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From the AEGIS e-Journal, Volume 8 Number 6, June 2005

Brute Force: Cracking the Data Encryption Standard Matt Curtin Springer-Verlag ISBN: 0-387-20109-2 280 pages $25.00 http://www.springeronline.com/sgw/cda/frontpage/0,11855,4-102-22- 45347046-0,00.html 1-212-460-1500 For roughly twenty years, DES was the standard for encryption. It was felt by cryptographers that this 56-bit system was, in theory, too easy to crack. Of course, there is a difference between theory and practice, and when DES was put into place a supercomputer would have been needed. With the passage of time, however, computers became more and more powerful, and, with the arrival of the Internet, it became possible to coordinate the distribution of workload where the solution to a problem involves the same program run many times with different data. That is to say, if a solution requires the same program to be run 10,000 times, it can be run 10,000 times on one machine, a thousand times on ten machines, and ten times on a thousand machines. Brute Force describes the breaking of an unbreakable DES encrypted message by a cooperative effort among many users, on tens of thousands of machines. The book is well-written and interesting, but is useful in a larger sense in at least two other areas. First, it gives the reader some idea of how encryption works, why it is important, and why strong encryption should be readily available. It also makes clear why encryption algorithms should not be “secret.” And it explains why it is better to have good encryption than to prevent it from being widely available. Second, it gives the reader some idea of how powerful distributed processing can be. As a non-encryption-related example, we know of an investment bank whose yearly pricing model in the SWAPS and derivatives department took over six months to run. Actually, it was, in fact, habitually interrupted about then, and never ran to completion. By, er, acquiring the user IDs and passwords of every UNIX workstation on the system, the pricing model was made to run over a weekend, allowing it to be run weekly, not yearly, which in turn gave a competitive advantage. Since encryption is such an important topic these days, this book provides some interesting background, an interesting story, and a lot of good food for thought, even for those not interested in encryption per se. ÆGIS, June 2005 10 7. Subscription/Unsubscription/Copyright Information •• ÆGIS is supported and maintained by voluntary efforts. This publication is owned, published, and copyright © 2005 by The LUBRINCO Group Ltd, Inc. and Financial Examinations and Evaluations, Inc. It is edited jointly by Richard Isaacs (RBIsaacs@lubrinco.com) and L. Burke Files (LBFiles@feeinc.com). LUBRINCO provides services in three high-threat areas, too specialized to be dealt-with in-house, that can adversely affect domestic and international bottom lines. • Sarbanes-Oxley Section 404 OPSEC compliance. 1. American businesses lose $300 billion annually to competitive intelligence, economic espionage, and information theft. 2. Sarbanes-Oxley requires internal controls tracking the costs, and impact on valuation, of competitive intelligence, economic espionage, and information theft. o LUBRINCO provides private sector access to OPSEC, the government-standard process for identification, valuation, and protection of intellectual property and critical information from competitive intelligence, economic espionage, and information theft. • International asset location and due diligence. o Location of concealed assets in fraud, theft, and divorce. o Due diligence to prevent fraud and loss in China, Central and Eastern Europe, Central Asia, the offshore financial centers, Latin America, the Caribbean. o Financial fraud and anti-money laundering program development and training for compliance with the US International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 and the EU Revised Money Laundering Directive of 2001. • Protection of management, staff, and families. o In the high-threat environments of Latin America, Africa, the Mid- East, and Southeast Asia. o When traveling and living overseas. o When transporting items of substantial value. LUBRINCO identifies and quantifies threats and vulnerabilities, and their associated risk, then manages the vulnerabilities so you can transfer or live ÆGIS, June 2005 11 with the residual risk. We prevent disastrous financial loss to your company, and physical harm to you, your family, and your staff. For information on LUBRINCO and its services, or for the archive of all past issues of ÆGIS in PDF format, please go to http://www.lubrinco.com/. Subscription to ÆGIS is available for $15 per year in North America and $20 per year outside of North America. To sign up for a complimentary subscription to ÆGIS or the ÆGIS PDF notification list, go to http://lb.bcentral.com/ex/manage/subscriberprefs?customerid=7768 or send an email to aegis@lubrinco.com. To subscribe to our AvantGo channel, go to http://avantgo.com/channels/_add_channel.pl?cha_id=1773 To be removed from the subscription list, follow the instructions on the mailing you received, or send an e-mail to aegis@lubrinco.com. If you know of anyone else who should be receiving ÆGIS, please send their e-mail address to aegis@lubrinco.com. If there is a topic that you would like to know more about, send it to aegis@lubrinco.com and the editors will consider it as the topic for an article in an upcoming issue. If you would like to submit an article for publication in ÆGIS, send it as an attachment to an e-mail to aegis@lubrinco.com. Submission of an article certifies that (a) all information in the article is in the public record, or (b) that you are authorized to release any personal or corporate proprietary information contained in the article, and (c) that none of the article has previously been copyrighted. The submission of materials for publication in ÆGIS constitutes a license to LUBRINCO, and/or Financial Examinations and Evaluations, Inc, their assigns, associates, or affiliates, to abridge and/or edit said submission, and to copyright and publish/republish any submitted materials in whatever written and/or electronic form they may choose. If you would like to go beyond normal fair-use in reproducing articles from this issue of ÆGIS, you may do so freely as long as appropriate source, copyright, accreditation, and link to the LUBRINCO Web site is included. This should be in the form

Article Title, from the June 2005 ÆGIS (© 2005 LUBRINCO & FEE), to be found at http://www.lubrinco.com/. ÆGIS, June 2005 12 ÆGIS is a forum for the exchange of information, ideas, operating styles, theories, and related topics for corporate managers who make decisions about threats typically outside the expertise available in-house, yet which have the potential to affect their company’s domestic and international bottom lines. Nothing appearing in ÆGIS should be construed as legal advice. The information provided is “general information,” not “specific advice.” The solution to any problem is highly dependent upon the precise facts involved. Thus, before making any reliance upon anything said here, you should consult with an appropriately skilled professional. Opinions expressed by contributors are not necessarily endorsed by the publisher, and may be presented to encourage a dialogue among subscribers. The publisher and any re-publisher cannot be held responsible for any loss incurred as a result of the application of any information published in ÆGIS. Please be safe, and be smart.

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