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2.3.5 CEO crimes

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Companies attack each other, and their customers too. From the 1990s, printer vendors have used cryptography to lock their customers in to using proprietary ink cartridges, as I describe in section 24.6, while companies selling refills have been breaking the crypto. Games console makers have been playing exactly the same game with aftermarket vendors. The use of cryptography for accessory control is now pervasive, being found even on water filter cartridges in fridges [1073]. Many customers find this annoying and try to circumvent the controls. The US courts decided in the Lexmark v SCC case that this was fine: the printer vendor Lexmark sued SCC, a company that sold clones of its security chips to independent ink vendors, but lost. So the incumbent can now hire the best cryptographers they can find to lock their products, while the challenger can hire the best cryptanalysts they can find to unlock them – and customers can hack them any way they can. Here, the conflict is legal and open. As with state actors, corporates sometimes assemble teams with multiple PhDs, millions of dollars in funding, and capital assets such as electron microscopes13. We discuss this in greater detail later in section 24.6.

Not all corporate attacks are conducted as openly. Perhaps the best-known covert hack was by Volkswagen on the EU and US emissions testing schemes; diesel engines sold in cars were programmed to run cleanly if they detected the standard emission test conditions, and efficiently otherwise. For this, the CEO of VW was fired and indicted in the USA (to which Germany won't extradite him), while the CEO of Audi was fired and jailed in Germany [1086]. VW has set aside €25bn to cover criminal and civil fines and compensation. Other carmakers were cheating too; Daimler was fined €860m in Europe in 2019 [1468], and in 2020 reached a US settlement consisting of a fine of $1.5bn from four government agencies plus a class action of $700m [1859]. Settlements for other manufacturers and other countries are in the pipeline.

Sometimes products are designed to break whole classes of protection system, an example being the overlay SIM cards described later in Chapter 12. These are SIM cards with two sides and only 160 microns thick, which you stick on top of the SIM card in your phone to provide a second root of trust; they were designed to enable people in China to defeat the high roaming charges of the early 2010s. The overlay SIM essentially does a man-in-the-middle attack on the real SIM, and can be programmed in Javacard. A side-effect is that such SIMs make it really easy to do some types of bank fraud.

So when putting together the threat model for your system, stop and think what capable motivated opponents you might have among your competitors, or among firms competing with suppliers on which products you depend. The obvious attacks include industrial espionage, but nowadays it's much more complex than that.

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