ActiveX controls are Pentium binary programs that can be embedded in Web pages. When one of them is encountered, a check is made to see if it should be executed, and it if passes the test, it is executed. It is not interpreted or sandboxed in any way, so it has as much power as any other user program and can potentially do great harm. Thus, all the security is in the decision whether to run the ActiveX control.
Many people feel that trusting an unknown software company is scary. To demonstrate the problem, a programmer in Seattle formed a software company and got it certified as trustworthy, which is easy to do. He then wrote an ActiveX control that did a clean shutdown of the machine and distributed his ActiveX control widely. It shut down many machines, but they could just be rebooted, so no harm was done. He was just trying to expose the problem to the world. The official response was to revoke the certificate for this specific ActiveX control, which ended a short episode of acute embarrassment, but the underlying problem is still there for an evil programmer to exploit. Since there is no way to control thousands of software companies that might write mobile code, the technique of code signing is a disaster waiting to happen.
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