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Submission + - Silk Road 2.0 Blames Hack For Massive Bitcoin Theft (forbes.com) 2

Sparrowvsrevolution writes: The reincarnated drug site Silk Road 2.0 announced Thursday that it's been hacked by sellers on the site who used a bug in Bitcoin known as "transaction malleability," the same one plaguing Bitcoin exchange Mt. Gox and others. At least $2.6 million worth of bitcoins have been stolen, according to an estimate based on analyzing the Bitcoin blockchain by Nicholas Weaver of the International Computer Science Institute.

Silk Road's users and others in the Bitcoin community, however, are crying foul. As in the case of Mt. Gox's shutdown, they point out that transaction malleability has been a known issue since 2011, and shouldn't allow the theft of bitcoins. A more likely theory is that Silk Road's administrators have pocketed the funds and used the transaction malleability bug as a convenience scapegoat.

Submission + - Researchers Create Tiny, $20 Car-Hacking Tool (forbes.com)

Sparrowvsrevolution writes: At the Black Hat Asia security conference in Singapore next month, two Spanish researchers plan to demo a small gadget they built for less than $20 that can be connected to a car’s internal Controller Area Network to allow hackers ot wirelessly inject malicious commands affecting everything from the vehicle's windows and headlights to its steering and brakes. Their tool, which is about three-quarters the size of an iPhone, draws power from the car’s electrical system and can wait for minutes or years before relaying a wireless command to the car's network via Bluetooth or GSM sent remotely from an attacker’s computer. They call it the CAN Hacking Tool, or CHT.

Just what the CHT can trick a car into doing depends on the model--the researchers tried four different vehicles and managed to only fiddle with windows and lights in some cases, while triggering anti-lock brake or emergency brake systems in others. For some of the cars, the device could only be planted by gaining access under the hood, but in other cases, it could be attached to the network just crawling under the car.

"It can take five minutes or less to hook it up and then walk away,” says one of the researchers. “We could wait one minute or one year, and then trigger it to do whatever we have programmed it to do.”

Submission + - Google Says It's Considering Bitcoin Payment Adoption (forbes.com)

Sparrowvsrevolution writes: After Overstock.com, Google might be the next major web firm to adopt Bitcoin. Bitcoin early adopter, musician and online marketing manager Jarar Malik wrote emails to Jeff Bezos, Tim Cook, Sergey Brin, Larry Page, and Eric Schmidt asking them if they planned to adopt Bitcoin at Amazon, Apple, and Google. When none responded, he moved on to other executives, and surprisingly got a response from a couple of senior vice presidents at Google. One, Google Senior VP of Ads and Commerce Sridhar Ramaswamy, told him that "we are working in the payments team to figure out how to incorporate bitcoin into our plans" and promised to update him "when we are a little more sure.”

When Malik posted that exchange to Reddit and the news got a mostly positive response, Google Wallet exec Ariel Bardin asked Malik if he'd be willing to moderate a Google survey on "What would I want Google to do with Bitcoin?"

Aside from these backchannel comments, however, Google isn't saying whether it will adopt Bitcoin, and a press spokeperson says that "while we're keen to actively engage with Wallet users to help inform and shape the product, there's no change to our position: we have no current plans regarding Bitcoin." But it seems clear that the company is exploring the option.

Submission + - Zerocoin Set To Become A Fully Anonymous Bitcoin Alternative (forbes.com) 1

Sparrowvsrevolution writes: At the Real World Crypto conference earlier this week in New York, Johns Hopkins cryptography professor Matthew Green announced the next phase in the evolution of Zerocoin, an alternative cryptocurrency with a focus on perfect anonymity. The new coins will go into circulation in May in some sort of beta program, with their own miners, blockchain, and exchanges, just like Bitcoin. But unlike Bitcoin, Zerocoin is designed to be spent and received without revealing even a trace of a user’s identity.

Zerocoin, which began as an attempt to upgrade Bitcoin's codebase but is now being spun out into an independent cryptocurrency, use a decades-old mathematical scheme called a “zero-knowledge proof,” which makes it possible to prove that a mathematical statement is true without revealing the content of the computation. That means Zerocoins can act as sealed envelopes of cash that can be combined, split, or spent without either revealing the value of the cash inside those envelopes or their path through the network, all while still protecting against fraud and forgery.

Submission + - BitTorrent's Bram Cohen Unveils New Steganography Tool DissidentX (forbes.com)

Sparrowvsrevolution writes: For the last year Bram Cohen, who created the breakthrough file-sharing protocol BitTorrent a decade ago, has been working on a tool he calls DissidentX, a steganography tool that's available now but is still being improved with the help of a group of researchers at Stanford. Like any stego tool, DissidentX can camouflage users' secrets in an inconspicuous website, a corporate document, or any other, pre-existing file from a Rick Astley video to a digital copy of Crime and Punishment. But it uses a new form of steganography based on cryptographic hashes to make the presence of a hidden message far harder for an eavesdropper to detect than in traditional stego. And it also makes it possible to encode multiple encrypted messages to different keys in the same cover text.

Submission + - NSA Co-Worker Remembers Snowden as 'A Genius Among Geniuses'

Hugh Pickens DOT Com writes: Andy Greenberg writes at Forbes that an NSA staffer who contacted Greenberg last month and asked not to be identified offers a very different, firsthand portrait of how Snowden was seen by his colleagues in the agency’s Hawaii office: A principled and ultra-competent, if somewhat eccentric employee, and one who earned the access used to pull off his leak by impressing superiors with sheer talent. “That kid was a genius among geniuses,” says the NSA staffer. “NSA is full of smart people, but anybody who sat in a meeting with Ed will tell you he was in a class of his own. I’ve never seen anything like it.” The NSA co-worker adds that Snowden’s superiors were so impressed with his skills that he was at one point offered a position on the elite team of NSA hackers known as Tailored Access Operations, a secretive unit that gathers vast amounts of intelligence on terrorist financial networks, international money-laundering and drug operations, the readiness of foreign militaries, even the internal political squabbles of potential adversaries. Snowden unexpectedly turned it down and instead joined Booz Allen to work at NSA’s Threat Operation Center. One hint of Snowden's whistleblower conscience was that Snowden kept a copy of the constitution on his desk to cite when arguing against NSA activities he thought might violate it. Snowden’s former colleague says that he or she has slowly come to understand Snowden’s decision to leak the NSA’s files. “I was shocked and betrayed when I first learned the news, but as more time passes I’m inclined to believe he really is trying to do the right thing and it’s not out of character for him. I don’t agree with his methods, but I understand why he did it,” he or she says. “I won’t call him a hero, but he’s sure as hell no traitor.”

Submission + - Edward Snowden's coworker refutes NSA claims (forbes.com)

wannabegeek2 writes: check for dupes.

in an article which purportedly was carefully verified, a former coworker states that the NSA's current PR blitz amounts to a smear campaign against Mr. Snowden. Further, he describes him as a genius among genius's, who was given the access he needed by the NSA, and did not need to steal or dupe his coworkers to obtain passwords to accomplish his task.

Submission + - 3D-Printed Gun Bought And Displayed By London Art Museum (forbes.com)

Sparrowvsrevolution writes: The world’s first 3D-printed gun known as the Liberator has been treated as a technological marvel and a terrorist threat. Now it’s officially become a work of art. On Sunday, London’s Victoria & Albert museum of art and design announced that it’s buying two of the original Liberator printed guns from their creator, the libertarian hacker non-profit known as Defense Distributed, and will display them during its Design Festival. Cody Wilson, Defense Distributed's founder, calls the museum's acquisition of the gun a victory for his group: "It will now be this curated, permanent cultural provocation."

Submission + - Researcher Spots A Drug Buy In Bitcoin's Blockchain (forbes.com)

Sparrowvsrevolution writes: "It should come as no surprise to Bitcoin users that despite the pseudonymity the cryptocurrency offers, its transactions can be tracked. But University of California at San Diego researcher Sarah Meiklejohn proved that privacy problem more clearly than ever by showing a reporter that she could detect a specific point in Bitcoin's blockchain record of transactions where he had spent Bitcoins in exchange for marijuana on the Silk Road, the most popular online Bitcoin-based black market for drugs.

To simulate a law enforcement subpoena, the reporter for Forbes began by giving Meiklejohn a Bitcoin address associated with Forbes' account. But with just that information, Meiklejohn was able to draw on a "clustering" analysis she had performed to identify Silk Road addresses and match them with the one used in the .3 BTC drug buy. She admits that a user who took more efforts to obscure his or her Bitcoin address through a laundering service or other unidentified Bitcoin wallets would be harder to track."

Submission + - NSA Director Was Nearly Egged At Black Hat Conference (forbes.com)

Sparrowvsrevolution writes: General Keith Alexander, the director of the National Security Agency, may not have enjoyed being heckled during his keynote address last Wednesday at the Black Hat security conference in Las Vegas. But he almost got hit with a much messier form of criticism. An anonymous member of the Black Hat audience has revealed that he smuggled six dozen eggs into Alexander's talk and attempted to distribute them to five rows of the crowd in front of the stage, hoping to incite Black Hat's hackers and security professionals to start a yolk-spattered protest of the NSA's newly-confirmed mass surveillance programs.

The egg agitator says that he planned to throw the first egg himself, in order to inspire everyone else to follow suit. But to his disappointment, no one in the audience dared to even take an egg, not to mention throw one, and the cartons were instead confiscated by the conference hall's security guards.

Submission + - MIT Students Release Code To 3D-Print High Security Keys (forbes.com)

Sparrowvsrevolution writes: At the Def Con hacker conference Saturday, MIT students David Lawrence and Eric Van Albert released a piece of code that will allow anyone to create a 3D-printable software model of any Schlage Primus key, despite Schlage’s attempts to prevent the duplication of the restricted keys. With just a flatbed scanner and their software tool, they were able to produce precise models of Primus keys that they uploaded to the 3D-printing services Shapeways and i.Materialise, who mailed them working copies of the keys in materials ranging from nylon to titanium. Primus high-security locks are used in government facilities, healthcare settings, and detention centers, and their keys are coded with two distinct sets of teeth, one on top and one on the side. That, along with a message that reads "do not duplicate" printed on the top of every key, has made them difficult to copy by normal means. With Lawrence and Van Albert's software, anyone can now scan or take a long-distance photo of any Primus key and recreate it for as little as $5.

Submission + - PIN-Cracking Robot To Be Showed Off At Defcon (forbes.com)

Sparrowvsrevolution writes: At the Def Con hacker conference in Las Vegas early next month, security researchers Justin Engler and Paul Vines plan to show off the R2B2, or Robotic Reconfigurable Button Basher, a piece of hardware they built for around $200 that can automatically punch PIN numbers at a rate of about one four-digit guess per second, fast enough to crack a typical Android phone's lock screen in 20 hours or less.

Engler and Vines built their bot, shown briefly in a preview video, from three $10 servomotors, a plastic stylus, an open-source Arduino microcontroller, a collection of plastic parts 3D-printed on their local hackerspace's Makerbot 3D printer, and a five dollar webcam that watches the phone's screen to detect if it's successfully guessed the password. The device can be controlled via USB, connecting to a Mac or Windows PC that runs a simple code-cracking program. The researchers plan to release both the free software and the blueprints for their 3D-printable parts at the time of their Def Con talk.

In addition to their finger-like R2B2, Engler and Vines are also working on another version of their invention that will instead use electrodes attached to a phone’s touchscreen, simulating capacitative screen taps with faster electrical signals. That bot, which they’re calling the Capacitative Cartesian Coordinate Brute-force Overlay or C3BO, remains a work in progress, Engler says, though he plans to have it ready for Def Con.

Submission + - Researchers Infect iOS Devices With Malware Via Malicious Charger (forbes.com) 1

Sparrowvsrevolution writes: At the upcoming Black Hat security conference in late July, three researchers at the Georgia Institute of Technology plan to show off a proof-of-concept charger that they say can be used to invisibly install malware on a device running the latest version of Apple’s iOS.

A description of their talk posted to the conference website describes how they were able to install whatever malware they wished on an Apple device within a minute of the user plugging it into their malicious charger, which they’re calling “Mactans" after the scientific name of a Black Widow spider. The malware-loaded USB plug is built around an open-source single-board computer known as a BeagleBoard, sold by Texas Instruments for a retail price of around $45. The researchers have contacted Apple about their exploit but haven't heard back from the company and aren't sharing more details of their hack until they do.

Submission + - Working Handgun Printed On A Sub-$2,000 3D Printer (forbes.com)

Sparrowvsrevolution writes: When the high-tech gunmakers Defense Distributed demonstrated earlier this month that they could 3D print an entire working gun, it was only a matter time of before that printed weapon's price and practicality dropped into the realm of normal consumers. Just a few weeks later, a couple of Wisconsin hobbyist gunsmiths have already managed to adapt Defense Distributed's so-called Liberator firearm and print it on a $1,725 Lulzbot 3D printer, a consumer grade machine that's far cheaper than the industrial quality Stratasys machine Defense Distributed used. They then proceeded to record their cheaper gun (dubbed the "Lulz Liberator") firing nine .380 rounds without any signs of cracking or melting. Eight of the rounds were fired from a single plastic barrel. (Defense Distributed only fired one through its prototype.) In total, the Lulz Liberator's materials cost around $25 and were printed over just 48 hours.

Submission + - State Dept Demands Takedown Of 3D-Printed Gun File Under Export Control Laws (forbes.com) 2

Sparrowvsrevolution writes: The battle for control of dangerous digital shapes may have just begun. On Thursday, Defense Distributed founder Cody Wilson received a letter from the State Department Office of Defense Trade Controls Compliance demanding that he take down the online blueprints for the 3D-printable “Liberator” handgun that his group released Monday, along with nine other 3D-printable firearms components hosted on the group’s website Defcad.org, while it reviews the files for compliance with export control laws for weapons known as the International Traffic in Arms Regulations, or ITAR. By uploading the weapons files to the Internet and allowing them to be downloaded abroad, the letter implies Wilson’s high-tech gun group may have violated those export controls.

Of course, the files have already been downloaded 100,000 times and found there way to the Pirate Bay, so the State Department's data control attempts are likely futile.

Cody Wilson has agreed to take down the files from his website, but compares the move to the State Department investigation of Phillip Zimmermann for putting encryption software online in 1993, which was based on the same arms export laws. "It's PGP all over again," he says.

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