Networking security problem?

["gregh" <chows () ozemail com au>]

Tested on XP Home and 98SE only.
------------------------------------


I wont make this a real long formal thing as it is quite simple and rather than make it a bug style report, I am asking 
for your input.

Scenario:
----------

Last year I was working on a 98SE network problem that turned out to be a busted NIC. The particular NIC was in a 
payroll machine with obviously very sensitive info in it. In order to give some sense of security to the payroll woman, 
at some time in the past, someone had set up a screen saver password that she knew how to change. Eg, resume from 
screen saver required typing the password to get any further on the machine to a novice and as she kept the payroll 
room door locked anyway, it was deemed "enough" by management. Unfortunately, though, along came I to fix a minor 
problem and to be sure the NIC was responding each way (eg, it could be seen by the machine in the same office) I 
installed the NIC, then went to the other machine to ping it and see if programs were working OK. Normal routine. Prior 
to me getting to the other machine, she had questions and we spent 10 minutes talking and then I went to the other 
machine and ran programs, pinged, searched the C drive on the !
 payroll machine and came back to the payroll machine. I found the machine was locked out by password and as she was 
standing nearby, I got her to type the password in and away it all went.

Then it hit me - I had been running programs on the payroll machine from the other machine in the network. Curious, I 
went to another office and did the same thing after forcing the screen saver on. Again it all worked and I could look 
up sensitive data. The LAN they have there does have internet access and has a basic "out of the box" firewall and they 
think they are safe. I pointed out how I easily got in from within their office and others could do the same straight 
to the payroll machine from outside but the manager said they couldn't as "we have a firewall". Well, not wanting to 
push the point as this was the first time I had been there, I left it alone but then decided to report those findings 
to MS. Eventually they did respond but they said they don't see it as a problem but WOULD make it an OPTION in the next 
SP for XP and also I presume the next full OS (Longhorn?) they issue.

Am I being pedantic here? To my mind, if a password is required to use the machine locally, it should automatically 
require the network connection to be broken. XP goes back to the Welcome screen depending on your settings or the NT 
looking username and password box you would all know. I find it totally mystifying that a machine that is "protected" 
at keyboard level by a password so people cant get into it and look up sensitive info can still be gotten into at least 
by the local LAN and info STILL gained. The problem here is if a disgruntled employee went postal and knew this info, 
he/she could do what they want. I understand the programs and data could be protected in other ways but it also hit me 
that there must be quite a few small to medium companies living in a delirious limbo like this, too.

Any comments? Am I just pedantic or is this really a headbanger?

Greg.
_______________________________________________
Full-Disclosure - We believe in it.
Charter: http://lists.netsys.com/full-disclosure-charter.html