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Compromised Linode, thousands of BitCoins stolen

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231–240 of 249 posts

Re: Compromised Linode, thousands of BitCoins stolen

#231
post #156

Earlier quoted context omitted.

I can put a "not responsible for stolen items" sign in my restaurant, but if the coat check employee bolts out the door when you hand them your coat, I'm buying you a new one.

What if the person had a $100,000 worth of cash in his coat pocket -- would you reimburse that, too?

He could never prove that he had the cash in his pocket. But you can prove that the bitcoins existed and had not been spent.

Re: Compromised Linode, thousands of BitCoins stolen

#232
How many times does something like this have to happen before people learn to encrypt? Any serious business or financial data should be encrypted, period. Almost all of the major hacks we read about could have been minimized if not entirely avoided if the data was encrypted.

I just read the release from Bitcoinica where they explained that the server accessed contained _only_ Bitcoinica's "hot wallet", and that no code, services, customer data, or other wallets were stored on the server.

If this was the case, why couldn't every access to that wallet, which, assuming the above is true, necessarily occurs on other servers, run a decryption on the file first? Even if you keep the passphrase and/or secret key in plaintext on the machines that run the code, the separation should prevent this kind of rogue access as long as the intrusion is isolated as these people claim.

There is really no excuse just to have a plaintext wallet sitting around anywhere anymore (the official bitcoin client now supports symmetrical encryption). Like credit card numbers, when a wallet is accessed it should be decrypted in ethereal storage like RAM and promptly discarded; it should never hit disk as plaintext. At least the same practices used for PCI compliance and credit card data should be used for btc wallets; preferably better since there is no recourse if your btc wallet is compromised.

Re: Compromised Linode, thousands of BitCoins stolen

#233

How many times does something like this have to happen before people learn to encrypt? Any serious business or financial data should be encrypted, period. Almost all of the major hacks we read about could have been minimized if not entirely avoided if the data was encrypted. I just read the release from Bitcoinica where they explained that the server accessed contained _only_ Bitcoinica's "hot wallet", and that no co…

I do not believe implementing something like you describe is viable right now.

Although, AFAIK, bitcoin 0.5+ support keys encryption. I am not sure if this available only through GUI or through API as well, but even if it is not available through API, it might be good idea to implement.

Re: Compromised Linode, thousands of BitCoins stolen

#234
post #206

Earlier quoted context omitted.

"please think for a second what liability you would want for any mistakes that you make with your web startup or idea" It seems to me that bitcoin wallets are a relatively new and not well enough understood risk. There are very few other "files" like them, in that an attacker copying them can deprive you of their value in a way that you cant protect with backups. I feel a big part of current "internet security best p…

I don't see what's so conceptually new about bitcoin wallets. They're just plain text that you don't want people getting access to. It's no different than storing passwords in plain text: if someone copies them, they're completely compromised (until the user changes them). The solution is pretty simple: encrypt your own bitcoins with your own password (or more ideally, your private key). Then, if someone hacks your s…

Not exactly. In order to spend bitcoins (transfer them to other wallets) you need them not encrypted.

So if you are a bitcoin business making bitcoin payments, at moment you cannot avoid the risk of having the wallet stolen if someone gains unauthorized access to your operating computer.

Re: Compromised Linode, thousands of BitCoins stolen

#235

How many times does something like this have to happen before people learn to encrypt? Any serious business or financial data should be encrypted, period. Almost all of the major hacks we read about could have been minimized if not entirely avoided if the data was encrypted. I just read the release from Bitcoinica where they explained that the server accessed contained _only_ Bitcoinica's "hot wallet", and that no co…

>If this was the case, why couldn't every access to that wallet, which, assuming the above is true, necessarily occurs on other servers

From the sounds of it, this was that other server. All it did was operate on the wallet. And if they used other servers, then those would have been the target of the attack.

And, no matter how much damn encryption they have, they rooted the box that operates on the decrypted data, thats game over. The only attacker you would be able to thwart with more encryption would be the one who is able to root a linnode VPS, but unable to extract the key or decrypted wallet from from software running on that box. Sure, there is probably some number of attackers in that space, but security is a game of diminishing returns, and there are different security measures to take that are a much better investment of time than stopping that small slice of people.

Re: Compromised Linode, thousands of BitCoins stolen

#236
post #154
post #3

So, a customer service interface was compromised via stolen credentials and used to access various Linode instances. A couple questions that immediately come to mind: 1. Can this interface be accessed from anywhere on the Internet? If so, why? If not, does that mean other systems owned by Linode were compromised as well? 2. Why can customer service representatives access and update servers without the client being no…

Linode will send you a confirmation email if you access the admin panel from a "new" IP. This guy must have had his email address compromised as well. Looks like a class spear-attack.

> Linode will send you a confirmation email if you access the admin panel from a "new" IP. This guy must have had his email address compromised as well.

The attack was not via the consumer facing admin panel. It was the internal Linode customer service interface.

Re: Compromised Linode, thousands of BitCoins stolen

#237

Please people (not corporations w/ staffs), do not run critical systems in the cloud. Get a dedicated server (not cheapest you can find) and secure it with: (install in this order) APF - http://www.rfxn.com/projects/advanced-policy-firewall/ BFD - http://www.rfxn.com/projects/brute-force-detection/ rkhunter Ideally, install rkhunter on fresh system, right after updates, APF, & BFD. Then update the binary check-sums w…

Shipping syslog offsite is a good step, too.

Re: Compromised Linode, thousands of BitCoins stolen

#238
post #217
post #204

Earlier quoted context omitted.

Don't store your money on servers you don't own. Don't have a web interface. Don't allow anyone to connect. Don't use passwords, use public key encryption. These are the basics.

What if they steal the key?

The key is encrypted with a long and key-strengthened passphrase, so the Universe will run out of energy long before their computers get the key.

Re: Compromised Linode, thousands of BitCoins stolen

#239

How many times does something like this have to happen before people learn to encrypt? Any serious business or financial data should be encrypted, period. Almost all of the major hacks we read about could have been minimized if not entirely avoided if the data was encrypted. I just read the release from Bitcoinica where they explained that the server accessed contained _only_ Bitcoinica's "hot wallet", and that no co…

The encryption wouldn't really help, because the software manipulating with the wallet is on the server anyway.

The server software was used for automating bitcoin spending, too, so you couldn't just save public parts of the wallet on the server.

The only thing that could be done would be obfuscating the encryption key to the data very hard in the code, but that's hardly a security, just obscurity.

Re: Compromised Linode, thousands of BitCoins stolen

#240
post #235

How many times does something like this have to happen before people learn to encrypt? Any serious business or financial data should be encrypted, period. Almost all of the major hacks we read about could have been minimized if not entirely avoided if the data was encrypted. I just read the release from Bitcoinica where they explained that the server accessed contained _only_ Bitcoinica's "hot wallet", and that no co…

>If this was the case, why couldn't every access to that wallet, which, assuming the above is true, necessarily occurs on other servers From the sounds of it, this was that other server. All it did was operate on the wallet. And if they used other servers, then those would have been the target of the attack. And, no matter how much damn encryption they have, they rooted the box that operates on the decrypted data, th…

My reading was that the Linode with the hot wallet did not contain the software that operated on it. Perhaps it did, in which case you are right.
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