Data Breaches


24
Aug 15

Leaked AshleyMadison Emails Suggest Execs Hacked Competitors

Hacked online cheating service AshleyMadison.com is portraying itself as a victim of malicious cybercriminals, but leaked emails from the company’s CEO suggests that AshleyMadison’s top leadership hacked into a competing dating service in 2012.

AshleyMadison CEO Noel Biderman. Source: Twitter.

AshleyMadison CEO Noel Biderman. Source: Twitter.

Late last week, the Impact Team — the hacking group that has claimed responsibility for leaking personal data on more than 30 million AshleyMadison users — released a 30-gigabyte archive that it said were emails lifted from AshleyMadison CEO Noel Biderman.

A review of those missives shows that on at least one occasion, a former company executive hacked another dating website, exfiltrating their entire user database. On Nov. 30, 2012, Raja Bhatia, the founding chief technology officer of AshleyMadison.com, sent a message to Biderman notifying his boss of a security hole discovered in nerve.com, an American online magazine dedicated to sexual topics, relationships and culture.

At the time, nerve.com was experimenting with its own adult dating section, and Bhatia said he’d uncovered a way to download and manipulate the nerve.com user database.

“They did a very lousy job building their platform. I got their entire user base,” Bhatia told Biderman via email, including in the message a link to a Github archive with a sample of the database. “Also, I can turn any non paying user into a paying user, vice versa, compose messages between users, check unread stats, etc.”

Neither Bhatia nor Biderman could be immediately reached for comment. KrebsOnSecurity.com spoke with Bhatia last week after the Impact Team made good on its threat to release the Ashley Madison user database. At the time, Bhatia was downplaying the leak, saying that his team of investigators had found no signs that the dump of data was legitimate, and that it looked like a number of fake data dumps the company had seen in the weeks prior. Hours later, the leak had been roundly confirmed as legitimate by countless users on Twitter who were able to find their personal data in the cache of account information posted online.

The leaked Biderman emails show that a few months before Bhatia infiltrated Nerve.com, AshleyMadison’s parent firm — Avid Life Media — was approached with an offer to partner with and/or invest in the property. Email messages show that Bhatia initially was interested enough to offer at least $20 million for the company along with a second property called flirts.com, but that AshleyMadison ultimately declined to pursue a deal.

More than six months after Bhatia came to Biderman with revelations of the nerve.com security vulnerabilities, Biderman was set to meet with several representatives of the company. “Should I tell them of their security hole?” Biderman wrote to Bhatia, who doesn’t appear to have responded to that question via email. Continue reading →


14
Aug 15

Cyberheist Victim Trades Smokes for Cash

Earlier this month, KrebsOnSecurity featured the exclusive story of a Russian organized cybercrime gang that stole more than $100 million from small to mid-sized businesses with the help of phantom corporations on the border with China. Today, we’ll look at the stranger-than-fiction true tale of an American firm that lost $197,000 in a remarkably similar 2013 cyberheist, only to later recover most of the money after allegedly plying Chinese authorities with a carton of cigarettes and a hefty bounty for their trouble.

wirefraudThe victim company — an export/import firm based in the northeastern United States — first reached out to this author in 2014 via a U.S. based lawyer who has successfully extracted settlements from banks on the premise that they haven’t done enough to protect their customers from cyberheists. The victim company’s owner — we’ll call him John — agreed to speak about the incident on condition of anonymity, citing pending litigation with the bank.

On Christmas Eve 2013, the accountant at John’s company logged on to the bank’s portal to make a deposit. After submitting her username and password, she was redirected to a Web page that said the bank’s site was experiencing technical difficulties and that she need to provide a one-time token to validate her request.

Unbeknownst to the accountant at the time, cybercrooks had infected her machine with a powerful password-stealing Trojan horse program and had complete control over her Web browser. Shortly after she supplied the token, the crooks used her hijacked browser session to initiate a fraudulent $197,000 wire transfer to a company in Harbin, a city on the Chinese border with Russia.

The next business day when John’s company went to reverse the wire, the bank said the money was already gone.

“My account rep at the bank said we shouldn’t expect to get that money back, and that they weren’t responsible for this transaction,” John said. “I told them that I didn’t understand because the bank had branches in China, why couldn’t they do anything? The bank rep said that, technically, the crime wasn’t committed against us, it was committed against you.” Continue reading →


21
Jul 15

Experian Hit With Class Action Over ID Theft Service

Big-three credit bureau Experian is the target of a class-action lawsuit just filed in California. The suit alleges that Experian negligently violated consumer protection laws when it failed to detect for nearly 10 months that a customer of its data broker subsidiary was a scammer who ran a criminal service that resold consumer data to identity thieves.

experianThe lawsuit comes just days after a judge in New Hampshire handed down a 13-year jail sentence against Hieu Minh Ngo, a 25-year-old Vietnamese man who ran an ID theft service variously named Superget.info and findget.me.

Ngo admitted hacking into or otherwise illegally gaining access to databases belonging to some of the world’s largest data brokers, including a Court Ventures — a company that Experian acquired in 2012. He got access to some 200 million consumer records by posing as a private investigator based in the United States, and for nearly ten months after Experian acquired Court Ventures, Ngo continued paying for his customers’ data searches via cash wire transfers from a bank in Singapore.

Ngo’s service sold access to “fullz,” the slang term for packages of consumer data that could be used to commit identity theft in victims’ names. The government says Ngo made nearly $2 million from his scheme. According to the Justice Department, the IRS has confirmed that 13,673 U.S. citizens, whose stolen personal information was sold on Ngo’s websites, have been victimized through the filing of $65 million in fraudulent individual income tax returns.

The class action lawsuit, filed July 17, 2015 in the U.S. District Court for the Central District of California, seeks statutory damages for Experian’s alleged violations of, among other statutes, the Fair Credit Reporting Act (FCRA). The plaintiffs also want the court to force Experian to notify all consumers affected by Ngo’s service; to provide them free credit monitoring services; to disgorge all profits made from Ngo’s service; and to establish a fund (in an amount to be determined) to which victims can apply for reimbursement of the time and out-of-pocket expenses they incurred to remediate the identity theft and fraud caused by customers of Ngo’s ID theft service. Continue reading →


19
Jul 15

Online Cheating Site AshleyMadison Hacked

Large caches of data stolen from online cheating site AshleyMadison.com have been posted online by an individual or group that claims to have completely compromised the company’s user databases, financial records and other proprietary information. The still-unfolding leak could be quite damaging to some 37 million users of the hookup service, whose slogan is “Life is short. Have an affair.”

ashleymadison

The data released by the hacker or hackers — which self-identify as The Impact Team — includes sensitive internal data stolen from Avid Life Media (ALM), the Toronto-based firm that owns AshleyMadison as well as related hookup sites Cougar Life and Established Men.

Reached by KrebsOnSecurity late Sunday evening, ALM Chief Executive Noel Biderman confirmed the hack, and said the company was “working diligently and feverishly” to take down ALM’s intellectual property. Indeed, in the short span of 30 minutes between that brief interview and the publication of this story, several of the Impact Team’s Web links were no longer responding.

“We’re not denying this happened,” Biderman said. “Like us or not, this is still a criminal act.”

Besides snippets of account data apparently sampled at random from among some 40 million users across ALM’s trio of properties, the hackers leaked maps of internal company servers, employee network account information, company bank account data and salary information.

The compromise comes less than two months after intruders stole and leaked online user data on millions of accounts from hookup site AdultFriendFinder.

In a long manifesto posted alongside the stolen ALM data, The Impact Team said it decided to publish the information in response to alleged lies ALM told its customers about a service that allows members to completely erase their profile information for a $19 fee.

According to the hackers, although the “full delete” feature that Ashley Madison advertises promises “removal of site usage history and personally identifiable information from the site,” users’ purchase details — including real name and address — aren’t actually scrubbed. Continue reading →


9
Jul 15

Credit Card Breach at a Zoo Near You

Service Systems Associates, a company that serves gift shops and eateries at zoos and cultural centers across the United States, has acknowledged a breach of its credit and debit card processing systems.

ssaSeveral banking industry sources told KrebsOnSecurity they have detected a pattern of fraud on cards that were all used at zoo gift shops operated by Denver-basd SSA. On Wednesday morning, CBS Detroit moved a story citing zoo officials there saying the SSA was investigating a breach involving point-of-sale malware.

Contacted about the findings, SSA confirmed that it was the victim of a data security breach.

“The violation occurred in the point of sale systems located in the gift shops of several of our clients,” the company said in a written statement. “This means that if a guest used a credit or debit card in the gift shop at one of our partner facilities between March 23 and June 25, 2015, the information on that card may have been compromised.”

SSA said it has been working with law enforcement officials and a third-party forensic investigator, Sikich, to investigate the breach.

“Though the investigation into this attack continues, the malware that caused the breach was identified and removed,” the statement continued. “All visitors should feel confident using credit or debit cards anywhere in these facilities.” Continue reading →


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 →