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    A Little Sunshine / The Coming Storm — 36 Comments
    2
    Feb 12

    Half of Fortune 500s, US Govt. Still Infected with DNSChanger Trojan

    More than two months after authorities shut down a massive Internet traffic hijacking scheme, the malicious software that powered the  criminal network is still running on computers at half of the Fortune 500 companies, and on PCs at nearly 50 percent of all federal government agencies, new research shows.

    Source: FBI

    The malware, known as the “DNSChanger Trojan,” quietly alters the host computer’s Internet settings to hijack search results and to block victims from visiting security sites that might help scrub the infections. DNSChanger frequently was bundled with other types of malware, meaning that systems infected with the Trojan often also host other, more nefarious digital parasites.

    In early November, authorities in Estonia arrested six men suspected of using the Trojan to control more than four million computers in over 100 countries — including an estimated 500,000 in the United States. Investigators timed the arrests with a coordinated attack on the malware’s infrastructure. The two-pronged attack was intended to prevent miscreants from continuing to control the network of hacked PCs, and to give Internet service providers an opportunity to alert customers with infected machines.

    But that cleanup process has been slow-going, according to at least one security firm. Internet Identity, a Tacoma, Wash. company that sells security services, found evidence of at least one DNSChanger infection in computers at half of all Fortune 500 firms, and 27 out of 55 major government entities.

    “Yes, there are challenges with removing this malware, but you would think people would want to get this cleaned up,” said Rod Rasmussen, president and chief technology officer at Internet Identity. “This malware was sometimes bundled with other stuff, but it also turns off antivirus software on the infected machines and blocks them from getting security updates from Microsoft.”

    Computers still infected with DNSChanger are up against a countdown clock. As part of the DNSChanger botnet takedown, the feds secured a court order to replace the Trojan’s DNS infrastructure with surrogate, legitimate DNS servers. But those servers are only allowed to operate until March 8, 2012. Unless the court extends that order, any computers still infected with DNSChanger may no longer be able to browse the Web.

    Rasmussen said there are still millions of PCs infected with DNSChanger. “At this rate, a lot of users are going to see their Internet break on March 8.”

    Continue reading →

    A Little Sunshine / Latest Warnings / The Coming Storm / Web Fraud 2.0 — 6 Comments
    23
    Jan 12

    ‘Citadel’ Trojan Touts Trouble-Ticket System

    Underground hacker forums are full of complaints from users angry that a developer of some popular banking Trojan or bot program has stopped supporting his product, stranding buyers with buggy botnets. Now, the proprietors of a new ZeuS Trojan variant are marketing their malware as a social network that lets customers file bug reports, suggest and vote on new features in upcoming versions, and track trouble tickets that can be worked on by the developers and fellow users alike.

    A screenshot of the Citadel botnet panel.

    The ZeuS offshoot, dubbed Citadel and advertised on several members-only hacker forums, is another software-as-a-service malware development. Its target audience? Those frustrated with virus writers who decide that coding their next creation is more lucrative and interesting than supporting current clients.

    “Its no secret that the products in our field — without support from the developers — result in a piece of junk on your hard drive. Therefore, the product should be improved according to the wishes of our customers,” Citadel’s developers claim in an online posting. “One problem is that you have probably experienced developers who ignore your instant messages, because there are many customers but there is only one developer.”

    In the following excerpt, taken from a full description of Citadel’s innovations, the developers of this malware strain describe its defining feature as a social networking platform for malware users that is made available through a Web-based portal created by the malware itself.

    “We have created for you a special system — call it the social network for our customers. Citadel CRM Store allows you to take part in product development in the following ways:

    - Report bugs and other errors in software. All tickets are looked at by technical support you will receive a timely response to your questions. No more trying to reach the author via ICQ or Jabber.

    -Each client has the right to create an unlimited number of applications within the system. Requests can contain suggestions on a new module or improvements of existing module. Such requests can be public or private.

    -Each client has a right to vote on new ideas suggested by other members and offer his/her price for development of the enhancement/module. The decision is made by the developers on whether to go forward with certain enhancement or new module depending on the voting results.

    -Each client has the right to comment on any application and talk to any member. Now it is going to be interesting for you to find partners and like-minded people and also to take active parts in discussions with the developers.

    - You can see all stages of module development, if it is approved other members. We update the status and time to completion.

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    Latest Warnings / The Coming Storm — 12 Comments
    22
    Dec 11

    Amnesty International Site Serving Java Exploit

    Amnesty International‘s homepage in the United Kingdom is currently serving malware that exploits a recently-patched vulnerability in Java. Security experts say the attack appears to be part of a nefarious scheme to target human rights workers.

    The site’s home page has been booby trapped with code that pulls a malicious script from an apparently hacked automobile site in Brazil.  The car site serves a malicious Java applet that uses a public exploit to attack a dangerous Java flaw that I’ve warned about several times this past month. The applet in turn retrieves an executable file detected by Sophos antivirus as Trojan Spy-XR, a malware variant first spotted in June 2011.

    A woman who answered the phone this morning at Amnesty International’s research and policy branch in the U.K. declined to give her name, but said she would pass on the information about the break-in. The site remains compromised.

    This is hardly the first time Amnesty International’s sites have been hacked to serve up malware. The organization’s site was hacked in April 2011 with a drive-by attack.  In November 2010, security firm Websense warned Amnesty International’s Hong Kong Web site was hacked and seeded with an exploit that dropped malware using a previously unknown Internet Explorer vulnerability.  Continue reading →

    A Little Sunshine / The Coming Storm / Web Fraud 2.0 — 36 Comments
    8
    Dec 11

    Twitter Bots Drown Out Anti-Kremlin Tweets

    Thousands of Twitter accounts apparently created in advance to blast automated messages are being used to drown out Tweets sent by bloggers and activists this week who are protesting the disputed parliamentary elections in Russia, security experts said.

    Image: Twitterbot.info

    Amid widespread reports of ballot stuffing and voting irregularities in the election, thousands of Russians have turned out in the streets to protest. Russian police arrested hundreds of protesters who had gathered in Moscow’s Triumfalnaya Square, including notable anti-corruption blogger Alexei Navalny. In response, protesters began tweeting their disgust in a Twitter hashtag #триумфальная (Triumfalnaya), which quickly became one of the most-tweeted hashtags on Twitter.

    But according to several experts, it wasn’t long before messages sent to that hashtag were drowned out by pro-Kremlin tweets that appear to have been sent by countless Twitter bots. Maxim Goncharov, a senior threat researcher at Trend Micro, observed that “if you currently check this hash tag on twitter you’ll see a flood of 5-7 identical tweets from accounts that have been inactive for month and that only had 10-20 tweets before this day. To this point those hacked accounts have already posted 10-20 more tweets in just one hour.”

    “Whether the attack was supported officially or not is not relevant, but we can now see how social media has become the battlefield of a new war for freedom of speech,” Goncharov wrote.

    I’ve been working with a few security researchers inside of Russia who asked not to be named for fear of retribution by patriotic Russian hackers or the government. Since Trend’s posting, they’ve identified thousands of additional accounts (e.g., @ALanskoy, @APoluyan, @AUstickiy, @AbbotRama, @AbrahamCaldwell…a much longer list is available here) that are rapidly posting anti-protester or pro-Kremlin sentiments to more than a dozen hashtags and keywords that protesters are using to share news, including #Navalny. Continue reading →

    A Little Sunshine / Latest Warnings / The Coming Storm — 54 Comments
    6
    Dec 11

    Download.com Bundling Toolbars, Trojans?

    It wasn’t long ago that I felt comfortable recommending CNET‘s download.com as a reputable and trustworthy place to download software. I’d like to take back that advice: CNET increasingly is bundling invasive and annoying browser toolbars with software on its site, even some open-source titles whose distribution licenses prohibit such activity.

    Although this change started this summer, I only first became aware of it after reading a mailing list posting on Monday by Gordon “Fyodor” Lyon, the software developer behind the ever useful and free Nmap network security scanner. Lyon is upset because download.com, which has long hosted his free software for download without any “extras,” recently began distributing Nmap and many other titles with a “download installer” that bundles in browser toolbars like the Babylon toolbar.

    CNET’s own installer is detected by many antivirus products as a Trojan horse, even though the company prefaces each download with the assurance that “CNET hosts this file and has scanned it to ensure it is virus and spyware free.” CNET also has long touted download.com’s zero tolerance policy toward all bundled adware.

    Lyon said he found his software was bundled with the StartNow Toolbar, which is apparently powered by Microsoft‘s “Bing decision engine.” When I grabbed a copy of the Nmap installer from download.com and ran it on a test Windows XP machine, CNET’s installer offered the Babylon Toolbar, which is a translation toolbar that many Internet users have found challenging to remove.

    The CNET download installer that I got for Nmap from download.com was made by CBS Interactive (CNET Networks was acquired by CBS in 2008), and it is detected as malicious by three antivirus products at Virustotal.com. When I unpacked the installer from the Nmap program and scanned just the installer, 10 out of the 39 antivirus products detected the file as either a Trojan horse or adware.

    Continue reading →

    A Little Sunshine / Latest Warnings / Security Tools / The Coming Storm — 43 Comments
    23
    Nov 11

    Apple Took 3+ Years to Fix FinFisher Trojan Hole

    The Wall Street Journal this week ran an excellent series on government surveillance tools in the digital age. One story looked at FinFisher, a remote spying Trojan that was marketed to the governments of Egypt, Germany and other nations to permit surreptitious PC and mobile phone surveillance by law enforcement officials. The piece noted that FinFisher’s creators advertised the ability to deploy the Trojan disguised as an update for Apple’s iTunes media player, and that Apple last month fixed the vulnerability that the Trojan leveraged.

    Image: spiegel.de

    But the WSJ series and other media coverage of the story have overlooked one small but crucial detail: A prominent security researcher warned Apple about this dangerous vulnerability in mid-2008, yet the company waited more than 1,200 days to fix the flaw.

    The disclosure raises questions about whether and when Apple knew about the Trojan offering, and its timing in choosing to sew up the security hole in this ubiquitous software title: According to Apple, as of June 2011, there were approximately a quarter billion installations of iTunes worldwide.

    Apple did not respond to requests for comment. An email sent Wednesday morning to its press team produced an auto-response stating that employees were already on leave for the Thanksgiving holiday in the United States.

    I first wrote about this vulnerability for The Washington Post in July 2008, after interviewing Argentinian security researcher Francisco Amato about “Evilgrade,” a devious new penetration testing tool he had developed. The toolkit was designed to let anyone send out bogus automatic update alerts to users of software titles that don’t sign their updates. I described the threat from this toolkit in greater detail:

    Why is this a big deal? Imagine that you’re at an airport lounge, waiting to board your flight, and you pop open your laptop to see if you can hop on an open wireless network. Bear in mind that there are plenty of tools available that let miscreants create fake wireless access points for the purposes of routing your connection through their computer. You connect to that fake network, thinking you can check your favorite team’s sports scores. A few seconds later, some application on your system says there’s a software update available. You approve the update.

    You’re hosed.

    Or maybe you don’t approve the update. But that may not matter, because in some cases, auto-update features embedded in certain software titles will go ahead and download the update at that point, and keep nagging you until you agree to install it at a later date.

    Evilgrade leveraged a flaw in the updater mechanism for iTunes that could be exploited on Windows systems. Amato described the vulnerability:

    “The iTunes program checks that the binary is signed by Apple but we can inject content into the description as it opens a browser, with a malicious binary so that the user thinks its from Apple,” Amato said of his attack tool.

    Emails shared with KrebsOnSecurity show that Amato contacted Apple’s security team on July 11, 2008, to warn them that the iTunes update functionality could be abused to push out malicious software. According to Amato, Apple acknowledged receipt of the report shortly thereafter, but it did not contact him about his findings until Oct. 28, 2011, when it sent an email to confirm his name and title for the purposes of crediting him with reporting the flaw in its iTunes 10.5.1 patch release details. Interestingly, Apple chose to continue to ignore the vulnerability even after Amato shipped a significant feature upgrade to Evilgrade in Oct. 2010.

    The length of time Apple took to patch this significant security flaw is notable. In May 2006, I undertook a longitudinal study of how long it took Apple to ship security updates for its products. In that analysis, I looked at two years’ worth of patches issued to fix serious security bugs in Apple’s Mac OS X operating system, as well as other Apple software applications like iTunes. I found that on average, 91 days elapsed between the date that a security researcher alerted Apple to an unpatched flaw and the date Apple shipped a patch to fix the problem. In that study, I examined patch times for four dozen flaws, and the lengthiest patch time in that period was 245 days.

    Continue reading →

    A Little Sunshine / The Coming Storm — 31 Comments
    22
    Nov 11

    DHS Blasts Reports of Illinois Water Station Hack

    The U.S. Department of Homeland Security today took aim at widespread media reports about a hacking incident that led to an equipment failure at a water system in Illinois, noting there was scant evidence to support any of the key details in those stories — including involvement by Russian hackers or that the outage at the facility was the result of a cyber incident.

    Last week, portions of a report titled “Public Water District Cyber Intrusion” assembled by an Illinois terrorism early warning center were published online. Media outlets quickly picked up on the described incident, calling it the “first successful target of a cyber attack on a computer of a public utility.” But in an email dispatch sent to state, local and industry officials late today, DHS’s Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) said that after detailed analysis, DHS and the FBI “have found no evidence of a cyber intrusion into the SCADA system of the Curran-Gardner Public Water District in Springfield, Illinois.” The ICS-CERT continued:

    “There is no evidence to support claims made in the initial Fusion Center report – which was based on raw, unconfirmed data and subsequently leaked to the media – that any credentials were stolen, or that the vendor was involved in any malicious activity that led to a pump failure at the water plant,” the ICS-CERT alert states. “In addition, DHS and FBI have concluded that there was no malicious or unauthorized traffic from Russia or any foreign entities, as previously reported.  Analysis of the incident is ongoing and additional relevant information will be released as it becomes available.”

    The statement is the most strongly worded yet from DHS refuting the alleged cyber incident in Illinois. The story broke on Nov. 17, when Joe Weiss, managing partner of Applied Control Solutions, a security consultant for the control systems industry, published a blog post about a disclosure he reported reading from a state terrorism intelligence center about a cyber intrusion into a local water plant that resulted in the burnout of a water pump. The break-in reportedly allowed intruders to manipulate the supervisory control and data acquisition system, or “SCADA” networks that let plant operators manage portions of the facility remotely over the Internet. Within hours of that post, media outlets covering the story had zeroed in on the Curran-Gardner Water District as the source of the report.

    Weiss has repeatedly declined to share or publish the report, but he cited large portions of it in my story from last week. The language and details reported in it stand in stark contrast to the DHS’s version of events. According to Weiss, the report, marked sensitive but unclassified, stated:

    “Sometime during the day of Nov. 8, 2011, a water district employee noticed problems with a SCADA system. An information technology service and repair company checked the computer logs of the SCADA system and determined the system had been remotely hacked into from an Internet provider address located in Russia. The SCADA system that was used by the water district was produced by a software company based in the US. It is believed the hackers had acquired unauthorized access to the software company’s database and retrieved the usernames and passwords of various SCADA systems, including the water district systems.”

    “Over a period of 2-3 months, minor glitches have been observed in remote access to the water district’s SCADA system. Recently, the SCADA system would power on and off, resulting in the burnout of a water pump.”

    “This network intrusion is the same method of attack recently used against the MIT Server,” the water district alert stated. “The water district’s attack and the MIT attack both had references to PHPMyAdmin in the log files of the computer systems. It is unknown at this time the number of SCADA usernames and passwords acquired from the software company’s database, and if any additional systems have been attacked as a result of this theft.”

    Weiss blogged about the ICS-CERT statement, and said he can’t figure out how the two accounts could be so different. He notes that the day after his blog post, Don Craven, chairman of the Curran-Gardner Water District, was quoted on a local ABC News affiliate television interview saying that there was “some indication that there was a breach of some sort into a software program, a SCADA system, that allows remote access to the wells and the pumps and those sorts of things” (see video below).

    Continue reading →

    A Little Sunshine / The Coming Storm — 16 Comments
    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:

    Continue reading →

    A Little Sunshine / Security Tools / The Coming Storm — 36 Comments
    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.

    Continue reading →

    A Little Sunshine / The Coming Storm — 30 Comments
    27
    Oct 11

    Chasing APT: Persistence Pays Off

    The IT director for an international hedge fund received the bad news in a phone call from a stranger: Chinese hackers were running amok on the fund’s network. Not seeing evidence of the claimed intrusion, and unsure about the credibility of the caller, the IT director fired off an email to a reporter.

    “So do you think this is legit, or is the guy trying to scare us?” the IT director asked in an email to KrebsOnSecurity.com, agreeing to discuss the incident if he and his company were not named. “He has sent me the logs for the connections to the infected server. I checked the firewall and am not seeing any active connections.”

    The call, from Hermes Bojaxhi of Columbia, Md. based threat intelligence firm Cyber Engineering Services Inc. (CyberESI), was indeed legit, and a follow-up investigation by the hedge fund revealed that at least 15 PCs within the financial services company were compromised and were sending proprietary information to the attackers.

    CyberESI knew about the incident because it was monitoring several hacked, legitimate servers that the attackers were using to siphon data from multiple victims. Bojaxhi said the hedge fund notification was one of several he made that week to Fortune 500 companies that also had been hacked and were communicating with the same compromised servers.

    And it wasn’t his first call to the hedge fund.

    “On that particular victim, I tried to reach out to them a month prior, but I was handed off to an administrative assistant,” Bojaxhi said. “We had 25 [victim organizations] to call that day. But when they popped back up on the radar a month later, I tried again.”

    The hedge fund incident illustrates the complexities of defending against and detecting targeted attacks, even when victims are alerted to the problem by an outside party.

    Joe Drissel, founder and CEO for CyberESI, said too many companies think of cyberattacks as automated threats that can be blocked with the proper mix of hardware and software.

    “So many firms are stuck in a paradigm of drive-bys, not targeted attacks,” Drissel said. “There seems to be a real disconnect with what’s really happening on a daily basis. We’re trying to fight an asymmetrical war in a symmetrical way, sort of like we’re British soldiers [in Revolutionary War], all walking in line and they’re picking us off one by one. By the time we turn around and aim, they’re already gone.”

    None of the first three Trojans installed on the hedge fund’s computers were initially detected by any of the 42 anti-virus products bundled into the scanning tools at Virustotal.com.

    Drissel said victims that his company notifies sometimes mistakenly think his firm is involved in the attack, or that they’re somehow joking.

    “One guy laughed and said, ‘Thank you for watching out for our company,’ but he didn’t call us back,” Drissel said of a conversation with a victim earlier this year, declining to name the victim. “We watched [the attackers] exfiltrate weapons systems data for the Defense Department out of their systems, and ended up having to text the same guy a file stolen off their servers. Fifteen minutes later, we got a call back from him, and they unplugged their entire corporate network.”

    Some say that the attacks CyberESI notifies companies about — often referred to as the advanced persistent threat (APT) –  are over-hyped, and that the malware and exploits used in these incursions usually aren’t that sophisticated. APT attacks also are frequently associated with targets in the U.S. government and companies in the defense industry.

    But most APT attackers tend to be only as sophisticated as they need to be, which often isn’t too sophisticated, said Gavin Reid, senior manager of Cisco’s computer security incident response team. Speaking at a conference in Warsaw, Poland this week, Reid said successful APT attacks need not use zero-day software flaws.

    “People will say, ‘Well, this attack wasn’t very advanced, so it can’t be APT’, but I will tell you the folks who are behind some of this stuff are not going to use cool zero-day stuff if they can go in the underground economy and say, ‘Hey, I need [access to] an infected machine in this organization,’ and pay $50 in Paypal in order to get that,” Reid said.

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