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Gemalto: “They don’t know, what they don’t know” Your Contactless Intelligence Weekly News Review

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Gemalto: “They don’t know, what they don’t know” Your Contactless Intelligence Weekly News Review
Contactless Intelligence Weekly News Review - Calendar Week 10
 

Gemalto: “They don’t know, what they don’t know”

News of the Gemalto hack dominated almost all of last week. The details of the hack by the NSA and GCHQ had been made public the week before, but it was down to news punditry to keep the story alive until Gemalto could investigate further and give a press conference to release the findings of their own, internal, investigation. Then there was the obligatory review of Gemalto’s findings. Ultimately it came down to a phrase digitally muttered by The Intercept (the online publication that broke the news) “Gemalto doesn’t know, what it doesn’t know”.

How apt and what a total non-surprise.

Really, what did people expect? Of course, Gemalto is not going to admit to a serious hacking that caused untold damage and neither are the NSA or GCHQ going to admit to any liability in the matter. Gemalto did have the following to say: “No breaches were found in the infrastructure running our SIM activity or in other parts of the secure network which manage our other products such as banking cards, ID cards or electronic passports. Each of these networks is isolated from one another and they are not connected to external networks. It is extremely difficult to remotely attack a large number of SIM cards on an individual basis. This fact, combined with the complex architecture of our networks explains why the intelligence services instead, chose to target the data as it was transmitted between suppliers and mobile operators as explained in the (accompanying) documents.” 

In other words, the hacks by the security services were greatly exaggerated. To re-cap, Gemalto added that after a 'thorough' investigation, it concluded that although the company did experience hacks in 2010, it suffered none that could have resulted in the loss of the vast number of SIM encryption keys that The Intercept article referenced. And, the company continued, if some keys had been stolen, then technology pertaining to the 3G and 4G networks that Gemalto builds SIMs for would have prevented substantial hacking. The company believes 2G networks were the only ones that would have truly suffered under such a hack.

The Intercept (the before-mentioned online publication that first published the report of the alleged hack) took the position that “the company (Gemalto) tried to downplay the significance of NSA and GCHQ efforts against its mobile phone encryption keys — and, in the process, made erroneous statements about cellphone technology and sweeping claims about its own security that experts describe as highly questionable”. The publication said that “security experts and cryptography specialists immediately challenged Gemalto’s claim to have done a “thorough” investigation into the state-sponsored attack in just six days, saying the company was greatly underestimating the abilities of the NSA and GCHQ to penetrate its systems without leaving detectable traces”.

Bringing in their own experts for statements, The Intercept reported this quote by Christopher Soghoian, the Chief Technologist at the American Civil Liberties Union, “Gemalto learned about this five-year-old hack by GCHQ when the The Intercept called them up for a comment last week. That doesn’t sound like they’re on top of things, and it certainly suggests they don’t have the in-house capability to detect and thwart sophisticated state-sponsored attacks.” He added that Gemalto remains “a high-profile target for intelligence agencies.” Matthew Green, a cryptography specialist at the Johns Hopkins Information Security Institute, added, “This is an investigation that seems mainly designed to produce positive statements. It is not an investigation at all.”

In my humble opinion, everyone is missing the point here: It’s not that Gemalto doesn’t know what it doesn’t know (as the Intercept points out), it’s more a case that Gemalto can’t admit what it does or does not know. On some level, perhaps Gemalto does’t even want to know. You know?

Interestingly - in the midst of all this mess it was a report by the UK’s Daily Mail — that media bastion for truth and justice (for those of you not picking it up, I’m being sarcastic here) — which picked up a nuance that no one else had: When covering the topic of making a complaint or taking legal action over the hacking incident, Gemalto pointed out that complaining to the UK and US would be a waste of time. Olivier Piou, Chief Executive of Gemalto, downplayed the scale of the theft as he said any legal action against the British and US digital espionage agencies was destined to fail.

Now that is a truth that I think we all know.

In other news, I am going to go out on a limb here and guess that the majority of our readers are working their way through this Monday morning editorial on some kind of mobile or tablet device at this year’s MWC – providing their WIFI is working. They may also be stood on a booth worrying if their demos have made the journey intact and are actually going to work for the rest of the week. There is nothing more frustrating than finding the product demo that worked last week in the office now stubbornly refuses to function on a booth in Barcelona. Am I right? Well I hope that all is working for everyone this year. 

Especially for those 44 companies who have made it as finalists into the 2015 Contactless and Mobile Awards. Even though the 28th April may still seem a long way away, as always, time will fly! Yes, the whittling of nominations is (finally) over and we have our finalists - many of whom will be at MWC 2015. We have decided to wait until next week to make the announcement but from next Monday onwards - it’s in the hands of our judges to pick the category winners. 

We are now finishing up our agenda for the Contactless Intelligence Conference, as well as the Open Standards Forum and Mobile ID Forum that are being held the following day. So please stop by our site to check out this years speakers, the companies they are representing and the topics they will be covering. From next week onwards we move into the countdown to this annual Contactless Intelligence event –expect further details from then on.

Until next week, I would like to say to all you MWC attendees ‘Live long and may your demos prosper’.
 

Steve Atkins

Contactless Intelligence

R.I.P Leonard Nimoy 1931 - 2015

Gemalto
presents
findings of
“serious,
sophisticated
attacks”

Gemalto presents the findings of its investigations into the alleged hacking of SIM card encryption keys by Britain’s Government Communications Headquarters (GCHQ) and the U.S. National Security Agency (NSA). 

The company states that “No breaches were found in the infrastructure running our SIM activity or in other parts of the secure network which manage our other products such as banking cards, ID cards or electronic passports.”

The investigation into the intrusion methods described in the document and the sophisticated attacks that Gemalto detected in 2010 and 2011 give us reasonable grounds to believe that an operation by NSA and GCHQ probably happened.

The attacks against Gemalto only breached its office networks and could not have resulted in a massive theft of SIM encryption keys...

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Softcard gets a break, Google opens its wallet

I have heard the saying ‘troubled times make strange bedfellows’. I think this analogy is very apt when considering the recent news that Google (perhaps in light of the success of Apple Pay?) is to buy the mobile wallet joint venture Softcard (founded by AT&T, Verizon and T-Mobile). In doing so, Google wallet will be made available on the MNO’s  Android smartphones later this autumn.

That’s a huge about-face, considering that for the last three years the three partners have actively blocked Google Wallet from their devices in order to protect their own mobile payments service Softcard (the mobile wallet previously known as Isis). The problem was that Softcard was slow (very, very slow) to arrive to market, meaning few Android phones had access to any kind of NFC-enabled wallet.

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MasterCard looks to the cloud to boost mobile
payments

In less than a year since announcing support for Host Card Emulation (HCE) and cloud-based software for both secure contactless and remote payment transactions, MasterCard have revealed that projects are currently underway in more than 15 countries. These projects provide consumers with more options for payment experiences across their Android devices.

In offering an alternative to the secure element (SE)-based approach to digitize card credentials into mobile devices, MasterCard Cloud Based Payments creates a foundation for rapid global deployments of mobile payment services. The approach simplifies and speeds the deployment process of contactless mobile offerings for card-issuing financial institutions and other solution providers. 

Continue reading

 

ams, STM release joint NFC ref. design for wearables

ams AG, a provider of high-performance analog ICs and sensors, and semiconductor manufacturers STMicroelectronics have introduced an NFC system reference design that they claim will ‘assure easy, reliable and secure contactless transactions while suiting the sleek form factor of mobile and wearable devices’. On display at Mobile World Congress next week, the ams/ST design promises to transform and greatly enhance the usability of NFC technology.

The reference  design’s advanced analog circuitry delivers NFC performance even in devices with room for only a tiny antenna, that is typically adjacent to metal surfaces or shielded by the user’s hand, and mounted in a location hostile to RF transmissions.

Continue reading

 



Coverage on C-ITV

Gemalto presents findings of alleged NSA / GCHQ hacking investigation http://wp.me/pViYo-16o 
Softcard gets a break, Google opens its wallet http://wp.me/p1Jrjn-bOC 
G&D showcases SIM & Cloud smart security solutions at MWC 2015 http://wp.me/p1Jrjn-bOz 
NXP completes Quintic acquisition, already sees increased demand http://wp.me/p1Jrjn-bOw 
Ovum Decision Matrix gives Sequent’s Open Wallet Platform ‘thumbs up’ http://wp.me/p1Jrjn-bOt 
C-ITV VIDEO: Experience dynamic content on a mobile  http://wp.me/p1Jrjn-bIx
C-ITV VIDEO: Product provenance with Prova Group http://bit.ly/1Aaueyu 
FIME and Thales team up on Host Card Emulation http://wp.me/p1Jrjn-bP5 
Proxama, Aconite unveil new mobile proximity commerce offerings http://wp.me/p1Jrjn-bP3 
Gemalto adds new tokenization options to its Trusted Services Hub http://wp.me/p1Jrjn-bP0 
EDITORIAL: Samsung and LoopPay: Strategy or ’stop gap’? http://wp.me/p1Jrjn-bOX 
MasterCard looks to the cloud to boost momentum of mobile payments http://wp.me/p1Jrjn-bOV 
ams, STM demonstrate joint NFC reference design for wearables  http://wp.me/p1Jrjn-bPg


Payments & m-Commerce

Why Samsung is right to bypass Google Wallet for LoopPay http://bit.ly/1GkhsTO 
Will Samsung’s mobile wallet plans work? We’ll know in 7 months http://bit.ly/1DJffTH 
Google plans Wallet revamp with partnership ploy http://bit.ly/1Gki9wu 
MasterCard: What’s Next - The Real Excitement in Payments http://mstr.cd/1BLiSb7 
Credit Card Voice Activation Coming Soon Thanks To Smart Wallet Maker http://bit.ly/1LFHCn2 
Feds' Adoption of Apple Pay, Dwolla Solidifies the Technologies as Mainstays http://bit.ly/1LFHQur 
Japan’s credit card firm to start using Russia’s national payment system by end of 2015
http://bit.ly/1DTcIF9 
Global expansion of peer-to-peer payments capabilities http://bit.ly/1aiMcdw 
Pay for McDonald’s with Visa payWave in Singapore http://bit.ly/1BYah51 
Windows Phone left out as Google Wallet swallows Softcard http://bit.ly/1LOdzYo 
Visa Partners with Financial Institutions Across the Globe to Enable Mobile Payment Services http://vi.sa/1AzeASn 
Barclays to allow mobile payments based on Twitter handles http://bit.ly/1LOe9Fw




NFC, BLE, HCE & Mobile

Telcos face mass SIM card recall after spy agencies' encryption hack revealed http://bit.ly/1w6arjw 
Merchants deploying NFC terminals in greater numbers globally http://bit.ly/1BLmHNr 
Broadcom has an Android Wear platform with 3G, NFC and more http://bit.ly/1LOe19c 
Sekur Me integrates Apple Touch ID into mobile payment app http://bit.ly/1LOdV1c 
Behold, the NFC-enabled smart whisky bottle http://bit.ly/1Azeeev


Transportation, Ticketing, Access, Security & Loyalty

TransJakarta Replaces Cash Payment With Electronic Ticketing http://bit.ly/1GkhuuP 
NXP Semiconductors Taps China, Transit Opportunities http://bit.ly/1w6aTy8 
BAHRAIN: Public transport system to be revamped http://bit.ly/1w6aL1D 
Start-ups tap into smart parking technology http://bit.ly/1BLhKEi 
Hack gave U.S. and British spies access to billions of phones: Intercept http://reut.rs/1BLiCZB 
ValidSoft Launches its Device Trust Solution with a Second Major UK Bank http://bit.ly/1A5NnSr 
Visa Europe security updates may set the stage for Apple Pay expansion http://bit.ly/18kaSBL 
TfL plans to replace Oyster smart card technology http://bit.ly/1LGoWDt 
Gemalto: No major theft of keys to smartphone kingdom http://cnet.co/1AN2jbU 
Bankers push for mobile-based ticketing in railways​ http://bit.ly/1AzdZ30


Other News & Opinion Articles

Mint and Miura form Asia Pacific mPOS partnership http://bit.ly/1GkhBGE 
Stripe makes its bitcoin pilot available to all US users http://bit.ly/1DJgySG 
GCHQ's Hacking Of Gemalto Shows The Global Telecoms Industry Is Broken http://onforb.es/1BLkOQM 
The scariest thing about the British SIM card hack is how little it accomplished http://bit.ly/1BLjM7m 
SIM card maker Gemalto wants answers on alleged hacks by US, UK spies http://cnet.co/1w6bvno 
Sim card database hack gave US and UK spies access to billions of cellphones http://bit.ly/1BLmZE0 
Bluefin now offering PCI-validated P2PE mobile payment tech http://bit.ly/18kaGSX 
Gemalto doesn’t know what it doesn’t know, says the Intercept http://bit.ly/1AN4FHL 
Gemalto says reports of its hack by the NSA and GCHQ were greatly exaggerated http://bit.ly/1AN4xYA 
Privacy Commissioner considers inquiry into Gemalto SIM cards hack http://bit.ly/1BYb3yQ 
Gemalto says making an official complaint would be a 'waste of time'  http://dailym.ai/1BYaPI0 
SIM Maker Gemalto Owns Up To Hack Attacks http://ubm.io/1AN3Mif

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