the Dead thought it would be better to bring us Boulder guys into Denver to manage the show there since we’d be less ‘aggressive’. Of course we all also worked as regular staff or supervisors for the company running the shows in Denver, but they never really asked about that.

    I used to sort of like the Dead until I started working Dead shows. While it might have seemed all “free love and mellowness” from the outside, if you’ve ever gone to a Dead show sober you’ve never met a more selfish group of people. By “free” they meant “I shouldn’t have to pay no matter what because everything in the world should be free, especially if I want it”, and by mellow they meant, “I’m mellow as long as I get to do whatever I want and you are a fascist pig if you tell me what to do, especially if you’re telling me to be considerate of other people”. We had more serious injuries and deaths at Dead shows (and other Dead-style bands) than anywhere else. People tripping out and falling off balconies, landing on other people and paralyzing them, then wandering off to ‘spin’ in a fire aisle. Once we had something like a few hundred counterfeit tickets sold for the same dozen or so seats, leading to all sorts of physical altercations. (The amusing part of that was hearing what happened to the counterfeiter in the parking lot after we kicked out the first hundred or so).

    image

    Running security at a Dead show is like eating an elephant, or running a marathon. When the unwashed masses (literally – we’re talking Boulder in the 90s) fill the fire aisles, all you can do is walk slowly up and down the aisle, politely moving everyone back near their seats, before starting all over again. Yes, my staff were fascist pigs, but it was that or let the fire marshal shut the entire thing down (for real – they were watching). I’d tell my team to keep moving slowly, don’t take it personally, and don’t get frustrated when you have to start all over again. The alternative was giving up, which wasn’t really an option. Because then I wouldn’t pay them.

    It’s really no different in IT security. Most of what we do is best approached like trying to eat an elephant (you know, one bite at a time, for the 2 of you who haven’t heard that one before). Start small, polish off that spleen, then move on to the liver.

    Weirdly enough in many of my end user conversations lately, people seem to be vapor locking on tough problems. Rather than taking them on a little bit at a time as part of an iterative process, they freak out at the scale or complexity, write a bunch of analytical reports, and complain to vendors and analysts that there should be a black box to solve it for them. But if you’ve ever done any mountaineering, or worked a Dead show, you know that all big jobs are really a series of small jobs. And once you hit the top, it’s time to turn around and do it all over again.

    Yes, you all know that, but it’s something we all need to remind ourselves of on a regular basis. For me, it’s about once a quarter when I get caught up on our financials.

    One additional reminder: Project Quant Survey is up. Yeah, I know it’s SurveyMonkey, and yeah, I know everyone bombards you with surveys, but this is pretty short and the results will be open to everyone.

    (Picture courtesy of me on safari a few years ago).

    And now for the week in review:

    Webcasts, Podcasts, Outside Writing, and Conferences

    • A ton of articles referenced my TidBITS piece on Apple security, but most of them were based on a Register article that took bits out of context, so I’m not linking to them directly.
    • I spoke at the TechTarget Financial Information Security Decisions conference on Pragmatic Data Security.

    Favorite Securosis Posts

    Other Securosis Posts

    Project Quant Posts

    Favorite Outside Posts

    Top News and Posts

    Blog Comment of the Week

    This week’s best comment comes from Allen in response to the State of Web Application and Data Security post:

    I bet (a case of beers) that if there was no PCI DSS in place that every vendor would keep credit card details for all transactions for every customer forever, just in case. It is only now that they are forced to apply “pretty-good” security restrictions on the data that the price is no longer negligible so they are fighting to get rid of the information. Its like Moses on Mount Sinai when G-d presented the ten commandments to him -

    “I have this tablet with 5 commandments on it. Do you want it?”

    “How much is it?”

    “Its free”

    “I’ll take two.”

    Getting business to understand that protecting information costs money and getting rid of some information is a quick win is half the battle won. I think PCI has done that for some companies and the only issue that I have with PCI is that it is not applied to all information.

    –Rich

    Project Quant: Acquire Phase

    By Rich

    This one seems so straightforward I almost left it as a single time metric, but after thinking about it there are really three steps: find it, get it, and validate you have the right patch.

    In the back of my head I keep thinking we might need something about finding the specific patch in a patch set, but that’s probably handled in one of the patch deployment prep phases.

    For those of you who haven’t been tracking Project Quant, this set of posts is building out the detailed steps of the patch management process, so we can start tying them to metrics.

    image

    As always, let us know what you think…

    –Rich

    Thursday, June 11, 2009

    Application vs. Database Encryption

    By Rich

    There’s a bit of debate brewing in the comments on the latest post in our database encryption series. That series is meant to focus only on database encryption, so we weren’t planning about talking much about other options, but it’s an important issue.

    Here’s an old diagram I use a lot in presentations to describe potential encryption layers. What we find is that the higher up the stack you encrypt, the greater the overall protection (since it stays encrypted through the rest of the layers), but this comes with the cost of increased complexity. It’s far easier to encrypt an entire hard drive than a single field in an application; at least in real world implementations. By giving up granularity, you gain simplicity. For example, to encrypt the drive you don’t have to worry about access controls, tying in database or application users, and so on.

    image

    In an ideal world, encrypting sensitive data at the application layer is likely your best choice. Practically speaking, it’s not always possible, or may be implemented entirely wrong. It’s really freaking hard to design appropriate application level encryption, even when you’re using crypto libraries and other adjuncts like external key management. Go read this post over at Matasano, or anything by Nate Lawson, if you want to start digging into the complexity of application encryption.

    Database encryption is also really hard to get right, but is sometimes slightly more practical than application encryption. When you have a complex, multi-tiered application with batch jobs, OLTP connections, and other components, it may be easier to encrypt at the DB level and manage access based on user accounts (including service accounts). That’s why we call this “user encryption” in our model.

    Keep in mind that if someone compromises user accounts with access, any encryption is worthless. Additional controls like application-level logic or database activity monitoring might be able to mitigate a portion of that risk, but once you lose the account you’re at least partially hosed.

    For retail/PCI kinds of transactions I prefer application encryption (done properly). For many users I work with that’s not an immediate option, and they at least need to start with some sort of database encryption (usually transparent/external) to deal with compliance and risk requirements.

    Application encryption isn’t a panacea – it can work well, but brings additional complexities and is really easy to screw up. Use with caution.

    –Rich

    Project Quant: Patch Evaluation Phase

    By Rich

    Okay, here’s my first stab at detailing out the Evaluation phase of the patch management cycle.

    As with the Monitor for Advisories phase, I focused on the process, and listed out potential variables for each step in the process. Some of the variables are things like “completeness of …”. While those don’t have a direct cost, I’m thinking those will add a cost factor to increase the time involved. For example, if a given asset type isn’t properly listed in the asset type list, that could increase the time to evaluate that patch by Y%. For this model I don’t expect to determine some hard constant percentage, but hopefully with the survey work we plan on continuing we can at least provide some guidance.

    As always, let me know what you think…

    (Click to pop up the full-sized image)

    image

    –Rich

    Wednesday, June 10, 2009

    Details: Monitor for Advisories

    By Rich

    Project Quant post here…

    Below is my first pass (based on the work in the forums by Daniel) on the detailed process for the first phase in the Patch Management Cycle.

    Daniel included variables, but I decided to stick to the process level, and we can roll out the detailed variables once we get some consensus.

    Here’s my thinking:

    1. This phase should only cover the resources required to monitor for releases. Once that happens, we move on to the evaluation phase.
    2. It needs to reflect initial and ongoing costs to maintain asset type lists, as well as advisory source lists.
    3. I’ve tried my best to define the variables, which I know we will need to detail more once we start moving this into spreadsheet format.
    4. This is the “uber-model” and should include everything you could possibly do… clearly not all organizations will follow all steps for all assets.

    This is merely a first pass, so let me know what you think.

    image

    One thing I’m realizing is that since this is a cost model, it would be easy to misinterpret it to say “doing nothing is really cheap”. I think it’s important to remember that as an operational efficiency model, measurements of the security impact of doing nothing are out of scope. I’m getting some ideas on how to bring that into scope a little more, but I think we need to stay away from getting dragged into all the risk threat / stuff.

    As with all the Project Quant posts, you can comment here or in the forums…

    –Rich

    Database Encryption, Part 2: Selection Process Overview

    By Adrian Lane

  • Adrian Lane
  • In the selection process for database encryption solutions, too often the discussion devolves straight into the encryption technologies: the algorithms, computational complexity, key lengths, merits of public vs. private key cryptography, key management, and the like.

    In the big picture, none of these topics matter.

    While these nuances may be worth considering, that conversation sidesteps the primary business driver of the entire effort: what threat do you want to protect the data from? In this second post in our series on database encryption, we’ll provide a simple decision tree to guide you in selecting the right database encryption option based on the threat you’re trying to protect against. Once we’ve identified the business problem, we will then map that to the underlying technologies to achieve that goal. We think it’s safe to say that if you are looking at database encryption as an option, you have already come to the decision that you need to protect your data in some way. Since there’s always some expense and/or potential performance impact on the database, there must be some driving force to even consider encryption. We will also make the assumption that, at the very least, protecting data at rest is a concern. Let’s start the process by asking the following questions:

    What do you want to protect? The entire contents of the database, a specific table, or a data field?

    What do you want to protect the data from? Accidental disclosure? Data theft?

    Once you understand these requirements, we can boil the decision process into the following diagram:

    image

    Whether your primary driver is security or compliance, the breakdown will be the same. If you need to provide separation of duties for Sarbanes-Oxley, or protect against account hijacking, or keep credit card data from being viewed for PCI compliance, you are worried about credentialed users. In this case you need a more granular approach to encryption and possibly external key management. In our model, we call this user encryption. If you are worried about missing tapes, physical server theft, copying/theft of the database files via storage compromise, or un-scrubbed hard drives being sold on eBay, the threat is outside of the bounds of access control. In these cases use of transparent/external encryption through native database methods, OS support, file/folder encryption, or disk drive encryption is appropriate.

    Once you have decided which method is appropriate, we need to examine the basic technology variables that affect your database system and operations. Which you select corresponds to how much of an impact it will have on applications, database performance, and so on. With any form of database encryption there are many technology variables to consider for your deployment, but for the purpose of selecting which strategy is right for you, there are only three to worry about. These three effect the performance and type of threats you can address. In each case we will want to investigate if these options are performed internally by the database, or externally. They are:

    1. Where does the encryption engine reside? [inside/outside]
    2. Where is the key management performed? [inside/outside]
    3. Who/what performs the encryption operations? [inside/outside]

    In a nutshell, the more secure you want to be and the more you need separation of duties, the more you will need granular enforcement and changes to your applications. Each option that is moved outside the database means you get more complexity and less application transparency. We hate to phrase it like this because it somehow implies that what the database provides is less secure when that is absolutely not the case. But it does mean that the more we manage inside the database, the greater the vulnerability in the event of a database or DBA account compromise. It’s called “putting all your eggs in one basket”. Throughout the remainder of the week we will discuss the major branches of this tree, and how they map to threats. We will follow that up with a set of use case discussions to contrast the models and set realistic expectations on security this will and will not provide, as well as some comments on the operational impact of using these technologies.

    By the end you’ll be able to walk through our decision tree and pick the best encryption option based on what threat you’re trying to manage, and operational criteria ranging from what database platform you’re on to management requirements.

    –Adrian Lane

  • Adrian Lane
  • Tuesday, June 09, 2009

    iPhone Security Updates

    By Adrian Lane

    Like many potential iPhone buyers, I have been checking the news releases from the Apple WWDC every hour or so. Faster speed, better camera, better OS, new apps. What’s not to like? From a security standpoint, the two features that were intriguing for me and (probably) many IT organizations are the data encryption and automatic remote data wipe options. From MacWorld:

    For IT, Apple has added on-device encryption for data (backups are encrypted as well), plus a remote wipe-and-kill feature for Exchange 2007 users. Non-Exchange users can get remote wpe-and-kill if they subcribe to Apple’s consumer-oriented MobileMe service. In either case, the wiped information and settings can be restored if you find the missing iPhone.

    Much in line with what I was thinking in the Friday Post, it appears that Apple developers are way ahead of me. This clears a couple major security hurdles for corporate adoption of the iPhone, and helps the iPhone to continue its viral penetration of corporate IT environments. Very smart moves on their part to fill these gaps. The “Find my iPhone” feature is a neat bit of gimmickry, and helpful for distinguishing whether your iPhone went missing or was stolen. I have trouble believing it would be very effective for recovery, but it is enough information to decide whether or not to remotely wipe the device. And with the ability to recover wiped data through MobileMe, there is little penalty for being safe.

    Then, leave it to AT&T to kill my happy iPhone buzz. Tethering? Nope. Any product vendor will tell you that that if a customer asks you when they get some cool new feature, you talk about what a wonderful advancement it will be and then set realistic expectations about when it will be available. Your response is not “Well, that will cost you more”. No wonder AT&T was booed on stage. It looks like by the time tethering is available, AT&T will no longer have its US exclusive arrangement with Apple, and no one will care that they don’t seem to care about customers. Or timely feature enhancements. Or that they are denying loyal Apple/AT&T customers a discount to buy a new phone and give the old phone to someone else who will need to use AT&T. You see the logic in that, right?

    –Adrian Lane

    How Market Forces Will Alter Payment Processing

    By Adrian Lane

    I was drafting a post last week on credit card security when I read Rich’s piece on How Market Forces Can Fix PCI. Rather than looking at improving PCI-DSS from a specification-centric perspective, he presented some ideas on improving its effectiveness through incentivizing auditors differently. A few of the points he raised clarified for me why looking at market drivers such as this are the only way we are going to understand the coming security changes to this industry. It’s a good post and highly relevant given the continuing rises in notable breaches and PCI compliance costs for merchants. But more than anything else, for me the post solidified why I think we are having the wrong discussion about the advancement of payment security. We are riding a 20th century credit card processing system that was great at the dawn of the POS terminal, but is simply broken from a security perspective for ‘card not present’ and Internet electronic commerce situations.

    Adrian Phillips of Visa was recently quoted as saying “… PCI-DSS has proven to be a highly effective foundation of minimum security standards when properly implemented across all systems handling cardholder data.” That phrase is laced with caveats, and it should be, because if you follow PCI-DSS closely, you hit the minimum set of requirements for basic security with significant investment. It’s not that I am against PCI-DSS per se, it’s just that we should not need PCI-DSS to begin with. We have gotten so wrapped up in the discussion on securing this credit card data and the payment system that we have somewhat forgotten that the merchant does not need this information to conduct commerce. We are attempting to secure credit card related information at a merchant site when it is unnecessary to keep it there. The payment process for merchandise should be considered two separate relationships: One between the buyer and the issuing bank, and the other between the issuing bank and the merchant. Somewhere along the way the lines were blurred and the merchant was provided with the customer’s financial information. Now the merchant is also required to keep this data around for dispute resolution, spreading the risk and cost of securing customer financial information. If I were looking for ways to make my business more efficient, I would be looking to get rid of this effort, responsibility, and expense ASAP!

    Merchants must investment massively to prop up the security on a flawed system. If the pace of fraud and breaches continue, sheer economic force will push merchants for an alternative rather than suffer along with increasing expenses and risks. As Brian Krebs recently reported, there has been a 95% increase in the number of credit and debit card fraud cases, with no specific indicator showing a slowdown.

    My point with this entire rant? I think we are starting to see the change happening now. Rich’s argument that market forces could improve PCI audits is entirely valid, and we could see slightly improved site security. But if market forces are going to materially alter the security situation as a whole, it will be in the slow erosion of vendors participating in the system we have today, in favor of something more efficient and cost effective. First with Internet commerce, and eventually with POS. Securing credit card data is an expensive distraction for merchants, which directly reduces profits. While many large companies offset this expense with revenue from data mining, the credit card number no longer needs to be present to successfully analyze transaction data. If I was running a commerce web site site I would certainly be looking to external payment processing service like PayPal to offload the liability and need to be party to the credit card data. And as PayPal’s fee structure is on par with more traditional credit card payment services, you get the same service with reduced liability. Looking at the number of small and mid-sized merchants I see using PayPal, I think the trend has already begun and will continue to pick up speed. I am also seeing new payment processing firms spring up with payment models more agile and appropriate to electronic commerce.

    I had an email exchange with the CTO of a security vendor on this subject the other day, and the question was raised “Will there be EMV-like smart cards in our future? I doubt it. That type of security helps half of the equation: authenticating the buyer, and given current implementations, only at POS terminals. It does not stop the data breaches or resultant fraud. EMV was a very good proposal that never took off, and while it could be helpful with future efforts, a more likely authentication mechanism will be something like Verisign authorization tokens. This form of authentication (user name/password plus One Time Password) may not be perfect, but far in excess of what we have for credit card processing today, and requires very little modification for Internet transactions.

    If market forces are going to drive payment processing security forward, I think this is a more plausible scenario. As always, current stakeholders will strive to maintain the status quo, but cheaper and better eventually wins out.

    –Adrian Lane

    The Laws of Emergency Medicine—Security Style

    By Rich

    Thanks to some bad timing on the part of our new daughter, I managed to miss the window to refresh my EMT certification and earned the privilege of spending two weekends in a refresher class. The class isn’t bad, but I’ve been riding this horse for nearly 20 years (and have the attention span of a garden gnome), so it’s more than a little boring.

    On the upside, it’s bringing back all sorts of fun memories from my days as a field paramedic. One of my favorite humorous/true anecdotes is the “Rules of Emergency Medicine”. I’ve decided to translate them into security speak:

    1. All patients die… eventually. Security equivalent: You will be hacked… eventually. It sucks when you kill^H^H^H^Hfail to save a patient, but all you’re ever doing is delaying the inevitable. In the security world, you’ll get breached someday. Maybe not at this job, but it’s going to happen. Get over it, and make sure you also focus on what you need to do after you’re breached. React faster and better.
    2. All bleeding stops… eventually. Security equivalent: If you don’t fix the problem, it will fix itself. You can play all the games you want, and sponsor all the pet projects you want, but if you don’t focus on the real threats they’ll take care of your problems for you. Take vulnerability scanning – if it isn’t in your budget, don’t worry about it. I’m sure someone on the Internet will take care of it for you. This one also applies to management – if they want to ignore data breaches, web app security, or whatever… eventually it will take care of itself.
    3. If you drop the baby, pick it up. Security equivalent: If you screw up, move on. None of us are perfect and we all screw up on a regular basis. When something bad happens, rather than freaking out, it’s best to move on to the next task. Fix the mistake, and carry on. The key of this parable is to fix the problem rather than all the other hand wringing/blame-pushing we tend to do when we make mistakes.

    I think I’m inspired to write a new presentation – “The Firefighter’s Guide to Data Security”.

    –Rich

    Monday, June 08, 2009

    Facebook Monetary System

    By Adrian Lane

    Ran across this article on CNN last Friday about how Facebook was going to launch a micro-payment service. Facebook wants to introduce its own virtual currency system that involves credits, coupons, and other types of widgets that can be redeemed for goods or cash.

    As recently as last fall, Facebook’s plans – reportedly called “Facebook Wallet” – were something much more like a straight-up, PayPal-like transaction platform.

    “We think enabling developers to accept these credits as a form of payment has the potential to create exciting new use cases for users and developers,” spokesman David Swain said in an e-mail. “We do not have details to share at the moment because this will be a very small alpha, only a handful of developers, but will likely share more as we evaluate the results of the test.”

    While it is up in the air if this is a full blown payment engine or just a virtual currency, it really does not matter. If Facebook offers the virtual goods and services, 3rd parties with quickly fill in the vacuum and provide conversion to other items of value as we saw happen in the gaming community. The concept of micro-payments has been around for a long time: we are talking a decade before payment providers like TextPayMe, PayMate or any of the other current payment providers started to morph the concepts of ‘micro’ payments, ‘XMS’ and ‘mobile’ payments into one. How many of you remember CyberCash? Or Transactor Networks? No? Then you probably don’t remember the Oracle Payment Server, Sun’s Java Wallet, Trintec, Verifone, or Paymantec – they all expressed interest in this type of payment strategy as well. And every one of them had to take into consideration automated fraud, money laundering, and theft. But many of these started as secure payment engines to be applied to other applications, and their relative degree of security was never fully tested.

    There are plenty of start-ups that have attempted to launch virtual currencies that would be interoperable across participating developers’ and companies’ games and other applications.

    None of them have become legitimate Web sensations, perhaps because of the inherent security concerns in online payments. Facebook already has millions of users’ credit card numbers on file from transactions through the Gifts app–its “credits” are in the lead before they even launch in full.

    Very true, with a big difference being they were payment engines looking for the ‘killer app’, not the killer app looking for a way to create virtual currency. PayPal is one of the few success stories, succeeding largely after the eBay merger, with the remaining examples used largely to purchase pornography. But they are also far more simplistic in their value propositions, and do not have some of the complexity surrounding virtual currency, multi-payment objects, and complex pricing models. It is very appealing for Internet commerce sites that provide low cost services and cash conversions, and it could really help Facebook monetize the millions of users and developers who participate. Micro-payments and virtual currencies are a great way to generate interest in a web site and create user affinity in addition to providing a mechanism for participants to get paid for their contributions to a community.

    But like any electronic payment system, if a security flaw is found, odds are that an exploit can be automated. While they may only be stealing pennies (or digital coupons) at a time, they can repeat the attack against thousands or, in the case of Facebook, 200,000,000 users, and wipe out an entire economy in a matter of hours. What better way to motivate hackers than to help them monetize their efforts as well? This is after all a platform that is ripe with scams, phishing, worms, and hacks. I kind of hope they roll this service out because this is going to be a lot of fun to watch!

    –Adrian Lane

    Friday, June 05, 2009

    Friday Summary - June 5, 2009

    By Adrian Lane

    If you have ever listened to Rich or myself present on data centric security or endpoint encryption, we typically end by saying “Encrypt your freakin’ laptops.” It works. The performance is not terrible and it’s pretty much “set and forget”. We should also throw in “Encrypt your freakin’ USB keys” as well. The devices are lost on a regular basis and still very few have encrypted data on them. I confess that I am fairly lazy and have not been doing this, but started to look into encryption when I realized that I had brought a stick with me to Boston that had a bunch of sensitive stuff I was moving between computers and forgot to delete … oops. I am not different than anyone else in that I am not really interested in taking on more work if I can avoid it, but as I am moving documents I do not want public, I looked into solving this security gap. While at RSA I dropped by the IronKey booth; in nutshell, they sell USB sticks with hardware encryption. After a product demo I was provided a 1gb version to sample, which I finally unpacked this morning and put to use. This is a dead simple way to have USB files encrypted without much thought, so I am pretty happy moving the stuff I travel with onto this device.

    A few years back at the IT Security Entrepreneurs’ Forum at Stanford, I ran into Dave Jevans. He had just started IronKey and was there trying to raise capital. At the time this seemed a tremendous idea: USB keys were ubiquitous and were quickly supplanting writable CDs & DVDs as the portable media of choice. Everyone I knew was carrying a USB stick on their keychain or in their backpack. And subsequently they were lost and stolen at an alarming rate along with all the data they contained. It had been three years or so since I had spoken to anyone at the company, so I wanted to catch up on new product developments. I am not going to provide a meaningful analysis of the hardware security implementation as this is beyond my skill set, but there were a couple of advancements in the product for browser safety and data usage policy enforcement that I was unaware of, so I wanted to share some comments.

    The key has hardware encryption, so all files are stored encrypted. It provides an authentication interface and credentials need to be established before the device is usable. IronKey has added anti-malware to detect malicious content, but given that more dedicated appliances still fail in this area, the capability is not going to be cutting edge. The advancements I was not aware of were strong password enforcement, remote administration, and the ability to destroy the device in the event that certain access policies are violated. This prevents an attacker from trying indefinitely to gain access, and allows for policies to be adjusted per company, per users. The first idea that hit me is that this is a natural to leverage the encryption capabilities of the memory stick with DLP in a corporate environment. Use DLP to detect the endpoint device and allow data to be copied to the USB device when the device is trusted. This is very much in line with a data centric security model – where you define the actions that are allowed on the data, and where the data is allowed to go, and do not allow it to be in the clear anywhere else. I am not aware of anyone doing this today, but it would make sense from a corporate IT standpoint and would make an effective pairing.

    The second concept pushed during the demo was the idea of putting a stripped down and trustworthy version of Firefox onto the IronKey. They are touting the ability to have a mini-mobile safe harbor for your data and browser. Philosophically speaking, this sounds like a good idea. Say I am using someone else’s computer: invariably they have IE, which I do not want to use, and the basic security of the computer is questionable as well. So I could plug in the memory stick and run a trusted copy of Firefox from wherever. Neat idea. But from my perspective, this does not seem like a valid use case. Even today I am going to have my laptop, and I just want an Internet connection. With EVDO, MiFi and the surge of mobile computing, do I really need a memory stick to do this for me? If I have a browser on my iPhone or Blackberry, what’s the point? Endpoint devices come and go with the same regularity as women’s fashions, and I wonder what the real market opportunity for this type of technology is in the long run. While it appears to be good security, the medium itself may be irrelevant. One thought is to embed this technology into mobile computing devices so that the information is protected if lost or stolen. If they could do that, it would be a big advancement over the security offered today. With the ability to provide user authentication, and destroy the data in the event that the unit is lost or the security policies are violated, I would have a much more secure mobile device.

    Anyway, very cool product, but not sure where the company goes from here.

    Oh, I also wanted to make one additional reminder: Project Quant Survey is up. Yeah, I know it’s SurveyMonkey, and yeah, I know everyone bombards you with surveys, but this is pretty short and the results will be open to everyone.

    And now for the week in review:

    Webcasts, Podcasts, Outside Writing, and Conferences

    Favorite Securosis Posts

    Other Securosis Posts

    Favorite Outside Posts

    Top News and Posts

    Blog Comment of the Week

    This week’s best comment was LonerVamp’s response to the State of Web Application and Data Security post:

    Excellent information in that post!

    Rich, have you been encouraged by the tone of those you’ve talked to regarding their WAF setups? I am not surprised by the larger number of WAF deployments (dropping in an appliance certainly seems easier!), but I’m curious how many really think they’re being effective. I’m not as big a skeptic as dre (hi!), but I realistically think deployment out of band and lots of false positives leave them doing absolutely nothing. I also wonder how many are deployed with nothing but a handful of basic triggers that are just default examples.

    This would be the equivalent of deploying an ANY/ANY firewall 15 years ago just to say you have a firewall. Technically, you do have one. Technically, you might even be set up to look at the alerts, but because it detects nothing, it does nothing.

    –Adrian Lane