November, 2011


10
Nov 11

Critical Flash Update Plugs 12 Security Holes

Adobe has issued a critical software update for its Flash Player software that fixes at least a dozen security vulnerabilities in the widely-used program. Updates are available for Windows, Mac, LinuxSolaris and Android versions of Flash and Adobe Air.

The update fixes flaws present in Flash Player versions 11.0.1.152 and earlier for Windows, Mac, Linux and Solaris systems, and in Flash 11.0.1.153 and earlier for Android. The vulnerabilities are rated critical, meaning they could give hacked or malicious Web sites an easy way to install software on your machine.

Adobe’s advisory says users of Flash version 11.0.1.152 and earlier should update to v. 11.1.102.55; those using Flash v. 11.0.1.153 and earlier versions for Android should update to Flash Player 11.1.102.59. Users of AIR 3.0 for Windows, Macintosh, and Android should update to AIR  v. 3.1.0.4880. The company says it is not aware of any active attacks against these flaws at this time.

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10
Nov 11

Rove Digital Was Core ChronoPay Shareholder

Rove Digital, the company run by six men who were arrested in Estonia this week for allegedly infecting four million PCs worldwide with malware, was an early investor in ChronoPay, a major Russian payment processing firm whose principal founder Pavel Vrublevsky also is now in prison and awaiting trial on cyber crime charges, KrebsOnSecurity has learned.

Estonian authorities on Tuesday arrested Rove Digital founder Vladimir Tsastsin, 31, along with five other Estonian nationals indicted on charges of running a sophisticated click fraud scheme. Yesterday’s blog post details Tsastsin’s criminal history, and his stewardship over Rove and a sister firm, EstDomains.. Today’s post will reveal how Tsastsin and his company were closely allied with and early investors in ChronoPay, and how that relationship unraveled over the years.

In my Pharma War series, I’ve published incorporation documents showing that Igor Gusev, a man currently wanted in Russia on criminal charges of running an illegal business in the notorious pharmacy spam affiliate programs GlavMed and SpamIt, was a co-founder of ChronoPay back in 2003. That series also details how Gusev sold his shares in ChronoPay, and that Vrublevsky later started a competing rogue pharmacy/spam operation called Rx-Promotion.

A spreadsheet showing front companies tied to ChronoPay.

It turns out that ChronoPay also had two other major and early investors: Rove Digital and a mysterious entity called Crossfront Limited. This information was included in the massive trove of internal ChronoPay emails and documents that was briefly published online last year and shared with select journalists and law enforcement agencies. Among those documents is a spreadsheet (XLS) listing all of the various shadowy companies allegedly owned and managed by ChronoPay founder Pavel Vrublevsky and associates. It lists ChronoPay B.V., the legal entity in The Netherlands that formed the initial basis of the company, as jointly owned by Gusev’s firm DPNet B.V., Red & Partners (Vrublevsky’s adult Webmaster provider) and Rove Digital OU.

When I met with Vrublevsky at his offices in Moscow in February of this year, he confirmed that Tsastsin was an old friend and that Rove Digital had been a key shareholder in the company. Further evidence of the connection between ChronoPay and Rove Digital is provided in a series of internal ChronoPay emails from May 2010.

At that time, ChronoPay was under investigation by Dutch banking regulators who suspected that the company’s intricate network of front companies and financial channels were acting in violation of the country’s anti-money laundering laws. In a tersely-worded email exchange, the Dutch bank  demanded a slew of additional accounting and administrative records, including “all documents that show the structure of ChronoPay BV, such as statutes, incorporation documents, names and addresses of director(s) and shareholders.”

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9
Nov 11

‘Biggest Cybercriminal Takedown in History’

The proprietors of shadowy online businesses that have become synonymous with cybercrime in recent years were arrested in their native Estonia on Tuesday and charged with running a sophisticated click fraud scheme that infected with malware more than four million computers in over 100 countries — including an estimated 500,000 PCs in the United States. The law enforcement action, dubbed “Operation Ghost Click,” was the result  of a multi-year investigation, and is being called the “biggest cybercriminal takedown in history.”

Vladimir Tsastsin, in undated photo.

Estonian authorities arrested six men, including Vladimir Tsastsin, 31, the owner of several Internet companies that have been closely associated with the malware community for many years. Tsastsin previously headed EstDomains Inc. a domain name registrar that handled the registrations for tens of thousands of domains associated with the far-flung Russian Business Network.

Reporting for The Washington Post in September 2008, I detailed how Tsastsin’s prior convictions in Estonia for credit card fraud, money laundering and forgery violated the registrar agreement set forth by the Internet Corporation for Assigned Names and Numbers (ICANN), which bars convicted felons from serving as officers of a registrar. ICANN later agreed, and revoked EstDomains’ ability to act as a domain registrar, citing Tsastsin’s criminal history.

Also arrested were Timur Gerassimenko, 31; Dmitri Jegorov, 33; Valeri Aleksejev, 31; Konstantin Poltev, 28 (quoted in the above-linked stories as the spokesperson for EstDomains); and Anton Ivanvov, 26. All six men were arrested and taken into custody this week by the Estonian Police and Border Guard. A seventh defendant, a 31-year-old Russian national named Andrey Taame, is still at large.

Source: FBI

Indictments returned against the defendants in the U.S. District Court for the South District of New York detail how the defendants allegedly used a strain of malware generically known as DNS Changer to hijack victim computers for the purposes of redirecting Web browsers to ads that generated pay-per-click revenue for the defendants and their clients. U.S. authorities allege that the men made more than $14 million through click hijacking and advertisement replacement fraud.

DNS Changer most often comes disguised as a video “codec” supposedly needed to view adult movies. It infects systems at the boot sector level, hooking into the host computer at a very low level and making it often very challenging to remove. This malware family didn’t just infect Microsoft Windows systems: Several versions of DNS changer would just as happily infect Mac systems as well. Other variants of the malware even hijacked DNS settings on wireless home routers. The FBI has posted several useful links to help users learn whether their systems are infected with DNS Changer.

Feike Hacquebord, senior threat researcher for security vendor Trend Micro, called the arrest the “biggest cybercriminal takedown in history.” In a blog post published today, Hacquebord and Trend detail the multi-year takedown, which involved a number of front companies, but principally an entity that Tsastsin founded named Rove Digital:

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9
Nov 11

Adobe, Apple, Microsoft & Mozilla Issue Critical Patches

Adobe, Apple, Microsoft and Mozilla all released updates on Tuesday to fix critical security flaws in their products. Adobe issued a patch that corrects four vulnerabilities in Shockwave Player, while Redmond pushed updates to address four Windows flaws. Apple slipped out an update that mends at least 17 security holes in its version of Java, and Mozilla issued yet another major Firefox release, Firefox 8.

The only “critical” patch from Microsoft this month is a dangerous Windows flaw that could be triggered remotely to install malicious software just by sending the target system specially crafted packets of data. Microsoft says this vulnerability may be difficult to reliably exploit, but it should be patched immediately. Information on the other three flaws fixed this week is here. The fixes are available via Windows Updates for most supported versions of the operating system, including XP, Vista and Windows 7. Continue reading →


8
Nov 11

How Much Is Your Identity Worth?

How much does it cost for thieves to discover the data that unlocks identity for creditors, such as your Social Security number, birthday, or mother’s maiden name? Would it surprise you to learn that crooks are selling this data to any and all comers for pennies on the dollar?

superget.info home page

At least, that’s the going price at superget.info. This fraudster-friendly site has been operating since July 2010, and markets the ability to look up SSNs, birthdays and other sensitive information on millions of Americans. Registration is free, and accounts are funded via WebMoney and Liberty Reserve, virtual currencies that are popular in the cybercriminal underground.

Superget lets users search for specific individuals by name, city, and state. Each “credit” costs USD$1, and a successful hit on a Social Security number or date of birth costs 3 credits each. The more credits you buy, the cheaper the searches are per credit: Six credits cost $4.99; 35 credits cost $20.99, and $100.99 buys you 230 credits. Customers with special needs can avail themselves of the “reseller plan,” which promises 1,500 credits for $500.99, and 3,500 credits for $1000.99.

“Our Databases are updated EVERY DAY,” the site’s owner enthuses. “About 99% nearly 100% US people could be found, more than any sites on the internet now.”

Customers who aren’t choosy about the identities they’re stealing can get a real bargain. Among the most trafficked commodities in the hacker underground are packages called “fullz infos,” which include the full identity information on dozens or hundreds of individuals.

The table at the right shows the bulk lookup price-per-identity in this class. In the “Fullz Info USA Type A” package, each record includes the subject’s first name, last name, middle name, email address, email password, physical address, phone number, date of birth, Social Security number, drivers license number, bank name, bank account number, bank routing number, the victim employer’s name, and the number of years that individual has been at his or her current job. The proprietor of this shop says he has more than 330,000 records of this type, and is adding 300-400 new records each day.

If you want the mother’s maiden name included in each of the bulk records, you’ll need to select “Fullz Info USA Type B”; the site’s owner says this package includes data from an older database, and perhaps that explains why the prices for these identities (pictured at left) are so much lower than those in the Type A category. The price in Type B starts at 16 cents per identity, and falls as low as nine cents per record for those requesting more than 20,000 fullz from this category.

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4
Nov 11

Microsoft Issues Stopgap Fix for ‘Duqu’ Flaw

Microsoft has released an advisory and a stopgap fix for the zero-day vulnerability exploited by the “Duqu” Trojan, a highly targeted malware strain that some security experts say could be the most important cyber espionage threat since Stuxnet.

According to the advisory, the critical vulnerability resides in most supported versions of Windows, including Windows XP, Vista and Windows 7. The problem stems from the way Windows parses certain font types. Microsoft says it is aware of targeted attacks exploiting this flaw, but that it believes few users have been affected.

Nevertheless, the flaw is a dangerous one. Microsoft said that an attacker who successfully exploited this vulnerability could run arbitrary code, install programs; view, change, or delete data; or create new accounts with full user rights. The most likely vehicle for the exploit is a poisoned email attachment.

Microsoft is working on developing an official security update to fix the flaw. For now, it has released a point-and-click Fixit tool that allows Windows users to disable the vulnerable component. Enabling this tweak may cause fonts in some applications to display improperly. If you experience problems after applying the Fixit solution, you can always undo it by clicking “disable” image in the Microsoft advisory and following the prompts.

Update, Nov. 10, 9:22 a.m. ET: As several readers have noted, installing this FixIt may cause Windows Update to repeatedly ask prompt you to install two particular updates: KB972270, and KB982132. Uninstalling the FixIt seems to stop these incessant prompts, although it leaves the vulnerable Windows component exposed.


2
Nov 11

Are You on the Pwnedlist?

2011 has been called the year of the data breach, with hacker groups publishing huge troves of stolen data online almost daily. Now a new site called pwnedlist.com lets users check to see if their email address or username and associated information may have been compromised.

Pwnedlist.com is the creation of Alen Puzic and Jasiel Spelman, two security researchers from DVLabs, a division of HP/TippingPoint. Enter a username or email address into the site’s search box, and it will check to see if the information was found in any of these recent public data dumps.

Puzic said the project stemmed from an effort to harvest mounds of data being leaked or deposited daily to sites like Pastebin and torrent trackers.

“I was trying to harvest as much data as I could, to see how many passwords I could possibly find, and it just happened to be that within two hours, I found about 30,000 usernames and passwords,” Puzic said. “That kind of got me thinking that I could do this every day, and if I could find over one million then maybe I could create a site that would help the everyday user find if they were compromised.”

Pwnedlist.com currently allows users to search through nearly five million emails and usernames that have been dumped online. The site also frequently receives large caches of account data that people directly submit to its database. Puzic said it is growing at a rate of about 40,000 new compromised accounts each week.

Puzic said information contained in these data donations often make it simple to learn which organization lost the information.

“Usually, somewhere in the dump files there’s a readme.txt file or there’s some type of header made by hacker who caused the breach, and there’s an advertisement about who did the hack and which company was compromised,” Puzic said. “Other times it’s really obvious because all of the emails come from the same domain.”

Puzic said Pwnedlist.com doesn’t store the username, email address and password data itself; instead, it records a cryptographic hash of the information and then discards the plaintext data. As a result, a “hit” on any searched email or username only produces a binary “yes” or “no” answer about whether any hashes matching that data were found. It won’t return the associated password, nor does it offer any clues about from where the data was leaked.

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1
Nov 11

Jailed ChronoPay Co-Founder Denied Bail

A Moscow court on Monday denied bail for Pavel Vrublevsky, a Russian businessman who was charged earlier this year with hiring hackers to launch costly online attacks against his rivals. The denial came even after Vrublevsky apparently admitted his role in the attacks, according to Russian news outlets.

Vrublevsky in 2004

Vrublevsky, 32, is probably best known as the co-founder of ChronoPay, a large online payment processor in Russia. He was arrested in June after Russian investigators secured the confession of a man who said he was hired by Vrublevsky to launch a debilitating cyber attack against Assist, a top ChronoPay competitor. The former ChronoPay executive reportedly wanted to sideline rival payment processing firms who were competing for a lucrative contract to process payments for Aeroflot, Russia’s largest airline. Aeroflot’s processing systems faltered for several days in the face of the attack, an outage that Aeroflot says cost the company about a million dollars a day.

Vrublevsky’s lawyers asked the court to release him pending a trial in December — offering to pay 30 million rubles (~ USD $1 million) — but the court denied the request.

Vrublevsky co-founded ChronoPay in 2003 along with Igor Gusev, another Russian businessman who is facing criminal charges in Russia stemming from his alleged leadership role at GlavMed and SpamIt, sister programs that until recently were the world’s largest rogue online pharmacy affiliate networks. Huge volumes of internal documents leaked from ChronoPay last year indicate Vrublevsky co-ran a competing rogue Internet pharmacy — Rx-Promotion — although Vrublevsky publicly denies this.

Vrublevsky and Gusev have been locked in an increasingly heated and public battle to ruin the others’ business, a saga that I have chronicled in an ongoing series: Pharma Wars.

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