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Bitcoin exchange hacked via Rails exploit, funds stolen

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Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#241
post #216

Earlier quoted context omitted.

How about building upwards? Learn to think in three dimensions.

Earthquake territory, which severely limits how far up you can go.

Which is why the financial district was wiped off the map during the 1989 earthquake, whereas lower units such as those in the marina survived without problems?

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#242
post #197

Earlier quoted context omitted.

You don't hear of any high-profile bank disclosures, which I imagine is probably because they have security teams that keep up with everything religiously. Most old brick banks have internal systems architected in ways that a younger intruder in the Anonymous mold wouldn't know anything about, as well; you're starting to get into big iron Cobol land. That said, I don't think it's an impossible task (is anything?), an…

There was actually a high-profile incident not too long ago with one of the big banks' online banking system. Users could view other people's account information just by incrementing an integer in the URL as I recall. It's not necessarily so much that banks are secure, but hacking them is much riskier than hacking Bitcoin sites, especially for white-hats.

Are you thinking of Heroku? Heroku isn't a bank.

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#243
post #207

Earlier quoted context omitted.

As a fan of responsible disclosure, the sad state of the universe is that telling people "upgrade to X now" on an open-source project makes it very easy for anyone to diff to find out what the fix is, which makes it very easy for people to figure out how to exploit it.

No. A thousand times. A bit more creativity should be allowed when handling a vulnerability of this magnitude. For example, publish a patch that escapes all input in curious ways, presumably to prevent SQL injection. Pad it, obfuscate the actual fix with code-noise, make it annoying to read. Then release it as some handwavy, semi-plausible "follow-up" to the previous SQL-injection, urging everyone to upgrade in small…

This is terrible. The OpenBSD/SSH team tried this once, with the channel bug. They released the privsep version of ssh which didn't fix but mitigated the bug, and told everybody there was a critical bug and you really, really wanted to upgrade. What happened next? Everybody from Alan Cox on down started complaining about how they weren't going to dance to somebody else's tune and they were going to wait to see the real fix, thank you very much.

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#244
post #200

Earlier quoted context omitted.

Gold does not have that much of inherent value either.

Gold is inherently useful as a tangible object with exploitable physical properties. Gold, for example, has good conductivity and is used to plate electrical connections. Gold is also useful for its rust-resistance. Thus, on this basis, like all useable physical goods, gold has some inherent value as a commodity.

What fraction of gold's current value is based on its physical properties?

I don't know the answer, but I can tell you it's miniscule.

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#245
post #182

Look at the transaction volumes there https://vircurex.com/ - that does not look serious. By they way chrome shows their https certificate also has some problems.

Yeah, according to http://bitcoincharts.com/markets/ the 30 day monthly volume of Vircurex was just over $200 http://bitcoincharts.com/markets/vcxUSD.html

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#246
post #161

Earlier quoted context omitted.

That's probably 10s of thousands of eyes who don't know their arse from their elbow, including the guys who wrote it. Possibly 2-3 people have read it who know their shit. The rest are just consumers. Frameworks only centralise the security concerns - they don't necessarily make it better. That is in the hands of the implementor and their ability to build bullet proof abstractions. One fuck up and your system is glob…

I think you seriously underestimate the sheer quantity of people looking through it, my friend. And if we're using that metric, it's extremely unlikely your average team member knows his or her ass from their elbow, either.

Quite possibly.

I agree with your second point, which is why I am a senior member of an architecture team in a company with 80 developers. It's our job to make sure ass and elbow confusion doesn't compromise the product.

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#247
post #241
post #216

Earlier quoted context omitted.

Earthquake territory, which severely limits how far up you can go.

Which is why the financial district was wiped off the map during the 1989 earthquake, whereas lower units such as those in the marina survived without problems?

The Marina was wiped off the map in the 89 earthquake. It's built entirely on landfill and suffers from terrible liquefaction. The buildings there suffered bad structural damage and many people who lived in the Marina at the time moved elsewhere because of all the damage, making room for all the yuppies that took over that neighborhood.

So long as the foundation is bedrock, there is nothing preventing the building of highrises in San Francisco. We have the technology.

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#248
post #148

Earlier quoted context omitted.

Perhaps they should have done this up front, you know as part of the engineering, hence my point. Stopping and thinking for a bit usually covers these problems. I've read a huge chunk of the rails framework source code and it certainly used to be a pretty amateur piece of kit. The argument is definitely not preposterous. Are you saying guarding against bad inputs and enforcing type is bad? A language which uses no ty…

>Perhaps they should have done this up front, you know as part of the engineering, hence my point. And you know what, I have a feeling they did have multiple people looking over the code, and it's been vigorously refactored over the years. Rails 3 is a somewhat different beast from Rails 2. Careful auditing reduces bugs but does not eliminate them. Crowing about "proper engineering" is very nice but is somewhat farci…

Enforcing the type is important.

For example float vs decimal types in finance. You really want your bank running on floats when doing interest calculations?

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#249
post #82

Earlier quoted context omitted.

That is an absolutely terrible lesson to draw from this episode. First and most importantly, Airbnb and Uber are not disrupting industries burdened primarily by consumer safety regulations; they are disrupting industries burdened primarily by barriers to entrance that are designed to direct economic rents to politically favored actors. Huge difference. There is no plausible 'consumer protection' story for preventing…

Legitimate banks don't get hacked? Is that true?

Legitimate banks don't get hacked via Rails exploits.

Re: Bitcoin exchange hacked via Rails exploit, funds stolen

#250
post #82

Earlier quoted context omitted.

That is an absolutely terrible lesson to draw from this episode. First and most importantly, Airbnb and Uber are not disrupting industries burdened primarily by consumer safety regulations; they are disrupting industries burdened primarily by barriers to entrance that are designed to direct economic rents to politically favored actors. Huge difference. There is no plausible 'consumer protection' story for preventing…

Legitimate banks don't get hacked? Is that true?

Bank accounts require identification and bank transactions have paper trails. Additionally international transactions have a lot of delays built in. Robbing a bank is probably safer then hacking one.
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