Data Breaches


1
Jul 15

Banks: Card Breach at Trump Hotel Properties

The Trump Hotel Collection, a string of luxury hotel properties tied to business magnate and now Republican presidential candidate Donald Trump, appears to be the latest victim of a credit card breach, according to data shared by several U.S.-based banks.

Trump International Hotel and Tower in Chicago.

Trump International Hotel and Tower in Chicago.

Contacted regarding reports from sources at several banks who traced a pattern of fraudulent debit and credit card charges to accounts that had all been used at Trump hotels, the company declined multiple requests for comment.

Update, 4:56 p.m. ET: The Trump Organization just acknowledged the issue with a brief statement from Eric Trump, executive vice president of development and acquisitions: “Like virtually every other company these days, we have been alerted to potential suspicious credit card activity and are in the midst of a thorough investigation to determine whether it involves any of our properties,” the statement reads. “We are committed to safeguarding all guests’ personal information and will continue to do so vigilantly.”

Original story:

But sources in the financial industry say they have little doubt that Trump properties in several U.S. locations — including Chicago, Honolulu, Las Vegas, Los Angeles, Miami, and New York — are dealing with a card breach that appears to extend back to at least February 2015.

If confirmed, the incident would be the latest in a long string of credit card breaches involving hotel brands, restaurants and retail establishments. In March, upscale hotel chain Mandarin Oriental disclosed a compromise. The following month, hotel franchising firm White Lodging acknowledged that, for the second time in 12 months, card processing systems at several of its locations were breached by hackers.

It is likely that the huge number of card breaches at U.S.-based organizations over the past year represents a response by fraudsters to upcoming changes in the United States designed to make credit and debit cards more difficult and expensive to counterfeit. Non-chip cards store cardholder data on a magnetic stripe, which can be trivially copied and re-encoded onto virtually anything else with a magnetic stripe. Continue reading →


24
Jun 15

Hershey Park Investigates Card Fraud Pattern

Hershey Park, a popular resort and amusement park in Hershey, Pa. has hired a security firm to investigate reports from multiple financial institutions about a possible credit card breach, KrebsOnSecurity has learned.

hersheyContacted after reports by several financial institutions about a pattern of fraudulent charges on customer cards that trace back to Hershey properties, the company says it is investigating.

“We have received reports from some of our guests that fraud charges appeared on their payment cards after they visited our property,” said Kathleen McGraw, director of communications for Hershey Entertainment and Resorts Company.

“We take reports like this very seriously,” McGraw continued. “While our company does have security measures in place designed to prevent unauthorized access to our network, we immediately began to investigate our system for signs of an issue and engaged an external computer security firm to assist us. The investigation is ongoing.”

Sources at three financial institutions say they have detected a pattern of fraudulent activity on customer cards that were used at Hershey properties in Pennsylvania between mid-March and late May 2015. According to the banks, the cards were used at a variety of Hershey locations, including food and beverage outlets, ticketing stations and the Hershey Lodge.


18
Jun 15

OPM’s Database for Sale? Nope, It Came from Another US .Gov

A database supposedly from a sample of information stolen in the much publicized hack at the Office of Personnel Management (OPM) has been making the rounds in the cybercrime underground, with some ne’er-do-wells even offering to sell it as part of a larger package. But a review of the information made available as a teaser indicates that the database is instead a list of users stolen from a different government agency — Unicor.gov, also known as Federal Prison Industries.

Source: Unicor.gov

Source: Unicor.gov

Earlier this week, miscreants who frequent the Hell cybercrime forum (a “Deep Web” site reachable only via the Tor network) began passing around a text file that contained more than 23,000 records which appeared to be a user database populated exclusively by user accounts with dot-gov email addresses. I thought it rather unlikely that the file had anything to do with the OPM hack, which was widely attributed to Chinese hackers who are typically interested in espionage — not selling the data they steal on open-air markets.

As discussed in my Oct. 2014 post, How to Tell Data Leaks from Publicity Stunts, there are several simple techniques that often can be used to tell whether a given data set is what it claims to be. One method involves sampling email addresses from the leaked/hacked database and then using them in an attempt to create new accounts at the site in question. In most cases, online sites and services will allow only one account per email address, so if a large, random sampling of email addresses from the database all come back as already registered at the site you suspect is the breached entity, then it’s a safe guess the data came from that entity.

How to know the identity of the organization from which the database was stolen? In most cases, database files list the users in the order in which they registered on the site. As a result, the email addresses and/or usernames for the first half-dozen or more users listed in the database are most often from the database administrators and/or site designers. When all of those initial addresses have the same top-level domain — in this case “unicor.gov” — it’s a good bet that’s your victim organization.

Image: Unicor.gov

Image: Unicor.gov

According to Wikipedia, UNICOR is a wholly owned United States government corporation created in 1934 that uses penal labor from the Federal Bureau of Prisons to produce goods and services. It is apparently restricted to selling its products and services to federal government agencies, although recently private companies gained some access to UNICOR workforce. For instance, companies can outsource call centers to UNICOR. Case in point: If you call UNICOR’s main number off-hours, the voicemail message states that during business hours your call may be handled by an inmate! Continue reading →


16
Jun 15

Password Manager LastPass Warns of Breach

LastPass, a company that offers users a way to centrally manage all of their passwords online with a single master password, disclosed Monday that intruders had broken into its databases and made off with user email addresses and password reminders, among other data.

lastpassIn an alert posted to its blog, LastPass said the company has found no evidence that its encrypted user vault data was taken, nor that LastPass user accounts were accessed.

“The investigation has shown, however, that LastPass account email addresses, password reminders, server per user salts, and authentication hashes were compromised,” the company said. “We are confident that our encryption measures are sufficient to protect the vast majority of users. LastPass strengthens the authentication hash with a random salt and 100,000 rounds of server-side PBKDF2-SHA256, in addition to the rounds performed client-side. This additional strengthening makes it difficult to attack the stolen hashes with any significant speed.”

Parsing LastPass’s statement requires a basic understanding of the way that passwords are generally stored. Passwords are “hashed” by taking the plain text password and running it against a theoretically one-way mathematical algorithm that turns the user’s password into a string of gibberish numbers and letters that is supposed to be challenging to reverse. 

The weakness of this approach is that hashes by themselves are static, meaning that the password “123456,” for example, will always compute to the same password hash. To make matters worse, there are plenty of tools capable of very rapidly mapping these hashes to common dictionary words, names and phrases, which essentially negates the effectiveness of hashing. These days, computer hardware has gotten so cheap that attackers can easily and very cheaply build machines capable of computing tens of millions of possible password hashes per second for each corresponding username or email address.

But by adding a unique element, or “salt,” to each user password, database administrators can massively complicate things for attackers who may have stolen the user database and rely upon automated tools to crack user passwords.

“What a salt does it makes it hard to go after a lot of passwords at once as opposed to one users’ password, because every user requires a separate guess and that separate guess is going to take a considerable amount of time,” said Steve Bellovin, a professor in computer science at Columbia University . “With a salt, even if a bunch of users have the same password, like ‘123456,’ everyone would have a different hash.”

More concerning in this particular breach, Bellovin said, is that users’ password reminders also were stolen.

Continue reading →


26
May 15

Recent Breaches a Boon to Extortionists

The recent breaches involving the leak of personal data on millions of customers at online hookup site Adult Friend Finder and mobile spyware maker mSpy give extortionists and blackmailers plenty of ammunition with which to ply their trade. And there is some evidence that ne’er-do-wells are actively trading this data and planning to abuse it for financial gain.

Within hours after data on tens (if not hundreds) of thousands of mSpy users leaked onto the Deep Web, miscreants on the “Hell” forum (reachable only via Tor) were busy extracting countless Apple iTunes usernames and passwords from the archive.

“Apple Id accounts you can use Tor to login perfectly safe! Good method so far use ‘Find My phone,'” wrote Ping, a moderator on the forum. “Wipe data and set a message that they been hacked and the only way to get their data back is to pay a ransom.”

"Hell" forum users discuss extorting mSpy users who had iTunes account credentials compromised in the breach.

“Hell” forum users discuss extorting mSpy users who had iTunes account credentials compromised in the breach.

Continue reading →


21
May 15

Carefirst Blue Cross Breach Hits 1.1M

CareFirst BlueCross BlueShield on Wednesday said it had been hit with a data breach that compromised the personal information on approximately 1.1 million customers. There are indications that the same attack methods may have been used in this intrusion as with breaches at Anthem and Premera, incidents that collectively involved data on more than 90 million Americans.

carefirstAccording to a statement CareFirst issued Wednesday, attackers gained access to names, birth dates, email addresses and insurance identification numbers. The company said the database did not include Social Security or credit card numbers, passwords or medical information. Nevertheless, CareFirst is offering credit monitoring and identity theft protection for two years.

Nobody is officially pointing fingers at the parties thought to be responsible for this latest health industry breach, but there are clues implicating the same state-sponsored actors from China thought to be involved in the Anthem and Premera attacks. Continue reading →


20
May 15

mSpy Denies Breach, Even as Customers Confirm It

Last week, KrebsOnSecurity broke the news that sensitive data apparently stolen from hundreds of thousands of customers mobile spyware maker mSpy had been posted online. mSpy has since been quoted twice by other publications denying a breach of its systems. Meanwhile, this blog has since contacted multiple people whose data was published to the deep Web, all of whom confirmed they were active or former mSpy customers.

myspyappmSpy told BBC News it had been the victim of a “predatory attack” by blackmailers, but said it had not given in to demands for money. mSpy also told the BBC that claims the hackers had breached its systems and stolen data were false.

“There is no data of 400,000 of our customers on the web,” a spokeswoman for the company told the BBC. “We believe to have become a victim of a predatory attack, aimed to take advantage of our estimated commercial achievements.”

Let’s parse that statement a bit further. No, the stolen records aren’t on the Web; rather, they’ve been posted to various sites on the Deep Web, which is only accessible using Tor. Also, I don’t doubt that mSpy was the target of extortion attempts; the fact that the company did not pay the extortionist is likely what resulted in its customers’ data being posted online.

How am I confident of this, considering mSpy has still not responded to requests for comment? I spent the better part of the day today pulling customer records from the hundreds of gigabytes of data leaked from mSpy. I spoke with multiple customers whose payment and personal data — and that of their kids, employees and significant others — were included in the huge cache. All confirmed they are or were recently paying customers of mSpy.

Joe Natoli, director of a home care provider in Arizona, confirmed what was clear from looking at the leaked data — that he had paid mSpy hundreds of dollars a month for a subscription to monitor all of the mobile devices distributed to employees by his company. Natoli said all employees agree to the monitoring when they are hired, but that he only used mSpy for approximately four months.

“The value proposition for the cost didn’t work out,” Natoli said.

Katherine Till‘s information also was in the leaked data. Till confirmed that she and her husband had paid mSpy to monitor the mobile device of their 14-year-old daughter, and were still a paying customer as of my call to her.

Till added that she was unaware of a breach, and was disturbed that mSpy might try to cover it up.

“This is disturbing, because who knows what someone could do with all that data from her phone,” Till said, noting that she and her husband had both discussed the monitoring software with their daughter. “As parents, it’s hard to keep up and teach kids all the time what they can and can’t do. I’m sure there are lots more people like us that are in this situation now.”

Another user whose financial and personal data was in the cache asked not to be identified, but sheepishly confirmed that he had paid mSpy to secretly monitor the mobile device of a “friend.”

Update, May 22, 10:24 a.m.: mSpy is finally admitting that it did have a breach that exposed customer information, but they are still downplaying the numbers. Continue reading →


7
May 15

Deconstructing the 2014 Sally Beauty Breach

This week, nationwide beauty products chain Sally Beauty disclosed that, for the second time in a year, it was investigating reports that hackers had broken into its networks and stolen customer credit card data. That investigation is ongoing, but I recently had an opportunity to interview a former Sally Beauty IT technician who provided a first-hand look at how the first breach in 2014 went down.

sallybOn March 14, 2014, KrebsOnSecurity broke the news that some 260,000 credit cards stolen from Sally Beauty stores had gone up for sale on Rescator[dot]cc, the same shop that first debuted cards stolen in the Home Depot and Target breaches. The company said thieves made off with just 25,000 customer cards. But the shop selling the cards listed each by the ZIP code of the Sally Beauty store from which the card data had been stolen, exactly like this same shop did with Home Depot and Target. An exhaustive analysis of the ZIP codes represented in the cards for sale on the fraud shop indicated that the hackers had hit virtually all 2,600 Sally Beauty locations nationwide.

The company never disclosed additional details about the breach itself or how it happened. But earlier this week I spoke with Blake Curlovic, until recently an application support analyst at Sally Beauty who was among the first to respond when virtual alarm bells starting going off last year about a possible intrusion. Curlovic said that at the time, Sally Beauty was running exactly one enterprise solution for security — Tripwire (full disclosure: Tripwire is an advertiser on this blog). Tripwire’s core product monitors key operating system and application files for any changes, which then triggers alerts.

Tripwire fired a warning when the intruders planted a new file on point-of-sale systems within Sally Beauty’s vast network of cash registers. The file was a program designed to steal card numbers as they were being swiped through the registers, and the attackers had named their malware after a legitimate program running on all Sally Beauty registers. They also used a utility called Timestomp to change the date and time stamp on their malware to match the legitimate file, but that apparently didn’t fool Tripwire.

According to Curlovic, the intruders gained access through a Citrix remote access portal set up for use by employees who needed access to company systems while on the road.

“The attackers somehow had login credentials of a district manager,” Curlovic said. “This guy was not exactly security savvy. When we got his laptop back in, we saw that it had his username and password taped to the front of it.”

Once inside the Sally Beauty corporate network, the attackers scanned and mapped out the entire thing, located all shared drives and scoured those for Visual Basic (VB) scripts. Network administrators in charge of managing thousands or tens of thousands of systems often will write VB scripts to automate certain tasks across all of those systems, and very often those scripts will contain usernames and passwords that can be quite useful to attackers.

Curlovic said the intruders located a VB script on Sally Beauty’s network that contained the username and password of a network administrator at the company.

“That allowed them to basically copy files to the cash registers,” he said. “They used a simple batch file loop, put in all the [cash] register Internet addresses they found while scanning the network, looped through there and copied [the malware] to all of the point-of-sale devices — roughly 6,000 of them. They were in the network for like a week prior to that planning the attack.”

Continue reading →


4
May 15

Sally Beauty Card Breach, Part Deux?

For the second time in a year, nationwide beauty products chain Sally Beauty Holdings Inc. says it is investigating reports of unusual credit and debit card activity at some of its U.S. stores.

Last week, KrebsOnSecurity began hearing from multiple financial institutions about a pattern of fraudulent charges on cards that were all recentlysally used at Sally Beauty locations in various states. Reached for comment on Sunday about the fraud pattern suggesting yet another card breach at the beauty products chain, Sally Beauty issued the following statement this morning:

“Sally Beauty Holdings, Inc. is currently investigating reports of unusual activity involving payment cards used at some of our U.S. Sally Beauty stores. Since learning of these reports, we have been working with law enforcement and our credit card processor and have launched a comprehensive investigation with the help of a leading third-party forensics expert to aggressively gather facts while working to ensure our customers are protected. Until this investigation is completed, it is difficult to determine with certainty the scope or nature of any potential incident, but we will continue to work vigilantly to address any potential issues that may affect our customers.”

Their statement continues: “Consistent with our ‘Love it or Return It’ policy, customer security and confidence remains our number one priority. As a result, we encourage any customer who is concerned about the security of their payment cards to call our Customer Service Hotline at 1-866-234-9442, so that we can assist them in addressing any potential concerns. Sally Beauty will, as appropriate, provide updates as we learn more from our investigation.”

In addition, the company also sent out an urgent alert today to its employees, asking associates to direct any customers with credit card issues to the Sally Beauty Web site or to call customer service. “We hadn’t gotten an email like that since last year when we had our breach,” the Sally Beauty employee said on condition of anonymity. Continue reading →


1
May 15

Harbortouch is Latest POS Vendor Breach

Last week, Allentown, Pa. based point-of-sale (POS) maker Harbortouch disclosed that a breach involving “a small number” of its restaurant and bar customers were impacted by malicious software that allowed thieves to siphon customer card data from affected merchants. KrebsOnSecurity has recently heard from a major U.S. card issuer that says the company is radically downplaying the scope of the breach, and that the compromise appears to have impacted more than 4,200 Harbortouch customers nationwide.

harbortouchIn the weeks leading up to the Harbortouch disclosure, many sources in the financial industry speculated that there was possibly a breach at a credit card processing company. This suspicion usually arises whenever banks start feeling a great deal of card fraud pain that they can’t easily trace back to one specific merchant (for more on why POS vendor breaches are difficult to pin down, check out this post.

Some banks were so anxious about the unexplained fraud spikes as stolen cards were used to buy goods at big box stores that they instituted dramatic changes to the way they processed debit card transactions. Glastonbury, Ct. based United Bank recently included a red-backgrounded notice conspicuously at the top of their home page stating: “In an effort to protect our customers after learning of a spike in fraudulent transactions in grocery stores as well as similar stores such as WalMart and Target, we have instituted a block in which customers will now be required to select ‘Debit’ and enter their ‘PIN’ for transactions at these stores when using their United Bank debit card.”

A notice to customers of United Bank.

A notice to customers of United Bank.

In a statement released last week to KrebsOnSecurity, Harbortouch said it has “identified and contained an incident that affected a small percentage of our merchants.”

“The incident involved the installation of malware on certain point of sale (POS) systems,” Harbortouch said in a written statement. “The advanced malware was designed to avoid detection by the antivirus program running on the POS System. Within hours of detecting the incident, Harbortouch identified and removed the malware from affected systems. We have engaged Mandiant, a leading forensic investigator, to assist in our ongoing investigation.”

The company said the incident did not affect Harbortouch’s own network, nor was it the result of any vulnerability in the PA-DSS validated POS software.

“Harbortouch does not directly process or store cardholder data,” the company explained. “It is important to note that only a small percentage of our merchants were affected and over a relatively short period of time. We are working with the appropriate parties to notify the card issuing banks that were potentially impacted. Those banks can then conduct heightened monitoring of transactions to detect and prevent unauthorized charges. We are also coordinating our efforts with law enforcement to assist them in their investigation.”

However, according to sources at a top 10 card-issuing bank here in the United States that shared voluminous fraud data with this author on condition of anonymity, the breach extends to at least 4,200 stores that run Harbortouch’s point-of-sale software. Continue reading →