According to a report from security researcher Dan Kaminsky, the MD5 cryptographic algorithm may be at risk. This means that files, applications and programs supposedly authenticated and verified by MD5 could potentially be compromised.
In a research paper titled, “MD5 To Be Considered Harmful Some Day,” Kaminsky expanded on the theoretical work done by Chinese security researchers Xiaoyun Wang, Dengguo Feng, Xuejia Lai and Hongbo Yu on “Collisions for MD5 Hash Functions.” Kaminsky released a tool Stripwire to demonstrate some of the attacks he describes.
A hash collision essentially means that you could have two identical outputs from a hash function. That situation may lead to an algorithm that is not considered to be cryptographically secure and can be attacked. In August, French research Antoine Joux presented an unpublished paper at the Crypto 2004 show similar to the original Chinese research that Kaminsky expanded upon.
At the time the disclosure prompted data storage giant EMC to allay its customers that the MD5 algorithm it uses is enhanced and buried in the platform and that it was virtually unexploitable.
“Some people have said there’s no applied implications to Joux and Wang’s research,” Kaminsky wrote. “They’re wrong; arbitrary payloads can be successfully integrated into a hash collision.”
Source: Internet News

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