ClariNet story 970212.45 from NB / LON

German Hackers Show Off Quicken Cracking Software

Copyright 1997 by Newsbytes News Network / Wed, 12 Feb 1997 14:42:48 PST

HAMBURG, GERMANY, 1997 FEB 12 (NB) -- By Sylvia Dennis. Members of the Chaos Computer Club, the infamous hacking elite of Germany, caused German TV audiences to gasp last week when they demonstrated an ActiveX hacking program that allowed them to access copies of Quicken, the accounting software package from Intuit, and transfer money between bank accounts, without needing to enter the normal password security systems of Quicken.

The sinister aspect of Chaos' ActiveX package is that Quicken now allows interactive access to online banking services, to carry out automated transfers. In front of German TV audiences, the Chaos Computer Club apparently carried a number of transactions without any authorization whatsoever.

According to the Chaos Computer Club, the ActiveX program is now available for download by members of the club on the club's Web site. Once the package is downloaded from the site and executed, it scan's the users PCs for the presence of Quicken and extracts details of the user's bank accounts held within the package.

The ActiveX software then tricks Quicken into transferring funds from one bank account to another the next time a user logs on to an online banking service. The transactions are apparently masked from the user, who then thinks that only authorized transactions are being carried out.

Needless to say, the TV program caused a storm of protest in Germany over the weekend, with the media denouncing the Chaos Club as anti- establishment. The German computer media has seen the TV demonstration as showing how powerful ActiveX, a Microsoft developed extension to its Internet Explorer Web browser, really is.

According to Newsbytes' sources, the ActiveX program that the Chaos members have created, allows users to take advantage of the "accountability" system known as Authenticode that ActiveX uses.

Normally, Newsbytes notes, Authenticode allows a programming module of Internet Explorer to include a digital signature authenticating the transaction and the data channel itself. What the Chaos ActiveX program appears to do is to hack the Authenticode data stream and bypass the native controls in the Authenticode programming code itself.

Using this approach appears to allow the ActiveX program to bypass many of the security controls of Internet Explorer itself, which makes Chaos' program, if it does what the club members, all the more horrifying.

Microsoft Internet Explorer users should not worry too much about the security implications, as the German media quotes Microsoft Deutschland as confirming that it is working with its software developers to ensure that the security loopholes identified by the Chaos Computer Club are clearly understood by IE and ActiveX programmers.

(19970212/Reported By Newsbytes News Network: http://www.newsbytes.com)