cryptogon.com

In an executive order released Wednesday, President Barack Obama put the Postal Service in charge of dispensing “medical countermeasures” to biological weapons because of its “capacity for rapid residential delivery.”

While most likely unrelated, the release of the executive order comes less than a week after a man with alleged ties to al-Qaida tried to bring down a Detroit-bound U.S. airliner. In recent days, Obama has sought to assure the public that his administration is doing what it can to protect the nation from terrorist attacks.
Story continues below ?advertisement | your ad here

Ford Motor Co. dropped 1.3 percent for the week, bringing its decade loss to 80 percent after the credit crisis threatened to push the carmaker into bankruptcy last year. Apple Computer Inc., the iPhone maker that beat analysts’ profit estimates for 19 straight quarters, climbed 0.8 percent, extending a 720 percent advance over the last 10 years.

This past year’s rally wasn’t enough to restore money lost in two bear markets after the Internet bubble collapsed in 2000 and more than $1.7 trillion in global bank losses sent the index to a 38 percent decline in 2008. The S&P 500 posted an average decrease of 0.9 percent a year since 1999 including dividends, the first negative return for a decade since data began in 1927, according to S&P analyst Howard Silverblatt.

They said he had not undergone the usual full body search before entering the base in Khost province, and so was able to smuggle in an explosive belt.

A bomber wearing an explosive vest entered Forward Operating Base Chapman in Khost Province, near Pakistan.

A Taliban spokesman said one of its members who was working for the Afghan army carried out the attack.

In a separate incident, four Canadian soldiers and a journalist died in a roadside bomb attack in Kandahar.

It was the worst fatal incident affecting Canadians in Afghanistan for more than two years.

Army uniform

A Taliban spokesman said the militant who carried out the attack at the Chapman Base on Wednesday evening was working as a soldier in the Afghan army.

Zabiullah Mujahid told the BBC the bomber was wearing uniform when he managed to breach security at the base, detonating his explosives belt in the gym.

Unnamed US officials were quoted as saying that most if not all of the dead Americans were either CIA agents or contractors, although this has not been confirmed by either the CIA or the Pentagon. A further six Americans are reported to be wounded.

Reports say the base is used by provincial reconstruction teams, which consist of soldiers and civilians.

The base has been described as “not regular” – a phrase that implies it was a centre of CIA operations in Khost province, the BBC’s Peter Greste in Kabul says.

It is the biggest single reported loss of life for the CIA since the war began in Afghanistan eight years, and the biggest loss for the US since October.

“We mourn the loss of life in this attack, and are withholding further details pending notification of next of kin,” US state department spokesman Ian Kelly said.

A spokesman for Isaf, the international Nato force in Afghanistan, said that “no US and no Isaf military personnel were killed or injured” in the incident.

Raised questions

Khost province – which is one of the Taliban’s strongholds – has been targeted by militants over the past year.

The number of foreign civilians deployed in Afghanistan has been rising as international efforts there focus increasingly on development and aid.

Civilians work alongside military reconstruction teams at provincial bases around the country.

A “civilian surge” was one of the three core elements of the new US strategy for Afghanistan announced by US President Barack Obama at the beginning of the month.

The fact that an attacker has been able to breach security at such a sensitive facility raises questions about the ability of US forces to protect themselves ahead of the surge, our correspondent adds.

Michael Gennaco, an expert in police conduct issues who has conducted internal reviews of Taser use for the Los Angeles County Sheriff’s Department and other agencies, said the ruling by the U.S. 9th Circuit Court of Appeals prohibits officers from deploying Tasers in a host of scenarios and largely limits their use to situations in which a person poses an obvious danger.

The reading was especially painful since this reform sausage is stuffed with more gristle than meat. At least, that is, if you are a taxpayer hoping the bailout train is coming to a halt.

If you’re a banker, the bill is tastier. While banks opposed the legislation, they should cheer for its passage by the full Congress in the New Year: There are huge giveaways insuring the government will again rescue banks and Wall Street if the need arises.

Nuggets Gleaned

Here are some of the nuggets I gleaned from days spent reading Frank’s handiwork:

— For all its heft, the bill doesn’t once mention the words “too-big-to-fail,” the main issue confronting the financial system. Admitting you have a problem, as any 12- stepper knows, is the crucial first step toward recovery.

It doesn’t seem to matter to many hedge fund traders and other professional investors that the Standard & Poor’s 500 index has turned in its first losing performance over the course of a decade, having fallen 23 percent from 1,469.25 at the start of 2000 to its current 1,126.20. Or that they or other investors helped create and then destroy the bubbles that left stocks worth $2.5 trillion less today than when the decade began — and that’s before adding in the effects of inflation.

A mix of investor hubris, ignorance and piles of easy money created the bubbles. New ideas about where to invest seemed foolproof and greed crowded out doubts. Many investors looking for the best returns failed to see the potential problems with an Internet business that had no sales plan, or that thousands of expensive homes bought with no down payment might end up in foreclosure.

Now, these investors who fled the last blowups risk running smack into others. The Federal Reserve is keeping borrowing costs low to help revive the economy, and that means there’s still plenty of easy money around, helping traders to inflate the price of everything from stocks to commodities such as gold.

Karsten Nohl, a 28-year-old German native, reportedly cracked the code and has published his findings to the computer and electronics hacking community. Mr. Nohl, who cites a strong interest in protecting the privacy of citizens against snooping from any party, says that his work showcases the outdated algorithms’ flaws.

At the Chaos Communication Congress, a four-day conference of computer hackers that runs through Wednesday in Berlin, he revealed his accomplishments. He describes, “This shows that existing GSM security is inadequate. We are trying to push operators to adopt better security measures for mobile phone calls.”

The GSM Association, the London-based group that developed the standard and represents wireless companies, was quick to blast the publication calling Mr. Nohl’s actions illegal and counterintuitive to the desire to protect the privacy of mobile phone calls. However, they insist that the publication in no way threatens the standard’s security.

Claire Cranton, an association spokeswoman, confirmed that Mr. Nohl was the first to break the code, commenting, “[Security threats from the publication of this standard are] theoretically possible but practically unlikely. What he is doing would be illegal in Britain and the United States. To do this while supposedly being concerned about privacy is beyond me.”

Mr. Nohl attended college in the U.S. and received a PhD in computer engineering from the University of Virginia. Via a similar publication, he managed to convince the DECT Forum, a separate standards group based in Bern, to upgrade its own security algorithm, improving the protection to the standard’s 800 million customers in the process.

And while the trade group is only on yellow alert, some security experts disagree with the group’s threat analysis, as well, saying the threat could be far more serious. One expert suggested that calls may soon need to be scanned for malicious activity, much as an antivirus scanner works on a computer.

Stan Schatt, a vice president for health care and security at the technology market researcher ABI Research in New York, opines, “Organizations must now take this threat seriously and assume that within six months their organizations will be at risk unless they have adequate measures in place to secure their mobile phone calls.”

The process of cracking the algorithm involved the help of 24 members of the Chaos Computer Club in Berlin, who helped generate the random combinations needed to try and reproduce the standard’s code book, so to speak. The vast log of binary combinations forms the basis of the A5/1 encryption — and how to undo it. And it’s now on torrents worldwide.

Despite that, Mr. Nohl insists that his actions aren’t illegal. He says he took great precautions to make sure his work was kept purely academic, in the public domain, and that it was not used to crack any actual digital telephone calls. He states, “We are not recommending people use this information to break the law. What we are doing is trying to goad the world’s wireless operators to use better security.”

A5/1 is a 64-bit security algorithm. Despite this particular algorithm’s run, 64-bit encryption is considered weaker by today’s standards. Today 128-bit algorithms are considered to be strong enough to protect most data. The GSM Association has devised a 128-bit successor to A5/1, dubbed A5/3, but it has failed to push the standard out across much of the industry.

The Association claims that there’s little danger of calls being intercepted as hackers would have to pick one call stream out of thousands at a cell phone tower. They say that this would take prohibitively expensive sophisticated equipment and software. Security experts disagree with this assessment — including Mr. Nohl who pointed out that there was a wealth of open source software and cheap equipment to accomplish exactly those sort of objectives.

Simon Bransfield-Garth, the chief executive of Cellcrypt, a company based in London that sells software, agrees, saying that the publications opens call interception to “any reasonable well-funded criminal organization”. He adds, “This will reduce the time to break a GSM call from weeks to hours. We expect as this further develops it will be reduced to minutes.”

National Irish Bank has written to thousands of its customers this month informing them of a “new style of banking” in which branches will not handle over-the-counter cash transactions.

The letter says branches will no longer handle cash withdrawals and lodgements, night safe lodgements and foreign currency cash. Branches will continue to lodge cheques, drafts and postal orders and issue drafts.

Customers are advised to obtain cash from “ATMs nationwide” or to seek “cash-back” on their debit cards.