ActiveX used as hacking tool
By Nick Wingfield
                     February 7, 1997, 5:15 p.m. PT 
                     The Chaos Computer Club, a band of hackers from Hamburg,
                     showed the real power of ActiveX last week. 
                     On German national television, they showed off an ActiveX
                     control that is able to snatch money from one bank account and
                     deposit it into another, all without the customary personal
                     identification number (PIN) that is meant to protect theft. 
                     Once it is downloaded from a Web site, the control scans a
                     user's computer for Intuit's (INTU) popular Quicken finance
                     software. The ActiveX control then tricks Quicken into
                     transferring funds from one bank account to another the next
                     time a user logs on to a banking service. 
                     The incident underscores something that Microsoft (MSFT), the
                     creator of ActiveX, and most computer security experts have
                     known for some time: Its programs are not secure. While Java
                     applets are prevented from performing certain tasks such as
                     erasing files from a user's hard disk, ActiveX controls--small
                     Internet programs that work mainly through the Internet
                     Explorer browser--are able to do virtually anything on a user's
                     computer that a programmer can dream up, including installing a
                     destructive virus. 
                     Instead of the "sandbox" model that cordons off Java applets,
                     Microsoft has created an "accountability" system, called
                     Authenticode, which allows software publishers to stamp their
                     controls with a digital signature. If a control does something bad
                     to a user's computer, the publisher can be tracked down and
                     prosecuted. In other words, the Authenticode system does not
                     protect against malicious code; it simply makes it easier to find
                     out who wrote it. 
                     But it's easy for users to unwittingly accept an unsigned
                     ActiveX control if they get lazy or frustrated by the Authenticode
                     warning window. The Chaos club's ActiveX control, for
                     example, is not signed. Once it is accepted by an Internet
                     Explorer user, the program is free to do its work. 
                     Microsoft officials said today that they are working to inform
                     users more about the capabilities, good and bad, of ActiveX.
                     Within the next two weeks, the company will kick off an
                     educational campaign that focuses on security issues. 
                     "What this incident tell us is you cannot take candy from
                     strangers," said Cornelius Willis, group product manager at
                     Microsoft. "The thing I'm hoping users get out of this is that
                     they should not be running any executable code that is
                     anonymous." 
                     To be sure, security risks are involved in using any program,
                     even if it comes off a retail store shelf. But security experts said
                     today that the combination of the Internet and sensitive
                     applications such as online banking can lead to a greater risk of
                     security breaches. 
                     "We're deploying stuff which has, on the one hand, tremendous
                     positive potential and, on the other, huge potential for malicious
                     exploitation," said Stephen Cobb, director of special projects at
                     National Computer Security Association consultancy. "All
                     computer technology has been like that to some extent. But what
                     is different in this context is there is this huge push to deploy
                     online banking and commerce." 
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