26
Jul 16

Kimpton Hotels Probes Card Breach Claims

Kimpton Hotels, a boutique hotel brand that includes 62 properties across the United States, said today it is investigating reports of a credit card breach at multiple locations.

kimptonOn July 22, KrebsOnSecurity reached out to San Francisco-based Kimpton after hearing from three different sources in the financial industry about a pattern of card fraud that suggested a card breach at close to two-dozen Kimpton hotels across the country.

Today, Kimpton responded by issuing and posting the following statement:

“Kimpton Hotels & Restaurants takes the protection of payment card data very seriously. Kimpton was recently made aware of a report of unauthorized charges occurring on cards that were previously used legitimately at Kimpton properties. As soon as we learned of this, we immediately launched an investigation and engaged a leading security firm to provide us with support.”

“We are committed to swiftly resolving this matter. In the meantime, and in line with best practice, we recommend that individuals closely monitor their payment card account statements. If there are unauthorized charges, individuals should immediately notify their bank. Payment card network rules generally state that cardholders are not responsible for such charges.” Continue reading →


25
Jul 16

Trump, DNC, RNC Flunk Email Security Test

Donald J. Trump has repeatedly bashed Sen. Hillary Clinton for handling classified documents on her private email server, suggesting that anyone who is so lax with email security isn’t fit to become president. But a closer look at the Web sites for each candidate shows that in contrast to hillaryclinton.com, donaldjtrump.com has failed to take full advantage of a free and open email security technology designed to stymie email spoofing and phishing attacks.

atballAt issue is a fairly technical proposed standard called DMARC. Short for “domain-based messaging authentication reporting and conformance,” DMARC tries to solve a problem that has plagued email since its inception: It’s surprisingly difficult for email providers and end users alike to tell whether a given email is real – i.e. that it really was sent by the person or organization identified in the “from:” portion of the missive.

DMARC may not yet be widely deployed beyond the major email providers, but that’s about to change. Google announced late last year that it will soon move gmail.com to a policy of rejecting any messages that don’t pass the authentication checks spelled out in the DMARC specification. And others are already moving in the same direction.

Probably the easiest way to understand DMARC is to walk through a single site’s records. According to the DMARC compliance lookup tool at dmarcian.com — a DMARC awareness, training and support site — hillaryclinton.com has fully implemented DMARC. This means that the campaign has posted a public policy that enables email providers like Google, Microsoft and Yahoo to quickly determine whether a message claiming to have been sent from hillaryclinton.com was actually sent from that domain.

Specifically, (and this is where things can quickly descend into a Geek Factor 5 realm of nerdiness) DMARC sits on top of two existing technologies that try to make email easy to identify: Sender Policy Framework (SPF), and DomainKeys Identified Mail (DKIM).

SPF is basically a list of Internet addresses and domains which are authorized to send email on behalf of hillaryclinton.com (in case anyone’s interested, here’s a copy of the SPF record for hillaryclinton.com). DKIM allows email receivers to verify that a piece of email originated from an Internet domain through the use of public key cryptography. Deploying both technologies gives email receivers two ways to figure out if a piece of email is legitimate.

The DMARC record for Clinton’s site includes the text string “p=quarantine.” The “p” bit stands for policy, and “quarantine” means the Web site’s administrators have instructed email providers to quarantine all messages sent from addresses or domains not on that list and not signed with DKIM – effectively consigning them to the intended recipient’s “spam” or “junk” folder. Another blocking option available is “p=reject,” which tells email providers to outright drop or reject any mail sent from domains or addresses not specified in the organization’s SPF records and lacking any appropriate DKIM signatures.

Turning Dmarcian.com’s tool against donaldjtrump.com, we can see that although the site is thinking about turning on DMARC, it hasn’t actually done so yet. The site’s DMARC records are set to the third option — “p=none” — which means the site administrators haven’t yet asked email providers to block or quarantine any messages that fail to match the site’s SPF records. Rather, the site merely asks email providers to report to “postmaster@donaldjtrump.com” about the source of any email messages claiming to have been sent by that domain. Continue reading →


21
Jul 16

Canadian Man Behind Popular ‘Orcus RAT’

Far too many otherwise intelligent and talented software developers these days apparently think they can get away with writing, selling and supporting malicious software and then couching their commerce as a purely legitimate enterprise. Here’s the story of how I learned the real-life identity of Canadian man who’s laboring under that same illusion as proprietor of one of the most popular and affordable tools for hacking into someone else’s computer.

Earlier this week I heard from Daniel Gallagher, a security professional who occasionally enjoys analyzing new malicious software samples found in the wild. Gallagher said he and members of @malwrhunterteam and @MalwareTechBlog recently got into a Twitter fight with the author of Orcus RAT, a tool they say was explicitly designed to help users remotely compromise and control computers that don’t belong to them.

A still frame from a Youtube video showing Orcus RAT's keylogging ability to steal passwords from Facebook users and other credentials.

A still frame from a Youtube video demonstrating Orcus RAT’s keylogging ability to steal passwords from Facebook and other sites.

The author of Orcus — a person going by the nickname “Ciriis Mcgraw” a.k.a. “Armada” on Twitter and other social networks — claimed that his RAT was in fact a benign “remote administration tool” designed for use by network administrators and not a “remote access Trojan” as critics charged. Gallagher and others took issue with that claim, pointing out that they were increasingly encountering computers that had been infected with Orcus unbeknownst to the legitimate owners of those machines.

The malware researchers noted another reason that Mcgraw couldn’t so easily distance himself from how his clients used the software: He and his team are providing ongoing technical support and help to customers who have purchased Orcus and are having trouble figuring out how to infect new machines or hide their activities online.

What’s more, the range of features and plugins supported by Armada, they argued, go well beyond what a system administrator would look for in a legitimate remote administration client like Teamviewer, including the ability to launch a keylogger that records the victim’s every computer keystroke, as well as a feature that lets the user peek through a victim’s Web cam and disable the light on the camera that alerts users when the camera is switched on.

A new feature of Orcus announced July 7 lets users configure the RAT so that it evades digital forensics tools used by malware researchers, including an anti-debugger and an option that prevents the RAT from running inside of a virtual machine.

Other plugins offered directly from Orcus’s tech support page (PDF) and authored by the RAT’s support team include a “survey bot” designed to “make all of your clients do surveys for cash;” a “USB/.zip/.doc spreader,” intended to help users “spread a file of your choice to all clients via USB/.zip/.doc macros;” a “Virustotal.com checker” made to “check a file of your choice to see if it had been scanned on VirusTotal;” and an “Adsense Injector,” which will “hijack ads on pages and replace them with your Adsense ads and disable adblocker on Chrome.”

WHO IS ARMADA?

Gallagher said he was so struck by the guy’s “smugness” and sheer chutzpah that he decided to look closer at any clues that Ciriis Mcgraw might have left behind as to his real-world identity and location. Sure enough, he found that Ciriis Mcgraw also has a Youtube account under the same name, and that a video Mcgraw posted in July 2013 pointed to a 33-year-old security guard from Toronto, Canada.

ciriis-youtubeGallagher noticed that the video — a bystander recording on the scene of a police shooting of a Toronto man — included a link to the domain policereview[dot]info. A search of the registration records attached to that Web site name show that the domain was registered to a John Revesz in Toronto and to the email address john.revesz@gmail.com.

A reverse WHOIS lookup ordered from Domaintools.com shows the same john.revesz@gmail.com address was used to register at least 20 other domains, including “thereveszfamily.com,” “johnrevesz.com, revesztechnologies[dot]com,” and — perhaps most tellingly —  “lordarmada.info“.

Johnrevesz[dot]com is no longer online, but this cached copy of the site from the indispensable archive.org includes his personal résumé, which states that John Revesz is a network security administrator whose most recent job in that capacity was as an IT systems administrator for TD Bank. Revesz’s LinkedIn profile indicates that for the past year at least he has served as a security guard for GardaWorld International Protective Services, a private security firm based in Montreal.

Revesz’s CV also says he’s the owner of the aforementioned Revesz Technologies, but it’s unclear whether that business actually exists; the company’s Web site currently redirects visitors to a series of sites promoting spammy and scammy surveys, come-ons and giveaways. Continue reading →


19
Jul 16

Cici’s Pizza: Card Breach at 130+ Locations

Cici’s Pizza, a Coppell, Texas-based fast-casual restaurant chain, today acknowledged a credit card breach at more than 135 locations. The disclosure comes more than a month after KrebsOnSecurity first broke the news of the intrusion, offering readers a sneak peak inside the sprawling cybercrime machine that thieves used to siphon card data from Cici’s customers in real-time.

cicisIn a statement released Tuesday evening, Cici’s said that in early March 2016, the company received reports from several of its restaurant locations that point-of-sale systems were not working properly.

“The point-of-sale vendor immediately began an investigation to assess the problem and initiated heightened security measures,” the company said in a press release. “After malware was found on some point-of-sale systems, the company began a restaurant-by-restaurant review and remediation, and retained a third-party cybersecurity firm, 403 Labs, to perform a forensic analysis.”

According to Cici’s, “the vast majority of the intrusions began in March of 2016,” but the company acknowledges that the breach started as early as 2015 at some locations. Cici’s said it was confident the malware has been removed from all stores. A list of affected locations is here (PDF).

On June 3, 2016, KrebsOnSecurity reported that sources at multiple financial institutions suspected a card breach at Cici’s. That story featured a quote from Stephen P. Warne, vice president of service and support for Datapoint POS, a point-of-sale provider that services a large number of Cici’s locations. Warne told this author that the fraudsters responsible for the intrusions had tricked employees into installing the card-stealing malicious software. Continue reading →


18
Jul 16

Carbanak Gang Tied to Russian Security Firm?

Among the more plunderous cybercrime gangs is a group known as “Carbanak,” Eastern European hackers blamed for stealing more than a billion dollars from banks. Today we’ll examine some compelling clues that point to a connection between the Carbanak gang’s staging grounds and a Russian security firm that claims to work with some of the world’s largest brands in cybersecurity.

The Carbanak gang derives its name from the banking malware used in countless high-dollar cyberheists. The gang is perhaps best known for hacking directly into bank networks using poisoned Microsoft Office files, and then using that access to force bank ATMs into dispensing cash. Russian security firm Kaspersky Lab estimates that the Carbanak Gang has likely stolen upwards of USD $1 billion — but mostly from Russian banks.

Image: Kaspersky

Image: Kaspersky

I recently heard from security researcher Ron Guilmette, an anti-spam crusader whose sleuthing has been featured on several occasions on this site and in the blog I wrote for The Washington Post. Guilmette said he’d found some interesting commonalities in the original Web site registration records for a slew of sites that all have been previously responsible for pushing malware known to be used by the Carbanak gang.

For example, the domains “weekend-service[dot]com” “coral-trevel[dot]com” and “freemsk-dns[dot]com” all were documented by multiple security firms as distribution hubs for Carbanak crimeware. Historic registration or “WHOIS” records maintained by Domaintools.com for all three domains contain the same phone and fax numbers for what appears to be a Xicheng Co. in China — 1066569215 and 1066549216, each preceded by either a +86 (China’s country code) or +01 (USA). Each domain record also includes the same contact address: “williamdanielsen@yahoo.com“.

According to data gathered by ThreatConnect, a threat intelligence provider [full disclosure: ThreatConnect is an advertiser on this blog], at least 484 domains were registered to the williamdanielsen@yahoo.com address or to one of 26 other email addresses that listed the same phone numbers and Chinese company.  “At least 304 of these domains have been associated with a malware plugin [that] has previously been attributed to Carbanak activity,” ThreatConnect told KrebsOnSecurity.

Going back to those two phone numbers, 1066569215 and 1066549216; at first glance they appear to be sequential, but closer inspection reveals they differ slightly in the middle. Among the very few domains registered to those Chinese phone numbers that haven’t been seen launching malware is a Web site called “cubehost[dot]biz,” which according to records was registered in Sept. 2013 to a 28-year-old Artem Tveritinov of Perm, Russia.

Cubehost[dot]biz is a dormant site, but it appears to be the sister property to a Russian security firm called Infocube (also spelled “Infokube”). The InfoKube web site — infokube.ru — is also registered to Mr. Tveritinov of Perm, Russia; there are dozens of records in the WHOIS history for infokube.ru, but only the oldest, original record from 2011 contains the email address atveritinov@gmail.com. 

That same email address was used to register a four-year-old profile account at the popular Russian social networking site Vkontakte for Artyom “LioN” Tveritinov from Perm, Russia. The “LioN” bit is an apparent reference to an Infokube anti-virus product by the same name. Continue reading →


15
Jul 16

Cybercrime Overtakes Traditional Crime in UK

In a notable sign of the times, cybercrime has now surpassed all other forms of crime in the United Kingdom, the nation’s National Crime Agency (NCA) warned in a new report. It remains unclear how closely the rest of the world tracks the U.K.’s experience, but the report reminds readers that the problem is likely far worse than the numbers suggest, noting that cybercrime is vastly under-reported by victims.

ons-statThe NCA’s Cyber Crime Assessment 2016, released July 7, 2016, highlights the need for stronger law enforcement and business partnership to fight cybercrime. According to the NCA, cybercrime emerged as the largest proportion of total crime in the U.K., with “cyber enabled fraud” making up 36 percent of all crime reported, and “computer misuse” accounting for 17 percent.

One explanation for the growth of cybercrime reports in the U.K. may be that the Brits are getting better at tracking it. The report notes that the U.K. Office of National Statistics only began including cybercrime for the first time last year in its annual Crime Survey for England and Wales.

“The ONS estimated that there were 2.46 million cyber incidents and 2.11 million victims of cyber crime in the U.K. in 2015,” the report’s authors wrote. “These figures highlight the clear shortfall in established reporting, with only 16,349 cyber dependent and approximately 700,000 cyber-enabled incidents reported to Action Fraud over the same period.”

The report also focuses on the increasing sophistication of organized cybercrime gangs that develop and deploy targeted, complex malicious software — such as Dridex and Dyre, which are aimed at emptying consumer and business bank accounts in the U.K. and elsewhere.

Avivah Litan, a fraud analyst with Gartner Inc., said cyber fraudsters in the U.K. bring their best game when targeting U.K. banks, which generally require far more stringent customer-facing security measures than U.S. banks — including smart cards and one-time tokens.

“I’m definitely hearing more about advanced attacks on U.K. banks than in the U.S.,” Litan said, adding that the anti-fraud measures put in place by U.K. banks have forced cybercriminals to focus more on social engineering U.K. retail and commercial banking customers. Continue reading →


14
Jul 16

The Value of a Hacked Company

Most organizations only grow in security maturity the hard way — that is, from the intense learning that takes place in the wake of a costly data breach. That may be because so few company leaders really grasp the centrality of computer and network security to the organization’s overall goals and productivity, and fewer still have taken an honest inventory of what may be at stake in the event that these assets are compromised.

If you’re unsure how much of your organization’s strategic assets may be intimately tied up with all this technology stuff, ask yourself what would be of special worth to a network intruder. Here’s a look at some of the key corporate assets that may be of interest and value to modern bad guys.

ValueOfHackedCompany

This isn’t meant to be an exhaustive list; I’m sure we can all think of other examples, and perhaps if I receive enough suggestions from readers I’ll update this graphic. But the point is that whatever paltry monetary value the cybercrime underground may assign to these stolen assets individually, they’re each likely worth far more to the victimized company — if indeed a price can be placed on them at all.

In years past, most traditional, financially-oriented cybercrime was opportunistic: That is, the bad guys tended to focus on getting in quickly, grabbing all the data that they knew how to easily monetize, and then perhaps leaving behind malware on the hacked systems that abused them for spam distribution.

These days, an opportunistic, mass-mailed malware infection can quickly and easily morph into a much more serious and sustained problem for the victim organization (just ask Target). This is partly because many of the criminals who run large spam crime machines responsible for pumping out the latest malware threats have grown more adept at mining and harvesting stolen data.

That data mining process involves harvesting and stealthily testing interesting and potentially useful usernames and passwords stolen from victim systems. Today’s more clueful cybercrooks understand that if they can identify compromised systems inside organizations that may be sought-after targets of organized cybercrime groups, those groups might be willing to pay handsomely for such ready-made access. Continue reading →


13
Jul 16

Adobe, Microsoft Patch Critical Security Bugs

Adobe has pushed out a critical update to plug at least 52 security holes in its widely-used Flash Player browser plugin, and another update to patch holes in Adobe Reader. Separately, Microsoft released 11 security updates to fix vulnerabilities more than 40 flaws in Windows and related software.

brokenflash-aFirst off, if you have Adobe Flash Player installed and haven’t yet hobbled this insecure program so that it runs only when you want it to, you are playing with fire. It’s bad enough that hackers are constantly finding and exploiting zero-day flaws in Flash Player before Adobe even knows about the bugs.

The bigger issue is that Flash is an extremely powerful program that runs inside the browser, which means users can compromise their computer just by browsing to a hacked or malicious site that targets unpatched Flash flaws.

The smartest option is probably to ditch this insecure program once and for all and significantly increase the security of your system in the process. I’ve got more on that approach — as well as slightly less radical solutions — in A Month Without Adobe Flash Player.

If you choose to update, please do it today. The most recent versions of Flash should be available from this Flash distribution page or the Flash home page. Windows users who browse the Web with anything other than Internet Explorer may need to apply this patch twice, once with IE and again using the alternative browser (Firefox, Opera, e.g.). Chrome and IE should auto-install the latest Flash version on browser restart.

Happily, Adobe has delayed plans to stop distributing direct download links to its Flash Player program. The company had said it would decommission the direct download page on June 30, 2016, but the latest, patched Flash version 22.0.0.209 for Windows and Mac systems is still available there. The wording on the site has been changed to indicate the download links will be decommissioned “soon.” Continue reading →


11
Jul 16

Serial Swatter, Stalker and Doxer Mir Islam Gets Just 1 Year in Jail

Mir Islam, a 21-year-old Brooklyn man who pleaded guilty to an impressive array of cybercrimes including cyberstalking, “doxing” and “swatting” celebrities and public officials (as well as this author), was sentenced in federal court today to two years in prison. Unfortunately, thanks to time served in this and other cases, Islam will only see a year of jail time in connection with some fairly heinous assaults that are becoming all too common.

While Islam’s sentence fell well short of the government’s request for punishment, the case raises novel legal issues as to how federal investigators intend to prosecute ongoing cases involving swatting — an extremely dangerous prank in which police are tricked into responding with deadly force to a phony hostage crisis or bomb scare at a residence or business.

Mir Islam, at his sentencing hearing today. Sketches copyright by Hennessy / CourtroomArt.com

Mir Islam, at his sentencing hearing today. Sketches copyright by Hennessy / CourtroomArt.com. Yours Truly is pictured in the blue shirt behind Islam.

On March 14, 2014, Islam and a group of as-yet-unnamed co-conspirators used a text-to-speech (TTY) service for the deaf to relay a message to our local police department stating that there was an active hostage situation going on at our modest town home in Annandale, Va. Nearly a dozen heavily-armed officers responded to the call, forcing me out of my home at gunpoint and putting me in handcuffs before the officer in charge realized it was all a hoax.

At the time, Islam and his pals were operating a Web site called Exposed[dot]su, which sought to “dox” public officials and celebrities by listing the name, birthday, address, previous address, phone number and Social Security number of at least 50 public figures and celebrities, including First Lady Michelle Obama, then-FBI director Robert Mueller, and then Central Intelligence Agency Director John Brennan.

Exposed.su also documented which of these celebrities and public figures had been swatted, including a raft of California celebrities and public figures, such as former California Governor Arnold Schwartzenegger, actor Ashton Kutcher, and performer Jay Z.

Exposed[dot]su was built with the help of identity information obtained and/or stolen from ssndob[dot]ru.

Exposed[dot]su was built with the help of identity information obtained and/or stolen from ssndob[dot]ru.

At the time, most media outlets covering the sheer amount of celebrity exposure at Exposed[dot]su focused on the apparently starling revelation that “if they can get this sensitive information on these people, they can get it on anyone.” But for my part, I was more interested in how they were obtaining this data in the first place.

On March 13, 2013 KrebsOnSecurity featured a story — Credit Reports Sold for Cheap in the Underweb –which sought to explain how the proprietors of Exposed[dot]su had obtained the records for the public officials and celebrities from a Russian online identity theft service called sssndob[dot]ru.

I noted in that story that sources close to the investigation said the assailants were using data gleaned from the ssndob[dot]ru ID theft service to gather enough information so that they could pull credit reports on targets directly from annualcreditreport.com, a site mandated by Congress to provide consumers a free copy of their credit report annually from each of the three major credit bureaus.

Peeved that I’d outed his methods for doxing public officials, Islam helped orchestrate my swatting the very next day. Within the span of 45 minutes, KrebsOnSecurity.com came under a sustained denial-of-service attack which briefly knocked my site offline.

At the same time, my hosting provider received a phony letter from the FBI stating my site was hosting illegal content and needed to be taken offline. And, then there was the swatting which occurred minutes after that phony communique was sent.

All told, the government alleges that Islam swatted at least 19 other people, although only seven of the victims (or their representatives) showed up in court today to tell similarly harrowing stories (I was asked to but did not testify).

Officers responding to my 2013 swatting incident.

Security camera footage of Fairfax County police officers responding to my 2013 swatting incident.

Going into today’s sentencing hearing, the court advised that under the government’s sentencing guidelines Islam was facing between 37 and 46 months in prison for the crimes to which he’d pleaded guilty. But U.S. District Court Judge Randolph Moss seemed especially curious about the government’s rationale for charging Islam with conspiracy to transmit a threat to kidnap or harm using a deadly weapon.

Judge Moss said the claim raises a somewhat novel legal question: Can the government allege the use of deadly force when the perpetrator of a swatting incident did not actually possess a weapon?

Corbin Weiss, an assistant US attorney and a cybercrime coordinator with the U.S. Department of Justice, argued that in most of the swatting attacks Islam perpetrated he expressed to emergency responders that any responding officers would be shot or blown up. Thus, the government argued, Islam was using police officers as a proxy for assault with a deadly weapon by ensuring that responding officers would be primed to expect a suspect who was armed and openly hostile to police. Continue reading →


08
Jul 16

1,025 Wendy’s Locations Hit in Card Breach

At least 1,025 Wendy’s locations were hit by a malware-driven credit card breach that began in the fall of 2015, the nationwide fast-food chain said Thursday. The announcement marks a significant expansion in a data breach that is costing banks and credit unions plenty: Previously, Wendy’s had said the breach impacted fewer than 300 locations.

An ad for Wendy's (in Russian).

An ad for Wendy’s (in Russian).

On January 27, 2016, this publication was the first to report that Wendy’s was investigating a card breach. In mid-May, the company announced in its first quarter financial statement that the fraud impacted just five percent of stores. But in a statement last month, Wendy’s warned that its estimates about the size and scope of the breach were about to get much meatier.

Wendy’s has published a page that breaks down the breached restaurant locations by state.

Wendy’s is placing blame for the breach on an unnamed third-party that serves franchised Wendy’s locations, saying that a “service provider” that had remote access to the compromised cash registers got hacked.

For better or worse, countless restaurant franchises outsource the management and upkeep of their point-of-sale systems to third party providers, most of whom use remote administration tools to access and manage the systems remotely over the Internet.

Unsurprisingly, the attackers have focused on hacking the third-party providers and have had much success with this tactic. Very often, the hackers just guess at the usernames and passwords needed to remotely access point-of-sale devices. But as more POS vendors start to tighten up on that front, the criminals are shifting their focus to social engineering attacks — that is, manipulating employees at the targeted organization into opening the backdoor for the attackers.

As detailed in Slicing Into a Point-of-Sale Botnet, hackers responsible for stealing millions of customer credit card numbers from pizza chain Cici’s Pizza used social engineering attacks to trick employees at third party point-of-sale providers into installing malicious software. Continue reading →