Author Archives: Bruce Schneier

Book Review: The Business of Secrets

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The Business of Secrets: Adventures in Selling Encryption Around the World by Fred Kinch (May 24, 2024)

From the vantage point of today, it’s surreal reading about the commercial cryptography business in the 1970s. Nobody knew anything. The manufacturers didn’t know whether the cryptography they sold was any good. The customers didn’t know whether the crypto they bought was any good. Everyone pretended to know, thought they knew, or knew better than to even try to know.

The Business of Secrets is the self-published memoirs of Fred Kinch. He was founder and vice president of—mostly sales—at a US cryptographic hardware company called Datotek, from company’s founding in 1969 until 1982. It’s mostly a disjointed collection of stories about the difficulties of selling to governments worldwide, along with descriptions of the highs and (mostly) lows of foreign airlines, foreign hotels, and foreign travel in general. But it’s also about encryption…

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On Hacking Back

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Former DoJ attorney John Carlin writes about hackback, which he defines thus: “A hack back is a type of cyber response that incorporates a counterattack designed to proactively engage with, disable, or collect evidence about an attacker. Although hack backs can take on various forms, they are—­by definition­—not passive defensive measures.”

His conclusion:

As the law currently stands, specific forms of purely defense measures are authorized so long as they affect only the victim’s system or data.

At the other end of the spectrum, offensive measures that involve accessing or otherwise causing damage or loss to the hacker’s systems are likely prohibited, absent government oversight or authorization. And even then parties should proceed with caution in light of the heightened risks of misattribution, collateral damage, and retaliation…

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Prompt Injection in AI Browsers

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This is why AIs are not ready to be personal assistants:

A new attack called ‘CometJacking’ exploits URL parameters to pass to Perplexity’s Comet AI browser hidden instructions that allow access to sensitive data from connected services, like email and calendar.

In a realistic scenario, no credentials or user interaction are required and a threat actor can leverage the attack by simply exposing a maliciously crafted URL to targeted users.

[…]

CometJacking is a prompt-injection attack where the query string processed by the Comet AI browser contains malicious instructions added using the ‘collection’ parameter of the URL…

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New Attacks Against Secure Enclaves

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Encryption can protect data at rest and data in transit, but does nothing for data in use. What we have are secure enclaves. I’ve written about this before:

Almost all cloud services have to perform some computation on our data. Even the simplest storage provider has code to copy bytes from an internal storage system and deliver them to the user. End-to-end encryption is sufficient in such a narrow context. But often we want our cloud providers to be able to perform computation on our raw data: search, analysis, AI model training or fine-tuning, and more. Without expensive, esoteric techniques, such as secure multiparty computation protocols or homomorphic encryption techniques that can perform calculations on encrypted data, cloud servers require access to the unencrypted data to do anything useful…

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Faking Receipts with AI

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Over the past few decades, it’s become easier and easier to create fake receipts. Decades ago, it required special paper and printers—I remember a company in the UK advertising its services to people trying to cover up their affairs. Then, receipts became computerized, and faking them required some artistic skills to make the page look realistic.

Now, AI can do it all:

Several receipts shown to the FT by expense management platforms demonstrated the realistic nature of the images, which included wrinkles in paper, detailed itemization that matched real-life menus, and signatures…

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Rigged Poker Games

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The Department of Justice has indicted thirty-one people over the high-tech rigging of high-stakes poker games.

In a typical legitimate poker game, a dealer uses a shuffling machine to shuffle the cards randomly before dealing them to all the players in a particular order. As set forth in the indictment, the rigged games used altered shuffling machines that contained hidden technology allowing the machines to read all the cards in the deck. Because the cards were always dealt in a particular order to the players at the table, the machines could determine which player would have the winning hand. This information was transmitted to an off-site member of the conspiracy, who then transmitted that information via cellphone back to a member of the conspiracy who was playing at the table, referred to as the “Quarterback” or “Driver.” The Quarterback then secretly signaled this information (usually by prearranged signals like touching certain chips or other items on the table) to other co-conspirators playing at the table, who were also participants in the scheme. Collectively, the Quarterback and other players in on the scheme (i.e., the cheating team) used this information to win poker games against unwitting victims, who sometimes lost tens or hundreds of thousands of dollars at a time. The defendants used other cheating technology as well, such as a chip tray analyzer (essentially, a poker chip tray that also secretly read all cards using hidden cameras), an x-ray table that could read cards face down on the table, and special contact lenses or eyeglasses that could read pre-marked cards. …

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Scientists Need a Positive Vision for AI

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For many in the research community, it’s gotten harder to be optimistic about the impacts of artificial intelligence.

As authoritarianism is rising around the world, AI-generated “slop” is overwhelming legitimate media, while AI-generated deepfakes are spreading misinformation and parroting extremist messages. AI is making warfare more precise and deadly amidst intransigent conflicts. AI companies are exploiting people in the global South who work as data labelers, and profiting from content creators worldwide by using their work without license or compensation. The industry is also affecting an already-roiling climate with its …

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AI Summarization Optimization

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These days, the most important meeting attendee isn’t a person: It’s the AI notetaker.

This system assigns action items and determines the importance of what is said. If it becomes necessary to revisit the facts of the meeting, its summary is treated as impartial evidence.

But clever meeting attendees can manipulate this system’s record by speaking more to what the underlying AI weights for summarization and importance than to their colleagues. As a result, you can expect some meeting attendees to use language more likely to be captured in summaries, timing their interventions strategically, repeating key points, and employing formulaic phrasing that AI models are more likely to pick up on. Welcome to the world of AI summarization optimization (AISO)…

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