
When Ubiquiti suffered a hack the world assumed it was just a regular security breach, but the truth was much stranger… why are police happy that criminals keep using end-to-end encrypted messaging systems… and why is the Apple Watch being accused of crying wolf?
All this and much much more is discussed in the latest edition of the “Smashing Security” podcast by cybersecurity veterans Graham Cluley and Carole Theriault, joined this week by Mark Stockley.
Plus don’t miss our featured interview with SecurEnvoy’s Chris Martin.
Show full transcript ▼
This transcript was generated automatically, probably contains mistakes, and has not been manually verified.
Not too good.
My name's Graham Cluley.
I haven't stopped using Twitter, but I deleted the app.
And I wanted to see, 'cause I think I was spending about 23 hours a day on the Twitter app, achieving nothing. And I have deleted the app and I'm—
So I'm just here to sell you Delete that app.
We don't really want people coming onto this podcast talking about books. And shouldn't you stop doing other things like reading Twitter or listening to podcasts?
But before we kick off, let's thank this week's sponsors, Bitwarden, SecureEnvoy, and NordLayer. It's their support that helps us give you this show for free.
Now, coming up on today's show, Graham, what do you got?
He is the Head of Solutions Architecture at SecureEnvoy, and he's going to talk about identity and access management.
All this and much more coming up on this episode of Smashing Security.
The tech company?
Is that right, Mark? Quality sort of IoT gear?
And they contacted their customers about two years ago saying that there had been, dun dun dun, a security breach. Oh my goodness.
They said that somebody had accessed data at a third-party cloud provider that they used to host some of their infrastructure.
And as a consequence, a whole bunch of data, gigabytes of data had been accessed.
Customers' email addresses, their names, hashed and salted passwords, addresses, phone numbers, et cetera, et cetera.
And they said, change your passwords, they said enable two-factor authentication, they said. And you know, it was pretty big news at the time.
It was embarrassing for them, obviously. And the cybersecurity journalists wrote this up as a sort of typical breach.
Did you invite them to be part of your infrastructure? 'Cause if you did, it's a bit like saying, "It was Dave in accounts." But he works for you, right?
He called himself Adam, who claimed to be an anonymous whistleblower inside—
He'd been in touch with European data protection authorities.
In fact, I was just reading today, Tutanota, who are sort of a ProtonMail competitor, they've just developed a service because I think in Austria and Germany, if you have a company of more than 50 people, you have to now have an internal whistleblower hotline.
He said that there'd been a catastrophic breach security failure inside the company.
And he said that Ubiquiti had not only downplayed the hack to minimize the hit to its stock price, but also when they said it was a third-party cloud provider, that claim wasn't true.
So Adam also told Krebs that the hackers had sent Ubiquiti a $2 million ransom demand, obviously in cryptocurrency, saying, "Look, pay up and we'll keep quiet about the breach and we'll tell you about all the backdoors we have into your systems."
In the form of a lawsuit alleging that he had defamed the company by accusing them of a cover-up when he reported the whistleblower's claim.
Not too good.
Because I thought that hacking and things like that famously doesn't affect your share price.
It's one of the really inexplicable and slightly depressing things about cybercrime that people seem to be able to get away with. I'm afraid we've lost all of your data.
They've been looking into whether other hackers might have breached their systems, whether there are vulnerabilities.
They're bringing in all the eggheads, all the brains inside the company.
Have either of you ever seen that movie No Way Out with Kevin Costner and Gene Hackman?
And that could be evidence of who the murderer is. So, using 1987 computer technology.
And it reminds me of the Ubiquiti case because the guy they brought in to investigate the breach, Nick, from the cloud team, was actually the person behind the breach himself.
He thought he could cover his tracks because he had a VPN. He had a Surfshark VPN account to hide his home IP address. So he was stealing all this data in the dead of the night.
Someone else has phished my PayPal account and then bought a Surfshark VPN in order to steal data from the company that employs me.
But having had the visit from the FBI, who were presumably a little bit skeptical of his story, he subsequently, after the FBI had been round to his house, he then went to Brian Krebs pretending to be Adam, saying, I'm a whistleblower inside Ubiquiti.
Let me tell you what's been going on there.
Adam Krebs wrote, I think, two or three stories about this, which, of course, upset Ubiquiti enormously, who were working with the FBI, who suspected this guy was behind it but couldn't say anything.
He realizes, you know, recognizes that his source was not entirely trustworthy and was actually involved in the crime itself when he was claiming, oh, they've been incompetent.
That's why they got hacked.
Nicholas Sharp, he's now pled guilty to wire fraud, making false statements to the FBI, Oh, it was my PayPal account, but it's someone else who paid for it.
And transmitting malicious code as well. He faces a total of 35 years in prison. That's the maximum because it's America, of course. And he is scheduled to be sentenced in May.
And always, always use a PayPal account connected to your genuine email address. That's a good idea as well. Mark, what have you got for us this week?
And so things like wiretaps don't work because while the police can still intercept conversations, those conversations don't make any sense.
It's just random noise and there isn't enough computing power or time in the universe to decrypt them.
So if you imagine, you know, you need a key to encrypt and decrypt information.
If the police had a master key, they say, they could use that and they could unlock any conversation and they could do things like wiretaps.
There has been near-universal pushback, just as there was just now, from computer security professionals like you, because the mathematical facts are that there simply isn't a safe and secure way to provide a master key.
Unfortunately, although I'm sure this podcast will change things, up to now, those protests from people like you have largely fallen on deaf ears.
We seem destined for a world where encryption backdoors exist.
Anyway, the broader point here is that these sorts of objections that we are raising here, sensible, rational objections, are largely falling on deaf ears, unfortunately.
However, there is one group of people that have been doing a really good job of poking holes in the police's argument for encryption-backed calls.
For the last 8 years or so, there has been a repeating pattern in the use of encrypted devices by organized crime. Now, I'm going to start the story in 2016.
I could probably start it earlier than that. We're going to start in 2016.
And you're going to hear the words Dutch police quite a lot in this, because for some reason, the Dutch police are really good at cybercrime.
Anyway, in 2016, Dave from Accounts, in 2016, they figured out how to read encrypted messages on the BlackBerry phones being used by gangsters who were known to be using them for horrendous crimes.
Now, they've come up with a variety of techniques or speculated what sort of techniques they might have used, but it was no doubt that they were reading messages.
So this spooked some of the criminal underworld into looking for an alternative to their beloved BlackBerrys.
Now, some, no doubt, turned to Ennetcom, a company that sold handsets to Dutch criminals for about $1,500, and that couldn't do anything other than sending encrypted messages.
Although it was used by Dutch gangsters, Ennetcom's infrastructure was in Canada, and it turns out that the Canadian police had been camped out on Ennetcom's servers and managed to decrypt about 3.5 million messages.
Or that they certainly had oversight of them.
And so they did, and they managed to decrypt 3.5 million messages, which is probably not what Ennetcom's customers had in mind anyway.
So, as a result of Ennetcom being compromised by the Canadian police, criminals were left looking for a secure phone once again. And some may have turned to Phantom Secure.
That is until March 2018, when the FBI arrested the company CEO, Vincent Ramos, shut down the whole operation, and within three months, Ramos had turned state witness and handed over all the login details to all of the systems for Phantom Secure.
Now, the FBI haven't revealed whether or not they were able to decrypt Phantom Secure's messages, but they did certainly stop all those nasty criminals from using Phantom Secure.
So that particular avenue of crime was brought to a halt.
You know, they're all sitting there in the same shitty club, and everyone's like, "Anyone who's in there is badass." I imagine them all like Dom Joly with a giant button.
When in June 2020, it came to sudden and dramatic close, and it was revealed that the French police had been camped out on EncroChat servers for several months, where they had been able to read messages and also read lock screen passcodes, which is very amusing for anybody who understands how passwords are supposed to be stored.
Because, let's just say, if they were able to read lock screen passcodes, they may have been not as secure as the criminals were thinking they were.
Anyway, the French police were more than happy to share what they'd learned with the fellow European neighbours, and as a consequence, there were about 1,000 arrests.
And Anom was distributed through criminal networks, and you basically only found out about it because a gangster kind of approached you and said, you should use this super secure crime phone.
That's for crime. And Anom was extremely successful and very, very widely spread.
And I'm thinking, 'cause you sort of said it in the last part of the story, you're thinking that Anom was infiltrated by the police.
Fishing system, well, not so much, is it?
Well, An0m, in the end, An0m was being used by about 10,000 gangsters in 100 countries and it shared 27 million messages with the FBI.
And not for the first time, criminals were left looking for a secure phone and some, no doubt, turned to XClue.
Now, on its website, which I visited yesterday, XClue says it uses the most sophisticated encryption protocols in the world to ensure that no one gets access to your data.
Anyway, website says it uses the most sophisticated encryption protocols in the world to ensure that no one gets access to your data and what it should have said is that no one gets access to your data apart from the Dutch police.
That's what I'm interested in.
Use it.
Because you probably know over the last several years, Apple, the smartwatch market leader, added new features to the watch such as fall detection and crash detection.
Okay, so one of their ads when they launched this in Apple, I think it was 7 Series, it was called 911, this ad.
And it used basically live audio from 3 real-life emergency calls to illustrate the various ways that Apple Watch, you know, could make a difference between life and death. Right?
So in one of them, the audio is of a woman who flipped her car, right?
And she desperately, she contacts and she's telling the emergency line that her car is starting to fill with water up to her neck, right?
And another one, there's a paddleboarder who's drifted out to sea. And each caller is unable to reach their mobile phone, but because they have their Apple Watch, huzzah!
And it's the help with their watch that these people, Jim, Jason, and Amanda, were rescued in minutes, says the ad.
So I was looking around for a few, you know, real stories that hit the headlines once this came live. And there was the scariest one that I found.
Was the Seattle couple that were in the midst of a divorce. And then things went really south. And the woman managed to contact 911 using her Apple Watch, right?
Saying, you know, her husband was trying to kill her. And it seems in his blind rage, he ended up putting her into a shallow grave after stabbing her.
And he was, your phone.
And because users now can connect with emergency services when cellular and Wi-Fi coverage is not available.
This would all be fantastic if things didn't sometimes go a little bit wrong.
Over the past few months, we've seen a kind of growing concern and increasing complaints from really annoyed 911 responders.
So the user can then dismiss the message and say, no, no, no, I'm fine, I'm fine.
But if 10 or 20 seconds pass, the feature then sends an automated message with the user's GPS coordinates and a callback number to the closest emergency call center.
So some people reporting a 50% uptick in the last year.
And also, if you think about it, if you're bombing down a hill, right, you're hitting the moguls, you know, the wind zipping past your earmuffs, you might not hear or feel your watch.
Do you know, seriously, as a Canadian, when I was a kid, I downhill skied, and the first day in the new year where the sun was out and it was just maybe close to zero or near zero Celsius, we would all put shorts on and ski in shorts.
It's ridiculous.
And, you know, there's lots of problems with that because there's wasted resources, there's people in real danger that are not, maybe not being prioritized appropriately.
And what's happening is that some first responders are now making a judgment call, right? Because there's too many watches that are crying wolf.
So they might be going, "Ah, you know, we called back, they're not responding. They're probably still skiing and fine.
Let's not worry about that one." I mean, Mark, I know you're a skier. How would you judge? 'Cause skiing is seriously dangerous. You can die, right?
There's loads of things that can lead to that.
They've just got to leave the camera on the whole time. Live feed to the first responders.
Obviously the first responders are going to have to buy new equipment so that they can see the live feed.
That mountain thing we went on in Euro Disney.
So there's no solutions to this basically other than Apple getting together with the emergency responders and trying to figure out a solution that suits them both, which is apparently what they're doing now.
Seems a little late. You'd think they were involved very early on.
We've managed to do okay without our watches calling the police for us. I accept that there are rare occasions where we might be buried alive where that could be useful.
But what if we just didn't have this feature?
So they might be particularly—
But, you know, what about the people who are in a pickle?
It seems to be the health elements of the watch that everyone loves, all kinds of different automated alerts that happen.
There was a particular tense point where clearly my heart was getting very, very stressed about what was happening. Really? Yeah, for real.
It's more what's going on on the board rather than what's sitting opposite me. Today's podcast is brought to you by NordLayer.
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This is for companies that take authentication seriously because SecureEnvoy takes MFA to another level.
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That's S-E-C-U-R-E-N-V-O-Y. And thanks to SecureEnvoy for sponsoring the show.
Now, that allowed hackers to steal customers' password vaults, and unfortunately there were parts of those password vaults which were astonishingly unencrypted.
There's no doubt a lot of questions users are going to ask LastPass about how that could have happened and why some of that data was left in that insecure state.
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You can learn more about that in the Bitwarden Help Center and at bitwarden.com/privacy.
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They support importing from lots of other solutions, and there's even a LastPass migration guide available. Learn more at bitwarden.com/migrate. That's bitwarden.com/migrate.
And stay safe. And welcome back and enjoy us at our favorite part of the week, the part of the show that we like to call Pick of the Week.
Could be a funny story, a book that they've read, a TV show, a movie, a record, a podcast, a website, or an app, whatever they wish.
It doesn't have to be security-related necessarily.
People were really upset.
But anyway, since then, I've mostly used a service called Feedly. But I was getting a little bit grumpy about it.
I was paying for it every year and I was thinking, it doesn't really, it's not really satisfying what I want it to do. And so I was looking for an alternative and I found Inoreader.
And with Inoreader, you can not only follow news sites, corporate websites, blogs, anything that has an RSS channel. You can also follow social media accounts if you really want to.
So if there's a particular news source, which rarely writes about cybersecurity, you could precede it with a woo-ka, woo-ka. Well, that is exactly what I do.
So my watch will actually ping if there's a breaking humongous cyber story, which has happened, which has been reported by, I don't know, BBC or something like that, just to tell me, oh, this thing's just happened.
And you can listen to articles. It does text-to-speech. There's also kinds of automation. It's really cool. Really impressed with it.
There is a free version if you want to try it out. That's ad-supported, but I choose to pay an annual subscription, because I get a few more features.
But I figured, I find this really useful. I use it every day. I like it. And maybe some other listeners would as well. Cool. inoreader.com.
Go and check that out, because it is my pick of the week.
So you remember at the beginning I said I've deleted the Twitter app to try and get my head into reading and it's worked. Yes.
Well, the second book that I've read this year is called The Social Lives of Animals, which is by Ashley Ward, and it is all about how cooperation between animals works and why it's a wonderful thing.
And it is a beautifully written book. So it sort of goes through a dozen or so different species and explains how they cooperate and why they cooperate.
There's a fantastic opening chapter all about krill. So who knew krill which is, you know, we just think of as being prawns that are eaten by blue whales, actually cooperate.
And there's some fantastic information about the life cycle of krill and what happens when they lay eggs and things. And oh, it's just mind-blowing.
These are particularly interesting.
So it's very, very cold.
When the krill hatches, it's about the size of a full stop. What font size? And the first thing it has to do is swim 2 kilometres up, bang, to the surface of the water.
So, a month of this dot-sized krill's life is the equivalent of doing a marathon every day.
Yeah, it is, it is a lovely thing just to read.
I don't know if you know about bonobos. They've got, they're very interesting sex life.
So, the premise is you've got this gloomy novelist, okay, named Adrian, and he has writer's block. You know, he's trying to write his novel, his great oeuvre.
And to get over his writer's block, he agrees to write the memoir for this dying guy, this old man named Albert.
And Albert starts sharing his stories, right, to honor the love of his life, this woman called Solange.
But the stories really get dark and almost beggar belief, you're not sure if they're real. And the writer guy's like, "This is a little crazy.
I'm out of this." But he ends up getting sucked in because his wife took a peek at the first draft. She's hooked. She thinks it's his best work ever.
And so, despite his better judgment, he continues to visit Albert and record these stories, which get darker and murkier and bloodier. And it's great.
You will find it with both because obviously it's available in different languages, Graham. It is dubbed. So, but yeah, you can find it with Black Butterflies. It's on Netflix.
It's great. You'll enjoy it. It's tense. And there's a really, really serious, serious twist both halfway and at the end.
He is— thank you for being here. Thank you. I was gonna say, I had no idea that you were interested in technology and security.
And this is all to make sure that the right people can access your company resources and data, right? Rather than the wrong people. So is that a fair way of putting it, Chris?
So this idea of security is just fascinating to me, and my career has developed, and I'm fortunate to have found a company, SecureEnvoy, that shares my passion.
You say it's a passion and people laugh at you, you awesome geek.
We can't remember unique passwords or alphanumeric characters despite what Hollywood says. You know, everyone gives super complicated passwords us as human beings can't do that.
So it's a very human problem.
I'm not saying I can make the world a better place by doing identity and access management, but it is solving problems for people, solving problems for companies.
There's no way I would be able to do that without help.
And you think that could be 15 different username and passwords. Of course, as an industry, we then came along and said, oh, wouldn't it be better if you just had one?
We call it single sign-on. Of course, what that now means is if that credential is compromised, someone now has access to 15 different applications, 100 different applications.
Yeah, there's a lot of challenges to this, a lot of different ways to solve it. There's no right answer, which again fascinates me. That's where sort of my curiosity knows no bounds.
How can we solve this problem? How can we make it better for companies, for better for users. We're not all IT professionals here. Yes, that's right.
Are companies, is this something that everyone has now? Are all companies just MFA'd up to the eyebrows?
You would think companies have done this, but still, yeah, in my job I talk to customers and they haven't got MFA. So that I find quite surprising.
We all know the danger of passwords. I keep saying to customers, if you don't know about the danger of passwords, can I come and live on your island, please?
Where have you been for the last 20 years? And no one has yet. So people must be aware. But also it's not just about that. It's companies that have implemented MFA.
You actually find they haven't rolled it out to all of their users, which is quite interesting because I think all users are susceptible.
I was going to ask if you can apply this to the 80/20 rule, you know, that often people use, like it's good enough, you know.
Is that something that can exist in the MFA world or no?
If you think there's a term called zero trust, which means trust no one, everyone is a threat, everyone should be protected.
If you take, for example, Edward Snowden from many years ago, he basically stole credentials of people working in offices. You know, for the CIA, I think it was.
He did that using social engineering. He literally asked people for their username and passwords. They gave it to him.
Now, not saying MFA would have stopped all of that, probably would have done, but it just shows how easily, you know, people can be susceptible when they are not protected.
And that's the issue, isn't it? All they got to do is find that weak link if you don't cover all your bases.
Now, the interesting thing is last year I did a survey with another company and we approached around about 100 companies throughout the world, different sizes, different types of organizations.
And we said, how many of your users are covered by MFA? Okay, very, very interesting. The stat was actually just a fraction over 50%. Really?
So that means it's 48% of an organization's users aren't covered, are the weak links.
It's because companies basically rolled it out to a set of users, a set of use cases, particularly with COVID in the last two or three years.
I hate talking about COVID it's a dreadful subject, but companies where everyone started to work from home went, oh, I must protect VPN access to my networks because people are home now.
So they gave people who work from home MFA to protect the VPN. Okay, of course, not everyone works from home, right? Or in offices, people work in manufacturing departments.
So where they rolled this out, they were very simple-minded in their approach. They didn't think about all of their different type of users.
And if you look at a lot of MFA solutions now, they rely on mobile phone authentication, right? We're all used to that.
An SMS text message or a phone call or push notification is so commonplace now. But what about those people who don't have access to a mobile phone?
Yeah, yeah, exactly, for whatever reason. Yeah, if you take healthcare practitioners with sensitive equipment, they can't use a mobile phone. So how do you protect those?
And that's where companies slightly fall down. It's those, I like to say, fringe use cases. They're not, they're half of a company where they don't protect.
Because there's always something slightly different with every different environment there is.
It's not a technical challenge Secure Embroidery. We provide 15 different factors, but people only think they need one. No, no, no, no, no.
Why don't you have text messaging for certain people? And why don't you have biometrics for another? And why don't you have physical tokens for another set?
It's got to be mix and match. There's no right way of doing it.
Imagine if I were the IT guy or girl responsible in a company, responsible for sorting out MFA and multifactor use within the environment - where would I even start?
If you're doing this at the start, it's everyone, right?
But if you have a solution already, you need to look how people are accessing computers, how accessing applications, the data they are doing, and you build up a picture of these people.
And it's what's called authentication journeys. You look how they do it, where they do it, when they do it.
And you put all this together and you work out what you need for those people. And really, we call this identification. It is just a manual exercise.
You don't need any technology for this. What you really need is an annoying person who's going to go and ask everyone a lot of questions.
I think I'm grateful that I've worked with a lot of annoying people over the years who've taught me all this stuff to go and ask these questions. So where are these users?
What computers are they using? Just continuously ask these questions.
And once you have that picture, really then the second stage is you work out what is the best factor for these people, the best security you need.
And that's really just simply a matter of protecting those and protecting your infrastructure.
And the final stage, which is often ignored, which again I find so strange, that IT is a living, breathing organism.
Things change, so your security may need to change, your users will change.
So that sort of continuous monitoring, that continuous controlling of how people operate, and it's really just accepting that. So it's all the feedback loop.
We say the technology is so simple, but it's the processes around that sort of technology that understanding is understanding the subject and the problems for what is such a simple problem of protecting users or trying to remove and protect passwords.
I've just described the problem in 10 seconds there, but the solution can take a little bit longer to understand, but technically it's very simple.
This was Chris Martin at SecureEnvoy. He is the head of solution architecture. And you can learn all about SecureEnvoy and its services by visiting smashingsecurity.com/secureenvoy.
That's smashingsecurity.com/secureenvoy. Chris, thanks so much for coming on the show.
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Bye-bye.
Hosts:
Graham Cluley:
Carole Theriault:
Guest:
Mark Stockley:
Episode links:
- Ubiquiti tells customers to change passwords after security breach – ZD Net.
- “No way out” trailer – YouTube.
- Ubiquiti sues journalist, alleging defamation in coverage of data breach – Ars Technica.
- Man charged with Ubiquiti data breach and extortion was employee assigned to investigate hack – Bitdefender.
- Final Thoughts on Ubiquiti – Krebs on Security.
- Former Employee Of Technology Company Pleads Guilty To Stealing Confidential Data And Extorting Company For Ransom – Department of Justice.
- Dutch Police Read Messages of Encrypted Messenger ‘Exclu’ – Vice.
- Shock and applause for Apple Watch’s chilling real-life emergency call ad – Campaign Live.
- 911 call made from Apple Watch of Washington woman buried alive released – Yahoo! News.
- Apple Watch 8 series save yet another life – Live Mint.
- Some first responders are asking iPhone users to disable Emergency SOS and crash detection due to influx of false positives – 9to5mac.
- Emergency SOS via satellite available today on the iPhone 14 lineup in the US and Canada – Apple.
- Inoreader.
- ”The Social Life of Animals” by Ashley Ward – Amazon.
- Black Butterflies – Netflix.
- Smashing Security merchandise (t-shirts, mugs, stickers and stuff)
Sponsored by:
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- SecurEnvoy – With growing cyber security threats everyone in your organisation needs authentication tailored to their specific access needs and the risk profile of their role. Check out SecurEnvoy’s free guide now.
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Thanks:
Theme tune: “Vinyl Memories” by Mikael Manvelyan.
Assorted sound effects: AudioBlocks.

