On being a partly-boiled frog

I’m an Amazon Prime customer, because it looked like a no-brainer for a household that buys quite a lot of stuff online. But now the cost of Prime has suddenly gone up from £49/year to £79.

That’s a huge hike. To conceal it, Amazon tells me that my Prime subscription will now include a subscription to Lovefilm. Big deal! I watch very few movies and have never contemplated subscribing either to Lovefilm or Netflix. A subscription to Lovefilm is completely useless to me.

So the question is: will I stick with Prime at £79?

Answer: maybe — for now. But it’s clear that this is part of a bigger strategy: capture->lock-in->exploit. Or, as the always-perceptive Jason Calcanis puts it:

Does anyone know the actually number of @amazon prime subscribers? Can anyone with Prime imagine life without it? Would you cancel Prime over the $20 a year increase?

Note: Amazon is starting to boil us frogs. Prime goes up 25% and none of us notice. Up another $25 in two years–no one will notice. Eventually it will be $20 a month and have 100m subscribers.

Amazon says it has at least 20M prime subscribers as of Jan ’14, according to [Macquarie] (http://launch.co/story/amazon-prime-has-20m-subs-macquarie-analyst-ben-schachter-reportedly-confirme)

Snooping is a public health issue

This morning’s Observer column.

One of the things that baffles me is why more people are not alarmed by what Edward Snowden has been telling us about the scale and intrusiveness of internet surveillance. My hunch is that this is partly because – strangely – people can’t relate the revelations to things they personally understand.

In the past two weeks, two perceptive commentators have been trying to break through this barrier. One is Cory Doctorow, the science-fiction novelist, who had a terrific essay in the Guardian arguing that instead of increasing our security, government agencies such as the NSA, GCHQ and others are actually undermining it. The essay is worth reading in full, but one part of it stood out for me. It’s about the thriving, underworld online market in malicious software. Nowadays, if some hacker discovers a previously unknown vulnerability in widely used software, that discovery can be very valuable – and people will pay large sums for such “zero-day” exploits. But here’s the creepy bit: sometimes, the purchasers are government agencies that buy these pieces of malware to use as weapons against their enemies.

To most people, this will seem pretty abstruse. But with the imaginative skill of a good writer, Doctorow nails it: “If you discovered,” he writes, “that your government was more interested in weaponising typhus than they were in curing it, you would demand that your government treat your water supply with the gravitas and seriousness that it is due.”

Read on

LATER: Right on cue, another great blog post by Bruce Schneier, putting this stuff in an everyday context:

Imagine that you hired a private detective to eavesdrop on a subject. That detective would plant a bug in that subject’s home, office, and car. He would eavesdrop on his computer. He would listen in on that subject’s conversations, both face to face and remotely, and you would get a report on what was said in those conversations. (This is what President Obama repeatedly reassures us isn’t happening with our phone calls. But am I the only one who finds it suspicious that he always uses very specific words? “The NSA is not listening in on your phone calls.” This leaves open the possibility that the NSA is recording, transcribing, and analyzing your phone calls — and very occasionally reading them. This is far more likely to be true, and something a pedantically minded president could claim he wasn’t lying about.)

Now imagine that you asked that same private detective to put a subject under constant surveillance. You would get a different report, one that included things like where he went, what he did, who he spoke to — and for how long — who he wrote to, what he read, and what he purchased. This is all metadata, data we know the NSA is collecting. So when the president says that it’s only metadata, what you should really hear is that we’re all under constant and ubiquitous surveillance.

What’s missing from much of the discussion about the NSA’s activities is what they’re doing with all of this surveillance data. The newspapers focus on what’s being collected, not on how it’s being analyzed — with the singular exception of the Washington Post story on cell phone location collection. By their nature, cell phones are tracking devices. For a network to connect calls, it needs to know which cell the phone is located in. In an urban area, this narrows a phone’s location to a few blocks. GPS data, transmitted across the network by far too many apps, locates a phone even more precisely. Collecting this data in bulk, which is what the NSA does, effectively puts everyone under physical surveillance.

This is new. Police could always tail a suspect, but now they can tail everyone — suspect or not. And once they’re able to do that, they can perform analyses that weren’t otherwise possible. The Washington Post reported two examples. One, you can look for pairs of phones that move toward each other, turn off for an hour or so, and then turn themselves back on while moving away from each other. In other words, you can look for secret meetings. Two, you can locate specific phones of interest and then look for other phones that move geographically in synch with those phones. In other words, you can look for someone physically tailing someone else. I’m sure there are dozens of other clever analyses you can perform with a database like this. We need more researchers thinking about the possibilities. I can assure you that the world’s intelligence agencies are conducting this research.

Schneier is one of the very best commentators on this stuff. Everything he writes about it is worth reading.

Ivory towers in late afternoon light


Ivory towers in late afternoon light, originally uploaded by jjn1.

Having written the heading I suddenly wondered where the term “ivory towers” comes from. Wikipedia says it has a Biblical origin (from the Song of Solomon) but,

From the 19th century it has been used to designate a world or atmosphere where intellectuals engage in pursuits that are disconnected from the practical concerns of everyday life. As such, it usually carries pejorative connotations of a willful disconnect from the everyday world; esoteric, over-specialized, or even useless research; and academic elitism, if not outright condescension. In American English usage it is also used as shorthand for academia or the university, particularly departments of the humanities.

Casuistry, algorithms and surveillance

One of the reasons the political establishment and intelligence community are so unapologetic about the bulk collection of metadata and other personal information is because they cling to a particular interpretation of what “collecting” means. In this interpretation, hoovering up data and storing it in data-centres does not constitute “collecting”. Only when a human looks at a particular data point is it actually “collected”.

Here’s how Brice Schneier puts it:

And the word “collect” has a very special definition, according to the Department of Defense (DoD). A 1982 procedures manual (pdf; page 15) says: “information shall be considered as ‘collected’ only when it has been received for use by an employee of a DoD intelligence component in the course of his official duties.” And “data acquired by electronic means is ‘collected’ only when it has been processed into intelligible form.”

Director of National Intelligence James Clapper likened the NSA’s accumulation of data to a library. All those books are stored on the shelves, but very few are actually read. “So the task for us in the interest of preserving security and preserving civil liberties and privacy,” says Clapper, “is to be as precise as we possibly can be when we go in that library and look for the books that we need to open up and actually read.” Only when an individual book is read does it count as “collection,” in government parlance.

So, think of that friend of yours who has thousands of books in his house. According to the NSA, he’s not actually “collecting” books. He’s doing something else with them, and the only books he can claim to have “collected” are the ones he’s actually read.

This is why Clapper claims — to this day — that he didn’t lie in a Senate hearing when he replied “no” to this question: “Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?”

If the NSA collects — I’m using the everyday definition of the word here — all of the contents of everyone’s e-mail, it doesn’t count it as being collected in NSA terms until someone reads it. And if it collects — I’m sorry, but that’s really the correct word — everyone’s phone records or location information and stores it in an enormous database, that doesn’t count as being collected — NSA definition — until someone looks at it. If the agency uses computers to search those emails for keywords, or correlates that location information for relationships between people, it doesn’t count as collection, either. Only when those computers spit out a particular person has the data — in NSA terms — actually been collected.

There’s a word for this: casuistry. And it’s not just the preserve of politicians and intelligence agencies. Google & Co are just as bad — as when the Google executive quoted by Schneier says “”Worrying about a computer reading your email is like worrying about your dog seeing you naked.”

To which Schneier replies:

when you’re watched by a dog, you know that what you’re doing will go no further than the dog. The dog can’t remember the details of what you’ve done. The dog can’t tell anyone else. When you’re watched by a computer, that’s not true. You might be told that the computer isn’t saving a copy of the video, but you have no assurance that that’s true. You might be told that the computer won’t alert a person if it perceives something of interest, but you can’t know if that’s true. You do know that the computer is making decisions based on what it receives, and you have no way of confirming that no human being will access that decision. When a computer stores your data, there’s always a risk of exposure. There’s the risk of accidental exposure, when some hacker or criminal breaks in and steals the data. There’s the risk of purposeful exposure, when the organization that has your data uses it in some manner. And there’s the risk that another organization will demand access to the data. The FBI can serve a National Security Letter on Google, demanding details on your email and browsing habits. There isn’t a court order in the world that can get that information out of your dog.

Yep.

Even if Bitcoin bites the dust, the genie’s out of the bottle

This morning’s Observer column

If I had a bitcoin for every person I’ve met in the past six months who told me that bitcoin is a scam then I’d be a rich man. Or a poor one, depending in which day of the week we’re talking about. Watching the exchange rate for bitcoins over the past month is like seeing the outline of a rollercoaster on the horizon. On 7 January, for example, a bitcoin was trading at $934; by 27 February it was down to $528; and on 5 March it was $678. So I guess that if you were “investing” (ie speculating) in the things, you’d feel as sick as any Alton Towers customer on a bad day.

But here’s the really strange thing: while “normal” people – and many mainstream journalists – seem to think that this bitcoin stuff must be some kind of racket, some of the computer scientists and hackers of my acquaintance think it’s the most interesting idea to have come along in ages. And in a way that discrepancy may be the key to understanding the phenomenon…

Read on

Here we go again: another messaging app, more illusions of privacy and security

Post updated — see below.

Simon Davies has an interesting take on the fallout from Facebook’s acquisition of WhatsApp.

In one of the most persuasive displays ever of the market power of consumer privacy, Facebook’s recent $19BN acquisition of the popular messaging app WhatsApp appears to have been given the thumbs-down by millions of users.

While it may be too early to produce a conclusive analysis, there are solid indications that the trend of new sign-ups to messaging apps over the past two weeks has overwhelmingly favoured the privacy-friendly Telegram app and has shifted decisively away from WhatsApp. Telegram has reportedly picked up between two and three million new users a day since the purchase was announced just over two weeks ago.

Davies says that “Telegram has built a range of attractive privacy features, including heavy end-to-end encryption and a message destruct function. As a result, many privacy professionals regard the app as the market leader for privacy.”

Hmmm… Davies points out that a German product test group recently criticised Telegram, on the grounds that

Telegram ist als einzige der getesteten Apps zumindest teil­weise quell­offen. Eine voll­ständige Analyse der verschlüsselten Daten­über­tragung war jedoch aufgrund der nur partiell einsehbaren Software-Programmierung nicht möglich…

…which I interpret as a view that judgement has to be withheld because the Telegram code is not fully open source — and therefore not open to independent scrutiny.

Anyway, intrigued, I downloaded the IoS version of the Telegram App to see what the fuss was about. The download was quick and efficient. The interface is clean. To get started you enter your mobile number and Telegram sends you a code when you then enter to confirm that it is indeed your phone. It then asks for access to your phone contacts which, it tells you, will be stored in the Cloud in heavily encrypted form…

Oh yeah? Can’t you just imagine the hoots of laughter in Fort Meade!

LATER: A colleague who is less linguistically-challenged than me writes:

I’m not sure that Simon Davis or you got the right angle on that test.de report on WhatsApp and alternatives. It’s true that test.de didn’t like it much, but their point about open source in the part you quoted is actually quite positive – it’s saying saying that it’s the only one of the apps they looked at that was even partly open source. A translation of the bit you quoted would be something like , “Telegram is, at least, the only one of the apps we tested that is partly open source. However, because the programming is only partly transparent, a complete analysis of its encrypted data transmission was not possible.” And the next sentence goes on to say, “But the testers can rule out the possibility that it transmits data unencrypted.”

That’s actually more positive than what they say in the corresponding section about any of the other apps, where they generally say they aren’t open source so that the testers can’t be sure that some data are not transmitted in unencrypted form.

Obviously that’s not a killer point for the German testers, however, because the only app they didn’t regard as having important problems is Threema, which isn’t open source.

What they didn’t like about Telegram is that:
* You have to choose explicitly to use encrypted transmission by choosing the “Secret Chat” option.
* The app automatically stores all your address book (contact) entries without asking you or asking the other people in the address book.
* In their conditions of use, users agree that the software house can store the user’s address book entries. No official address details (‘Impressum’) are given for the software house and there’s no contact adrdess where you can ask questions about data protection.

He’s put his finger on the biggest problem, in a way, which is not just that the App’s owners require you to upload your contact information in the Cloud, but that by accepting this requirement you compromise all those contacts without their knowledge or consent. This is the point that Eben Moglen was making in his wonderful Snowden lectures when he pointed out that acceptance of Gmail’s Terms and Conditions allows Google not only to read your own mail, but also that of your correspondents, none of whom have consented to that. (Though no doubt a slick lawyer will try on the argument that anyone who emails someone with a Gmail address implicitly gives his/her consent.)