The Coming Storm


18
Jul 14

Even Script Kids Have a Right to Be Forgotten

Indexeus, a new search engine that indexes user account information acquired from more than 100 recent data breaches, has caught many in the hacker underground off-guard. That’s because the breached databases crawled by this search engine are mostly sites frequented by young ne’er-do-wells who are just getting their feet wet in the cybercrime business.

Indexeus[dot]org

Indexeus[dot]org

Indexeus boasts that it has a searchable database of “over 200 million entries available to our customers.” The site allows anyone to query millions of records from some of the larger data breaches of late — including the recent break-ins at Adobe and Yahoo! — listing things like email addresses, usernames, passwords, Internet address, physical addresses, birthdays and other information that may be associated with those accounts.

Who are Indexeus’s target customers? Denizens of hackforums[dot]net, a huge forum that is overrun by novice teenage hackers (a.k.a “script kiddies”) from around the world who are selling and buying a broad variety of services designed to help attack, track or otherwise harass people online.

Few services are as full of irony and schadenfreude as Indexeus. You see, the majority of the 100+ databases crawled by this search engine are either from hacker forums that have been hacked, or from sites dedicated to offering so-called “booter” services — powerful servers that can be rented to launch denial-of-service attacks aimed at knocking Web sites and Web users offline.

The brains behind Indexeus — a gaggle of young men in their mid- to late teens or early 20s — envisioned the service as a way to frighten fellow hackers into paying to have their information removed or “blacklisted” from the search engine. Those who pay “donations” of approximately $1 per record (paid in Bitcoin) can not only get their records expunged, but that price also buys insurance against having their information indexed by the search engine in the event it shows up in future database leaks. Continue reading →


14
Jul 14

Beware Keyloggers at Hotel Business Centers

The U.S. Secret Service is advising the hospitality industry to inspect computers made available to guests in hotel business centers, warning that crooks have been compromising hotel business center PCs with keystroke-logging malware in a bid to steal personal and financial data from guests.

A DHS/Secret Service advisory dated July 10, 2014.

A DHS/Secret Service advisory dated July 10, 2014.

In a non-public advisory distributed to companies in the hospitality industry on July 10, the Secret Service and the Department of Homeland Security’s National Cybersecurity and Communications Integration Center (NCCIC) warned that a task force in Texas recently arrested suspects who have compromised computers within several major hotel business centers in the Dallas/Fort Worth areas.

“In some cases, the suspects used stolen credit cards to register as guests of the hotels; the actors would then access publicly available computers in the hotel business center, log into their Gmail accounts and execute malicious key logging software,” the advisory reads.

“The keylogger malware captured the keys struck by other hotel guests that used the business center computers, subsequently sending the information via email to the malicious actors’ email accounts,” the warning continues. “The suspects were able to obtain large amounts of information including other guests personally identifiable information (PII), log in credentials to bank, retirement and personal webmail accounts, as well as other sensitive data flowing through the business center’s computers.”

The advisory lists several basic recommendations for hotels to help secure public computers, such as limiting guest accounts to non-administrator accounts that do not have the ability to install or uninstall programs. This is a good all-purpose recommendation, but it won’t foil today’s keyloggers and malware — much of which will happily install on a regular user account just as easily as on an administrative one.

While there are a range of solutions designed to wipe a computer clean of any system changes after the completion of each user’s session (Steady State, Clean Slate, et. al), most such security approaches can be defeated if users also are allowed to insert CDs or USB-based Flash drives (and few hotel business centers would be in much demand without these features on their PCs). Continue reading →


10
Jul 14

Crooks Seek Revival of ‘Gameover Zeus’ Botnet

Cybercrooks today began taking steps to resurrect the Gameover ZeuS botnet, a complex crime machine that has been blamed for the theft more than $100 million from banks, businesses and consumers worldwide. The revival attempt comes roughly five weeks after the FBI joined several nations, researchers and security firms in a global and thus far successful effort to eradicate it. gameover

The researchers who helped dismantle Gameover Zeus said they were surprised that the botmasters didn’t fight back. Indeed, for the past month the crooks responsible seem to have kept a low profile.

But that changed earlier this morning when researchers at Malcovery [full disclosure: Malcovery is an advertiser on this blog] began noticing spam being blasted out with phishing lures that included zip files booby-trapped with malware.

Looking closer, the company found that the malware shares roughly 90 percent of its code base with Gameover Zeus. Part of what made the original GameOver ZeuS so difficult to shut down was its reliance in part on an advanced peer-to-peer (P2P) mechanism to control and update the bot-infected systems.

But according to Gary Warner, Malcovery’s co-founder and chief technologist, this new Gameover variant is stripped of the P2P code, and relies instead on an approach known as fast-flux hosting. Fast-flux is a kind of round-robin technique that lets botnets hide phishing and malware delivery sites behind an ever-changing network of compromised systems acting as proxies, in a bid to make the botnet more resilient to takedowns. Continue reading →


26
Jun 14

2014: The Year Extortion Went Mainstream

The year 2014 may well go down in the history books as the year that extortion attacks went mainstream. Fueled largely by the emergence of the anonymous online currency Bitcoin, these shakedowns are blurring the lines between online and offline fraud, and giving novice computer users a crash course in modern-day cybercrime.

An extortion letter sent to 900 Degrees Neapolitan Pizzeria in New Hampshire.

An extortion letter sent to 900 Degrees Neapolitan Pizzeria in New Hampshire.

At least four businesses recently reported receiving “Notice of Extortion” letters in the U.S. mail. The letters say the recipient has been targeted for extortion, and threaten a range of negative publicity, vandalism and harassment unless the target agrees to pay a “tribute price” of one bitcoin (currently ~USD $561) by a specified date. According to the letter, that tribute price increases to 3 bitcoins (~$1,683) if the demand isn’t paid on time.

The ransom letters, which appear to be custom written for restaurant owners, threaten businesses with negative online reviews, complaints to the Better Business Bureau, harassing telephone calls, telephone denial-of-service attacks, bomb threats, fraudulent delivery orders, vandalism, and even reports of mercury contamination.

The missive encourages recipients to sign up with Coinbase – a popular bitcoin exchange – and to send the funds to a unique bitcoin wallet specified in the letter and embedded in the QR code that is also printed on the letter.

Interestingly, all three letters I could find that were posted online so far targeted pizza stores. At least two of them were mailed from Orlando, Florida.

The letters all say the amounts are due either on Aug. 1 or Aug. 15. Perhaps one reason the deadlines are so far off is that the attackers understand that not everyone has bitcoins, or even knows about the virtual currency.

“What the heck is a BitCoin?” wrote the proprietors of New Hampshire-based 900 Degrees Neapolitan Pizzeria, which posted a copy of the letter (above) on their Facebook page.

Sandra Alhilo, general manager of Pizza Pirates in Pomona, Calif., received the extortion demand on June 16.

“At first, I was laughing because I thought it had to be a joke,” Alhilo said in a phone interview. “It was funny until I went and posted it on our Facebook page, and then people put it on Reddit and the Internet got me all paranoid.”

Nicholas Weaver, a researcher at the International Computer Science Institute (ICSI) and at the University California, Berkeley, said these extortion attempts cost virtually nothing and promise a handsome payoff for the perpetrators.

“From the fraudster’s perspective, the cost of these attacks is a stamp and an envelope,” Weaver said. “This type of attack could be fairly effective. Some businesses — particularly restaurant establishments — are very concerned about negative publicity and reviews. Bad Yelp reviews, tip-offs to the health inspector..that stuff works and isn’t hard to do.”

While some restaurants may be an easy mark for this sort of crime, Weaver said the extortionists in this case are tangling with a tough adversary — The U.S. Postal Service — which takes extortion crimes perpetrated through the U.S. mail very seriously.

“There is a lot of operational security that these guys might have failed at, because this is interstate commerce, mail fraud, and postal inspector territory, where the gloves come off,” Weaver said. “I’m willing to bet there are several tools available to law enforcement here that these extortionists didn’t consider.”

It’s not entirely clear if or why extortionists seem to be picking on pizza establishments, but it’s probably worth noting that the grand-daddy of all pizza joints – Domino’s Pizza in France — recently found itself the target of a pricey extortion attack earlier this month after hackers threatened to release the stolen details on more than 650,000 customers if the company failed to pay a ransom of approximately $40,000).

Meanwhile, Pizza Pirates’s Alhilo says the company has been working with the local U.S. Postal Inspector’s office, which was very interested in the letter. Alhilo said her establishment won’t be paying the extortionists.

“We have no intention of paying it,” she said. “Honestly, if it hadn’t been a slow day that Monday I might have just throw the letter out because it looked like junk mail. It’s annoying that someone would try to make a few bucks like this on the backs of small businesses.” Continue reading →


5
Jun 14

They Hack Because They Can

The Internet of Things is coming….to a highway sign near you? In the latest reminder that much of our nation’s “critical infrastructure” is held together with the Internet equivalent of spit and glue, authorities in several U.S. states are reporting that a hacker has once again broken into and defaced electronic road signs over highways in several U.S. states.

Image: WNCN.

Image: WNCN.

Earlier this week, news media in North Carolina reported that at least three highway signs there had apparently been compromised and re-worded to read “Hack by Sun Hacker.” Similar incidents were reported between May 27 and June 2, 2014 in two other states, which spotted variations on that message left by the perpetrator, (including an invitation to chat with him on Twitter).

The attack was reminiscent of a series of incidents beginning two years ago in which various electronic message signs were changed to read “Warning, Zombies Ahead”.

While at least those attacks were chuckle-worthy, messing with traffic signs is no laughing matter: As a report by the Multi-State Information Sharing and Analysis Center (MS-ISAC) points out, changes to road signs create a public safety issue because instead of directing drivers through road hazards, they often result in drivers slowing or stopping to view the signs or take pictures.

That same MS-ISAC notice, obtained by KrebsOnSecurity and published here (PDF), points out that these incidents appear to be encouraged by sloppy security on the part of those responsible for maintaining these signs.

“Investigators in one state believe the compromise may be in part due to the use of weak Simple Network Management Protocol (SNMP) community strings. Investigators in another state believe the malicious actor used Telnet port 23 and a simple password cracker to gain remote access. In one state the malicious actor changed the modem passwords, forcing technicians to restore to factory default settings to regain access.”

Continue reading →


4
Jun 14

Peek Inside a Professional Carding Shop

Over the past year, I’ve spent a great deal of time trolling a variety of underground stores that sell “dumps” — street slang for stolen credit card data that buyers can use to counterfeit new cards and go shopping in big-box stores for high-dollar merchandise that can be resold quickly for cash. By way of explaining this bizarro world, this post takes the reader on a tour of a rather exclusive and professional dumps shop that caters to professional thieves, high-volume buyers and organized crime gangs.

mcdumpalsjoinedThe subject of this post is “McDumpals,” a leading dumps shop that first went online in late April 2013.  Featuring the familiar golden arches and the bastardized logo, “i’m swipin’ it,”  the site’s mascot is a gangstered-up Ronald McDonald pointing a handgun at the viewer.

Nevermind that this shop is violating a ridiculous number of McDonald’s trademarks in one fell swoop: It’s currently selling cards stolen from data breaches at main street stores in nearly every U.S. state.

Like many other dumps shops, McDumpals recently began requiring potential new customers to pay a deposit (~$100) via Bitcoin before being allowed to view the goods for sale. Also typical of most card shops, this store’s home page features the latest news about new batches of stolen cards that have just been added, as well as price reductions on older batches of cards that are less reliable as instruments of fraud.

I’ve put together a slideshow (below) that steps through many of the updates that have been added to this shop since its inception. One big takeaway from this slideshow is that many shops are now categorizing their goods for sale by the state or region of the victim company.

This was a major innovation that we saw prominently on display in the card shop that was principally responsible for selling cards stolen in the Target and Sally Beauty retail breaches: In those cases, buyers were offered the ability to search for cards by the city, state and ZIP of the Target and Sally Beauty stores from which those cards were stolen. Experienced carders (as buyers are called) know that banks will often flag transactions as suspicious if they take place outside of the legitimate cardholder’s regular geographic purchasing patterns, and so carders tend to favor cards stolen from consumers who live nearby.

The slideshow may make more sense if readers familiarize themselves with a few terms and phrases that show up in the text:

Continue reading →


2
Jun 14

‘Operation Tovar’ Targets ‘Gameover’ ZeuS Botnet, CryptoLocker Scourge

The U.S. Justice Department is expected to announce today an international law enforcement operation to seize control over the Gameover ZeuS botnet, a sprawling network of hacked Microsoft Windows computers that currently infects an estimated 500,000 to 1 million compromised systems globally. Experts say PCs infected with Gameover are being harvested for sensitive financial and personal data, and rented out to an elite cadre of hackers for use in online extortion attacks, spam and other illicit moneymaking schemes.

This graphic, from 2012, shows the decentralized nature of P2P network connectivity of 23,196 PCs infected with Gameover.  Image: Dell SecureWorks

This graphic, from 2012, shows the decentralized nature of P2P network connectivity of 23,196 PCs infected with Gameover. Image: Dell SecureWorks

The sneak attack on Gameover, dubbed “Operation Tovar,” began late last week and is a collaborative effort by investigators at the FBI, Europol, and the UK’s National Crime Agency; security firms CrowdStrike, Dell SecureWorks, SymantecTrend Micro and McAfee; and academic researchers at VU University Amsterdam and Saarland University in Germany. News of the action first came to light in a blog post published briefly on Friday by McAfee, but that post was removed a few hours after it went online.

Gameover is based on code from the ZeuS Trojan, an infamous family of malware that has been used in countless online banking heists. Unlike ZeuS — which was sold as a botnet creation kit to anyone who had a few thousand dollars in virtual currency to spend — Gameover ZeuS has since October 2011 been controlled and maintained by a core group of hackers from Russia and Ukraine.

Those individuals are believed to have used the botnet in high-dollar corporate account takeovers that frequently were punctuated by massive distributed-denial-of-service (DDoS) attacks intended to distract victims from immediately noticing the thefts. According to the Justice Department, Gameover has been implicated in the theft of more than $100 million in account takeovers.

The curators of Gameover also have reportedly loaned out sections of their botnet to vetted third-parties who have used them for a variety of purposes. One of the most popular uses of Gameover has been as a platform for seeding infected systems with CryptoLocker, a nasty strain of malware that locks your most precious files with strong encryption until you pay a ransom demand.

According to a 2012 research paper published by Dell SecureWorks, the Gameover Trojan is principally spread via Cutwail, one of the world’s largest and most notorious spam botnets (for more on Cutwail and its origins and authors, see this post). These junk emails typically spoof trusted brands, including shipping and phone companies, online retailers, social networking sites and financial institutions. The email lures bearing Gameover often come in the form of an invoice, an order confirmation, or a warning about an unpaid bill (usually with a large balance due to increase the likelihood that a victim will click the link). The links in the email have been replaced with those of compromised sites that will silently probe the visitor’s browser for outdated plugins that can be leveraged to install malware.

It will be interesting to hear how the authorities and security researchers involved in this effort managed to gain control over the Gameover botnet, which uses an advanced peer-to-peer (P2P) mechanism to control and update the bot-infected systems. Continue reading →


8
Apr 14

‘Heartbleed’ Bug Exposes Passwords, Web Site Encryption Keys

Researchers have uncovered an extremely critical vulnerability in recent versions of OpenSSL, a technology that allows millions of Web sites to encrypt communications with visitors. Complicating matters further is the release of a simple exploit that can be used to steal usernames and passwords from vulnerable sites, as well as private keys that sites use to encrypt and decrypt sensitive data.

Credit: Heartbleed.com

Credit: Heartbleed.com

From Heartbleed.com:

“The Heartbleed bug allows anyone on the Internet to read the memory of the systems protected by the vulnerable versions of the OpenSSL software. This compromises the secret keys used to identify the service providers and to encrypt the traffic, the names and passwords of the users and the actual content. This allows attackers to eavesdrop communications, steal data directly from the services and users and to impersonate services and users.”

An advisory from Carnegie Mellon University’s CERT notes that the vulnerability is present in sites powered by OpenSSL versions 1.0.1 through 1.0.1f. According to Netcraft, a company that monitors the technology used by various Web sites, more than a half million sites are currently vulnerable. As of this morning, that included Yahoo.com, and — ironically — the Web site of openssl.org. This list at Github appears to be a relatively recent test for the presence of this vulnerability in the top 1,000 sites as indexed by Web-ranking firm Alexa.

An easy-to-use exploit that is being widely traded online allows an attacker to retrieve private memory of an application that uses the vulnerable OpenSSL “libssl” library in chunks of 64kb at a time. As CERT notes, an attacker can repeatedly leverage the vulnerability to retrieve as many 64k chunks of memory as are necessary to retrieve the intended secrets.

Jamie Blasco, director of AlienVault Labs, said this bug has “epic repercussions” because not only does it expose passwords and cryptographic keys, but in order to ensure that attackers won’t be able to use any data that does get compromised by this flaw, affected providers have to replace the private keys and certificates after patching the vulnerable OpenSSL service for each of the services that are using the OpenSSL library [full disclosure: AlienVault is an advertiser on this blog].

It is likely that a great many Internet users will be asked to change their passwords this week (I hope). Meantime, companies and organizations running vulnerable versions should upgrade to the latest iteration of OpenSSL – OpenSSL 1.0.1g — as quickly as possible.

Update, 2:26 p.m.: It appears that this Github page allows visitors to test whether a site is vulnerable to this bug (hat tip to Sandro Süffert). For more on what you can do you to protect yourself from this vulnerability, see this post.


31
Mar 14

Who’s Behind the ‘BLS Weblearn’ Credit Card Scam?

A new rash of credit and debit card scams involving bogus sub-$15 charges and attributed to a company called “BLS Weblearn” is part of a prolific international scheme designed to fleece unwary consumers. This post delves deeper into the history and identity of the credit card processing network that has been enabling this type of activity for years.

onlinelearningaccess.com, one of the fraudulent affiliate marketing schemes that powers these bogus micropayments.

onlinelearningaccess.com, one of the fraudulent affiliate marketing schemes that powers these bogus micropayments.

At issue are a rash of phony charges levied against countless consumers for odd amounts — such as $10.37, or $12.96. When they appear on your statement, the charges generally reference a company in St. Julians, Malta such as BLS*Weblearn or PLI*Weblearn, and include a 1-888 number that may or may not work (the most common being 888-461-2032 and 888-210-6574).

I began hearing from readers about this early this month, in part because of my previous sleuthing on an eerily similar scheme that also leveraged payment systems in Malta to put through unauthorized junk charges ($9.84) for “online learning” software systems. Unfortunately, while the names of the companies and payment systems have changed, this latest scam appears to be remarkably similar in every way.

Reading up on this latest scam, it appears that the payments are being processed by a company called BlueSnap, which variously lists its offices in Massachusetts, California, Israel, Malta and London. Oddly enough, the payment network used by the $9.84 scams that surfaced last year — Credorax — also lists offices in Massachusetts, Israel, London and Malta.

And, just like with the $9.84 scam, this latest micropayment fraud scheme involves an extremely flimsy-looking affiliate income model that seems merely designed for abuse. According to information from several banks contacted for this story, early versions of this scam (in which fraudulent transactions were listed on statements as PLI*WEBLEARN) leveraged pliblue.com, formerly associated with a company called Plimus, a processor that also lists offices in California and Israel (in addition to Ukraine).

The very first time I encountered Plimus was in Sept. 2011, when I profiled an individual responsible for selling access to tens of thousands of desktop computers that were hacked and seeded with the TDSS botnet. That miscreant — a fellow who used the nickname “Fizot” — had been using Plimus to accept credit card payments for awmproxy.net, an anonymization service that was sold primarily to individuals engaged in computer fraud.

Apparently, the Internet has been unkind to Plimus’s online reputation, because not long ago the company changed its name to BlueSnap. This blog has a few ideas about what motivated the name change, noting that it might have been prompted in part by a class action lawsuit (PDF) against Plimus which alleges that the company’s marketing campaigns include the “mass production of fabricated consumer reviews, testimonials and fake blogs that are all intended to deceive consumers seeking a legitimate product and induce them to pay. Yet, after consumers pay for access to any of these digital goods websites, they quickly realize that the promotional materials and representations were blatantly false.”

Continue reading →