DigiNotar Goes Bankrupt After Hack
twoheadedboy writes "DigiNotar, the Dutch certificate authority which was recently at the centre of a significant hacking case, has been declared bankrupt. The CA discovered it was compromised on 19 July, leading to 531 rogue certificates being issued. It was only in August that the attacks became public knowledge. Now the company has gone bankrupt, parent firm VASCO said today. VASCO admitted the financial losses associated with the demise of DigiNotar would be 'significant.' It all goes to show how quickly a data breach can bring down a company."
Adds reader Orome1: "This is unsurprising, since a report issued by security audit firm Fox-IT, who has been hired to investigate the now notorious DigiNotar breach, revealed that things were far worse than we were led to believe."
Businesses have a strong profit motive. The people who run businesses are greedy. They will sacrifice everything, including security related expenses in order to boost profits in some way.
I think this is simply obvious.
How do you go bankrupt before any charges have been laid, fines levied, etc.? Sounds like the parent company ditching them before they can be held liable.
So, if certs cannot be trusted, and this brings to the surface the whole concept of "trust", what are we to do? What should we use?
Not that it repairs the fuckup, or that anyone else will learn from it, but at least the incompetent got what was coming to them, just this once.
Mostly because they caught the intrusion (which was at a 3rd party rather than directly part of Comodo) and reported it immediately as well as putting in place measures to try and prevent it from happening again.
DigiNotar didn't notice that they'd been hacked for months and didn't tell anyone for months more and even then they didn't know how badly they'd been hacked or exactly which certs may have been issued to whom.
With major browsers kicked its CA cert out of the trusted list, the CA by definition and practically could generate no profit...
What else do you expect, huh? Of course it could only get closed!
Lesson learned: if you are a CA, under no circumstances should you allow any breaches to become public.
My favourite part of the article:
We have strong indications that the CA-servers, although physically very securely placed in a tempest proof environment, were accessible over the network from the management LAN.
TEMPEST http://en.wikipedia.org/wiki/TEMPEST is a method where you intercept EM radiation from a computer and use that to reconstruct some information about what that computer is doing. For example the US government could supposedly read CRT monitors from a fair distance away.
However, worrying about TEMPEST protection when you not only have those system connected to systems that are connected directly to the net, but use a single management username and password combo for your entire network is just insane. Even if the system wasn't connected to the Internet the freaking janitor could have placed a key-logger and had access to the entire system.
It is far cheaper to bribe one employee then spend millions setting up a modern TEMPEST system. I guess even the Dutch practice security theatre.
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CINC, 4th Penguin Legion
this. all the issue is not in the breach. that kind of stuff happens.
what should never ever happen is a certification authority, whom live on trust, try to cover the shit up.
That, and Comodo's core infrastructure (e.g. the stuff that actually does the signing) wasn't compromised.
The attacker used the compromised third party to issue certificates through the normal channels made available by Comodo to resellers, so it was possible to determine exactly what certificates were issued erroneously.
At least that was my understanding of what happened, based on information I read several months ago.
Worse: according to the second linked article DigiNotar knew about the attacks already at 19 July. That's when they started revoking numerous certificates. Yet they did not notify the public. Also it seems they did not take extra countermeasures, and the measures in place were far from what's considered "good practice" for highly secure sites.
DigiNotar got what it deserved.
However, the real problem stays: There are hundreds of CAs out, which are trusted by default by your browser. You probably never heard about most of them. They operate in different countries - you cannot sue them easily from your country. All of them can (technically) also issue certs for all Web sites (even for Web sites that have an existing cert from somebody else).
The whole CA system in broken. I would rather like to trust only CAs that have earned the trust. E.g. CAs that have been validated by my bank for online payments (but not for my email).
Some say Convergence is the answer. I haven't been able to make it work, personally, so it's probably not ready for prime-time. Also, I don't like the name.
Belief is the currency of delusion.
Any CA trying to cover up a breach will go down the same path as Diginotar.
What makes you so certain that a CA who publicly acknowledged a breach would not also immediately die in a meltdown? There is no evidence that honestly in a similar situation would save a CA.
If Digital Signature Trust Co.* were to publicly announce "We discovered just this morning that we have been breached, and while we can't give complete details because of the ongoing investigation, we found the hackers forged Google certificates," the public reaction would be almost identical to that of DigiNotar. If I were a customer, the chances would be high that I'd be shopping elsewhere for new certs to replace the ones that I could no longer trust. If I weren't a customer, there are obviously more reputable places to buy a cert. The incident itself is enough to cause me to lose trust, and that's really the only thing they're able to sell. I predict they'd go bankrupt as well, it might just take a few months longer.
Perhaps hiding the breach for the extra months was a strategy to give the executive rats time to flee the sinking ship. If so, we can only hope their behavior catches up to their personal reputations.
* As far as I know Digital Signature Trust Co. is a healthy and secure firm, and is rightly trusted by companies and browsers worldwide. I am using their name only as an example because I like the way it sounds.
John
We have strong indications that the CA-servers, although physically very securely placed in a tempest proof environment, were accessible over the network from the management LAN.
It is at once hilarious and depressing that there are tech and security managers who take steps to shield equipment from electromagnetic detection and then leave that equipment open to remote access. Wrap your computer in tinfoil and then stick your password on the screen.
Then who can you trust?
on the internet? ... nobody.
Then it ain't time for government bailout but for government finally issuing some 'hang-em-at-their-balls" laws for CEOs that try to hush up security breaches. The current ones are a weak joke, the fines aren't even remotely anywhere near the damage if it gets leaked somehow. And last time I checked, the fines should be a multiple of the damage of the leakage, or the formula "benefit vs. risk*fine" falls flat on its face and hushing up is the sensible thing to do.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
"The first one anyone can do in two minutes, including the time to download GPG."
Well, probably not you. Because GPG is not used for generating certificates.
New things are always on the horizon
Try IT security. You'd be amazed what kind of prestidigitators peddle in my profession. They come in, pull off a "demonstration" with a lot of smokes and mirrors and wow people into buying their crap. I've come to a lot of companies who showed me their latest and greatest security systems with unhidden pride, only to throw a tantrum when they get to see it shatter.
It's really disheartening. Anyone who has ever managed to get nmap to produce some output other than the help page considers himself a security professional today. And what's worse, these idiots get hired. Because their managers know even less about security and they are cheap. There are also very few certificates that are generally accepted. And getting a CISA or CISM is usually overkill.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Not really. It does cost more than NO security but not much more. Example, how much does it cost you to have a decent password instead of Password1?
Yes and yes. But that isn't the core of the problem. Greedy people can have the best security. They don't want criminals to take their money.
In some case you are probably correct. In other cases the company/person will increase the security to keep the assets out of the hands of the criminals.
In my experience, the problem with security is Pavlovian. ...
If you do something insecure, once, and nothing bad happens
Particularly if it was just a little bit easier to skip the security. Such as typing in a 5 character dictionary word rather than a 16 character password. It doesn't take much to be "easier".
And as long as nothing bad is happening, people will "learn" that they're "secure" and what they are doing is "right" and anyone who is advocating real security just doesn't understand the situation. That's Pavlovian. The reward is the slightly easier administration.
If management does not understand real security, there aren't many ways to get them to change. They already KNOW they're doing it "right".
Hence all the recent cracks.
I'm just amazed that you were able to get that concept through their heads. I've been in similar situations where "let us not make this too difficult" trumps real security every time.
How much does a decent password cost? Nothing.
How much does NOT using that same password everywhere cost? Nothing.
Yet we constantly see cracks where the crappy password was used on multiple, critical systems.
Having done business in NL for 30 years myself I bet that DigiNotar management has already incorporated a new company which will be selling the same/similar products to the very same Dutch government that allowed kept DigiNotar alive.
As this cartoon has already pointed out ("Don't worry folks, we'll be back in three months under a new name").
would be 'significant.'
I think they are filing for bankruptcy while they still have money in their pockets to avoid law suites as opposed to gone bankrupt. I believe "gone bankrupt" means they are broke and giving up.
Having to work for a living is the root of all evil.
I have said so many times that we are not strict enough on punishment for the cyber crimes that affect companies, this should prove as a perfect example why certain individuals that bring down a company due to their hacking ventures, should face proper penalties.
No, it would not. Look at the Comodo breach in March.
New things are always on the horizon
can fix. Also amazing how complex CA authority has become. The concept is fairly simple, but the niceties of the trust bits have become so arcane that Mozilla is having to fix erroneous understandings of the bits in their own code, without breaking legacy. Then the people working on security code have highly resistant personalities and so all kinds of nonsense gets frozen in for years.They sort of have to be that way, to keep their code gov't certified... what a mess. Crowd-sourced verification of self-signed certs is starting to sound better & better.
The practical results of the way the code works at least at Mozilla were mystified complaints about the fake revoked Digninotar certs put in Mozilla to block real fake certs! That is not a model for the future. They are working on it, but it's glacial.
Monopoly €1000 certs, that's a not a biz model you can fix. Someday I will understand Slashdot editing.
Which cost money to implement.
Which requires that either the person volunteer his personal phone for that or that the company issue him a company phone that supports that.
Again, which costs money.
It's not that the users aren't smart. It's that management and the people setting up the systems do not understand security.
On most modern systems, it costs nothing to go from crap security (allowing 5 character dictionary words as a password) to better security (16 character passwords with some complexity).
The problem is that it is always easier to go with the worse security. No matter how easy you make the better security.
And every day you don't get cracked (or know that you were) is reinforcement of the bad security practices.
IT is almost always the most underfunded department in a company. It is also the department whose requests are most frequently and easily overridden by either executive mandates or other departments. Since in most cases IT's efforts are not directly what the company produces ("we sell toasters and vitamin pills, not authentication mechanisms!"), IT spending is seen as a necessary evil, and IT intervention in company processes is met with resentment. Note: IT people saying "you're too stupid to understand why you have to do what I say" DOES NOT HELP. It is possible to be right, passive-aggressive, and unemployed all at the same time.
Within IT, security is always at the bottom of the list for allocation of resources (people and money). Expanding file servers, deploying enterprise applications, provisioning more bandwidth, getting people to work instead of hang out on Facebook (or Slashdot) all day long, and the like always come first, because spending on infrastructure and productivity results in tangible, positive, immediately-visible benefits. Spending on security does not offer tangible benefits, and they prevent negative events, which is much more difficult to prove.
Within infosec, intrusion detection is always at the bottom of the list. Antivirus software, firewalls and RFID keycards always come first, because it is possible to use analogies to explain what they do. Try explaining TKIP to an accountant. (in fairness, ask an engineer to explain what each of the items in a prospectus and quarterly statement mean... you'll get a blank stare followed by a libertarian screed and a credit card "somehow" over its limit)
And yes, there is a lot of snake oil being sold. But there are also a lot of people who simply aren't qualified to tell the difference between snake oil and a real security product, but who think they are (including sysadmins... knowing how to compile a Linux kernel does not automatically make you a security expert, but try telling a sysadmin that... most sysadmins think they are experts in everything network-related).
Yeah. It's difficult.
Everybody gets what the majority deserves.
which was carried out by the hacker-soldiers of the government of Iran for the purposes of identifying the 300,000 Iranians that radical fundamentalist Theocracy wants to muzzle. In other words, state sponsored terrorism.
Running with Linux for over 20 years!
First off, I can easily remember my passwords. Even the ones that are more than 16 characters long.
Secondly, if you cannot, what's wrong with writing them down and keeping them in your wallet?
No. The point was that it will ALWAYS be easier for the user to ignore the security (if that is an option).
Even if "easier" is as minor as having a 16 character password instead of a 5 character dictionary word.
As others here have noted, once you introduce "easier" you end up with situations where the janitor has keys to the secure area because it is "easier" that way than to take the garbage out yourself.
Or, more currently, when the CA was cracked because there was one password (easily cracked) used on multiple servers.
Yes, having one easily cracked password on multiple servers is EASIER than having multiple, complex passwords.
But it is also insecure. As was demonstrated.
I think it's quite legitimate to say you can generate a random private/public key pair with GPG. That's kind of the point of it.
For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
I would disagree. Comodo is safe as long as everyone and their dog resells their products. Even more so since these people don't disclose whose SSL they are reselling.
For a site about things like basic rights, Slashdot users sure do like to censor "dissent".