BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Investments - Private
- Features/Scandals
- Companies
- Technology/Internet
- Rules & Regulations
- Crimes
- Investments
- Bad Advisors
- Boiler Rooms
- Hirings/Transitions
- Terminations/Cost Cutting
- Regulators
- Wall Street News
- General News
- Donald Trump & Co.
- Lawsuits/Arbitrations
- Regulatory Sanctions
- Big Banks
- People
TRENDING TAGS
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
ABOUT FINANCIALISH
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
SUBSCRIBE FOR
NEWSLETTERS & ALERTS
ALERT: Online Encryption Method Found to be Flawed
February 15, 2012
[ by Melanie Gretchen ]
An encryption system used worldwide for banking, e-mail, online shopping and other Internet services has flaws, a team of European and American researchers report. The unexpected weakness has produced a small but significant number of cases in which the encryption employing random number generation failed to work.
How the System Works. A system user first creates and publishes the product of 2 large prime numbers, in addition to another number, to generate a public number that serves as a "key." For the system to provide security, the original numbers are kept secret.
To encrypt a message, a second person employs a formula that contains the public number. The system was set up so that only someone with knowledge of the original prime numbers can decode that message.
System Breach. In a report submitted for publication, the researchers noted that they had examined 7.1 million public keys used to secure e-mail messages, online banking transactions and other secure data exchanges. From that population, they “stumbled upon” almost 27,000 different keys that offer no security - i.e., “Their secret keys are accessible to anyone who takes the trouble to redo our work."
For the system to provide security, it is essential that secret prime numbers be generated randomly, and that failed to happen in a small but significant number of cases.
Even though the impact affected a relatively small impact percentage of users and transactions, researchers said it cannot be overstated how important it is to ensure that encryption systems do not have undetected flaws. The modern world’s online commerce system rests entirely on the secrecy afforded by the public key cryptographic infrastructure.
Potential Danger, Corrective Steps Needed. The potential danger of knowing that a flaw can exist will reduce overall confidence in the security of Web transactions - regardless of the number of users who were affected. The flaws can affect the transactions of any individual Internet users, yet there is nothing an individual can do about it. Operators of large Web sites will need to make changes to ensure the security of their systems, the researchers said.
For those whose information has already been breached, we commisserate - simply chalk it up to the cost of progress in the 21st century.
For more details, go to [NYTimes, 2/15/12].

