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Rainer Böhme

Publications and source records attributed to Rainer Böhme.

At least 19 recordsLinked to original sources

Systematization of Knowledge: The Design Space of Digital Payment Systems with Potential for CBDC

Central Bank Digital Currencies (CBDCs) are proposed as a public response to the uptake of privately run digital payments, with the digital euro, under development by the European Central Bank (ECB), serving as a prominent example. This momentum provides a unique opportunity to fundamentally rethink the future of money, and, assuming wide adoption, to establish payment systems that offer strong cryptographic security and privacy guarantees from the start. While the central banks in charge are investigating privacy-enhancing technologies (PETs), they often conclude that PETs are immature or insufficiently scalable. Moreover, these efforts tend to examine primitives in isolation, offering little insight into how a system using these PETs would scale. This systematisation of knowledge, therefore, provides a structured, top-down technical analysis of 36 payment system designs of complete system proposals that can inform CBDC designs or were explicitly proposed for this application. We identify recurring design patterns, technical trade-offs, and implementation challenges. Concluding, we highlight research gaps, including offline payments and post-quantum security.

cs.CR

A Taxonomy of Miscompressions: Preparing Image Forensics for Neural Compression

Neural compression has the potential to revolutionize lossy image compression. Based on generative models, recent schemes achieve unprecedented compression rates at high perceptual quality but compromise semantic fidelity. Details of decompressed images may appear optically flawless but semantically different from the originals, making compression errors difficult or impossible to detect. We explore the problem space and propose a provisional taxonomy of miscompressions. It defines three types of 'what happens' and has a binary 'high impact' flag indicating miscompressions that alter symbols. We discuss how the taxonomy can facilitate risk communication and research into mitigations.

cs.CR

Landscape More Secure Than Portrait? Zooming Into the Directionality of Digital Images With Security Implications

The orientation in which a source image is captured can affect the resulting security in downstream applications. One reason for this is that many state-of-the-art methods in media security assume that image statistics are similar in the horizontal and vertical directions, allowing them to reduce the number of features (or trainable weights) by merging coefficients. We show that this artificial symmetrization tends to suppress important properties of natural images and common processing operations, causing a loss of performance. We also observe the opposite problem, where unaddressed directionality causes learning-based methods to overfit to a single orientation. These are vulnerable to manipulation if an adversary chooses inputs with the less common orientation. This paper takes a comprehensive approach, identifies and systematizes causes of directionality at several stages of a typical acquisition pipeline, measures their effect, and demonstrates for three selected security applications (steganalysis, forensic source identification, and the detection of synthetic images) how the performance of state-of-the-art methods can be improved by properly accounting for directionality.

cs.CR

Strategic Vote Timing in Online Elections With Public Tallies

We study the effect of public tallies on online elections, in a setting where voting is costly and voters are allowed to strategically time their votes. The strategic importance of choosing \emph{when} to vote arises when votes are public, such as in online event scheduling polls (e.g., Doodle), or in blockchain governance mechanisms. In particular, there is a tension between voting early to influence future votes and waiting to observe interim results and avoid voting costs if the outcome has already been decided. Our study draws on empirical findings showing that "temporal" bandwagon effects occur when interim results are revealed to the electorate: late voters are more likely to vote for leading candidates. To capture this phenomenon, we analyze a novel model where the electorate consists of informed voters who have a preferred candidate, and uninformed swing voters who can be swayed according to the interim outcome at the time of voting. In our main results, we prove the existence of equilibria where both early and late voting occur with a positive probability, and we characterize conditions that lead to the appearance of "last minute" voting behavior, where all informed voters vote late.

cs.GT

Anatomy of a High-Profile Data Breach: Dissecting the Aftermath of a Crypto-Wallet Case

Media reports show an alarming increase of data breaches at providers of cybersecurity products and services. Since the exposed records may reveal security-relevant data, such incidents cause undue burden and create the risk of re-victimization to individuals whose personal data gets exposed. In pursuit of examining a broad spectrum of the downstream effects on victims, we surveyed 104 persons who purchased specialized devices for the secure storage of crypto-assets and later fell victim to a breach of customer data. Our case study reveals common nuisances (i.e., spam, scams, phishing e-mails) as well as previously unseen attack vectors (e.g., involving tampered devices), which are possibly tied to the breach. A few victims report losses of digital assets as a form of the harm. We find that our participants exhibit heightened safety concerns, appear skeptical about litigation efforts, and demonstrate the ability to differentiate between the quality of the security product and the circumstances of the breach. We derive implications for the cybersecurity industry at large, and point out methodological challenges in data breach research.

cs.CR

Parallel Proof-of-Work with Concrete Bounds

Authorization is challenging in distributed systems that cannot rely on the identification of nodes. Proof-of-work offers an alternative gate-keeping mechanism, but its probabilistic nature is incompatible with conventional security definitions. Recent related work establishes concrete bounds for the failure probability of Bitcoin's sequential proof-of-work mechanism. We propose a family of state replication protocols using parallel proof-of-work. Our bottom-up design from an agreement sub-protocol allows us to give concrete bounds for the failure probability in adversarial synchronous networks. After the typical interval of 10 minutes, parallel proof-of-work offers two orders of magnitude more security than sequential proof-of-work. This means that state updates can be sufficiently secure to support commits after one block (i.e., after 10 minutes), removing the risk of double-spending in many applications. We offer guidance on the optimal choice of parameters for a wide range of network and attacker assumptions. Simulations show that the proposed construction is robust against violations of design assumptions.

cs.CR

More Real than Real: A Study on Human Visual Perception of Synthetic Faces

Deep fakes became extremely popular in the last years, also thanks to their increasing realism. Therefore, there is the need to measures human's ability to distinguish between real and synthetic face images when confronted with cutting-edge creation technologies. We describe the design and results of a perceptual experiment we have conducted, where a wide and diverse group of volunteers has been exposed to synthetic face images produced by state-of-the-art Generative Adversarial Networks (namely, PG-GAN, StyleGAN, StyleGAN2). The experiment outcomes reveal how strongly we should call into question our human ability to discriminate real faces from synthetic ones generated through modern AI.

cs.CV

Conflicting Privacy Preference Signals in the Wild

Privacy preference signals allow users to express preferences over how their personal data is processed. These signals become important in determining privacy outcomes when they reference an enforceable legal basis, as is the case with recent signals such as the Global Privacy Control and the Transparency & Consent Framework. However, the coexistence of multiple privacy preference signals creates ambiguity as users may transmit more than one signal. This paper collects evidence about ambiguity flowing from the aforementioned two signals and the historic Do Not Track signal. We provide the first empirical evidence that ambiguous signals are sent by web users in the wild. We also show that preferences stored in the browser are reliable predictors of privacy preferences expressed in web dialogs. Finally, we provide the first evidence that popular cookie dialogs are blocked by the majority of users who adopted the Do Not Track and Global Privacy Control standards. These empirical results inform forthcoming legal debates about how to interpret privacy preference signals.

cs.HC

Who are the arbitrageurs? Empirical evidence from Bitcoin traders in the Mt. Gox exchange platform

We mine the leaked history of trades on Mt. Gox, the dominant Bitcoin exchange from 2011 to early 2014, to detect the triangular arbitrage activity conducted within the platform. The availability of user identifiers per trade allows us to focus on the historical record of 440 investors, detected as arbitrageurs, and consequently to describe their trading behavior. We begin by showing that a considerable difference appears between arbitrageurs when indicators of their expertise are taken into account. In particular, we distinguish between those who conducted arbitrage in a single or in multiple markets: using this element as a proxy for trade ability, we find that arbitrage actions performed by expert users are on average non-profitable when transaction costs are accounted for, while skilled investors conduct arbitrage at a positive and statistically significant premium. Next, we show that specific trading strategies, such as splitting orders or conducting arbitrage non aggressively, are further indicators of expertise that increase the profitability of arbitrage. Most importantly, we exploit within-user (across hours and markets) variation and document that expert users make profits on arbitrage by reacting quickly to plausible exogenous variations on the official exchange rates. We present further evidence that such differences are chiefly due to a better ability of the latter in incorporating information, both on the transactions costs and on the exchange rates volatility, eventually resulting in a better timing choice at small time scale intervals. Our results support the hypothesis that arbitrageurs are few and sophisticated users.

q-fin.GN

Privacy Preference Signals: Past, Present and Future

Privacy preference signals are digital representations of how users want their personal data to be processed. Such signals must be adopted by both the sender (users) and intended recipients (data processors). Adoption represents a coordination problem that remains unsolved despite efforts dating back to the 1990s. Browsers implemented standards like the Platform for Privacy Preferences (P3P) and Do Not Track (DNT), but vendors profiting from personal data faced few incentives to receive and respect the expressed wishes of data subjects. In the wake of recent privacy laws, a coalition of AdTech firms published the Transparency and Consent Framework (TCF), which defines an opt-in consent signal. This paper integrates post-GDPR developments into the wider history of privacy preference signals. Our main contribution is a high-frequency longitudinal study describing how TCF signal gained dominance as of February 2021. We explore which factors correlate with adoption at the website level. Both the number of third parties on a website and the presence of Google Ads are associated with higher adoption of TCF. Further, we show that vendors acted as early adopters of TCF 2.0 and provide two case-studies describing how Consent Management Providers shifted existing customers to TCF 2.0. We sketch ways forward for a pro-privacy signal.

cs.HC

iNNformant: Boundary Samples as Telltale Watermarks

Boundary samples are special inputs to artificial neural networks crafted to identify the execution environment used for inference by the resulting output label. The paper presents and evaluates algorithms to generate transparent boundary samples. Transparency refers to a small perceptual distortion of the host signal (i.e., a natural input sample). For two established image classifiers, ResNet on FMNIST and CIFAR10, we show that it is possible to generate sets of boundary samples which can identify any of four tested microarchitectures. These sets can be built to not contain any sample with a worse peak signal-to-noise ratio than 70dB. We analyze the relationship between search complexity and resulting transparency.

cs.LG

Collaborative Deanonymization

Privacy-seeking cryptocurrency users rely on anonymization techniques like CoinJoin and ring transactions. By using such technologies benign users potentially provide anonymity to bad actors. We propose overlay protocols to resolve the tension between anonymity and accountability in a peer-to-peer manner. Cryptocurrencies can adopt this approach to enable prosecution of publicly recognized crimes. We illustrate how the protocols could apply to Monero rings and CoinJoin transactions in Bitcoin.

cs.CR

Forensicability of Deep Neural Network Inference Pipelines

We propose methods to infer properties of the execution environment of machine learning pipelines by tracing characteristic numerical deviations in observable outputs. Results from a series of proof-of-concept experiments obtained on local and cloud-hosted machines give rise to possible forensic applications, such as the identification of the hardware platform used to produce deep neural network predictions. Finally, we introduce boundary samples that amplify the numerical deviations in order to distinguish machines by their predicted label only.

cs.LG

Pricing Security in Proof-of-Work Systems

A key component of security in decentralized blockchains is proof of opportunity cost among block producers. In the case of proof-of-work (PoW), currently used by the most prominent systems, the cost is due to spent computation. In this paper, we characterize the security investment of miners in terms of its cost in fiat money. This enables comparison of security allocations across PoW blockchains that generally use different PoW algorithms and reward miners in different cryptocurrency units. We prove that there exists a unique allocation equilibrium, depending on market prices only, that is achieved by both strategic miners (who contemplate the actions of others) and by miners seeking only short-term profit. In fact, the latter will unknowingly compensate for any attempt to deliberately shift security allocation away from equilibrium. Our conclusions are supported analytically through the development of a Markov decision process, game theoretical analysis, and derivation of no arbitrage conditions. We corroborate those results with empirical evidence from more than two years of blockchain and price data. Overall agreement is strong. We show that between January 1, 2018 and August 1, 2020, market prices predicted security allocation between Bitcoin and Bitcoin Cash with error less than 0.6%. And from the beginning of October 2019, until August 1, 2020, market prices predicted security allocation between Bitcoin and Litecoin with error of 0.45%. These results are further corroborated by our establishment of Granger-causality between change in market prices and change in security allocation. To demonstrate the practicality of our results, we describe a trustless oracle that leverages the equilibrium to estimate the price ratios of PoW cryptocurrencies from on-chain information only.

cs.CR

Multiple Purposes, Multiple Problems: A User Study of Consent Dialogs after GDPR

The European Union's General Data Protection Regulation (GDPR) requires websites to ask for consent to the use of cookies for \emph{specific purposes}. This enlarges the relevant design space for consent dialogs. Websites could try to maximize click-through rates and positive consent decision, even at the risk of users agreeing to more purposes than intended. We evaluate a practice observed on popular websites by conducting an experiment with one control and two treatment groups ($N=150$ university students in two countries). We hypothesize that users' consent decision is influenced by (1) the number of options, connecting to the theory of choice proliferation, and (2) the presence of a highlighted default button (``select all''), connecting to theories of social norms and deception in consumer research. The results show that participants who see a default button accept cookies for more purposes than the control group, while being less able to correctly recall their choice. After being reminded of their choice, they regret it more often and perceive the consent dialog as more deceptive than the control group. Whether users are presented one or three purposes has no significant effect on their decisions and perceptions. We discuss the results and outline policy implications.

cs.HC

HotPoW: Finality from Proof-of-Work Quorums

A fundamental conflict of many proof-of-work systems is that they want to achieve inclusiveness and security at the same time. We analyze and resolve this conflict with a theory of proof-of-work quorums, which enables a new bridge between Byzantine and Nakamoto consensus. The theory yields stochastic uniqueness of quorums as a function of a security parameter. We employ the theory in HotPoW, a scalable permissionless distributed log protocol that supports finality based on the pipelined three-phase commit previously presented for HotStuff. We evaluate HotPoW and variants with adversarial modifications by simulation. Results show that the protocol can tolerate network latency, churn, and targeted attacks on consistency and liveness with a small storage overhead compared to plain Nakamoto consensus and less complexity than protocols that rely on sidechains for finality.

cs.CR

Watching the Weak Link into Your Home: An Inspection and Monitoring Toolkit for TR-069

TR-069 is a standard for the remote management of end-user devices by service providers. Despite being implemented in nearly a billion devices, almost no research has been published on the security and privacy aspects of TR-069. The first contribution of this paper is a study of the TR-069 ecosystem and techniques to inspect TR-069 communication. We find that the majority of analyzed providers do not use recommended security measures, such as TLS. Second, we present a TR-069 honeyclient to both analyze TR-069 behavior of providers and test configuration servers for security vulnerabilities. We find that popular open-source configuration servers use insecure methods to authenticate clients. TR-069 implementations based on these servers expose, for instance, their users' internet telephony credentials. Third, we develop components for a distributed system to continuously monitor activities in providers' TR-069 deployments. Our setup consists of inexpensive hardware sensors deployed on customer premises and centralized log collectors. We perform real-world measurements and find that the purported security benefits of TR-069 are not realized as providers' firmware update processes are lacking.

cs.NI