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[OM] [OT] Firewalls and other (mostly Linux related) network security qu

Subject: [OM] [OT] Firewalls and other (mostly Linux related) network security questions
From: Chuck Norcutt <chucknorcutt@xxxxxxxxxxxxxxxx>
Date: Fri, 17 Jan 2014 10:18:43 -0500
Moose's last post about building a new fire-breathing computer and 
equipping it with the Zone Alarm firewall causes me to ask a question 
that has been on my mind the last couple of weeks.

Independent of OS and real/perceived vulnerabilities do we really need 
software firewalls if our machines are talking to the internet through a 
router?  One of the functions of a router is to hide our real IP 
addresses from the outside world.

(1) Assuming we haven't deliberately established ports for peer-to-peer 
connections (?) are we not safe from outside probing given that we're 
hidden behind the router?
(2) If not, what function does the software firewall provide that the 
router doesn't?
(3) Is the distinction even important now that most security breaches 
are passing through our browsers?  (maybe Apple guys should pay attention?).

Now some other security related questions having to do with Linux 
because, after following "Krebs on Security" recently 
<http://krebsonsecurity.com/> , I've become paranoid about doing banking 
and financial transactions on Windows.  According to Krebs and others 
the most secure way to operate is by using a Linux distribution on Live 
CD.  Since the CD is not writeable the OS cannot be modified.  My wife's 
old Dell laptop is still running XP and needs to be replaced with 
something more modern.  My thought was to repurpose the old laptop as a 
dedicated Linux machine whose only purpose is financial transactions and 
the only websites it ever visits is those of the financial institutions.

But I have a few questions about such a configuration.
(4) Since a Live CD is not writeable how is configuration data saved 
(such as URL favorites for the browser and other stuff)?  Does that not 
require at least some other small storage device?  How is it selected?
(5) That question doesn't arise if Linux is installed on a USB memory 
stick or flash card on USB adapter.  That should also improve boot time 
but seems to undo the security of the unwriteable Live CD.  I had 
thought that maybe an SD card could be used with its write protect 
switch set to prevent writing but my understanding of that is that it's 
not really a hardware prevention but a software convention providing no 
real security.  Anyone know for sure?
(6) If the Linux machine is residing on a (mostly) Windows LAN is the 
Linux machine still vulnerable through the LAN?  If so, is it possible 
to isolate the Linux machine by installing it behind a second router? 
If so, how are two routers installed behind a single cable modem?  Can 
one simply install a switch and plug both routers into the switch?
(7) Am I overly paranoid?

Thanks for any answers,
Chuck Norcutt
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