Tag Archive for Apple

9 Techs That Could Replace Your Passwords

9 Techs That Could Replace Your PasswordsFollowers of the Bach Seat know that passwords suck. I have covered alternatives to the password as far back as 2010 and here and here. Now the Business Insider lists nine crazy alternatives to passwords. The article describes efforts around the globe to develop new gadgets and technology that can save you from the headache of memorizing (and inevitably forgetting) passwords.

BiometricsThe article calls out several ways to replace passwords to authenticate a user. Users can be authenticated based on a physical trait or biometrics. Biometrics is the measurement and statistical analysis of people’s physical and behavioral characteristics. Biometrics can offer one of the independent credentials required for multifactor authentication (MFA). MFA combines two or more independent credentials. What the user knows (password). What the user has (security token) and what the user is (biometric verification).

How to replace passwords

Selfies – This might be the password of choice for the Facebook (FB) generation. Companies like Amazon (AMZN) and Mastercard (MA) are already considering selfies. The technology would ask users to snap pictures of their faces on a smartphone before making a transaction. Mastercard’s technology would need a user to blink before their face is scanned. This is a safeguard to prevent hackers from simply placing a picture of someone else in front of the camera.

SelfiesEdible pills – Swallowing pills might be one of the few things more annoying than memorizing passwords. But some researchers think it’s the future. After mixing with stomach acids the pill would emit a unique, low power signal that connects with your PC. Google (GOOG) VP of Advanced Technology and Projects Regina Dugan described such a system a few years ago. According to Ms. Dugan, a person could safely ingest 30 pills every day for the rest of their lives.

Your gait – Going for a stroll might not sound like the most convenient way to log on to your computer. But the way you walk has some unique traits that could serve as a means of authentication. A wearable device, like a bracelet or anklet, could record your physical activity and use that information as a password the next time you need to log on. One study reportedly analyzed the foot pressure patterns and achieved a 99.6 percent accuracy rate. rb- I covered the now-defunct Alohar Mobile attempt to turn how you stroll into a password here.

Your earYour ear cavity – Has anyone ever told you your ear canal is one of a kind? NEC does. They are developing special earbuds, that bounce a sound into your ear’s cavity. They then use the reverberations as a signature to identify you. NEC hopes to have these available within a few years. Another study was able to achieve a 99.6% accuracy rate identifying individuals by analyzing how light reflects off the curves of the ears. rb- Back in 2014 I covered the Descartes Biometrics app that used the shape of your ear as a password.

Your backside – The shape and contours of your posterior are special. So special that some researchers in Japan have explored whether a seat mat could be used to identify you. The experimental mat is packed with special sensors that measure pressure distribution. The mat could be integrated into cars, to prevent unauthorized sitters from driving off with the vehicle.

TattoosTattoos – Google’s Regina Dugan showed off a sticker-like wearable tattoo on her arm a few years ago that she said could be used to unlock a phone or computer. The tattoo, which was only an experimental prototype, was made of flexible circuits and sensors, and could be worn for up to a week, she explained. No word on whether you can get the password tattoo in the design of a fire-breathing dragon.

Your Jewelry – Wearable gadgets like the Fitbit and Apple Watch can already track your sleep and the steps you take. The next step is to track the pattern of your pulse or heart rate, as the Nymi band does, and use that information to identify you. rb- I covered the Nymi earlier and we have seen that the iWatch and other wearables are not secure so how can they log you?

Your voiceYour voice – Nothing is easier than saying a few words, and even the best impersonator can’t perfectly mimic another person’s voice. That’s why one big bank in Britain recently set up technology to identify customers on the phone or online by the sound of their voice. And yes, the system will still work if you have a cold.

Implants – This one is only for hardcore security geeks. Believe it or not, some people have already experimented with embedding a small RFID chip under their skin. The chip emits a radio signal that can theoretically be used to do everything from unlocking the door to an office and starting a car, to logging on to email.

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The biggest problem with biometrics is getting people to use them. How many do you know would be willing to swallow a pill to log in to each of their websites? It is a voluntary decision to swallow pills to log in to Facebook, Instagram, or Google. What if your employer requires you to swallow pills to enter the building, login to Windows, your email, ERP, CRM, HR. What are the implications for privacy? Healthcare? Plumbing?

I wrote about the problems of adapting an eye-based biometric system back in 2012.

The end-user will be the fundamental roadblock to any eye-based biometrics. Traditionally, anything related to eye recognition has received strong resistance, because it is just human nature to be squeamish about having our eyes scanned.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Fake Fingerprints Can Open Your Phone

– Updated 03-30-2016 – The Business Insider proves that you can use Play-Doh to fool the fingerprint sensor in your Phone.

Fake Fingerprints Open GalaxyI have pointed out a number of times that biometrics will not be the complete final solution for passwords. Biometrics is the measurement and statistical analysis of people’s physical and behavioral characteristics. The technology is mainly used for identification and access control. The basic premise of biometric authentication is that everyone is unique. An individual can be identified by his or her intrinsic physical or behavioral traits.

Fake Fingerprints Can Open Your PhoneThere is a huge issue with biometrics.  You can’t change your intrinsic physical or behavioral traits if they get stolen or hacked. Well, now there is more proof that biometrics can be hacked without cutting off a finger.

Hack mobile phone authentication

Two smarty Sparty’s from Michigan State University’s biometrics group has figured out a way to hack mobile phone fingerprint authentication. According to Help Net Security, the MSU researchers can hack your secure phone by using just a scanner, a color inkjet printer, a special type of paper, and ink.

AgIC silver conductive ink cartridgesTurns out that the attack is easy to execute. The first step is to scan the target’s fingerprint image at 300 dpi or higher resolution. Then, the image is mirrored and the original or binarized fingerprint image is printed on the glossy side of an AgIC special paper. The printer uses AgIC silver conductive ink cartridges (along with normal black ink).

Magical conductive ink

CrunchBase explains that advances in material science have made it possible to manufacture almost magical conductive ink. AgIC silver conductive ink has tiny silver particles and can be purchased online. The ink is printed by standard Brother printers. The ink dries in a few seconds and conductivity emerges instantly when the traces are drawn on special photo inkjet printing paper also available online.

spoofed fingerprintAll in all, an attacker can have a spoofed fingerprint that would allow him to access a phone protected with fingerprint authentication in less than 15 minutes, and the cost of all the tools he needs to do this does not surpass $500.

Researchers Kai Cao and Anil Jain successfully managed to fool the fingerprint sensors on the Samsung (005930) Galaxy S6 and Huawei (002502) Hornor 7 phones.

They posted a demo of the attack on YouTube:

 

The attack is an improvement over Germany’s Chaos Computer Club’s attack against Apple (AAPL) Touch ID on iPhone 5S by lifting a fingerprint of the genuine user of a glass surface and then making a spoof fingerprint. More details about the Michigan State researchers’ work can be found here (PDF).

Only a matter of time

Starbucks app hackedThe Sparty researchers note that not all mobile phones can be hacked using this method. But their experiment is proof of the urgent need for anti-spoofing techniques for fingerprint recognition systems, especially for mobile devices which are being increasingly used as a part of two-factor authentication for site access and payment processing like Apple Pay, Google (GOOG) Pay, or Samsung Pay.

The researchers warn that it is only a matter of time before hackers develop improved hacking strategies not just for fingerprints, but other biometric traits that are being adopted for mobile phones (e.g., face, iris, and voice).

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Tablets are Doomed

Tablets are DoomedTechCrunch reports from Mobile World Congress in Barcelona that tablets are dead. Six years after the original iPad ushered in the post-pc era, there were no tablets at the premier mobile showcase. Companies and consumers have moved on.

iPadTo be fair, TechCrunch says that if you looked hard enough, you could find an Android tablet or two stashed away in a corner. And Apple (AAPL), the tablet leader, doesn’t come to MWC. They conclude that tablets are not the future for Samsung’s (005930) and LGs (LGLD) of the consumer electronics world.

In fact, the author reports that Samsung, Sony (SNE), HTC (2498) and LG didn’t have any new tablets to announce. They didn’t even mention tablets during their conferences. It’s not just that people don’t care about tablets anymore — the big electronics companies themselves aren’t even trying to release new products for this market anymore. The article lists a number of reasons why tablets have become so unpopular.

Tablets are now a commodity

tablets have become so unpopular

First, tablets are now a commodity. You can find dozens of perfectly fine tablets for less than $200. And there’s no differentiating factor between Android tablets. As a result, companies are not making a profit from them.

You already have a tablet

Second, chances are you already have a tablet at home and it’s working fine. So the author reports that there’s no reason why you should upgrade it — it probably runs Netflix, Facebook (FB) and the Kindle app. It has a browser and your emails. Long replacement cycles mean you don’t need to pay attention to the new and shiny tablets. The Business Insider also observes tablets are more like PCs — you buy a new one only when the old one is worn out or doesn’t run the software you need.

Phones are getting bigger

everybody uses their phones constantly to interact with other people and do everything they’d do on a tablet.Third, phones are getting bigger. The LG G5 (5.3-inch display) and Samsung Galaxy S7 (5.1-inch display) are the two most interesting flagship phones that were announced at MWC. The first Samsung Galaxy Note had a 5.3-inch display, which could be called a phablet. Today, it would be an average phone. According to TechCrunch, big phones are the new normal, and everybody uses their phones constantly to interact with other people and do everything they’d do on a tablet.

BI explains the phenomenon of phones replacing tablets includes Apple. Apple started making larger phones, the iPhone 6S and 6S Plus, a year ago, which eliminates some of the justification for a bigger touch screen device. Also, consumers upgrade their phones every two or three years, since the carriers subsidize some of that up-front cost (plus, it’s just cool to have a new phone, which you carry with you everywhere in public).

it's just cool to have a new phone, which you carry with you everywhere in publicFor those who need a snapshot of the decline of the tablet, Business Insider presented a chart from Statista based on numbers from IDC. In the last four quarters, tablet sales have been down from the previous year’s quarter. Overall, shipments in the first three quarters of 2015 are down 9% from the same time a year ago.

Business Insider - Global Tablet Market Decline

TechCruch takes a pretty hardcore position on tablets. Tablets had a good run, but won’t be around for much longer. They argue that the iPad is a better tablet than any Android tablet because there aren’t many tablet-optimized apps on the Play Store. This is key to understanding the iPad’s appeal.

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I have covered the issues around tablets since 2011 including the first signs of a decline in Apple’s iPad Teflon armor in 2014.  TC says tablets can still make a comeback. They need to become something else. But something needs to change and soon. Current tablets prove that you should never bet against the smartphone.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Trivial Taxes for Tech Titans

Trivial Taxes for Tech TitansJust in time for the start of the U.S. tax season, reports have surfaced that should piss off most tax-paying Americans. The Business Insider is reporting that most of the American tech giants, like Apple, Google and Microsoft are not paying their share of taxes.

the effective tax rate paid by US tech titans is well below the average rate paid by the 100 biggest S&P companies

The U.S. corporate tax rate is about 35%, but according to an analysis by financial research website WalletHub and charted by Statista, the effective tax rate paid by U.S. tech companies, like Apple (AAPL), Microsoft (MSFT), and Google (GOOG), was well below the 28.6% average rate paid by the 100 biggest S&P companies.

Facebook (FB) was the exception with an effective tax rate of 41%, but the social networking company has paid a higher rate in past years and recouped some of the money in tax deductions, according to Quartz.

Infographic: How Much U.S. Tech Companies Pay in Taxes | Statista

One way these tech giants are lowering their tax bills is by stashing most of their profits overseas, where lower international tax rates apply. Despite claims by Apple CEO Tim Cook, that Apple pays all of its taxes, Apple, for example, keeps most of its cash offshore, and openly says it’s keeping it overseas to avoid their U.S. corporate tax bills.

Tax dodgerThe New York Times recently reported that Apple made a deal with Italian tax authorities over a dispute about how much tax the iPad maker should have paid Italy. A spokesman for Italy’s tax authority declined to comment to the NYT on the amount of owed taxes but the BBC reports that the figure is €318m ($348m).

The investigation found that since 2013, Apple had moved roughly $1.1 billion in revenue from its Italian operations through an Irish subsidiary to lower the taxes that the company was obliged to pay under the 27.5% corporate income tax rate in Italy.

The NYT says Ireland’s corporate tax rate, at 12.5%, is one of the lowest in the Western world, compared with 35%, before deductions, in the United States. Of course, Irish officials deny that the low-tax structure represents unfair competition.

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The Tech Titans have long lusted after a tax cut. I cover the 2011 meeting where Tech giants Facebook, Mark Zuckerberg, Apple, Steve Jobs, Yahoo, Cisco (CSCO), Twitter (TWTR), Oracle (ORCL), Netflix, Google, and venture capitalists lobbied Obama for a tax cut on $1 trillion of profits they’ve stashed overseas.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Tech Titans Dodge Taxes

Tech Titans Dodge TaxesA recent report by the Center for Tax Justice (CTJ) on the use of tax havens in 2014, identified the 500 largest American companies hold more than $2.1 trillion in accumulated profits overseas to avoid U.S. taxes. The report found that one-quarter of that amount (549.7 billion) is hoarded abroad by ten tech companies alone, as the chart from Statista illustrates.

Greedy AppleAmong the tech titans hoarding cash, Apple (AAPL) has parked the largest amount of cash outside the United States. The article notes that the iPhone maker has stashed a whopping $181 billion overseas. That is almost twice as much as second-ranked Microsoft (MSFT) ($108.3b) and roughly three times the total of IBM (IBM), which ranks third in the tech-list with foreign cash holdings of $61.4 billion. Cisco (CSCO), ranked fourth, stands out with as many as 59 tax haven subsidiaries.

The top twenty tech firms in the order of the amount of money hoarded overseas in 2014 to cheat the taxman in 2014:

  1. BillionairesApple
  2. Microsoft
  3. IBM
  4. Cisco
  5. Google (GOOG) $47,400 millions
  6. HP (HPQ) $42,900 millions
  7. Oracle (ORCL) $38,000 millions
  8. Qualcomm (QCOM) $25,700 millions
  9. Intel (INTC) $23,300 millions
  10. EMC (EMC) $11,800 millions
  11. Western Digital (WDC) $9,400 millions
  12. Xerox (XRX) $8,500 millions
  13. Ebay  (EBAY) $7,900 millions
  14. Cognizant Technology (CTSH) $6,121 millions
  15. Agilent Technologies (A) $5,700 millions
  16. Micron Technology (MU) $4,910 millions
  17. Broadcom (BRCM) $4,850 millions
  18. Symantec (SYMC) $3,600 millions
  19. Computer Sciences (CSC) $2,552
  20. Amazon (AMZN) $2,500 millions

Statista notes that the study found the number of tax haven subsidiaries is not directly connected to the amount of taxes dodged by a company. On the contrary, some companies now report fewer subsidiaries in tax haven countries than they did in 2008 while reporting significant increases in the amount of cash they hold abroad.Center for Tax Justice graphic

The study offers two possible explanations for this occurrence: First of all, some companies may choose not to report all of their subsidiaries because the SEC’s penalties for failing to do so are pretty lax and secondly companies could simply consolidate more income in fewer offshore subsidiaries, often in structures dubbed “Double Irish”.

Infographic: U.S. Tech Companies Hoard Billions in Offshore Tax Havens | Statista

This chart shows how much money U.S. tech companies hold in offshore subsidiaries to avoid U.S. taxes.

You will find more statistics at Statista

The CTJ claims U.S.-based multinational corporations are allowed to play by a different set of rules than small and domestic businesses or individuals when it comes to the tax code. Rather than paying their fair share, many multinational corporations like Apple, Cisco, Google, and Intel use accounting tricks to pretend for tax purposes that a substantial part of their profits are generated in offshore tax havens, countries with minimal or no taxes where a company’s presence may be as little as a mailbox. Multinational corporations’ use of tax havens allows them to avoid an estimated $90 billion in federal income taxes each year.

Uncle Sam in redtapeCongress, by failing to take action to end to this tax avoidance, forces ordinary Americans to make up the difference. Every dollar in taxes that corporations avoid by using tax havens must be balanced by higher taxes on individuals, cuts to public investments and public services, or increased federal debt.

The CTJ recommends the following steps to stop the abuse of offshore tax havens by the tech titans and restore fairness to the US tax system and reduce pressure on America’s budget deficit and improve the functioning of markets.

End incentives to shift profits and jobs offshore. The most comprehensive solution to ending tax haven abuse would be to stop permitting U.S. multinational corporations to indefinitely defer paying U.S. taxes on profits they attribute to their foreign subsidiaries. Ending “deferral” could raise nearly $900 billion over ten years, according to the report.

Reject the Creation of New Loopholes. Reject a “territorial” tax system. The CTJ estimates that switching to a territorial tax system could add almost $300 billion to the deficit over ten years.

Close the most egregious offshore loopholes. Policymakers can take some basic common-sense steps to curtail some of the most obvious and brazen ways that some companies abuse offshore tax-havens. Close the inversion loophole by treating an entity that results from a U.S.-foreign merger as an American corporation if the majority (as opposed to 80 percent) of voting stock is held by shareholders of the former American corporation. These companies should be treated as U.S. companies if they are managed and controlled in the U.S. and have significant business activities in the U.S.

Patent trollStop companies from shifting intellectual property (e.g. patents, trademarks, licenses) to shell companies in tax haven countries and then paying inflated fees to use them. This common practice allows companies to legally book profits that were earned in the U.S. to the tax haven subsidiary owning the patent. Limited reforms proposed by President Obama could save taxpayers $21.3 billion over ten years.

Stop companies from deducting interest expenses paid to their own offshore affiliates, which put off paying taxes on that income. This reform would save $51.4 billion over ten years, according to the CTJ.

Increase transparency. Require full and honest reporting to expose tax haven abuses. Multinational corporations should report their profits on a country-by-country basis so they can’t mislead each nation about the share of their income that was taxed in the other countries.

Michigan-based companies dodging the taxman in 2014 have hoarded almost $55 Billion according to the CTJ. With just a 1% tax on the withheld income, we could probably get the roads fixed. On the list ranked by millions held off-shore by Michigan based firms according to the CTJ are:

  1. Dow Chemical $18,037 millions
  2. General Motors $7,100 millions
  3. Stryker $5,878 millions
  4. Whirlpool $4,900 millions
  5. Ford $4,300 millions
  6. Autoliv $4,000 millions
  7. TRW Automotive $3,400 millions
  8. BorgWarner $2,700 millions
  9. Kellogg $2,200 millions
  10. Lear $1,200 millions
  11. Penske $711 millions
  12. Visteon $245 millions
  13. Kelley Services $111 millions
  14. Conway $32 millions
  15. Masco $12 millions
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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.