Incident: Alleged Smart Card Hacking Scandal Impacting ONdigital's Collapse

Published Date: 2012-03-26

Postmortem Analysis
Timeline 1. The software failure incident involving the hacking and distribution of ONdigital's smart card codes happened around July 2000 as per the article [10733].
System The software failure incident described in the article involved the failure of the following systems: 1. TV smart card encryption codes used by ONdigital, specifically the Canal Plus smart card system [10733].
Responsible Organization 1. Oliver Koemmerling, the young German hacker, who successfully broke into the encryption codes of Canal Plus, the French smart card system used by ONdigital, leading to the leak of the cracked ONdigital codes onto the internet [10733]. 2. Ray Adams, the former Scotland Yard commander who recruited Koemmerling and was involved in obtaining and distributing the cracked ONdigital codes [10733]. 3. NDS (News Datacom) as a company, which was implicated in funding pirate TV websites, controlling the THOIC pirate site, and potentially being involved in the leak and distribution of the cracked ONdigital codes [10733].
Impacted Organization 1. ONdigital - The software failure incident involving the hacking and distribution of ONdigital's smart card encryption codes significantly impacted ONdigital, leading to its collapse as mentioned in the article [10733].
Software Causes 1. The software cause of the failure incident was the hacking and cracking of the encryption codes of the smart cards used by ONdigital. This was done by a team at the NDS lab in Haifa, Israel, led by a young German hacker, Oliver Koemmerling, who successfully broke into the codes of Canal Plus, the French smart card system used by ONdigital [10733]. 2. The leaked ONdigital codes were then distributed on the internet through a Canadian pirate site, leading to widespread piracy of ONdigital services without payment [10733].
Non-software Causes 1. Allegations of illegal activities by individuals involved in the incident, such as hacking and sharing encryption codes [Article 10733]. 2. Funding and support provided by NDS to a pirate TV website, leading to the distribution of pirated codes [Article 10733]. 3. Management issues within ONdigital, separate from the piracy, that could have been solvable with careful management [Article 10733].
Impacts 1. The software failure incident involving the hacking of ONdigital's smart card encryption codes led to widespread piracy of ONdigital's services, as the cracked codes were leaked onto the internet and distributed to the public [10733]. 2. The piracy resulting from the software failure incident significantly impacted ONdigital's business, with the former chief technical officer stating that the piracy was the "real killer" that caused the collapse of ONdigital [10733]. 3. The incident also revealed unethical practices by individuals and companies involved, such as the funding of pirate TV websites by NDS and the distribution of software to activate ONdigital cards without payment [10733].
Preventions 1. Implementing stricter security measures to protect encryption codes and smart card systems from being hacked [10733]. 2. Conducting thorough background checks on individuals recruited to work on sensitive projects involving encryption codes to prevent insider threats [10733]. 3. Establishing clear ethical guidelines and boundaries for employees working on competitive intelligence to prevent illegal activities such as hacking into rival systems [10733]. 4. Regularly monitoring and auditing activities related to encryption codes and smart card systems to detect any unauthorized access or suspicious behavior [10733].
Fixes 1. Implementing stronger encryption methods and security measures for smart cards to prevent unauthorized access and hacking attempts [10733]. 2. Conducting thorough security audits and regular monitoring of smart card systems to detect any vulnerabilities or breaches promptly [10733]. 3. Enforcing strict policies and procedures for handling sensitive information and preventing insider threats within smart card companies [10733]. 4. Collaborating with industry experts and security professionals to stay updated on the latest security threats and best practices for protecting smart card systems [10733].
References 1. Oliver Koemmerling, the young German hacker [Article 10733] 2. Ray Adams, former Scotland Yard commander [Article 10733] 3. NDS (News Datacom) [Article 10733] 4. Canal Plus, the French smart card system used by ONdigital [Article 10733] 5. Lee Gibling, operator of the THOIC pirate site [Article 10733] 6. Avigail Gutman, NDS security personnel [Article 10733] 7. Simon Dore, former chief technical officer of ONdigital [Article 10733]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident related to ONdigital's collapse due to piracy involving smart card codes was specific to ONdigital as an organization. The incident involved the leaking of cracked ONdigital codes, which led to widespread piracy and ultimately contributed to the collapse of ONdigital. This incident was not reported to have happened again within the same organization [Article 10733]. (b) The software failure incident involving the leaking of smart card codes and piracy was not reported to have happened again at other organizations or with their products and services in the provided articles [Article 10733].
Phase (Design/Operation) design, operation The software failure incident reported in the articles is related to both the design and operation phases: (a) Design: The failure in this incident can be attributed to contributing factors introduced during system development and updates. The incident involved the cracking of encryption codes of pay-TV smart cards, which led to the leakage of these codes onto the internet, allowing unauthorized access to TV programs without payment [10733]. (b) Operation: The failure can also be linked to factors introduced during the operation or misuse of the system. The leaked codes were used to activate ONdigital cards illegally, providing users with a full channel lineup without payment. This operation of providing unauthorized access to TV channels contributed to the downfall of ONdigital [10733].
Boundary (Internal/External) within_system, outside_system (a) within_system: - The software failure incident related to the collapse of ONdigital was primarily due to factors originating from within the system itself. - The incident involved the hacking and distribution of smart card encryption codes used by ONdigital, which allowed viewers to access pay-TV channels without payment [10733]. - The smart card encryption codes were successfully cracked by a team at the NDS lab in Haifa, Israel, led by a hacker recruited by NDS [10733]. - The cracked ONdigital codes were leaked onto the internet, leading to widespread piracy and loss of revenue for ONdigital [10733]. - ONdigital attempted to switch codes to combat the piracy, but the pirate site operator was promptly supplied with the new versions, indicating a continuous breach within the system [10733]. (b) outside_system: - The software failure incident also involved contributing factors that originated from outside the system, such as the actions of external entities like the hacker, NDS, and the pirate site operator. - The incident was fueled by the actions of a young German hacker who was recruited by NDS to crack the encryption codes of rival smart card systems, including ONdigital's [10733]. - NDS was involved in funding a pirate TV website and discreetly paying its operator, further exacerbating the piracy issues faced by ONdigital [10733]. - The pirate site operator received financial support and instructions from NDS, indicating external influence on the software failure incident [10733].
Nature (Human/Non-human) human_actions (a) The software failure incident in the article is primarily related to human actions. It involves a young German hacker, Oliver Koemmerling, being recruited by Ray Adams from NDS to crack the encryption codes of smart cards used by rivals, including ONdigital [10733]. (b) Human actions played a significant role in the software failure incident. Ray Adams, a former Scotland Yard commander handling UK security for NDS, recruited hackers to break into the encryption codes of smart cards used by competitors, leading to the leak of cracked ONdigital codes onto the internet [10733].
Dimension (Hardware/Software) hardware, software (a) The software failure incident related to hardware: - The failure of ONdigital was attributed to piracy, particularly the leaking of cracked ONdigital codes onto the internet, leading to a significant impact on the company's revenue and operations [Article 10733]. (b) The software failure incident related to software: - The software failure incident was primarily caused by the hacking and piracy activities surrounding the smart card encryption codes used by ONdigital. The breach of these codes and their distribution on pirate websites led to widespread unauthorized access to ONdigital's services, impacting its business significantly [Article 10733].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident described in the articles is malicious in nature. It involves a deliberate effort to hack into the smart card encryption codes used by ONdigital, a pay-TV firm, in order to provide unauthorized access to pay-TV content without payment. The incident includes actions such as recruiting a hacker to break into the codes of rival smart card systems, supplying pirated software to activate ONdigital cards, and funding a pirate TV website to distribute the hacked codes [10733]. These actions were carried out with the intent to harm the commercial interests of ONdigital and its rivals by enabling unauthorized access to their content.
Intent (Poor/Accidental Decisions) poor_decisions (a) The intent of the software failure incident: - The software failure incident involving the hacking and distribution of ONdigital's smart card codes was primarily driven by intentional and deliberate actions rather than accidental decisions or mistakes. - The incident involved a deliberate scheme by individuals associated with NDS to hack into ONdigital's smart card system, distribute the hacked codes, and support pirate activities for financial gain. - There were intentional efforts to infiltrate ONdigital's system, provide software to activate ONdigital cards without payment, and ensure the widespread distribution of the hacked codes to maintain a pirated card trade. - The actions taken, such as supplying update codes for the hacked cards and shutting down operations when exposed, indicate a premeditated and strategic approach rather than accidental decisions [10733].
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident related to development incompetence is evident in the article. The incident involved a young German hacker, Oliver Koemmerling, who was recruited by Ray Adams from NDS to work on breaking the encryption codes of smart cards used by rivals, including Canal Plus, the French smart card system used by ONdigital [10733]. This recruitment and subsequent actions by NDS personnel, including supplying software to activate ONdigital cards without payment, demonstrate a lack of professional competence in handling sensitive security matters. (b) The software failure incident also involved accidental factors. For instance, the leaked ONdigital codes ended up on the internet on a Canadian pirate site, which Koemmerling confirmed originated from his team due to the timestamp being like a fingerprint [10733]. Additionally, the operation based at Lee Gibling's home, which received funding and support from NDS, was shut down hastily after the secret subsidy leaked out to fellow pirates, indicating accidental exposure of their activities.
Duration temporary The software failure incident related to the collapse of ONdigital was temporary. The failure was due to contributing factors introduced by certain circumstances, specifically the hacking and piracy activities involving the smart card encryption codes used by ONdigital. The incident was not a permanent failure caused by all circumstances but rather a temporary failure resulting from the actions of hackers and the leaking of cracked codes onto the internet [10733].
Behaviour crash, omission, timing, value, byzantine, other (a) crash: The software failure incident described in the articles can be related to a crash. The failure of the smart card encryption codes used by ONdigital led to a situation where the system lost its ability to charge for programs and control viewer access, ultimately contributing to the collapse of ONdigital [10733]. (b) omission: The software failure incident can also be linked to omission. The failure of the smart card encryption codes resulted in the system omitting its intended function of charging for programs and switching off viewers who didn't pay, leading to a loss of revenue for ONdigital [10733]. (c) timing: The timing of the software failure incident is also significant. The system was reported to have performed its intended functions incorrectly by providing full channel line-ups without payment, indicating a timing failure where the system acted too early in granting access to content without proper authorization [10733]. (d) value: The software failure incident can be associated with a value failure. The system performed its intended functions incorrectly by allowing unauthorized access to full channel line-ups without payment, indicating a failure in enforcing the value exchange intended by the pay-TV system [10733]. (e) byzantine: The software failure incident exhibits elements of a byzantine failure. The involvement of individuals like Oliver Koemmerling, Ray Adams, and Lee Gibling in manipulating the smart card encryption codes, sharing them with unauthorized parties, and engaging in piracy activities created a situation where the system behaved erroneously with inconsistent responses and interactions, leading to the collapse of ONdigital [10733]. (f) other: The software failure incident can also be categorized as involving unethical behavior and collusion between individuals to exploit vulnerabilities in the system for personal gain. This behavior goes beyond typical software failures and encompasses deliberate actions to undermine the security and revenue model of the pay-TV system [10733].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, theoretical_consequence (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident involving the hacking and distribution of ONdigital's smart card codes led to significant consequences related to property. The leaked ONdigital codes allowed individuals to access pay-TV channels without payment, impacting the revenue of ONdigital. This resulted in a loss of income for the company, ultimately contributing to the collapse of ONdigital. Additionally, the distribution of the pirated codes affected the commercial interests of ONdigital and its ability to operate successfully [10733].
Domain entertainment The software failure incident reported in the articles is related to the entertainment industry. The failure specifically involves the smart card encryption codes used by ONdigital, a pay-TV firm, to charge for its programs and control access to viewers who do not pay [Article 10733]. The incident involved hacking and piracy of these smart card codes, leading to widespread unauthorized access to ONdigital's channels without payment, ultimately contributing to the collapse of ONdigital [Article 10733]. The articles highlight how the hacked codes were distributed on pirate websites, impacting the revenue and operations of ONdigital within the entertainment industry.

Sources

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