Dec 222013
 December 22, 2013  Posted by  Business, Featured News, Surveillance, U.S.

RSA responds to the recent report by Joseph Menn of Reuters that they entered into a $10 million contract with NSA to use a flawed random number generator in BSAFE.  Menn had reported, in part:

Documents leaked by former NSA contractor Edward Snowden show that the NSA created and promulgated a flawed formula for generating random numbers to create a “back door” in encryption products, the New York Times reported in September. Reuters later reported that RSA became the most important distributor of that formula by rolling it into a software tool called Bsafe that is used to enhance security in personal computers and many other products.

Undisclosed until now was that RSA received $10 million in a deal that set the NSA formula as the preferred, or default, method for number generation in the BSafe software, according to two sources familiar with the contract. Although that sum might seem paltry, it represented more than a third of the revenue that the relevant division at RSA had taken in during the entire previous year, securities filings show.

Here is RSA’s response, in full:

Recent press coverage has asserted that RSA entered into a “secret contract” with the NSA to incorporate a known flawed random number generator into its BSAFE encryption libraries.  We categorically deny this allegation.

We have worked with the NSA, both as a vendor and an active member of the security community. We have never kept this relationship a secret and in fact have openly publicized it. Our explicit goal has always been to strengthen commercial and government security.

Key points about our use of Dual EC DRBG in BSAFE are as follows:

  • We made the decision to use Dual EC DRBG as the default in BSAFE toolkits in 2004, in the context of an industry-wide effort to develop newer, stronger methods of encryption. At that time, the NSA had a trusted role in the community-wide effort to strengthen, not weaken, encryption.
  • This algorithm is only one of multiple choices available within BSAFE toolkits, and users have always been free to choose whichever one best suits their needs.
  • We continued using the algorithm as an option within BSAFE toolkits as it gained acceptance as a NIST standard and because of its value in FIPS compliance. When concern surfaced around the algorithm in 2007, we continued to rely upon NIST as the arbiter of that discussion.
  • When NIST issued new guidance recommending no further use of this algorithm in September 2013, we adhered to that guidance, communicated that recommendation to customers and discussed the change openly in the media.

RSA, as a security company, never divulges details of customer engagements, but we also categorically state that we have never entered into any contract or engaged in any project with the intention of weakening RSA’s products, or introducing potential ‘backdoors’ into our products for anyone’s use.

RSA, The Security Division of EMC

Update: Joseph Menn tweeted tonight that they stand by their story.

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