A Swiss Company Says It Found Weakness That Imperils Encryption

Most of Crypto’s workforce was unaware of the company’s secret, but in 1977, an engineer who had grown suspicious of its algorithms was fired after he traveled to Damascus and fixed the vulnerabilities in the firm’s products operated by the Syrian government. In a later interview, Linde said his company was checking all its products for hidden vulnerabilities. Iran was also a Crypto customer, allowing CIA and the National Security Agency (NSA) to spy on the revolutionary government in Tehran during the 1979 hostage crisis. US intelligence was also able to eavesdrop on Libyan officials congratulating each other on the 1986 bombing of a Berlin disco. At their height, Operations Thesaurus and Rubicon provided the US with a powerful intelligence edge.

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It said the latest documents, which covered a period from 2006 to 2013, stop short of proving whether U.S. intelligence researchers had succeeded in breaking Apple’s encryption coding, which secures user data and communications. The security of Crypto equipment began arousing suspicions after Ronald Reagan made public claims about US intercepts of Libyan officials involved in the 1986 bombing of the Berlin disco, La Belle. Iranian intelligence became suspicious and questioned a Crypto salesman, Hans Buehler, but took no action until about six years later, when they arrested Buehler as he was about to fly out of Tehran. Iran released him only after the company agreed to pay $1m, with funds provided by the BND. In the US, Hagelin became friends with William Friedman, who is considered the father of American cryptology, and they remained close after Hagelin moved his company to Switzerland after the war. The two men made a secret agreement in 1951, in the Cosmos Club in Washington, to restrict sales of its sophisticated encryption products to countries approved by the US.

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It’s possible that they re-discovered Grover’s Algorithm, in which case this is a big fat nothingburger. If/when quantum computers become widespread, we just switch from AES 128 by default to AES 256 by default, and talk about other things. This is off topic, but I would LOVE to make it a requirement that for any article with a headline like “X claims Y” to put a link to X saying Y as the first item.

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• Iran was also a Crypto customer, allowing CIA and the National Security Agency (NSA) to spy on the revolutionary government in Tehran during the 1979 hostage crisis.
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