RSA in programs that can be legally exported from the US (e.g. exportable versions of Netscape) has a "hole" in the sense that the key length is required by law to be short enough (56 bits, I believe) that major governments can find the key by brute force. (That is not a flaw in the algorithm, though...). PGP (Pretty Good Privacy) is currently based on RSA, current versions developed outside the US by software geek types and academic crypto types, supported 1024-bit "military" grade keys in version 2.6, and may by now support so-called "alien"-grade 2048-bit keys. Can't get too paranoid about who might be reading your stuff. The odds that RSA contains "holes" inserted deliberately to satisfy US spooks are pretty low... unless the RSA algorithm itself has some flaw, inserted deliberately by Rivest, Shamir, and Adleman at the behest of the National Security Agency, before publication. I doubt this, although it is not utterly inconceivable.
Less inconceivable is that the NSA actually knows how to factor large numbers in polynomial time on a classical computer (generally believed, but not proved, impossible), in which case RSA is totally insecure, but they are not telling. That wouldn't really be a "deliberately inserted hole" in RSA, though. The whole scheme would be worthless. You could check this by seeing the degree to which genuinely sensitive US government communications are encrypted using RSA, if at all; probably the government would not let it be used if NSA could crack it that easily, since others too might have figured out how. On the other hand, maybe they don't but it looks like they do...
The TecSec site was somewhat interesting, seems their product is a key management system, some of the products involving smart-cards, rather than a complete cryptosystem, but I'm not sure yet; they may supply algorithms with the key management programs, or perhaps the programs manage keys for use with external algorithms. Would seem to need some crypto in the programs themselves, though! I was a tad disappointed by the lack of details, at the website, on what was involved as far as the crypto algorithms used. Will look into it a bit more.
<"The man I never met"> -G- sounds like he may have been a bit kooky, which doesn't preclude his also being a genius. If TecSec was supposed to be the best, was his program "the best"? If so, presumably he meant outside the major governmental crypto agencies. Unless he was inside one of them, in which case he is certifiable on the basis of his conversations with you.
Are lawyers involved with your money, or his crypto? If the latter, well that seems to be par for the course. If the former, I'm sorry to hear it.
Take care,
HB |