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http://www.informationweek.com/news/showArticle.jhtml?articleID=206800800



By J. Nicholas Hoover

InformationWeek

February 20, 2008



Security researchers presenting Wednesday at the Black Hat D.C.

conference in Washington, D.C., demonstrated technology in development

that they say will be able to greatly decrease the time and money

required to decrypt, and therefore snoop on, phone and text message

conversations taking place on GSM networks.



Many mobile operators worldwide use GSM networks, including T-Mobile and

AT&T (NYSE: T) in the United States. The 64-bit encryption method used

by GSM, known as A5/1, was first cracked in theory about 10 years ago,

and researchers David Hulton and Steve, who declined to give his last

name, said today that expensive equipment to help people crack the

encryption has been available online for about 5 years.



Until now, however, it's been prohibitively expensive for people to get

their hands on this technology. If it works, the technology Hulton and

Steve are developing should be able to crack GSM encryption in less than

30 minutes with about $1,000 worth of equipment, or in about 30 seconds

with $100,000 worth of equipment. The technology could potentially be

helpful to law enforcement investigators, but could also be taken

advantage of by malicious hackers. Hulton says he plans to commercialize

the more expensive version of the technology.



Other hardware Hulton and Steve referenced uses two different techniques

to snoop on GSM calls and can cost between $70,000 and $1 million.

So-called "active" systems simulate a GSM base station and don't rely on

encryption because they trick phones into connecting to the GSM network

through them. Other, so-called "passive" systems snoop on the traffic

and are far more expensive.



Hulton and Steve's technology relies on the use of an array of devices

known as field programmable gate arrays to first create a table of all

the possible encryption keys -- in this case 288 quadrillion -- and then

decrypt each of those over the course of three months. The resulting

tables of keys could then be used by software to decrypt GSM

communications, which first have to be intercepted using a receiver that

can listen in on GSM frequencies.



During their talk, Hulton and Steve also discussed the vulnerabilities

of mobile device SIM cards, noting that GSM networks broadcast SIM

cards' unique IDs in unencrypted text, which can tell attackers or law

enforcement what kind of phone someone is using. The GSM network also

can tell snoopers how far a phone is from a base station, within 200

meters of error. They noted that SIM cards run Java Virtual Machines

that operators have access to, and suggested that it could be possible

for malicious attackers to install applications on user's phones without

them ever knowing, potentially rerouting traffic to a third party who

listens in to phone conversations.



The GSM Association, a trade group representing more than 700 GSM

operators, said it could not comment on the specific claims Hulton and

Steve are making. However, spokesman David Pringle said in an e-mailed

statement that while researchers have showed how A5/1 could be

compromised in theory, none of their academic papers have led to

"practical attack capability that can be used on live, commercial GSM

networks." He also noted that more advanced encryption is beginning to

be deployed for GSM networks and that other networks, including 3G

networks, don't use A5/1.





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