There's a big debate going on the US and Canada about who is going to pay for Internet wire tapping. In case you hadn't been keeping up, Internet wire-tapping *is* coming. The inevitability of it is underscored by the last ditched efforts of the ISPs to refer to older Supreme Court rulings that the cost should be picked up by those requiring the wire tap. I.e., it's established in US law that the cops should pay for each wiretap .
I got twigged to a new issue by an article  that said:
"To make wiretapping possible, Internet phone companies have to buy equipment and software as well as hire technicians, or contract with VeriSign or one of its competitors. The costs could run into the millions of dollars, depending on the size of the Internet phone company and the number of government requests."
What caught me by surprise was the mention of Verisign. So I looked, and it seems they *are indeed* in the business of subpoena compliance . I know most won't believe me, given their public image as a trusted ecommerce player, so here's the full page:
NetDiscovery Service for CALEA Compliance
Complete Lawful Intercept Service
VeriSigns NetDiscovery service provides telecom network operators, cable operators, and Internet service providers with a streamlined service to help meet requirements for assisting government agencies with lawful interception and subpoena requests for subscriber records. Net Discovery is the premier turnkey service for provisioning, access, delivery, and collection of call information from operators to law enforcement agencies (LEAs).
Reduce Operating Expenses
Compliance also requires companies to maintain extensive records and respond to government requests for information. The NetDiscovery service converts content into required formats and delivers the data directly to LEA facilities. Streamlined administrative services handle the provisioning of lawful interception services and manage system upgrades.
One Connection to LEAs
Compliance may require substantial capital investment in network elements and security to support multiple intercepts and numerous law enforcement agencies (LEAs). One connection to VeriSign provides provisioning, access, and delivery of call information from carriers to LEAs.
Industry Expertise for Continued Compliance
VeriSign works with government agencies and LEAs to stay up-to-date with applicable requirements. NetDiscovery customers benefit from quick implementation and consistent compliance through a single provider.
CALEA is the name of the bill that mandates law enforcement agency (LEA) access to telcos - each access should carry a cost. The cops don't want to pay for it, and neither do the suppliers. Not to mention, nobody really wants to do this. So in steps VeriSign with a managed service to handle wiretaps, eavesdropping, and other compliance tasks as directed under subpoena. On first blush, very convenient!
Here's where the reality meter goes into overdrive. VeriSign is also the company that sells about half of the net's SSL certificates for "secure ecommerce ." These SSL certificates are what presumptively protect connections between consumers and merchants. It is claimed that a certificate that is signed by a certificate authority (CA) can protect against the man-in-the-middle (MITM) attack and also domain name spoofing. In security reality, this is arguable - they haven't done much of a job against phishing so far, and their protection against some other MITMs is somewhere between academic and theoretical .
A further irony is that VeriSign also runs the domain name system for the .com and the .net domains. So, indeed, they do have a hand in the business of domain name spoofing; the trivial ease of mounting this attack has in many ways influenced the net's security architecture by raising domain spoofing to something that has to be protected against . But so far nothing much serious has come of that .
But getting back to the topic of the MITM protection afforded by those expensive VeriSign certificates. The point here is that, on the one hand, VeriSign is offering protection from snooping, and on the other hand, is offering to facilitate the process of snooping.
The fox guarding the chicken coop?
Nobody can argue the synergies that come from the engineering aspects of such a mix: we engineers have to know how to attack it in order to defend it. This is partly the origin of the term "hacker," being one who has to crack into machines ... so he can learn to defend.
But there are no such synergies in governance, nor I fear in marketing. Can you say "conflict of interest?" What is one to make of a company that on the one hand offers you a "trustworthy" protection against attack, and on the other hand offers a service to a most likely attacker ?
Marketing types, SSL security apologists and other friends of VeriSign will all leap to their defence here and say that no such is possible. Or even if it was, there are safeguards. Hold on to that thought for a moment, and let's walk through it.
How to MITM the CA-signed Cert, in one easy lesson
Discussions on the cryptography list recently brought up the rather stunning observation that the Certificate Authority (CA) can always issue a forged certificate and there is no way to stop this. Most attack models on the CA had assumed an external threat; few consider the insider threat. And fair enough, why would the CA want to issue a bogus cert?
In fact the whole point of the PKI exercise was that the CA is trusted. All of the assumptions within secure browsing point at needing a trusted third party to intermediate between two participants (consumer and merchant), so the CA was designed by definition to be that trusted party.
Until we get to VeriSign's compliance division that is. Here, VeriSign's role is to facilitate the "provisioning of lawful interception services" with its customers, ISPs amongst them . Such services might be invoked from a subpoena to listen to the traffic of some poor Alice, even if said traffic is encrypted.
Now, we know that VeriSign can issue a certificate for any one of their customers. So if Alice is protected by a VeriSign cert, it is an easy technical matter for VeriSign, pursuant to subpoena or other court order, to issue a new cert that allows them to man-in-the-middle the naive and trusting Alice .
It gets better, or worse, depending on your point of view. Due to a bug in the PKI (the public key infrastructure based on x.509 keys that manages keys for SSL), all CAs are equally trusted. That is, there is no firewall between one certificate authority and another, so VeriSign can issue a cert to MITM *any* other CA-issued cert, and every browser will accept it without saying boo .
Technically, VeriSign has the skills, they have the root certificate and now they are in the right place. MITM never got any easier . Conceivably, under orders from the court Verisign would now be willing to conduct an MITM against its own customers and its own certs, in every place that it has a contract for LEA compliance.
Governance? What Governance?
All that remains is the question of whether VeriSign would do such a thing. The answer is almost certainly yes: Normally, one would say that the user's contract, the code of practice, and the WebTrust audit would prevent such a thing. After all, that was the point of all the governance and contracts and signing laws that VeriSign wrote back in the mid 90s - to make the CA into a trusted third party.
But, a court order trumps all that. Judges strike down contract clauses, and in the English common law and the UCC, which is presumably what VeriSign uses, a judge can strike out clauses in the law or even write an entire law down.
Further, the normal way to protect against over zealous insiders or conflicts of interests is to split the parties: one company issues the certs, and another breaches them. Clearly, the first company works for its clients and has a vested interest in protecting the clients. Such a CA will go to the judge and argue against a cert being breached, if it wants to keep selling its wares .
Yet, in VeriSign's case, it's also the agent for the ISP / telco - and they are the ones who get it in the neck. They are paying a darn sight more money to VeriSign to make this subpoena thing go away than ever Alice paid for her cert. So it comes down to "big ISP compliance contract" versus "one tiny little cert for a dirtbag who's probably a terrorist."
The subpoena wins all ways, well assisted by economics. If the company is so ordered, it will comply, because it is its stated goal and mission to comply, and it's paid more to comply than to not comply.
All that's left, then, is to trust in the fairness of the American juridical system. Surely such a fight of conscience would be publically viewed in the courts? Nope. All parties except the victim are agreed on the need to keep the interception secret. VeriSign is protected in its conflict of interest by the judge's order of silence on the parties. And if you've been following the news about PATRIOT 1,2, National Security Letters, watchlists, no-fly lists, suspension of habeus corpus, the Plame affair, the JTTF's political investigations and all the rest, you'll agree there isn't much hope there.
What's are we to do about it?
Then, what's VeriSign doing issuing certs? What's it doing claiming that users can trust it? And more apropos, do we care?
It's pretty clear that all three of the functions mentioned today are real functions in the Internet market place. They will continue, regardless of our personal distaste. It's just as clear that a world of Internet wire-tapping is a reality.
The real conflict of interest here is in a seller of certs also being a prime contractor for easy breachings of certs. As its the same company, and as both functions are free market functions, this is strictly an issue for the market to resolve. If conflict of interest means anything to you, and you require your certs to be issued by a party you can trust, then buy from a supplier that doesn't also work with LEAs under contract.
At least then, when the subpoena hits, your cert signer will be working for you, and you alone, and may help by fighting the subpoena. That's what is meant by "conflict of interest."
I certainly wouldn't recommend that we cry for the government to fix this. If you look at the history of these players, you can make a pretty fair case that government intervention is what got us here in the first place. So, no rulings from the Department of Commerce or the FCC, please, no antitrust law suits, and definitely no Star Chamber hearings!
Yet, there are things that can be done. One thing falls under the rubric of regulation: ICANN controls the top level domain names, including .net and .com which are currently contracted to VeriSign. At least, ICANN claims titular control, and it fights against VeriSign, the Department of Commerce, various other big players, and a squillion lobbyists in exercising that control .
It would seem that if conflict of interest counts for anything, removing the root server contracts from VeriSign would indicate displeasure at such a breach of confidence. Technically, this makes sense: since when did we expect DNS to be anything but a straight forward service to convert domain names into numbers? The notion that the company now has a vested interest in engaging in DNS spoofing raises a can of worms that I suspect even ICANN didn't expect. Being paid to spoof doesn't seem like it would be on the list of suitable synergies for a manager of root servers.
Alternatively, VeriSign could voluntarily divest one or other of the snooping / anti-snooping businesses. The anti-snooping business would be then a potential choice to run the DNS roots, reflecting their natural alignments of interest.
 This makes only sense. If the cops didn't pay, they'd have no brake on their activity, and they would abuse the privilege extended by the law and the courts.
 Ken Belson, Wiretapping on the Net: Who pays? New York Times, http://www.iht.com/articles/535224.htm
 Check the great statistics over at SecuritySpace.com.
 In brief, I know of these MITMs: phishing, click-thru-syndrome, CA-substitution. The last has never been exploited, to my knowledge, as most attacks bypass certificates, and attack the secure browsing system at the browser without presenting an SSL certificate.
 , D. Atkins, R. Austein, Threat Analysis of the Domain Name System (DNS), RFC 3833.
 There was the famous demonstration by some guy trying to get into the DNS business.
 Most likely? 'fraid so. The MITM is extraordinarily rare - so rare that it is unmeasurable and to all practical intents and purposes, not a practical threat. But, as we shall see, this raises the prospects of a real threat.
 VeriSign, op cit.
 I'm skipping here the details of who Alice is, etc as they are not relevent. For the sake of the exercise, consider a secure web mail interface that is hosted in another country.
 Is the all-CAs-are-equal bug written up anywhere?
 There is an important point which I'm skipping here, that the MITM is way too hard under ordinary Internet circumstances to be a threat. For more on that, see Who's afraid of Mallory Wolf?.
 This is what is happening in the cases of RIAA versus the ISPs.
 Just this week: VeriSign to fight on after ICANN suit dismissed
U.S. Federal District Court Dismisses VeriSign's Anti-Trust Claim Against ICANN with Prejudice and the Ruling from the Court.
Today: VeriSign suing ICANN again