Welcome back, aspiring cyberwarriors!

You may know that privacy laws aren’t respected everywhere. In some places you can be forced to decrypt your files, or worse, get accused of a violation just for having encryption. A VeraCrypt hidden volume helps with the first problem but not the second. That’s why the project developer built Phantomdrive.

Phantomdrive is a fully open source USB drive that shows up as an 8GB disk when you plug it in. The OS has no way to detect the rest of the storage. To unlock the hidden partition, you open a text file on the visible part of the drive, type password: YOURPASSWORDHERE and save it. The drive disconnects, remounts the hidden partition, and AES-256 handles the encryption and decryption on the fly.

Design

The hardware, firmware, and mechanical design are all open source. The developer built it around a small chip called the CH569, from the same company behind the CH340 USB-to-Serial chip you’ll find on most Arduino clones. It has USB3, SD/eMMC support, and a hardware AES block built in.

eMMC was too expensive due to AI-driven demand, so the developer went with an SD card instead. If someone tears the device apart they’ll find it, but everything on it is encrypted. The enclosure is sealed with epoxy, so any attempt to get inside means destroying it first. Once eMMC prices drop, a version using it will follow.

The board itself is simple. It’s a CH569 chip, a USB port, two buck converters, a firmware update button, an SD card, and some supporting components.

Cryptography

The developer verified encryption works through functional tests and ran it against OpenSSL’s AES implementation. Most of the GitHub issues that surfaced were AI-generated noise or already fixed bugs, with one real exception around AES-XTS covered below.

Key Derivation

A Key Derivation Function (KDF) turns your password into an encryption key. The naive approach is padding the password to 32 bytes and using it directly.

That’s weak. A precomputed table could crack it without even brute forcing. To fix that, Phantomdrive adds a unique salt per device.

With different salts, an attacker has to compute keys for each device separately, and you can’t swap the SD card between devices. You can read your salt like this:

udevadm info --query=property --name=/dev/sdc | grep ID_SERIAL_SHORT
ID_SERIAL_SHORT=Phantomdrive:34FC1FA7145467F7

So, 34FC1FA7145467F7 is the salt for this device, which you will need to recover the data if it ever fails. Save that value. You can also change the Phantomdrive name and the USB PID/VID in firmware if you want more stealth. On top of the salt, the KDF runs 100,000 rounds of SHA-256.

That adds about 3 seconds to unlock time, which is already at the limit of what the chip can handle. Argon2 isn’t an option since it needs too much memory. If you need stronger security, you can increase the round count, use a software encryption layer on top, or look for a different device.

AES Modes

AES is a block cipher that works on 16-byte chunks. Different modes turn it into a stream cipher.

AES-ECB is the naive approach, encrypting each block directly. The problem is that identical plaintext blocks produce identical ciphertext blocks, which leaks patterns. Attackers can also manipulate the ciphertext in predictable ways. Not good.

AES-CTR solves this by encrypting a counter and XORing the output with plaintext.

uint64_t i = 0;
while(i < len(ciphertext)) {
    ctr = aes_encrypt(i);
    ciphertext[i] = plaintext[i] ^ ctr
    i++;
}

The main risk with CTR is nonce reuse. If an attacker copies your ciphertext twice and can guess one version, they can recover the other. The developer gets around 9 MB/s write and 20 MB/s read with AES-CTR.

AES-XTS is the disk encryption standard and uses two keys. K1 protects the data, K2 generates a tweak per sector. 

Each 16-byte block gets its own adjustment (T0, T1… Tn), then blocks are encrypted one by one to produce the final ciphertext. 

It’s more secure but slower, around 6 MB/s write and 10 MB/s read on this hardware.

Firmware

The firmware is built on two open source libraries:

BSP: https://github.com/hydrausb3/wch-ch56x-lib

ISP: https://github.com/hydrausb3/wch-ch56x-isp

Password Snooping

The device doesn’t understand file systems. It just handles raw USB WRITE10/READ10 commands and passes them to the SD card. To detect the unlock password, the firmware scans every write for the string password: before passing data through.

void phantomdrive_snoop_write(uint8_t *buf, uint32_t len)
{
    const char *prefix = "password:";
    const size_t prefix_len = 9;
    uint32_t i;

    for (i = 0; i + prefix_len <= len; i++) {
        if (buf[i] != 'p')
            continue;
        if (memcmp(buf + i, prefix, prefix_len) != 0)
            continue;

        size_t pw_start = i + prefix_len;
        size_t pw_end = pw_start;
        while (pw_end < len && (pw_end - pw_start) < sizeof(pending_pw) &&
               buf[pw_end] != '\n' && buf[pw_end] != '\r' && buf[pw_end] != '\0')
            pw_end++;

        size_t pw_len = pw_end - pw_start;

        memcpy(pending_pw, buf + pw_start, pw_len);
        pending_pw_len = pw_len;

        memset(buf + i, 0, pw_end - i);
        return;
    }
}

Once the password is found, it gets copied into RAM and the buffer gets zeroed out so the password never touches the disk. Keep in mind, if you store a lot of data on the unencrypted partition and any of it contains the string password:, you could get a false match. If that’s a concern, you can change the trigger string in firmware or look for a different approach.

Video

The developer has also published a video, if you want to get into details of this project. 

Summary

Phantomdrive is an open source USB drive that shows up as a plain 8GB disk while hiding the rest of its storage. You unlock the hidden partition by saving a password in a text file on the visible disk. The firmware catches it in the raw write traffic, keeps it in RAM, and never writes it to disk. Encryption is AES-256 on a CH569 chip, with a per-device salt and 100,000 SHA-256 rounds for key derivation. It’s limited by the hardware, so it’s weaker than memory-hard options like Argon2.

If you want to go deeper into how privacy can be preserved on real systems and how forensic traces are created and analyzed, our Anti-Forensics training is your next step. We covered advanced techniques for preserving your privacy and understanding what investigators can still see even when you think you have covered your tracks.

The post Anti-Forensics: Building a Phantomdrive first appeared on Hackers Arise.

The Quantum computing industry is making leaps and bounds towards developing quantum computers that can–among other things–break the encryption that keeps our data safe and confidential. Some say it will take place in as little as two years, but even the most conservative estimates are for four years or 2030. In either case, it is time to begin to prepare your network for the coming post-quantum world.

To learn more about this risk, see my interview with David Bombal on Quantum Computing here.

When that day arrives, all of our encryption– and therefore all our data– will be exposed to anybody who has a quantum computer. Initially, this will be only nation state actors such as the US, China, Israel, and Russia.

No need to fret or stress as people have been preparing for this day for many years and have developed post-quantum cryptography (PQC). This field is in constant flux and recently one of the post-quantum cryptographic algorithms (HAWK) was found to be breakable by quantum computers. The point here is that this field is changing rapidly, not unlike artificial intelligence.

Some people have compared this to the Y2K crisis that took place some 26 years ago. At that time, nearly everybody was looking for a crisis that would break systems once we transitioned from a two-digit year to a four-digit year.The fact that no crises took place in 2000 can be attributed to years of preparedness for that potential crisis. Companies and institutions spent at least two or three years preparing for it and as a result nothing adverse really took place. It all went very smoothly.

For your organization, you need to start preparing now. To help you to prepare, Hackers Arise has developed a course on preparing your network for the post-quantum world. The training will be offered over 3 days October 13-15.

Post-Quantum Network Readiness

Outline

1.What are Quantum Computers are What Makes them Different

2. The Quantum Countdown: Harvest-Now-Decrypt-Later & Why Your Network Is Already Exposed

3. Know Your Attack Surface: Automated Cryptographic Discovery & CBOM

4. The New Arsenal in Action: NIST PQC Standards (ML-KEM, ML-DSA, SLH-DSA) with OpenSSL 3.5 & liboqs

5. Hardening the Wire: Hybrid TLS 1.3 & Quantum-Safe Tunnels

6. Post-Quantum PKI at Scale: Certificates, Signature Bloat & Real Network Performance Impact

7. From Vulnerable to Quantum-Ready: A Phased Migration Roadmap, Crypto-Agility & End-to-End 

The post Post-Quantum Network Readiness first appeared on Hackers Arise.

Welcome back, cyberwarriors! 

Almost a year ago, OTW spoke about quantum computers and the risk of our encryption getting broken within three years. In March, Google shared its concern on the same issue, moving up its own post-quantum migration deadline to 2029. Some companies are migrating to mitigate that risk, but not many are taking it seriously. Eventually, a huge number of companies are going to get left behind with weak and breakable encryption. Hackers will only benefit from that negligence.

To help you minimize the risk and get an actionable plan with recommendations tailored to your company, we want to show you how AC-Scanner works.

AC-Scanner

AC-Scanner is basically a script for post-quantum cryptography exposure assessment. It maps your full cryptographic attack surface across TLS endpoints and SSH services, assesses every asset against NIST post-quantum standards and generates a structured Cryptographic Bill of Materials (CBOM).

Before we continue with the scan, you might want to watch a video by OTW and David Bombal on the risk of quantum computing being able to decrypt things at mass scale and expose session keys.

Setting Up

Docker is the easiest way to get started. We’ll start with the CLI version first, then show you how to get the web version up and running. They both work the same way, so you can choose any.

First install Docker on your system:

ubuntu > sudo apt update
ubuntu > sudo apt install docker.io

Then switch to root and pull it:

root > docker pull qubitac/acscanner:latest

Now it’s ready, so let’s see the help menu. 

root > docker run --rm -it qubitac/acscanner:latest bash -c 'rm -f /.dockerenv && cd /app/scripts && ./scan.sh -h'

We’re only interested in the presets here. As you can see, you can test basically any of your assets.

Scanning Assets – CLI

Let’s choose some random Russian company for this scan. We don’t intend them to benefit from the results, we will just use it for demonstration to show how prevalent the issue is.

For our scan we used –all to scan everything: 

root > mkdir -p ~/ac-scans/example.com && docker run --rm -it -v ~/ac-scans/example.com:/app/scripts/example.com qubitac/acscanner:latest bash -c 'rm -f /.dockerenv && cd /app/scripts && ./scan.sh --noinstall example.com --all'

If you’re testing a big company, it will take time. 

Results will be stored in ~/ac-scans

Here we only need crypto-bom.json that’s hiding in cbom.

Results

Upload crypto-bom.json to the dashboard by clicking Load CBOM. You will see the overview. 

You can already see the infrastructure is not PQC ready and has several critical issues. 

The next step is HTTPS. Although 9 of their endpoints are using HTTPS, it’s vulnerable and the risks are high.

The scanner tried to fingerprint the SSH endpoints too, but they weren’t open.

Let’s look at the issues that the company has. It will show all the affected hosts with severity assigned to each. 

Quantum risks may help tracking the progress of your migration. The results below are from a different company, but you can see they have only 3 PQC ready hosts out of 308. 

Recommendations will help you address issues by giving you prioritized actions. 

The recommendations were intentionally redacted by us to make them unusable. However, you can still clearly see how the page is structured.

Finally, your main goal is migration. Here it lists all the migration phases and gives you deadlines by which they need to be completed. 

As you can see, legacy TLS should be abandoned by 2027 and hybrid PQC key exchange should be introduced no later than 2028. That applies to everyone, not just this organization in particular. The report gives clarity and orients your client so there’s no confusion.

Scanning Assets – Web

If you don’t want to work in the terminal, you can use the web version. 

root > docker pull qubitac/acscanner
root > docker run -d --name acscanner -p 8080:80 qubitac/acscanner:latest 

It’s available in the browser on http://localhost:8080/.

Summary

AC-Scanner is easy to work with if you use Docker, otherwise you’ll run into some incompatibility issues. The dashboard has all the valuable information and most importantly it’s actionable and orienting. You don’t just see the vulnerabilities, you get a guide with recommendations on how to fix them too. Your client will definitely appreciate that.

Want to learn how to prepare your network for the post-quantum world? Join our Preparing Your Network for the Post-Quantum World training, taking place October 13-15 at 3 PM UTC. Available exclusively to Subscriber PRO students.

The post Quantum Resistance: Scanning Company Assets for PQC Readiness first appeared on Hackers Arise.