Data Breaches


22
Dec 14

Gang Hacked ATMs from Inside Banks

An organized gang of hackers from Russia and Ukraine has broken into internal networks at dozens of financial institutions and installed malicious software that allowed the gang to drain bank ATMs of cash. While none of the victim institutions were in the United States or Western Europe, experts say the stealthy methods used by the attackers in these heists would likely work across a broad range of western banks.

robotrobkbMost cybercrime targets consumers and businesses, stealing account information such as passwords and other data that lets thieves cash out hijacked bank accounts, as well as credit and debit cards. But this gang specializes in hacking into banks directly, and then working out ingenious ways to funnel cash directly from the financial institution itself.

A number of the gang’s members are believed to be tied to a group of Eastern European hackers accused of stealing more than USD $2 million from Russian banks using a powerful, custom-made banking trojan known as Carberp. Eight men in Moscow were arrested in 2012 and accused of building and using Carberp, but sources say the core members of the gang were out of jail within hours after their arrest and have been busy rebuilding their crime machine ever since.

According to report released today by Fox-IT and Group-IB, security firms based in The Netherlands and Russia, respectively, the Carberp guys have since changed their tactics: Instead of stealing from thousands of bank account holders, this gang has decided to focus on siphoning funds right out of banks’ coffers. So far, the security firms report, the gang has stolen more than $15 million from Eastern European banks.

To gain a foothold inside financial institutions, this crime group — dubbed the “Anunak group” — sent bank employees targeted, malware-laced emails made to look like the missives were sent by Russian banking regulators. The phishing emails contained malicious software designed to exploit recently-patched security holes in Microsoft Office products.

Incredibly, the group also reportedly bought access to Windows PCs at targeted banks that were already compromised by opportunistic malware spread by other cyber criminals. Indeed, Fox-IT and Group-IB report that the Anunak gang routinely purchased installations of their banking malware from other cybercriminals who operated massive botnets (collections of hacked PCs).

Once inside a financial institution, the criminals typically abused that access to launch even more convincing spear-phishing attacks against other banks. They also gained access to isolated bank network segments that handled ATM transactions, downloading malicious programs made to work specifically with Wincor ATMs. The hackers used that malware — along with a modified legitimate program for managing ATM cash trays — to change the denomination settings for bank notes in 52 different ATMs.

As a result, they were able to make it so that when co-conspirators went to affected ATMs to withdraw 10 bills totaling 100 Russian rubles, they were instead issued 10 bank notes with the denomination of 5,000 rubles, the report notes.

The Anunak gang reportedly modified this legitimate program for managing bill denominations in ATMs.

The Anunak gang reportedly modified this legitimate program for managing bill denominations in ATMs.

Continue reading →


19
Dec 14

Staples: 6-Month Breach, 1.16 Million Cards

Office supply chain Staples Inc. today finally acknowledged that a malware intrusion this year at some of its stores resulted in a credit card breach. The company now says some 119 stores were impacted between April and September 2014, and that as many as 1.16 million customer credit and debit cards may have been stolen as a result.

staplesKrebsOnSecurity first reported the suspected breach on Oct. 20, 2014, after hearing from multiple banks that had identified a pattern of credit and debit card fraud suggesting that several Staples office supply locations in the Northeastern United States were dealing with a data breach. At the time, Staples would say only that it was investigating “a potential issue” and had contacted law enforcement.

In a statement issued today, Staples released a list of stores (PDF) hit with the card-stealing malware, and the stores are not limited to the Northeastern United States.

“At 113 stores, the malware may have allowed access to this data for purchases made from August 10, 2014 through September 16, 2014,” Staples disclosed. “At two stores, the malware may have allowed access to data from purchases made from July 20, 2014 through September 16, 2014.”

However, the company did say that during the investigation Staples also received reports of fraudulent payment card use related to four stores in Manhattan, New York at various times from April through September 2014. Continue reading →


16
Dec 14

Banks: Park-n-Fly Online Card Breach

Multiple financial institutions say they are seeing a pattern of fraud that indicates an online credit card breach has hit Park-n-Fly, an Atlanta-based offsite airport parking service that allows customers to reserve spots in advance of travel via an Internet-based reservation system. The security incident, if confirmed, would be the latest in a string of card breaches involving compromised payment systems at parking services nationwide.

park-n-flyIn response to questions from KrebsOnSecurity, Park-n-Fly said it recently engaged multiple outside security firms to investigate breach claims made by financial institutions, but so far has been unable to find a breach of its systems.

“We have been unable to find any specific issues related to the cards or transactions reported to us and by the financial institutions,” wrote Michael Robinson, the company’s senior director of information technology, said in an emailed statement. “While this kind of incident is rare for us based on our thousands of daily transactions, we do take every instance very seriously. Like any reputable company involved in e-commerce today we recognize that we must be constantly vigilant and research every claim to root out any vulnerabilities or potential gaps.”

Park-n-Fly’s statement continues:

“While we believe that our systems are very secure, including SLL encryption, we have recently engaged multiple outside security firms to identify and resolve any possible gaps in our systems and as always will take any action indicated. We have made all necessary precautionary upgrades and we just upgraded on 12/9 to the latest EV SSL certificate from Entrust, one of the leading certificate issuers in the industry.”

Nevertheless, two different banks shared information with KrebsOnSecurity that suggests Park-n-Fly — or some component of its online card processing system — has indeed experienced a breach. Both banks saw fraud on a significant number of customer cards that previously  — and quite recently — had been used online to make reservations at a number of more than 50 Park-n-Fly locations nationwide. Continue reading →


15
Dec 14

In Damage Control, Sony Targets Reporters

Over the weekend I received a nice holiday letter from lawyers representing Sony Pictures Entertainment, demanding that I cease publishing detailed stories about the company’s recent hacking and delete any company data collected in the process of reporting on the breach. While I have not been the most prolific writer about this incident to date, rest assured such threats will not deter this reporter from covering important news and facts related to the breach.

A letter from Sony's lawyers.

A letter from Sony’s lawyers.

“SPE does not consent to your possession, review, copying, dissemination, publication, uploading, downloading, or making any use of the Stolen information, and to request your cooperation in destroying the Stolen Information,” wrote SPE’s lawyers, who hail from the law firm of Boies, Schiller & Flexner.

This letter reminds me of one that I received several years back from the lawyers of Igor Gusev, one of the main characters in my book, Spam Nation. Mr. Gusev’s attorneys insisted that I was publishing stolen information — pictures of him, financial records from his spam empire “SpamIt” — and that I remove all offending items and publish an apology. My lawyer in that instance called Gusev’s threat a “blivit,” a term coined by the late, great author Kurt Vonnegut, who defined it as “two pounds of shit in a one-pound bag.”

For a more nuanced and scholarly look at whether reporters and bloggers who write about Sony’s hacking should be concerned after receiving this letter, I turn to an analysis by UCLA law professor Eugene Volokh, who posits that Sony “probably” does not have a legal leg to stand on here in demanding that reporters refrain from writing about the extent of SPE’s hacking in great detail. But Volokh includes some useful caveats to this conclusion (and exceptions to those exceptions), notably:

“Some particular publications of specific information in the Sony material might lead to a successful lawsuit,” Volokh writes. “First, disclosure of facts about particular people that are seen as highly private (e.g., medical or sexual information) and not newsworthy might be actionable under the ‘disclosure of private facts’ tort.” Continue reading →


9
Dec 14

Unencrypted Data Lets Thieves ‘Charge Anywhere’

Charge Anywhere LLC, a mobile payments provider, today disclosed that malicious software planted on its networks may have jeopardized credit card data from transactions the company handled between November 2009 and September 2014.

chargeanywhereIn a statement released today, the South Plainfield, N.J. electronic payment provider said it launched investigation after receiving complaints about fraudulent charges on cards that had been legitimately used at certain merchants. The information stolen includes the customer name, card number, expiration date and verification code.

“The investigation revealed that an unauthorized person initially gained access to the network and installed sophisticated malware that was then used to create the ability to capture segments of outbound network traffic,” the company explained. “Much of the outbound traffic was encrypted. However, the format and method of connection for certain outbound messages enabled the unauthorized person to capture and ultimately then gain access to plain text payment card transaction authorization requests.” Continue reading →


8
Dec 14

Toward a Breach Canary for Data Brokers

When a retailer’s credit card systems get breached by hackers, banks usually can tell which merchant got hacked soon after those card accounts become available for purchase at underground cybercrime shops. But when companies that collect and sell sensitive consumer data get hacked or are tricked into giving that information to identity thieves, there is no easy way to tell who leaked the data when it ends up for sale in the black market. In this post, we’ll examine one idea to hold consumer data brokers more accountable.

breachcanarySome of the biggest retail credit card breaches of the past year — including the break-ins at Target and Home Depot — were detected by banks well before news of the incidents went public. When cards stolen from those merchants go up for sale on underground cybercrime shops, the banks often can figure out which merchant got hacked by acquiring a handful of their cards and analyzing the customer purchase history of those accounts. The merchant that is common to all stolen cards across a given transaction period is usually the breached retailer.

Sadly, this process of working backwards from stolen data to breach victim generally does not work in the case of breached data brokers that trade in Social Security information and other data, because too often there are no unique markers in the consumer data that would indicate from where the information was obtained.

Even in the handful of cases where underground crime shops selling consumer personal data have included data points in the records they sell that would permit that source analysis, it has taken years’ worth of very imaginative investigation by law enforcement to determine which data brokers were at fault. In Nov. 2011, I wrote about an identity theft service called Superget[dot]info, noting that “each purchasable record contains a two- to three-letter “sourceid,” which may provide clues as to the source of this identity information.”

Unfortunately, the world didn’t learn the source of that ID theft service’s data until 2013, a year after U.S. Secret Service agents arrested the site’s proprietor — a 24-year-old from Vietnam who was posing as a private investigator based in the United States. Only then were investigators able to determine that the source ID data matched information being sold by a subsidiary of big-three credit bureau Experian (among other data brokers that were selling to the ID theft service). But federal agents made that connection only after an elaborate investigation that lured the proprietor of that shop out of Vietnam and into a U.S. territory.

Meanwhile, during the more than six years that this service was in operation, Superget.info attracted more than 1,300 customers who paid at least $1.9 million to look up Social Security numbers, dates of birth, addresses, previous addresses, email addresses and other sensitive information on consumers, much of it used for new account fraud and tax return fraud.

Investigators got a lucky break in determining the source of another ID theft service that was busted up and has since changed its name (more on that in a moment). That service — known as “ssndob[dot]ru” — was the service used by exposed[dot]su, a site that proudly displayed the Social Security, date of birth, address history and other information on dozens of Hollywood celebrities, as well as public officials such as First Lady Michelle Obama, then FBI Director Robert Mueller, and CIA Director John Brennan.

As I explained in a 2013 exclusive, civilian fraud investigators working with law enforcement gained access to the back-end server that was being used to handle customer requests for consumer information. That database showed that the site’s 1,300 customers had spent hundreds of thousands of dollars looking up SSNs, birthdays, drivers license records, and obtaining unauthorized credit and background reports on more than four million Americans.

Although four million consumer records may seem like a big number, that figure did not represent the total number of consumer records available through ssndob[dot]ru. Rather, four million was merely the number of consumer records that the service’s customers had paid the service to look up. In short, it appeared that the ID theft service was drawing on active customer accounts inside of major consumer data brokers.

Investigators working on that case later determined that the same crooks who were running ssndob[dot]ru also were operating a small, custom botnet of hacked computers inside of several major data brokers, including LexisNexis, Dun & Bradstreet, and Kroll. All three companies acknowledged infections from the botnet, but shared little else about the incidents.

Despite their apparent role in facilitating (albeit unknowingly) these ID theft services, to my knowledge the data brokers involved have never been held publicly accountable in any court of law or by Congress.

CURRENT ID THEFT SERVICES

At present, there are multiple shops in the cybercrime underground that sell everything one would need to steal someone’s identity in the United States or apply for new lines of credit in their name — including Social Security numbers, addresses, previous addresses, phone numbers, dates of birth, and in some cases full credit history. The price of this information is shockingly low — about $3 to $5 per record.

KrebsOnSecurity conducted an exhaustive review of consumer data on sale at some of the most popular underground cybercrime sites. The results show that personal information on some of the most powerful Americans remains available for just a few dollars. And of course, if one can purchase this information on these folks, one can buy it on just about anyone in the United States today.

As an experiment, this author checked two of the most popular ID theft services in the underground for the availability of Social Security numbers, phone numbers, addresses and previous addresses on all members of the Senate Commerce Committee‘s Subcommittee on Consumer Protection, Product Safety and Insurance. That data is currently on sale for all thirteen Democrat and Republican lawmakers on the panel.

Between these two ID theft services, the same personal information was for sale on Edith Ramirez and Richard Cordray, the heads of the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB), respectively. Continue reading →


5
Dec 14

Bebe Stores Confirms Credit Card Breach

In a statement released this morning, women’s clothier chain bebe stores inc. confirmed news first reported on this blog Thursday: That hackers had stolen customer card data from stores across the country in a breach that persisted for several weeks last month.

Image: Wikipedia.

Image: Wikipedia.

Bebe stores said its investigation indicates that the breach impacted payment cards swiped in its U.S., Puerto Rico and U.S. Virgin Islands stores between Nov. 8, 2014 and Nov. 26, 2014. The data may have included cardholder name, account number, expiration date, and verification code.

The company emphasized that purchases made though its web site, mobile site/application, or in Canada or other international stores were not affected, and that customers should feel confident in continuing to use their payment cards in bebe stores.

“Our relationship with our customers is of the highest importance,” said bebe CEO Jim Wiggett, in a statement. “We moved quickly to block this attack and have taken steps to further enhance our security measures.”

Predictably, bebe stores is offering free credit monitoring services for one year to customers impacted by this incident, even though credit monitoring services do nothing to help consumers block fraud on existing accounts — such as credit and debit card accounts that may have been stolen in this breach.
Consumers still need to keep a close eye on monthly statements, and report any unauthorized charges as quickly as possible. Continue reading →


4
Dec 14

Banks: Credit Card Breach at Bebe Stores

Data gathered from several financial institutions and at least one underground cybercrime shop suggest that thieves have stolen credit and debit card data from Bebe Stores Inc., a nationwide chain of some 200 women’s clothing stores.

Image: Wikipedia.

Image: Wikipedia.

Earlier this week, KrebsOnSecurity began hearing from different banks about a pattern of fraudulent charges on customer credit cards that all had one thing in common: the cards were recently used at Bebe (pronounced “bee bee”) locations across the country.

This author reached out to Bebe via email and phone early Wednesday. Officials from Bebe Stores have not yet responded to requests for comment.

On Wednesday, this author heard from an East Coast bank which had purchased several of its customers cards that were being sold on a relatively new cybercrime shop called (goodshop[dot]bz]). The bank acquired cards from a batch that Goodshop released on Dec. 1, called “Happy Winter Update.” The prices from that Happy Winter batch range from $10 to $27 per card.

The bank found that all of the cards had been used at Bebe Stores in the United States between Nov. 18 and Nov. 28. It is not clear if the breach at Bebe stores is ongoing, or if it extends prior to mid-November 2014.

The card fraud shop "goodshop[dot]bz" is selling thousands of cards in its "Happy Winter Update."

The card fraud shop “goodshop[dot]bz” is selling thousands of cards in its “Happy Winter Update.”

Continue reading →


17
Nov 14

Link Found in Staples, Michaels Breaches

The breach at office supply chain Staples impacted roughly 100 stores and was powered by some of the same criminal infrastructure seen in the intrusion disclosed earlier this year at Michaels craft stores, according to sources close to the investigation.

staplesMultiple banks interviewed by this author say they’ve received alerts from Visa and MasterCard about cards impacted in the breach at Staples, and that to date those alerts suggest that a subset of Staples stores were compromised between July and September 2014.

Sources briefed on the ongoing investigation say it involved card-stealing malicious software that the intruders installed on cash registers at approximately 100 Staples locations. Framingham, Mass.-based Staples has more than 1,800 stores nationwide.

In response to questions about these details, Staples spokesman Mark Cautela would say only that the company believes it has found and removed the malware responsible for the attack.  Continue reading →


7
Nov 14

Home Depot: Hackers Stole 53M Email Addresses

As if the credit card breach at Home Depot didn’t already look enough like the Target breach: Home Depot said yesterday that the hackers who stole 56 million customer credit and debit card accounts also made off with 53 million customer email addresses.

pwnddepotIn an update (PDF) released to its site on Thursday, Home Depot warned customers about the potential for thieves to use the email addresses in phishing attacks (think a Home Depot “survey” that offers a gift card for the first 10,000 people who open the booby-trapped attachment, for example). Home Depot stressed that the files containing the stolen email addresses did not contain passwords, payment card information or other sensitive personal information.

Home Depot said the crooks initially broke in using credentials stolen from a third-party vendor. The company said thieves used the vendor’s user name and password to enter the perimeter of Home Depot’s network, but that these stolen credentials alone did not provide direct access to the company’s point-of-sale devices. For that, they had to turn to a vulnerability in Microsoft Windows that was patched only after the breach occurred, according to a story in Thursday’s Wall Street Journal.

Recall that the Target breach also started with a hacked vendor — a heating and air conditioning company in Pennsylvania that was relieved of remote-access credentials after someone inside the company opened a virus-laden email attachment. Target also came out in the days after the breach became public and revealed that the attackers had stolen more than 70 million customer email addresses. Continue reading →