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The ACCC has cleared, provisionally, the proposed deal between Optus and NBN Co under which Optus is to be paid around $800m to shut down its HFC network and transfer customers onto the NBN.
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The attack is based on an abstracted adversary called "Pretty bad Proxy" (PBP). This is defined in the context of the kinds of threats that the HTTPS protocol should cope with. And in this case, doesn't.
Quoting again from the paper: "PBP is a malicious proxy targeting browsers' rendering modules above the HTTP/HTTPS layer. It attempts to break the end-to-end security guarantees of HTTPS without breaking any cryptographic scheme. We discovered a set of vulnerabilities exploitable by a PBP: in many realistic network environments where attackers can sniff the browser traffic, they can steal sensitive data from an HTTPS server, fake an HTTPS page and impersonate an authenticated user to access an HTTPS server. These vulnerabilities reflect the neglects in the design of modern browsers – they affect all major browsers and a large number of websites."
"The adversary model of HTTPS is simple and clear: the network is completely owned by the adversary, meaning that no network device on the network is assumed trustworthy. The protocol is rigorously designed, implemented and validated using this adversary model. If HTTPS is not robust against this adversary, it is broken by definition."
In short, the Pretty Bad Proxy is able to execute a man-in-the-middle attack at upper-layer protocols and thereby indirectly compromising the HTTPS protocols; specifically it "targets the browser's rendering modules above the HTTP/HTTPS layer in order to break the end-to-end security of HTTPS."
Let's make this simple. A potential attacker waits for the browser to decrypt the traffic before stepping in and grabbing it. Obviously defending against this is tricky, hence the fact that only some of the potential attack vectors have been dealt with.
Worse, other as-yet unidentified attacks may-well be possible. This is also OS-independent. Fun times ahead.