A weakness in the algorithm used to encrypt cellphone data in the 1990s and 2000s allowed hackers to spy on some internet traffic, according to a new research paper. Motherboard: The paper has sent shockwaves through the encryption community because of what it implies: The researchers believe that the mathematical probability of the weakness being introduced on accident is extremely low. Thus, they speculate that a weakness was intentionally put into the algorithm. After the paper was published, the group that designed the algorithm confirmed this was the case. Researchers from several universities in Europe found that the encryption algorithm GEA-1, which was used in cellphones when the industry adopted GPRS standards in 2G networks, was intentionally designed to include a weakness that at least one cryptography expert sees as a backdoor. The researchers said they obtained two encryption algorithms, GEA-1 and GEA-2, which are proprietary and thus not public, "from a source." They then analyzed them and realized they were vulnerable to attacks that allowed for decryption of all traffic.

When trying to reverse-engineer the algorithm, the researchers wrote that (to simplify), they tried to design a similar encryption algorithm using a random number generator often used in cryptography and never came close to creating an encryption scheme as weak as the one actually used: "In a million tries we never even got close to such a weak instance," they wrote. "This implies that the weakness in GEA-1 is unlikely to occur by chance, indicating that the security level of 40 bits is due to export regulations." Researchers dubbed the attack "divide-and-conquer," and said it was "rather straightforward." In short, the attack allows someone who can intercept cellphone data traffic to recover the key used to encrypt the data and then decrypt all traffic. The weakness in GEA-1, the oldest algorithm developed in 1998, is that it provides only 40-bit security. That's what allows an attacker to get the key and decrypt all traffic, according to the researchers.

On Friday, Volkswagen disclosed a data breach that it said affected 3.3 million customers and interested buyers. On Monday, hackers put the data stolen from the car maker on sale on a notorious hacking forum. From a report: In the sales listing reviewed by Motherboard, a hacker that goes by 000 wrote that the data included email addresses and Vehicle Identification Numbers (VIN). The hacker also posted two samples of the data, which included full names, email addresses, mailing addresses, and phone numbers. The type of data seems to align with what Volkwagen admitted was stolen. In a website set up by a cybersecurity vendor on behalf of the car maker, Volkswagen said that "the majority" of affected data included: "first and last name, personal or business mailing address, email address, or phone number. In some instances, the data also included information about a vehicle purchased, leased, or inquired about, such as the Vehicle Identification Number (VIN), make, model, year, color and trim packages."

But for 90,000 victims, the data also included "more sensitive information relating to eligibility for a purchase, loan, or lease. Nearly all of the more sensitive data (over 95%) consists of driver's license numbers," according to the company, which added that the majority of data pertains to Audi customers and interested buyers in the US and Canada only. The company also said it believes the data was left unsecured by a vendor. (Audi is owned by the Volkswagen Group.) "There were also a very small number of dates of birth, Social Security or social insurance numbers, account or loan numbers, and tax identification numbers," the website read.