How safe are "secret" keys in Windows 8 (WinJs) apps? - security

I'm doing a hobby project Windows 8 app in WinJS. As I'm calling an external api, which requires an api key and oauth authentication, I've got a number of keys that I need to keep "secret".
I've seen places around the web with detailed descriptions on how to get access to and also modify the source code for WinJs (and C#) apps on your computer. But I think those were in the beta/preview time frame?
My Google skills don't seem to be able to tell me if this has been fixed since, does anyone know?
If it wasn't fixed, how do people handle these situations?
Any tips and suggestions welcome :)

You have a couple options here.
Integrate Azure Mobile Services and have it do the oAuth if possible. Your keys remain secret in the cloud.
Store the main key encrypted in your WinJs application. The secret then is also encrypted and stored locally. I use https://github.com/cauld/winjs-oauth-for-twitter and have a slight revision that when I get the key back I store it in the credential manager.
Any local application compiled from any computer language can be tampered with, all you need is a debugger. If you encrypt everything I in theory can just load up a debugger, attach to the http stack library and watch the data go out (excluding even easier techniques like Fiddler to watch this data) and extract whatever I want - fairly easily. So the question is what are you trying to prevent?

If your app could be facilitated to launch a man-in-the-middle attack, you should not keep confidential data in plain form for a long time, in memory or on disk. Also, storing encrypted data locally, alongside with the algorithm and the algorithm key/hash is a recipe for security incidents.
There is no silver bullet to protect your code or data from probing by the end user (or someone who has physical access to the end user's machine), see the amount of game save editors and game trainers out there. Don't put your business logic or important data (e.g. in-app purchases) in plain text or similar, at least add some obfuscation

Related

Is it possible to find the origin of a request in nestjs? [duplicate]

Is there any way to restrict post requests to my REST API only to requests coming from my own mobile app binary? This app will be distributed on Google Play and the Apple App Store so it should be implied that someone will have access to its binary and try to reverse engineer it.
I was thinking something involving the app signatures, since every published app must be signed somehow, but I can't figure out how to do it in a secure way. Maybe a combination of getting the app signature, plus time-based hashes, plus app-generated key pairs and the good old security though obscurity?
I'm looking for something as fail proof as possible. The reason why is because I need to deliver data to the app based on data gathered by the phone sensors, and if people can pose as my own app and send data to my api that wasn't processed by my own algorithms, it defeats its purpose.
I'm open to any effective solution, no matter how complicated. Tin foil hat solutions are greatly appreciated.
Any credentials that are stored in the app can be exposed by the user. In the case of Android, they can completely decompile your app and easily retrieve them.
If the connection to the server does not utilize SSL, they can be easily sniffed off the network.
Seriously, anybody who wants the credentials will get them, so don't worry about concealing them. In essence, you have a public API.
There are some pitfalls and it takes extra time to manage a public API.
Many public APIs still track by IP address and implement tarpits to simply slow down requests from any IP address that seems to be abusing the system. This way, legitimate users from the same IP address can still carry on, albeit slower.
You have to be willing to shut off an IP address or IP address range despite the fact that you may be blocking innocent and upstanding users at the same time as the abusers. If your application is free, it may give you more freedom since there is no expected level of service and no contract, but you may want to guard yourself with a legal agreement.
In general, if your service is popular enough that someone wants to attack it, that's usually a good sign, so don't worry about it too much early on, but do stay ahead of it. You don't want the reason for your app's failure to be because users got tired of waiting on a slow server.
Your other option is to have the users register, so you can block by credentials rather than IP address when you spot abuse.
Yes, It's public
This app will be distributed on Google Play and the Apple App Store so it should be implied that someone will have access to its binary and try to reverse engineer it.
From the moment its on the stores it's public, therefore anything sensitive on the app binary must be considered as potentially compromised.
The Difference Between WHO and WHAT is Accessing the API Server
Before I dive into your problem I would like to first clear a misconception about who and what is accessing an API server. I wrote a series of articles around API and Mobile security, and in the article Why Does Your Mobile App Need An Api Key? you can read in detail the difference between who and what is accessing your API server, but I will extract here the main takes from it:
The what is the thing making the request to the API server. Is it really a genuine instance of your mobile app, or is it a bot, an automated script or an attacker manually poking around your API server with a tool like Postman?
The who is the user of the mobile app that we can authenticate, authorize and identify in several ways, like using OpenID Connect or OAUTH2 flows.
Think about the who as the user your API server will be able to Authenticate and Authorize access to the data, and think about the what as the software making that request in behalf of the user.
So if you are not using user authentication in the app, then you are left with trying to attest what is doing the request.
Mobile Apps should be as much dumb as possible
The reason why is because I need to deliver data to the app based on data gathered by the phone sensors, and if people can pose as my own app and send data to my api that wasn't processed by my own algorithms, it defeats its purpose.
It sounds to me that you are saying that you have algorithms running on the phone to process data from the device sensors and then send them to the API server. If so then you should reconsider this approach and instead just collect the sensor values and send them to the API server and have it running the algorithm.
As I said anything inside your app binary is public, because as yourself said, it can be reverse engineered:
should be implied that someone will have access to its binary and try to reverse engineer it.
Keeping the algorithms in the backend will allow you to not reveal your business logic, and at same time you may reject requests with sensor readings that do not make sense(if is possible to do). This also brings you the benefit of not having to release a new version of the app each time you tweak the algorithm or fix a bug in it.
Runtime attacks
I was thinking something involving the app signatures, since every published app must be signed somehow, but I can't figure out how to do it in a secure way.
Anything you do at runtime to protect the request you are about to send to your API can be reverse engineered with tools like Frida:
Inject your own scripts into black box processes. Hook any function, spy on crypto APIs or trace private application code, no source code needed. Edit, hit save, and instantly see the results. All without compilation steps or program restarts.
Your Suggested Solutions
Security is all about layers of defense, thus you should add as many as you can afford and required by law(e.g GDPR in Europe), therefore any of your purposed solutions are one more layer the attacker needs to bypass, and depending on is skill-set and time is willing to spent on your mobile app it may prevent them to go any further, but in the end all of them can be bypassed.
Maybe a combination of getting the app signature, plus time-based hashes, plus app-generated key pairs and the good old security though obscurity?
Even when you use key pairs stored in the hardware trusted execution environment, all an attacker needs to do is to use an instrumentation framework to hook in the function of your code that uses the keys in order to extract or manipulate the parameters and return values of the function.
Android Hardware-backed Keystore
The availability of a trusted execution environment in a system on a chip (SoC) offers an opportunity for Android devices to provide hardware-backed, strong security services to the Android OS, to platform services, and even to third-party apps.
While it can be defeated I still recommend you to use it, because not all hackers have the skill set or are willing to spend the time on it, and I would recommend you to read this series of articles about Mobile API Security Techniques to learn about some complementary/similar techniques to the ones you described. This articles will teach you how API Keys, User Access Tokens, HMAC and TLS Pinning can be used to protect the API and how they can be bypassed.
Possible Better Solutions
Nowadays I see developers using Android SafetyNet to attest what is doing the request to the API server, but they fail to understand it's not intended to attest that the mobile app is what is doing the request, instead it's intended to attest the integrity of the device, and I go in more detail on my answer to the question Android equivalent of ios devicecheck. So should I use it? Yes you should, because it is one more layer of defense, that in this case tells you that your mobile app is not installed in a rooted device, unless SafetyNet has been bypassed.
Is there any way to restrict post requests to my REST API only to requests coming from my own mobile app binary?
You can allow the API server to have an high degree of confidence that is indeed accepting requests only from your genuine app binary by implementing the Mobile App Attestation concept, and I describe it in more detail on this answer I gave to the question How to secure an API REST for mobile app?, specially the sections Securing the API Server and A Possible Better Solution.
Do you want to go the Extra Mile?
In any response to a security question I always like to reference the excellent work from the OWASP foundation.
For APIS
OWASP API Security Top 10
The OWASP API Security Project seeks to provide value to software developers and security assessors by underscoring the potential risks in insecure APIs, and illustrating how these risks may be mitigated. In order to facilitate this goal, the OWASP API Security Project will create and maintain a Top 10 API Security Risks document, as well as a documentation portal for best practices when creating or assessing APIs.
For Mobile Apps
OWASP Mobile Security Project - Top 10 risks
The OWASP Mobile Security Project is a centralized resource intended to give developers and security teams the resources they need to build and maintain secure mobile applications. Through the project, our goal is to classify mobile security risks and provide developmental controls to reduce their impact or likelihood of exploitation.
OWASP - Mobile Security Testing Guide:
The Mobile Security Testing Guide (MSTG) is a comprehensive manual for mobile app security development, testing and reverse engineering.
No. You're publishing a service with a public interface and your app will presumably only communicate via this REST API. Anything that your app can send, anyone else can send also. This means that the only way to secure access would be to authenticate in some way, i.e. keep a secret. However, you are also publishing your apps. This means that any secret in your app is essentially being given out also. You can't have it both ways; you can't expect to both give out your secret and keep it secret.
Though this is an old post, I thought I should share the updates from Google in this regard.
You can actually ensure that your Android application is calling the API using the SafetyNet mobile attestation APIs. This adds a little overhead on the network calls and prevents your application from running in a rooted device.
I found nothing similar like SafetyNet for iOS. Hence in my case, I checked the device configuration first in my login API and took different measures for Android and iOS. In case of iOS, I decided to keep a shared secret key between the server and the application. As the iOS applications are a little bit difficult to reversed engineered, I think this extra key checking adds some protection.
Of course, in both cases, you need to communicate over HTTPS.
As the other answers and comments imply, you cant truly restrict API access to only your app but you can take different measures to reduce the attempts. I believe the best solution is to make requests to your API (from native code of course) with a custom header like "App-Version-Key" (this key will be decided at compile time) and make your server check for this key to decide if it should accept or reject. Also when using this method you SHOULD use HTTPS/SSL as this will reduce the risk of people seeing your key by viewing the request on the network.
Regarding Cordova/Phonegap apps, I will be creating a plugin to do the above mentioned method. I will update this comment when its complete.
there is nothing much you can do. cause when you let some one in they can call your APIs. the most you can do is as below:
since you want only and only your application (with a specific package name and signature) calls your APIs, you can get the signature key of your apk pragmatically and send is to sever in every API call and if thats ok you response to the request. (or you can have a token API that your app calls it every beginning of the app and then use that token for other APIs - though token must be invalidated after some hours of not working with)
then you need to proguard your code so no one sees what you are sending and how you encrypt them. if you do a good encrypt decompiling will be so hard to do.
even signature of apk can be mocked in some hard ways but its the best you can do.
Someone have looked at Firebase App Check ?
https://firebase.google.com/docs/app-check
Is there any way to restrict post requests to my REST API only to requests coming from my own mobile app binary?
I'm not sure if there is an absolute solution.
But, you can reduce unwanted requests.
Use an App Check:
The "Firebase App Check" can be used cross-platform (https://firebase.google.com/docs/app-check) - credit to #Xande-Rasta-Moura
iOS: https://developer.apple.com/documentation/devicecheck
Android: https://android-developers.googleblog.com/2013/01/verifying-back-end-calls-from-android.html
Use BasicAuth (for API requests)
Allow a user-agent header for mobile devices only (for API requests)
Use a robots.txt file to reduce bots
User-agent: *
Disallow: /

Is there any way to use the wordnik API for a desktop app without server-side access?

I am writing a desktop app using PyQt5 which uses the Wordnik API to get word definitions. I do not have server-side access, nor do I wish to invest in acquiring it. Is there any way I can reliably hide my key so I can share my program on GitHub?
At the very least you could store your API key in a separate source file (which you would exclude from the repository via .gitignore) and check for exceptions while importing that file (see this), alerting to provide own API key if that fails.
Storing the API key in a non-source configuration file is another option, but then your worries are in storing that file in a way that is not accessible to the end user of your application.
Unfortunately, no, our Wordnik terms of service don't allow for sharing keys where they are accessible by end-users. If your app is noncommercial you can share instructions for users to help them apply for and add their own Wordnik keys to their copy of the application (and this also helps you, in that your key won't hit our API limits based on your users).
If this is a commercial application, please get in touch with us (apiteam#wordnik) with more details about your use case as we are looking into how to make this easier. As a small nonprofit with limited engineering resources we can't promise a quick solution but since our mission is to find & share every English word we're always interested in learning more about how folks are using our API. :)
Thanks for using Wordnik!

How does PasswordVault protect passwords? [duplicate]

I'd like to use Windows.Security.Credentials.PasswordVault in my desktop app (WPF-based) to securely store a user's password. I managed to access this Windows 10 API using this MSDN article.
I did some experiments and it appears that any data written to PasswordVault from one desktop app (not a native UWP app) can be read from any other desktop app. Even packaging my desktop app with Desktop Bridge technology and thus having a Package Identity does not fix this vulnerability.
Any ideas how to fix that and be able storing the app's data secure from other apps?
UPDATE: It appeared that PasswordVault adds no extra security over DPAPI. The case is closed with a negative result.
(this is from what I can understand of your post)
There is no real way of preventing data access between desktop apps when using these kind of API's http://www.hanselman.com/blog/SavingAndRetrievingBrowserAndOtherPasswords.aspx tells more about it. You'd probably just want to decrypt your information.
memory access restriction is difficult, code executed by the user is always retrievable by the user so it would be difficult to restrict this.
have you considered using the Windows Data Protection API :
https://msdn.microsoft.com/en-us/library/ms995355.aspx
grabbed straight from the source
DPAPI is an easy-to-use service that will benefit developers who must provide protection for sensitive application data, such as passwords and private keys
WDPAPI uses keys generated by the operating system and Triple DES to encrypt/decrypt your data. Which means your application doesn't have to generate these keys, which is always nice.
You could also use the Rfc2898DeriveBytes class, this uses a pseudo-random number generator to decrypt your password. It's safer than most decrypters since there is no practical way to go back from the result back to the password. This is only really useful for verifying the input password and not retrieving it back again. I have never actually used this myself so I would not be able to help you.
https://msdn.microsoft.com/en-us/library/system.security.cryptography.rfc2898derivebytes(v=vs.110).aspx
see also this post which gives a way better explanation than I can.
How to securely save username/password (local)?
If I misunderstood the question in some way, tell me, I will try to update the answer.
NOTE that modern/metro apps do not have this problem, although they still are accessible in other ways.
The hard truth is that storing a password in a desktop application, 100% securely is simply not possible. However, you can get close to 100%.
Regarding your original approach, PasswordVault uses the Credential Locker service which is built into windows to securely store data. Credential Locker is bound to the user's profile. Therefore, storing your data via PasswordVault is essentially equivalent to the master password approach to protecting data, which I talk about in detail further down. Only difference is that the master password in that case is the user's credentials. This allows applications running during the user's session to access the data.
Note: To be clear, I'm strictly talking about storing it in a way that allows you access to the plain text. That is to say, storing it in an encrypted database of any sort, or encrypting it yourself and storing the ciphertext somewhere. This kind of functionality is necessary in programs like password managers, but not in programs that just require some sort of authentication. If this is not a necessity then I strongly recommend hashing the password, ideally per the instructions laid out in this answer by zaph. (Some more information in this excellent post by Thomas Pornin).
If it is a necessity, things get a bit more complicated: If you want to prevent other programs (or users I suppose) from being able to view the plaintext password, then your only real option is to encrypt it. Storing the ciphertext within PasswordVault is optional since, if you use good encryption, your only weak point is someone discovering your key. Therefore the ciphertext itself can be stored anywhere. That brings us to the key itself.
Depending on how many passwords you're actually trying to store for each program instance, you might not have to worry about generating and securely storing a key at all. If you want to store multiple passwords, then you can simply ask the user to input one master password, perform some salting and hashing on that, and use the result as the encryption key for all other passwords. When it is time for decryption, then ask the user to input it again. If you are storing multiple passwords then I strongly urge you to go with this approach. It is the most secure approach possible. For the rest of my post however, I will roll with the assumption that this is not a viable option.
First off I urge you not to have the same key for every installation. Create a new one for every instance of your program, based on securely generated random data. Resist the temptation to "avoid having to store the key" by having it be generated on the fly every time it is needed, based on information about the system. That is just as secure as hardcoding string superSecretKey = "12345"; into your program. It won't take attackers long to figure out the process.
Now, storing it is the real tricky part. A general rule of infosec is the following:
Nothing is secure once you have physical access
So, ideally, nobody would. Storing the encryption keys on a properly secured remote server minimizes the chances of it being recovered by attackers. Entire books have been written regarding server-side security, so I will not discuss this here.
Another good option is to use an HSM (Hardware Security Module). These nifty little devices are built for the job. Accessing the keys stored in an HSM is pretty much impossible. However, this option is only viable if you know for sure that every user's computer has one of these, such as in an enterprise environment.
.Net provides a solution of sorts, via the configuration system. You can store your key in an encrypted section of your app.config. This is often used for protecting connection strings. There are plenty of resources out there on how to do this. I recommend this fantastic blog post, which will tell you most of what you need to know.
The reason I said earlier not to go with simply generating the key on the fly is because, like storing it as a variable in your code, you rely exclusively on obfuscation to keep it secure. The thing about this approach is that it usually doesn't. However, sometimes you have no other option. Enter White Box cryptography.
White box cryptography is essentially obfuscation taken to the extreme. It is meant to be effective even in a white-box scenario, where the attacker both has access to and can modify the bytecode. It is the epitome of security through obscurity. As opposed to mere constant hiding (infosec speak for the string superSecretKey approach) or generating the key when it is needed, white box cryptography essentially relies on generating the cipher itself on the fly.
Entire papers have been written on it, It is difficult to pull off writing a proper implementation, and your mileage may vary. You should only consider this if you really really really want to do this as securely as possible.
Obfuscation however is still obfuscation. All it can really do is slow the attackers down. The final solution I have to offer might seem backwards, but it works: Do not hide the encryption key digitally. Hide it physically. Have the user insert a usb drive when it is time for encryption, (securely) generate a random key, then write it to the usb drive. Then, whenever it is time for decryption, the user only has to put the drive back in, and your program reads the key off that.
This is a bit similar to the master password approach, in that it leaves it up to the user to keep the key safe. However, it has some notable advantages. For instance, this approach allows for a massive encryption key. A key that can fit in a mere 1 megabyte file can take literally billions of years to break via a brute force attack. Plus, if the key ever gets discovered, the user has only themselves to blame.
In summary, see if you can avoid having to store an encryption key. If you can't, avoid storing it locally at all costs. Otherwise, your only option is to make it as hard for hackers to figure it out as possible. No matter how you choose to do that, make sure that every key is different, so even if attackers do find one, the other users' keys are safe.
Only alternative is to encrypt password with your own private key stored somewhere in your code. (Someone can easily disassemble your code and get the key) and then store encrypted password inside PasswordVault, however the only security you have is any app will not have access to password.
This is dual security, in case of compromised machines, attacker can get access to PasswordVault but not your password as they will need one more private key to decrypt the password and that will be hidden somewhere in your code.
To make it more secure, if you leave your private key on your server and expose an API to encrypt and decrypt password before storing in Vault, will make it most secure. I think this is the reason people have moved on to OAuth (storing OAuth token in PasswordVault) etc rather then storing password in vault.
Ideally, I would recommend not storing password, instead get some token from server and save it and use that token for authentication. And store that token in PasswordVault.
It is always possible to push the security, with miscellaneous encryption and storage strategies. Making something harder is only making the data retrieval longer, never impossible. Hence you need to consider the most appropriate level of protection considering execution cost x time (human and machine) and development cost x time aspects.
If I consider strictly your request, I would simply add a layer (class, interface) to cipher your passwords. Best with asymmetrical encryption (and not RSA). Supposing the other softs are not accessing your program data (program, files OR process), this is sufficient. You can use SSH.NET (https://github.com/sshnet/SSH.NET) to achieve this quickly.
If you would like to push the security and give a certain level of protection against binary reverse-engineering (including the private key retrieval), I recommend a small (process limited) encrypted VM (like Docker, https://blogs.msdn.microsoft.com/mvpawardprogram/2015/12/15/getting-started-with-net-and-docker/) based solution such as Denuvo (https://www.denuvo.com/). The encryption is unique per customer and machine based. You'll have to encapsulated you c# program into a c/c++ program (which acts like a container) that will do all the in-memory ciphering-deciphering.
You can implement your own strategy, depending on the kind of investment and warranty you require.
In case your program is a backend program, you can pick the best strategy (the only I really recommend) of all which is to store the private key at the client side, public key at backend side and have local deciphering, all transmitted password would be hence encrypted. I would like to remark that password and keys are actually different strategies to achieve the same goal: checking if the program talks to the right person without knowing the person's identity; I mean this: instead of storing passwords, better store directly public keys.
Revisiting this rather helpful issue and adding a bit of additional information which might be helpful.
My task was to extend a Win32 application that uses passwords to authenticate with an online service with a "save password" functionality. The idea was to protect the password using Windows Hello (UserConsentVerifier). I was under the impression that Windows surely has something comparable to the macOS keychain.
If you use the Windows Credential Manager APIs (CredReadA, CredWriteA), another application can simply enumerate the credentials and if it knows what to look for (the target name), it will be able to read the credential.
I also explored using DPAPI where you are in charge of storing the encrypted blob yourself, typically in a file. Again, there seems to be no way (except obfuscation) to prevent another application from finding and reading that file. Supplying additional entropy to CryptProtectData and CryptUnprotectData again poses the question of where to store the entropy (typically I assume it would be hard-coded and perhaps obfuscated in the application: this is security by obscurity).
As it turns out, neither DPAPI (CryptProtectData, CryptUnprotectData) nor Windows Credential Manager APIs (CredRead, CredWrite) can prevent another application running under the same user from reading a secret.
What I was actually looking for was something like the macOS keychain, which allows applications to store secrets, define ACLs on those secrets, enforce biometric authentication on accessing the secret, and critically, prevents other applications from reading the secrets.
As it turns out, Windows has a PasswordVault which claims to isolate apps from each other, but its only available to UWP apps:
Represents a Credential Locker of credentials. The contents of the locker are specific to the app or service. Apps and services don't have access to credentials associated with other apps or services.
Is there a way for a Win32 Desktop application to access this functionality? I realize that if a user can be brought to install and run a random app, that app could probably mimic the original application and just prompt the user to enter the secret, but still, it's a little disappointing that there is no app-level separation by default.

Protecting third party API keys/secrets in PhoneGap

I'm currently assessing the pros and cons of going native vs. PhoneGap for an app I have in mind, and thus far, PhoneGap seems to be the ideal option since most of the data processing will be done on the server-side, while the app will merely be a means to get inputs from the user.
But I've been reading a lot about how all the PhoneGap .html and .js files would be easily accessible on a rooted/jailbroken phone. My concern is that my app will be using a couple of third party APIs, particularly Last.fm and Parse. Both these APIs come with an API secret. Would this not cause a security concern? While the maximum damage one could inflict with my Last.fm API secret key would be to exhaust the API limits, with Parse, it could be much more serious, especially if I plan to store user logins, passwords, emails etc. Anyone could simply grab my Parse Application ID and JavaScript Key and start querying away on Parse (and possibly (but not probably) a competitor or a troll (more likely) could push up the requests/second from my Application ID so that I end up with a big, fat US $10,000 bill).
Are there any methods to protect/encrypt/obfuscate these API secret keys while developing apps in PhoneGap? Does this problem go away if you go native?
First of all, I think the security issues you mention are not related to Phonegap only, same problems exist for native apps as well. I admit, it is harder to find these keys in native apps, but it's doable.
On a side note, both Android apk and Apple ipa files are actually zip archives, so you don't need a rooted phone to open up and peek inside. You can already do it for all the apps (not only Phonegap but native ones), open the archive, see the resources. But in native apps, you have a binary executable instead of html/js files. That's why it's not easy to figure out the data (keys), and app logic inside.
One approach is to implement a special scheme that will encrypt your js files during packaging (development), distribute it with the app and decrypt during runtime. It is totally possible (we did it in a project successfully), your Phonegap app becomes as difficult to hack as native apps. Note that I am not saying impossible, because you still have the problem of hiding the decryption key somewhere in your code/resources. Beware though, writing such a framework is not easy and requires some modification to Phonegap source code as well.
I think the safest solution to hide keys for Parse, etc. is to use your own server, implement server to server authentication and just pass a token to your client for client-server communication. In all other cases, you have to send the keys with the app, and however you hide it, there will be some guy who will find a way to unhide it.

iPhone application and security?

How do you secured a key into your iPhone application?
I have an API key that is used by the client application, and do not want anyone to see it, only the application should be able to read it.
1) how do I safely store this in my application? storing it into a variable? is good enough?
2) What happens if someone decrypts my application? (Is that possible?)
There's a lot of questions here so let me answer one at a time:
How do you secured a key into your iPhone application?
I assume that you are trying to secure it from the user of your application. This is impossible unless you are using a trusted computing platform, ie. a platform that can be trusted to not obey orders from its owner (sometimes called treacherous computing for that reason). iPhone is not such a platform to my knowledge.
I have an API key that is used by the client application, and do not want anyone to see it, only the application should be able to read it.
If your application can read it then the owner of the platform that your application runs on can read it as well. (The exception would be a trusted computing platform - see above.)
how do I safely store this in my application?
You can't.
storing it into a variable?
You might.
is good enough?
No.
What happens if someone decrypts my application?
Then he gets your key.
Is that possible?
Yes.
If you don't want your users to know your key then don't give it to them in the first place. Set up a proxy server that your application would connect to and keep your secrets there.
There's an old saying that every secret has to be treated like a public knowledge unless it's known by no more than two people. This applies to software too.
Consider storing the key in the iPhone's keychain repository. Take a look at the Apple provided keychain sample app here:
http://developer.apple.com/library/ios/#samplecode/GenericKeychain/Introduction/Intro.html
Hope this helped. Good Luck.
I agree with Greg Thompson, Apple recommends the use of the keychain to store secure data such as credentials.
By the other hand there is a couple of articles around the web that says that the keychain is no longer "the safer zone", because some people were able to decode its data (and pretty quick).
With iOs 4.0 and later, some improvements about security where made, that is called Data Protection (you can google it like: iOs data protection).. if you are interested in this topic, you'll find the Session 209 - Securing Application Data from WWDC 2010 Session Videos very interesting ... You can get this video for free via iTunes store - iTunes U
Hope this helps

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