Tuesday, January 9, 2018

The Story of the Ghost

I Feel I've Never Told You

...the Story of the Ghost...

It was 1999... or 2000... I don't quite remember. We never slept. We would audit source code for days on end, mostly the OpenBSD or Linux kernel, looking for strange bugs despite not knowing what the hell we were doing. We'd write scripts to fuzz command-line applications, begging binaries to reveal 0days. Jaime had just written a script that hacked somewhere around 1800 computers in under 60 seconds. 

We called her Zero Cool. For obvious reasons. 

When the press caught wind of this, she did what she always did: she made it amusing. She'd joke with them about rage-rm'ing servers (even though she never actually did anything malicious) and mass website defacements in the name of Jerr Bear. To us, it was just another day at the script kiddie office. 

Then, the South Koreans called. 

Somehow, a South Korean television talk show interested in doing a piece on hackers got a hold of us because of Jaime's recent notoriety. An mIRC session or two later, the television show's runners joined our IRC channel and began chatting us up about nuclear security. Somehow they got the idea that we were mature professionals with slick hair and ties (people still wore ties back then; this was pre-Zuk-hoodie landscape). We'd chat through private messages and make sure our responses were coordinated, reasonable, and even cautious. 

The thing was, even though Jaime was a notorious troll, she was a light hearted troll. She never wanted to - or meant to - hurt anyone. And she actually loved the art of hacking. She wanted people to understand the dangers as well as the beauty behind the keystrokes that cut us and make us bleed. 

We sounded so conservative and restrained in our discussion with the TV crew that they ended up airing a segment after translating our interviews. Next thing we knew? We were on national South Korean television talking about the threat of hacking nuclear facilities. 

Of course, the translation ended up making us sound a bit more urgent than we intended... but what did we care? They used our "hacker names" and showed us as shadowy blackhat JPEGs. 

I used to have a video of the interview. Funny enough, I even tried to search for it a few months back. I never did find it. It's been lost in Internet time, but Jaime still thought it was hilarious. 

Character Zero

Over the 18+ years I knew Jaime, she and I remained close for the majority of it. There were times when she would disappear for a year or two, but she always resurfaced with new stories to tell. She lived down the street from me for a year or so in Denver. I was out of the country so often during that time that we barely got to hang out, but when we did it was always Old Times. 

She used to give me a lot of shit for not keeping up with my violin or guitar practice. 

One of the reasons we became fast friends in 1999 was that we both had a background in music. For those that don't know, Jaime wasn't just an avid Phish head, she was an exceptional guitarist. She played in a few bands and was extremely gifted. Even though I was raised to be a concert violinist, her guitar skills vastly out-shined mine. I was always jealous of her. 

A couple of years ago, I picked up the guitar again and actually started practicing. We played together in San Francisco a year or so ago and she complimented my soloing. That was the first and only time she actually gave me props. It might sound silly, but it was an interesting moment. She'd been giving me shit for 16 years at that point, and was finally proud that I was practicing again. 

But I hope she knew how proud of her I was.

She was the first person to see how hard I was trying to learn engineering and information security and keep at me to continue pursuing it. Even when I was frustrated and ready to give up, she always stood by me and supported my efforts. From the time we were teenagers up until a month ago, she was always a solid friend.

And I always stood by her. We grew in different directions as we got older. I tend to be a bit of a "bro" (and she gave me shit for it), but we always found common ground and maintained our closeness. Because of that, we never moved on from our friendship. We worked hard to maintain it and respect each other, despite living very different lifestyles.

That, to me, was Jaime. Someone that was always trying to live as honestly and emotionally full as she possibly could. Someone that would tell you you fucking suck to be honest one minute, but hug you and tell you she loved you despite you sucking the next, then finally would tell you what you could do to suck less. She was the dagger, but she was also the bandaid.

When the Circus Comes to Town

I have a lot of amazing memories of Jaime and my exploits, from learning to write exploits in the 2000's, to the Root Shell Hackers days of yore, to the jam sessions at my apartment in Denver, to the time she attempted to give her first speech at 44con (which went horribly awry, but she really tried hard to make it work despite her anxiety), there isn't a story I have about Jaime that doesn't make me smile, even if it wasn't a perfect situation. 

In fact, one of my favorite memories with her was an entirely imperfect and disgusting scene at Black Hat a few years back. 

We were bouncing from party to party, as usual, when we ran into a friend from London in the IoT space. We were all sober, and were deciding where to go to gather our first drinks. We ended up at the NCC Group party, wherever it was that year, stopping in to say hello to some pals, then we were on our way to another suite where the actual partying would commence. Despite the brief stop-in, it was quite the eventful party.

In the short time we were there, a group of miscreants near the doorway began harassing Jaime, genuinely saying some pretty foul shit. They were all pretty drunk and I was trying to ignore them. But they were calling her some pretty awful things that I won't repeat here, related to her sexuality. One of these individuals even proceeded to text me, telling me "not to go home with her", among other pleasantries. 

I responded by reminding this person that they had been in the same old school hacker crews that they were familiar with. We were all there when ADMutate was released. We were there when sadmind.c was dropped in #feed-the-goats. We were there when sk8 was arrested. We were there when phrack.ru was owned by someone who left 0day in a RWX home directory. We were there when GOBBLES owned the w00w00 server. We were there when xdr was raided. We were there when p4ntera disappeared into the Canadian ether. We were there when *someone* got caught backdooring the Linux kernel source. Cough. 

She was there. For all of it. 

When we left the party I looked at her, expecting to see some kind of frustration or disgust, as Jaime typically felt emotions very strongly. She just looked at me, shrugged, and said "Sunlight just don't sweeten trash, do it?" 

We wandered off to the next party and ended up playing the piano under a laser light show while our British friend got so drunk they wandered off with a large novelty poster that we're quite certain they weren't supposed to take ;-) 

While My Guitar Gently Weeps

While Jaime was able to turn away from pain like this, it eroded her armor over time. It erodes all of us. The bigotry. The sexual abuse. The violence. 

No matter how we leave this Earth, we are leaving it a little less human than we were when we emerged from our mother's womb. 

Jaime, more than anything, taught me to bide my time and take it slow. She taught me to listen to other people. She taught me to respect other lifestyles because you care about the human behind that mirage. She taught me that friendship didn't mean having everything in common with someone, but that friendship was simply about being there. It was about being human. 

But she also taught me to rush and never waste the day. She lived hard. She lived brightly. She lived like a day couldn't be spared. 

She was my best friend. And I'll miss her dearly. 

Fare the Well,

Don A. Bailey

Monday, October 23, 2017

An Eulogy for Infosec

Sam's Funeral

Last night I watched one of the best episodes of television to ever grace the liquid crystal affixed to the center of my living room. The episode "Eulogy" from season two of Pamela Adlon and Louis C.K.'s "Better Things" absolutely floored me. If you aren't watching, I highly suggest the show. Season two is particularly exceptional, and not solely for "Eulogy". 

Warning: this blog post is basically a spoiler for the episode. 

In the episode, Pamela's character Sam Fox starts off by leading a class in acting. This scene is meant to highlight the fragility of acting as a profession due to the drudgery of wading through awful writing to simply taste the chance of performing a brilliantly written piece, while exemplifying the actor's duty to capture and reproduce human vulnerability almost seamlessly. The cool and breezy way Sam exposes her students' strengths as weaknesses is elegantly juxtaposed against her own assertiveness. 

In the following scene, the exceptional skills Sam has tuned over the years are almost tossed aside when the practical and logistical world of commercial acting imposes itself on her. Take after take, she's relegated as the side-lined wife to a man-child in a fast, red car. Her talent has little bearing on her value in this scene, and is a perfect parallel to many careers that require years of stringent training to perform what are essentially menial duties. 

The rest of the episode is a beautiful study of these first two scenes, through the eyes of Sam and her daughters. At home, Sam's daughters dismiss her career as uninteresting; something to submit a casual eye-roll toward. Interestingly, Sam breaks the rule she defined for her actor students in the first scene by being confident and assertive, challenging her daughters, demanding their respect for her hard work and success. The daughters dismiss her as childish and weak, driving her from the house. 

Skip to the final scene, Sam arrives back home to a surprise "funeral", where her daughters and friends are eulogizing Sam, in order to tell her - albeit pseudo-indirectly - how much they do love and respect her. Sam (Pamela?) completely breaks down in perhaps one of the most sincere, vulnerable scenes I've ever watched, as she fulfills the promise set forth in scene one. 

Phenomenally written by Louis and heartbreakingly acted by Pamela, the episode actually brought tears to my eyes, for so many personal reasons. However, it also struck me as fascinating because professionally we suffer the same fate in so many careers, but especially information security. Why? Because we've been killing our industry for years. 

The Death of an Industry

At 44con this past September, I described why Information Security as an industry is dying. Don't believe me? You're not paying attention. Hacking, as an art, is dying. Our industry has been screaming at engineers and developers for decades without any attentiveness what-so-ever. Yet, over the past ~5 years, they're finally starting to listen. This is primarily thanks to major corporations like Google, Apple, and Microsoft backing information security as a necessity. Google Project Zero, Microsoft BlueHat and their many other initiatives, the exceptional team at Apple Product Security, they all have pushed the limits of what can be accomplished in offense. The result? A far stronger baseline for defense than we've ever seen in the history of computing. 

Today, it's almost impossible for an average hacker to develop a zero-day exploit for any given target. In the late 90's and early aughts, zero-days for Bind, sendmail, and even SSH were floating from secret-hacker-cult to secret-hacker-cult without the commercial world being any wiser. The cost of developing and deploying such technology today is so high that only a handful of people can do it, when it can even be done. 

We're also finding flaws faster than ever before. I wouldn't presume this is because there are "more" experts in the industry than ever before. That's quite flawed logic. Rather, it's because the tools are more cost effective and more available than ever before. Skilled hackers are still in the 1% of our industry, but they have better equipment than ever thanks to open source software and improvements in high-level programming languages. 

Point being? They're finally listening. Companies are hiring hackers at record speed. They're building security teams. They're building Secure Software Development programs. They're absorbing us. 

The result? We are no longer unique. We are becoming integrated

Better Things

But the real question that the episode "Eulogy" brought to mind was, are we respected? For all the effort we put in to coerce companies to integrate security into their process, are we heard? Are our efforts changing anything for the better?


While we perceive the baseline of security to be significantly elevated (and it has elevated) it has also shifted. We are essentially Sisyphus, except every boulder we focus on pushing uphill leaves another boulder to fall. While smartphone security has improved, laptop endpoint security has declined. IoT security is practically non-existent. While cloud security is fairly resilient. 

The baseline elevates based on our voice. And our voice is psychotic. Our industry spends more energy confusing executives and endusers than it successfully solves problems. We plead for engineers to listen to us, yet refuse to engage in reasonable discourse on what is cost-effective and practical, focusing instead on what mysterious and ethereal subtle flaws may or may not exist in hardware Trusted Platform Modules. 

Let me clarify something for you. The world is like Sam Fox's daughters. They just don't give a fuck what you think. They love you when you care for them. They love you because you care for them. But they don't want to hear your whining fucking voices. They want you to fix things. And we're not fixing things. If anything, we're scattering the problem through our pettiness and flippant behavior. 

We need to spend less time spouting the infosec equivalent of Trump-isms over 140 character communication channels and more time making Better Things. Change happens when we stop posturing. When we stop trying to be cool. When we sit down, communicate our thoughts in a healthy manner, and listen to each other. Change happens in spite of ourselves. Change happens when we show the world what real problems are, instead of what our agenda dictates. 

So shut the fuck up. Put your phone down. And make something better.

And to quote Diedrich Bader's character in the episode, don't engage me if you don't want to know how I actually feel about your thoughts and behaviors. 

Your Friend,
Don A. Bailey
CEO / Founder
Lab Mouse Security

Friday, May 5, 2017

Open Source Healthcare

No Matter What Side You're On, Admit It: You're Sick

Earlier today I became quite frustrated with the state of our social discussion on insurance, ACA, AHCA, and politics in general. Every day we read more articles, tweets, and social media posts that describe why Trumpcare, a.k.a. AHCA, is awful. On the flip side of the coin, many supporters are praising AHCA for the decreases they will see in their upcoming bills. 

I'm not here to debate the essence of AHCA. I am here to tell you that American insurance, as a whole, is an opaque black box of controversial billing classifications, executive hierarchies, and political influence. Regardless of whether you are for AHCA or against it, we all lose in the end through the use of American insurance programs. Why? Insurance companies function as (surprise!) corporations! 

Their first priority is profit, not benefiting the American people. And frankly that's fine. It's okay for a corporation to serve the community and profit. That's precisely what capitalism is all about! It's about the choice to use a service that helps you at your own cost. The problem in the United States of America isn't that we have for-profit corporations selling us health services, it's that this is our only reasonable model to acquire health assistance. 

To reinforce this concept of for-profit on those that might presume companies are doing the best they can to help us, let's take a look at some financial records, shall we?


Anthem's CEO, Joseph R. Swedish, was compensated well in 2016 with a total of 16,455,697 USD. The previous year was gang-busters for Joe as well, with a total of just over 13 million USD in total compensation. This is only up around 100k from his previous year as Anthem chair. You can read the report here on the SEC website


The CEO of Cigna, David M. Cordani, pulled in a total compensation package worth over 15 million dollars in 2016. This is actually down from over 17 million USD in 2015. View the SEC filings here


Mark T. Bertolini, CEO of Aetna, raked in an excellent compensation package in 2016 worth over 18.6 million USD. This is an increase of over 3.5 million over his 2015 compensation package. Read the SEC filings here

So Corporations Make Money, So What?

Yes, corporations are designed to make money. That's totally fine. I'm actually for this practice. I love capitalism and I love the U.S.A.! I even respect these men for climbing their respective ladders and joining the ranks of well-compensated executives that are working hard for their corporations. This is not a bad thing

What is a bad thing is the way America's policies force us to choose programs that funnel into corporate interests with no alternative. This has resulted in major social volatility across every political and socioeconomic group. People on every side are angry, scared, and exhausted by the non-stop in-fighting, vicious hyperbole, and unabashed profiteering. 

Americans need a new choice, and they need it now. Not in ~3 years when AHCA's flaws bankrupt families. Not in ~3 years when entire groups of persons afflicted with "pre-existing conditions" are forced to funnel their hard-earned cash into insurance company pockets rather than back into a diverse marketplace. If someone takes the initiative today it may actually be a viable alternative in 3 years when AHCA kicks in, if it passes the Senate. 

"So what the hell is your point, Don? Get on with it."

The Issues As I See Them

As I see it, major issues with modern health insurance are as follows. Granted, I am a novice at this and most of this is based on empirical observations, so part of this blog post is a call to action from those who are more in the know than me
  • We pay high premiums
  • We have no idea how this money is appropriated
  • Individuals that need assistance are denied for absurd, often political/religious/etc reasons
  • People without adequate health care will die without adequate assistance
  • People are already dying and already going bankrupt because of American healthcare
  • Insurance companies run on massively outdated and inefficient human and computing infrastructures
Now I'm no fool. I don't think we can save the world. All I know is we can solve a few of the above issues. 
  1. Our money doesn't have to fund high executive salaries
  2. Our money doesn't have to fund absurd, archaic, over-engineered supporting infrastructure
  3. Our money doesn't have to be funneled into a black box for which we have no oversight and no right to influence, despite paying for it to exist
Our money can help people.


Now this requires a bit of imagination, but picture an American health care system that didn't require executive salaries. Now, we've learned in sections above that executive compensation can tier out around ~15 million per year. Let's guesstimate that for all the top 25 health insurance companies, an average compensation package for their CEO is around 10 million. We can extrapolate this from SEC filings for a few, then presume that the industry self-regulates and requires these companies to dole out similar packages to incentivize talented CEOs. Next, let's extrapolate an average non-CEO high-level executive compensation package at around 5 million per year. Let's then presume that each of these companies has 3 high paid executives at a compensation of 5 million per year. 

So, total that all up as: ((25 * 10,000,000) + (25 * 3 * 5,000,000)) = ~625,000,000

The total amount of money we could recoup from a lack of high executive compensation is literally over a half a billion dollars per year. And that's just a reasonable estimate. In capitalist societies, we are supposed to be offered the option to pay for services, or alternatives that better suit us. Why are we choosing to pay for someone else to amass a fortune when our friends and neighbors are choosing medicine over food? 

This number might not seem like a large amount when you juxtapose it against the various billions of dollars being strewn about in the news lately, but given the number of people using GoFundMe just to raise 10,000 USD for their family medical bills, this could at the least help ~62,500 families. That sounds like a good thing, right?

Supporting Infrastructure

The dollars we stuff monthly into the insurance infrastructure is further distributed into a massive network of workers that have absolutely nothing to do with the actual medical professions imperative to the healthcare industry. Instead, their sole purpose is to log data, inspect databases, set up IT infrastructure, review coding practices, evaluate billing forms, input billing data, convert billing data, and the list goes on and on and on...

While many of these jobs are important and do ensure that the insurance machine itself works, it is the engineering of this machine that has failed us. Instead of designing a sleek, streamlined machine that performs one specific task - and performs it well - we've designed a contorted monstrosity that requires inefficient and mundane roles to maintain its cracking and withering facade. Without these jobs, the insurance industry would implode from the weight of its own inefficiency. 

The larger problem is that these jobs are extremely hard to quantify. It isn't as easy to identify the numbers of these roles, the salary compensation for these roles, or how tightly integrated their roles even are with the company (or companies) they support. Because of this, we can't jump to conclusions about the total dollars allocated to this space. All we know for sure is that it's a vortex in which money simply disappears. While I would love to wildly speculate that this portion of the insurance industry is the likely cause of billions of dollars in misappropriation, it would be a misdeed to do so. All I can say for sure is that we are indeed wasting, at the least, millions of dollars per month on trivial tasks that could be done through modern automation. 

No Visibility

And that brings us to the last point: we have no visibility into how insurance companies are ran, how they invest our money, or how they allocate funds to end users. There is no ability for the public to identify patterns of misappropriation. There is no ability for the public to identify millions of dollars that are misspent, that could have saved lives. There is no ability for the public, who pays into these massive "public" funds, to vote or evaluate how the money should be distributed. 

This, in my opinion, is the most damning red flag of all. We the people are legally forced to funnel money into a system that literally decides whether we live or die, yet we have less visibility into the inner workings of this system than we have into the political decisions made on The Hill. That lack of transparency is a national disgrace, and one that must be rectified. We literally pay for this creature to exist, this Frankenmonster of life support, yet we are denied the schematics out of a lack of privilege. 

Yeah, Yeah... I Hate Blockchain, Too; But...

One way to solve the three problems described above is with technology. One technology comes to mind, the Blockchain. While I am not a fan of Bitcoin as a whole, Blockchain technology has several major benefits that I'll focus on here: transparency, security, and traceability. 


First and foremost, the Blockchain was designed brilliantly, and is the most fascinating aspect of Bitcoin technology. Each transaction made in the Bitcoin (or any Blockchain based network) is securely written into the Blockchain ledger. While there are infrastructure security concerns with Bitcoin (and similar coin technologies), the Blockchain can indeed be used to guard against fraud, even at scale. 

In fact, IBM is heavily invested in using Blockchain technology for almost everything, from financial services, to asset tracking, and even IoT. We at Lab Mouse Security have integrated Blockchain technology into our IoT Security Platform, to be released later this month (though we have zero plans to use it for medical or medical insurance purposes). Blockchain technology is no longer a toy, it is becoming a mainstream technology that can be used to secure some of the most critical transactions in commerce. 


The Bitcoin Blockchain was designed to ensure that every transaction made in the system can be traced. The exact time the transaction was made, which party was the source, which party was the destination, the cost of the transaction, all of this data is stored globally. Everyone has access to it. 

If health care providers used this technology for insurance purposes, we could easily see that a health care provider (say, a hospital) received a payment from N sources. We could even encode transaction details that identified the related case number associated with the transactions so analysis understood who benefited from the transaction. 

This means that the insurance company is no longer a black box that slices away at each penny as quietly as it can. Each slice is loudly documented in the ledger for everyone to see. It would be possible to have almost absolute governance over the behavior of not only insurance companies, but their relationships to providers, and their relationships to individuals


This brings us to transparency. Every relationship and transaction becomes public in the global ledger. This would allow The People to identify fund misappropriation, and even point out special treatment. Organizations that attempt to funnel money to specific providers in a suspicious or unethical way would be uncovered. Companies that inefficiently or unethically appropriate funds would not be able to hide their actions from the public ledger. 

Introducing Careful

When put together, these features enable a completely different type of insurance company, one that no longer needs many of the technologies that are required to drive the antiquated behemoths we've grown to loathe. We can reduce corporate overhead by streamlining processes that are outdated, inefficient, and performed by workers who are unnecessary when technology replaces their repetitive or largely-unnecessary jobs. 

We can make better decisions when the data is transparent. If all information about how insurance companies behave is open, there is less misappropriation, favoritism, and inefficient spending. 

We can act faster when someone is in need. By making the financial network that supports end-users open and transparent, we can quickly evaluate where pools of money are idle, and whether that money can be redirected to someone who needs it immediately. We can also identify which parties are best suited for a particular transaction, giving the end-user more choice as to what insurance organization and what healthcare provider is involved in their actual care. 

We can reduce the absurd costs of doing business, such as high-priced executive pay in an industry where many lives are lost for the cost of these compensation packages. 

I'd like to introduce the concept of http://careful.is/. This is just an idea, but it is an idea that could save lives. Blockchain is just a technology. For Open Source Healthcare to work, it must be driven by intelligent, experienced individuals that are willing to offer their perspectives for free, for the purposes of creating a system (or even the concepts for a system) that will benefit all people. It should be driven by individuals who want to use technology to uplift and save lives, not profit on investment opportunities. 

Getting Realistic

When Linux started, it was simply a few lines of code, and an angry idea that users had a right to control their hardware for free. While Careful probably isn't the Linux of health care, with the right minds working together it can influence the next group of people that do want to be the Linux of healthcare. 

If you would like to get involved, please reach out to me through Lab Mouse's contact page. Help document what insurance companies do. How do they work? How do they waste funds? How can they be more efficient? How can healthcare be improved by transparent and free technologies? What does it cost to run and maintain such technologies? How would users pay into the system? How would they take money out? How would fraud be combated? How would administration of the ecosystem work without compensation packages? How could transparency be maintained at low cost? 

While these questions seem almost impossible when posed here, and in all honesty we may never get real answers (the insurance companies are monoliths for a reason) if we don't try, we'll never find a path to a realistic alternative. If anything, this data could be used to improve existing insurance company processes, reducing waste and improving allocation to end-users. A licensing model that disallows the use of recouped funds for compensation packages/etc could be drafted that allows the exchange of information without it being used against the will of Careful. 

Regardless, it would be exciting to disrupt the insurance world. Wouldn't it? :-)

Don A. Bailey
Founder and CEO
Lab Mouse Security