dd segfaults

I had cause to execute the init script /etc/init.d/urandom at the console and discovered that it reported a segfault while both starting and stopping.
The following script reproduces the problem consistently:

#!/bin/sh
FILE=/tmp/key
if ! [ -f $FILE ] ; then
    echo "creating $FILE"
    touch $FILE
fi
dd if=/dev/urandom of=$FILE count=1
rm $FILE
#end

Output:
creating /tmp/key
1+0 records in
1+0 records out
/home/alexp/bin/crypt: line 7: 11150 Segmentation fault dd if=/dev/urandom of=$FILE count=1