CIA And German Intelligence Secretly Owned The World's Top Encryption Supplier That Permitted Them To Read The Communications Of Allies And Adversaries For Decades

Washington Post: ‘The intelligence coup of the century’: For decades, the CIA read the encrypted communications of allies and adversaries

For more than half a century, governments all over the world trusted a single company to keep the communications of their spies, soldiers and diplomats secret.

The company, Crypto AG, got its first break with a contract to build code-making machines for U.S. troops during World War II. Flush with cash, it became a dominant maker of encryption devices for decades, navigating waves of technology from mechanical gears to electronic circuits and, finally, silicon chips and software.

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The Swiss firm made millions of dollars selling equipment to more than 120 countries well into the 21st century. Its clients included Iran, military juntas in Latin America, nuclear rivals India and Pakistan, and even the Vatican.

But what none of its customers ever knew was that Crypto AG was secretly owned by the CIA in a highly classified partnership with West German intelligence. These spy agencies rigged the company’s devices so they could easily break the codes that countries used to send encrypted messages.

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WNU Editor: For years this company provided encryption tools to scores of governments who believed it would keep the communications of their spies, soldiers and diplomats secret. But in reality it was owned by the CIA and German intelligence who could read these communications when they wanted to, and did so for decades. This is a major security breach, even though it mostly happened during the Cold War and ending in 2018.

More News On The CIA And German Intelligence Secretly Owning The World's Top Encryption Supplier

CIA used encryption company to spy on other countries for decades: report -- The Hill
Swiss investigate report that tech firm helped CIA crack other countries' top-secret messages -- Straits Times/Reuters
US, German spies plundered global secrets via Swiss encryption firm: Report -- CNA/AFP
CIA Spied Using Sabotaged Encryption Equipment It Sold to Foreign Governments Since the 1970s -- Gizmodo
CIA secretly owned world's top encryption supplier, read enemy and ally messages for decades -- Boing Boing
CIA Secretly Owned World's Top Maker of Encryption Devices - Reports -- Sputnik

President Trump Accuses Apple Of Refusing To Unlock iPhones Used By 'Killers And Drug Dealers'

Daily Mail: Trump accuses Apple of refusing to unlock iPhones used by 'killers and drug dealers' after AG Bill Barr demanded it gives access to phones of Pensacola Navy base gunman

* President Donald Trump attacked Apple on Twitter Tuesday
* He said Apple officials 'refuse to unlock phones used by killers, drug dealers and other violent criminal elements'
* 'They will have to step up and help our great Country, NOW!' he added
* The tweet came the day after Attorney General William Barr urged Apple to help FBI investigators crack two iPhones used by gunman Mohammed Alshamrani
* The FBI has been unable to access the phones as they are locked and encrypted
* Barr accused Apple of refusing to provide 'substantive assistance'
* Apple responded by saying it rejected that characterization but did not say that it would unlock the phones
* Barr's latest appeal for Apple's cooperation marked an escalation of the DOJ's ongoing fight with the tech giant over personal privacy vs public safety
* The attorney general indicated that he intends to use the Alshamrani case to push for a solution to the DOJ's struggle to get around Apple security features

President Donald Trump accused Apple of refusing to unlock iPhones used by criminals one day after his attorney general demanded that the company help FBI investigators gain access to devices used by the gunman in a mass shooting at a Florida Navy base.

'We are helping Apple all of the time on TRADE and so many other issues, and yet they refuse to unlock phones used by killers, drug dealers and other violent criminal elements,' Trump wrote on Twitter Tuesday. 'They will have to step up to the plate and help our great Country, NOW!'

The tweet came on the heels of US Attorney General William Barr's call for Apple to cooperate with the FBI - which has been struggling to get past the encryption on two iPhones belonging to Saudi military trainee Mohammed Alshamrani.

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WNU Editor: This is why Apple is refusing to cooperate .... Trump wants Apple to unlock the Pensacola shooter's iPhones. Here's why it won't (CNN). Here is an easy prediction. One day a crime that is beyond horrible will be committed that could have been prevented if an iPhone's encryption was broken. That is when legislation will be passed that will force Apple and other smart phone manufactures to comply with DoJ demands to have a phone unlocked when subpoenaed.

More News On President Trump Accusing Apple Of Refusing To Unlock iPhones

Trump criticizes Apple's encryption stance on Pensacola phones -- Reuters
Trump slams Apple for refusing to unlock iPhones of suspected criminals -- CNBC
Trump tears into Apple for refusing to unlock Pensacola shooter's cell phones -- Politico
Trump launches fresh attack on Apple over privacy -- BBC

FBI Director Wray Wants Tech Companies To Help Law Enforcement Officials Gain Access To Encrypted Smartphones

Washington Post: FBI chief calls encryption a ‘major public safety issue’

NEW YORK — FBI Director Christopher A. Wray on Tuesday renewed a call for tech companies to help law enforcement officials gain access to encrypted smartphones, describing it as a “major public safety issue.”

Wray said the bureau was unable to gain access to the content of 7,775 devices in fiscal 2017 — more than half of all the smartphones it tried to crack in that time period — despite having a warrant from a judge.

“Being unable to access nearly 7,800 devices in a single year is a major public safety issue,” he said, taking up a theme that was a signature issue of his predecessor, James B. Comey.

“We’re not interested in the millions of devices of everyday citizens,” he said in New York at Fordham University’s International Conference on Cyber Security. “We’re interested in those devices that have been used to plan or execute terrorist or criminal activities.”

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WNU Editor: This issue has been festering for the past few years, and if FBI Director Christopher A. Wray's remarks are any indication .... a battle that the government is determined to win.

More News On FBI Director Wray Wanting Tech Companies To Help Law Enforcement Officials Gain Access To Encrypted Smartphones

FBI director says Twitter is 'on my radar' after Trump criticism -- ABC News
FBI Chief Calls Unbreakable Encryption 'Urgent Public Safety Issue' -- Voice of America
FBI chief: Encryption is 'urgent public safety issue' -- The Hill
Wray says encrypted devices a 'major public safety issue' -- UPI
FBI locked out of 7775 encrypted devices in 2017, says director -- ZDNet
FBI Chief Says Powerful Encryption on Devices is 'Urgent Public Safety Issue' -- Sputnik International
FBI opens new front in encryption fight with tech sector -- Financial Times

Top U.S. Intelligence Director Blames NSA Leaker Edward Snowden For The Spread Of Encryption

Director of National Intelligence James Clapper (R) testifies at a House (Select) Intelligence Committee hearing, September 10, 2015. REUTERS/Gary Cameron

Jenna McLaughlin, The Intercept: Spy Chief Complains That Edward Snowden Sped Up Spread of Encryption by 7 Years

THE DIRECTOR OF NATIONAL INTELLIGENCE on Monday blamed NSA whistleblower Edward Snowden for advancing the development of user-friendly, widely available strong encryption.

“As a result of the Snowden revelations, the onset of commercial encryption has accelerated by seven years,” James Clapper said during a breakfast for journalists hosted by the Christian Science Monitor.

The shortened timeline has had “a profound effect on our ability to collect, particularly against terrorists,” he said.

When pressed by The Intercept to explain his figure, Clapper said it came from the National Security Agency. “The projected growth maturation and installation of commercially available encryption — what they had forecasted for seven years ahead, three years ago, was accelerated to now, because of the revelation of the leaks.”

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WNU Editor: What's my take .... I blame people like him for why I want encryption on my devices.

Israeli Firm Has Helped The FBI Hack The San Bernardino Terrorist's iPhone

The Hill: Israeli firm helped FBI hack iPhone

The Israeli mobile forensics firm Cellebrite helped the FBI hack into the iPhone of San Bernardino shooter Syed Rizwan Farook, NBC reports, citing industry sources.

The firm has been rumored to be behind the FBI’s newfound ability to access the device, thanks to a previous and unconfirmed report from an Israeli newspaper.
Neither Cellebrite nor the Department of Justice has confirmed the reports.

The FBI has routinely contracted Cellebrite over the last five years. The company, which publicly boasts of its ability to hack into Apple devices, has received over $2 million in purchase orders from the agency since 2012.

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WNU Editor: So much for Apple's messaging that breaking the encryption of its iPhones would be difficult.

U.S. Succeeds In Unlocking San Bernardino Gunman's iPhone Without Apple's Help Thereby Ending Court Battle

Reuters: U.S. succeeds in cracking Apple's iPhone, drops legal action

The U.S. Justice Department said on Monday it had succeeded in unlocking an iPhone used by one of the San Bernardino shooters and dropped its legal case against Apple, ending a high-stakes legal battle but leaving the broader struggle over encryption unresolved.

The abrupt end to a confrontation that had transfixed the tech industry was a victory for Apple, which vehemently opposed a court order obtained by the Justice Department that would have required it to write new software to get into the iPhone.

"From the beginning, we objected to the FBI's demand that Apple build a back door into the iPhone because we believed it was wrong and would set a dangerous precedent," Apple said in a statement late on Monday. "As a result of the government’s dismissal, neither of these occurred. This case should never have been brought."

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More News On The U.S. Succeeding In Unlocking The San Bernardino Gunman's iPhone Without Apple's Help

U.S. Says It Has Unlocked iPhone Without Apple -- NYT
FBI has accessed San Bernardino shooter’s phone without Apple’s help -- Washington Post
Government Says It Got Data Off Terrorist's iPhone Without Apple -- NBC
FBI breaks into San Bernardino gunman's iPhone without Apple's help, ending court case -- FOX News
FBI hacks into terrorist’s iPhone without Apple -- USA Today
FBI cracks iPhone security -- Tech Eye
AP Explains: Apple Vs. FBI, What Happened? -- AP

FBI Cancels Court Case Against Apple On Unlocking San Bernardino Attacker's iPhone

Reuters: U.S. asks to cancel Apple encryption hearing, may be able to access device

U.S. prosecutors on Monday asked a federal judge to cancel a Tuesday hearing in their legal battle to force Apple Inc to break into an encrypted iPhone, stating that they may have found another way to access the device, according to a court filing.

The judge in the case, being handled in federal court in Riverside, California, scheduled a hearing for late afternoon on Monday to consider the request.

The unexpected development in the high-profile case raised questions as to whether the Justice Department might be backing off from its confrontation with Apple.

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WNU Editor: I guess Edward Snowden was right .... Snowden: FBI's claim it can't unlock the San Bernardino iPhone is 'bullshit' (The Guardian)

More News On FBI Canceling Its Court Case Against Apple On Unlocking The San Bernardino Attacker's iPhone

The Latest: FBI, Apple hearing over unlocking phone canceled -- AP
FBI may not need Apple to unlock San Bernardino shooter’s iPhone -- Washington Post
U.S. Says It May Not Need Apple’s Help to Unlock iPhone -- NYT
iPhone SE unveiled; Apple vows to protect customer privacy -- CBS
FBI may have found way to unlock San Bernardino attacker's iPhone -- FOX News
FBI 'may be able to unlock San Bernardino iPhone' -- BBC
DOJ to Apple: Never Mind, We Can Hack That Terrorist’s iPhone -- Foreign Policy
The FBI Says It Might Not Need Apple to Unlock Terrorist's Phone Anymore -- Gizmodo

U.S. Justice Department Tells Apple To Assist The FBI

USA Today: Justice Department: Apple obligated to assist FBI

WASHINGTON — The Justice Department asserted Thursday that Apple Inc., has sought to advance "false'' arguments that threaten privacy breaches on a massive scale in the tech giant's opposition to a court order requiring the company to help the FBI gain access to the iPhone used by San Bernardino terrorist Syed Farook.

"The court's order is modest,'' Justice lawyers argued in the government's latest defense of a California federal magistrate decision. "It applies to a single iPhone, and it allows Apple to decide the least burdensome means of complying...The order does not compel Apple to unlock other iPhones or to give the government a universal master key or back door.''

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WNU Editor: Apple responds .... Apple: DOJ 'desperate,' brief reads like indictment (CNBC). What's my take .... the Justice Department is putting the "screws" to Apple ... especially if they push for this .... FBI warns it could demand Apple's iPhone code (Yahoo News) .... more here .... U.S. pushes back against Apple: Writing code is not free speech (CNN). My prediction .... Apple will cave, but not now.

More News On The U.S. Justice Department Telling Apple To Assist The FBI

Apple 'raised technological barriers' to stop warrant in iPhone case: U.S. government -- Reuters
US Rebuts Apple Claim on Password Reset in iPhone Case -- AP
Justice Dept. says Apple’s arguments in fight over locked iPhone are ‘a diversion’ -- Washington Post
US Files Point-by-Point Rebuttal Against Apple in iPhone Fight -- NYT
In fight over locked iPhone, justice officials push back against Apple -- L.A. Times
The tone between Apple and the FBI is now openly hostile -- The Verge
Government Calls Apple’s iPhone Arguments in San Bernardino Case a ‘Diversion’ -- Wired
Apple Vs. The Government, In Their Own Words -- NPR

Apple Has Unlocked iPhones For The U.S. Government Before

Shane Harris, Daily Beast: Apple Unlocked iPhones for the Feds 70 Times Before

A 2015 court case shows that the tech giant has been willing to play ball with the government before—and is only stopping now because it might ‘tarnish the Apple brand.’

Apple CEO Tim Cook declared on Wednesday that his company wouldn’t comply with a government search warrant to unlock an iPhone used by one of the San Bernardino killers, a significant escalation in a long-running debate between technology companies and the government over access to people’s electronically-stored private information.

But in a similar case in New York last year, Apple acknowledged that it could extract such data if it wanted to. And according to prosecutors in that case, Apple has unlocked phones for authorities at least 70 times since 2008. (Apple doesn’t dispute this figure.)

In other words, Apple’s stance in the San Bernardino case may not be quite the principled defense that Cook claims it is. In fact, it may have as much to do with public relations as it does with warding off what Cook called “an unprecedented step which threatens the security of our customers.”

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WNU Editor: Some are calling for Apple to comply with this court order .... Unlock That iPhone, Apple (Bloomberg editorial), while others are supporting Apple's position .... Tech CEOs in support of Apple vs FBI (CNBC). What's my take .... I love my privacy, and I know too well that if given the tools to violate it .... governments will. But I have to wonder if this was a "ticking nuclear bomb" situation and not an iPhone from two dead terrorists .... would Apple be so principled. My guess is that they would not .... as the above Daily Beast story reveals.

U.S. Orders Apple To Unlock iPhone Used by San Bernardino Gunman. Apple Will Oppose This Court Order

New York Times: Judge Tells Apple to Help Unlock iPhone Used by San Bernardino Gunman

WASHINGTON — A judge in California on Tuesday ordered Apple to help the F.B.I. unlock an iPhone used by one of the attackers in the assault in San Bernardino that killed 14 people in December.

The ruling handed the F.B.I. a potentially important victory in its long-running battle with Apple and other Silicon Valley companies over the government’s ability to get access to encrypted data in investigations. Apple has maintained that requiring it to provide the “keys” to its technology would compromise the security of the information of hundreds of millions of users.

The F.B.I. says that its experts have been unable to get into the iPhone 5c used by Syed Rizwan Farook, who was killed by the police along with his wife, Tashfeen Malik, after they attacked Mr. Farook’s co-workers at a holiday gathering.

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WNU Editor: My prediction .... Apple will lose this court case.

More News On Apple Challenging A U.S. Court Order To Help Law Enforcement To Unlock The iPhone Used By The San Bernardino Gunman

Tim Cook Opposes Order for Apple to Unlock iPhone, Setting Up Showdown -- NYT
Apple vows to resist FBI demand to crack iPhone linked to San Bernardino attacks -- Washington Post
Apple Fights Order to Unlock San Bernardino Shooter's iPhone -- NBC
Tim Cook says Apple will fight US gov’t over court-ordered iPhone backdoor -- Ars Technica
Apple opposes judge's order to hack San Bernardino shooter's iPhone -- CNN
Apple challenges 'chilling' demand to decrypt San Bernardino shooter's iPhone -- The Guardian
Tim Cook: Apple will fight US demands to build an iPhone backdoor -- The Verge
Apple's CEO Tim Cook says firm will oppose iPhone court order -- USA Today
Tim Cook: Apple Won’t Create “Backdoor” To Unlock San Bernardino Attacker’s iPhone -- Tech Crunch
Here's why the FBI forcing Apple to break into an iPhone is a big deal -- USA Today

The NSA Wants To Build A Quantum Computer

Fabrizio Bensch. Reuters

SA Seeks To Build Quantum Computer That Could Crack Most Types Of Encryption -- Washington Post

In room-size metal boxes, secure against electromagnetic leaks, the National Security Agency is racing to build a computer that could break nearly every kind of encryption used to protect banking, medical, business and government records around the world.

According to documents provided by former NSA contractor Edward Snowden, the effort to build “a cryptologically useful quantum computer” — a machine exponentially faster than classical computers — is part of a $79.7 million research program titled, “Penetrating Hard Targets.” Much of the work is hosted under classified contracts at a laboratory in College Park.

The development of a quantum computer has long been a goal of many in the scientific community, with revolutionary implications for fields like medicine as well as for the NSA’s code-breaking mission. With such technology, all forms of public key encryption would be broken, including those used on many secure Web sites as well as the type used to protect state secrets.

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More News On The NSA's Goal To Build A Quantum Computer

Confused about the NSA’s quantum computing project? This MIT computer scientist can explain. -- Washington Post
NSA reportedly building quantum computer that could crack most encryption types -- FOX News
NSA working to build computer to crack encryption -- USA Today
Report: NSA working on code-cracking supercomputer -- The Hill
NSA eyes encryption-breaking 'quantum' machine: report -- AFP
NSA aims to build quantum computer that could crack world's encryptions -- PBS Newshour
Latest NSA Leak Nears Science Fiction Levels -- National Journal
NSA building a ‘quantum computer’ capable of breaking all forms of encryption -- RT
NSA dreams of quantum computer that can break encryption -- Ars Technica
NSA working on quantum computer to break any encryption -- Cnet
NSA Building Computer to Break 'Nearly Every Kind of Encryption -- Mashable
NSA Reportedly Developing Quantum Computer That Can Break Any Encryption -- Ubergizmo
NSA secretly funding code-breaking quantum computer research, says Washington Post -- The Verge
Report: NSA Trying To Build A Quantum Computer To Crack Encryption -- Tech Crunch

How Does Edward Snowden And Al Qaeda Avoid NSA Detection

Edward Snowden And Al Qaeda Both Know How To Avoid NSA Detection -- Business Insider

People who know what they're doing — like renegade National Security Agency analyst Edward Snowden and professional terrorists at Al Qaeda — find it relatively easy to avoid detection.

From the Associated Press:

Jihadist technology may now be so sophisticated and secretive, experts say, that many communications avoid detection by National Security Agency programs that were specifically designed to uncover terror plots.

And why is that?

From AP:

[Because] Al-Qaida leaders ... [use] ... a multi-layered subterfuge to pass messages from couriers to tech-savvy underlings to attackers.

... over the past decade [jihadists] have developed systems that blend encryption programs with anonymity software to hide their tracks ...

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Update: Al-Qaeda fighters turn to secretive chat rooms and encrypted message boards to plan attacks -- AP

My Comment: An excellent review from the AP .... a report that I am sure the NSA is not happy to see being publicized.

Encryption Is Foiling U.S. Wiretaps For The First Time

Encryption Has Foiled Wiretaps for First Time Ever, Feds Say -- Threat Level

For the first time, encryption is thwarting government surveillance efforts through court-approved wiretaps, U.S. officials said today.

The disclosure, buried in a report by the U.S. agency that oversees federal courts, also showed that authorities armed with wiretap orders are encountering more encryption than before.

The revelation comes as encryption has come front and center in the wake of the NSA Spygate scandal, and as Americans consider looking for effective ways to scramble their communications from the government’s prying eyes.

According to today’s report from the U.S. Administrative Office of the Courts:

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WNU Editor: Here is an easy prediction .... the demand for encryption products will only increase with time. As for US wiretap requests .... this is not surprising ....  they are also increasing.

Can The Government Force You To Give Them Your Password

DOJ: We Can Force You To Decrypt That Laptop -- Cnet News

The Colorado prosecution of a woman accused of a mortgage scam will test whether the government can punish you for refusing to disclose your encryption passphrase.

The Obama administration has asked a federal judge to order the defendant, Ramona Fricosu, to decrypt an encrypted laptop that police found in her bedroom during a raid of her home.

Because Fricosu has opposed the proposal, this could turn into a precedent-setting case. No U.S. appeals court appears to have ruled on whether such an order would be legal or not under the U.S. Constitution's Fifth Amendment, which broadly protects Americans' right to remain silent.

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My Comment: Encryption is becoming more and more sophisticated and difficult to break .... expect this case to become a bell weather for future cases.

Memo To All Intelligence Agencies: Take Notice

Quantum Hackers Use Lasers to Crack Powerful Encryption Without Leaving a Trace -- Popular Science

Quantum cryptography is one of the most secure known means of transmitting data, due to the fact that even if a third party does intercept a quantum signal, that interference changes the encryption key, making the tampering apparent to parties at both ends. But a handful of quantum hackers at Norwegian University of Science and Technology in Trondheim recently performed successful hacks of two commercial quantum cryptographic systems -- and they did so without leaving a trace.

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My Comment: If understanding how quantum communication, cryptography, and hacking works .... this article is for you.