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12
Jun 15

Discount Chain Fred’s Inc. Probes Card Breach

Fred’s Inc., a discount general merchandise and pharmacy chain that operates 650 stores in more than a dozen states, disclosed today that it is investigating a potential credit card breach.

fredsKrebsOnSecurity contacted Fred’s earlier this week, after hearing from multiple financial institutions about a pattern of fraud on customer cards indicating that Fred’s was the latest victim of card-stealing malware secretly installed on point-of-sale systems at checkout lanes.

Sources said it was unclear how many Fred’s locations were affected, but that the pattern of fraudulent charges traced back to Fred’s stores across the company’s footprint in the midwest and south, including Alabama, Arkansas, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Tennessee and Texas.

Reached for comment about the allegations, the company issued the following response today:

Fred’s Inc. recently became aware of a potential data security incident and immediately launched an internal investigation to determine the scope of the issue. We retained Mandiant, a leading independent forensics firm, to examine our data security systems.

We want to assure our customers that protecting their information is one of our top priorities and we are taking this potential incident very seriously. Until this investigation is completed, it will be 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.

I am hearing about so many different retail breaches at retail and restaurant chains right now that I could do nothing but write about them full time and still fall behind.

A quick note about this blog: I’ve been on vacation for the past two weeks in Australia and New Zealand, which is why posting has been sporadic at best of late. Also, a glitch in our email server prevented many readers from receiving notifications of new updates over the last few weeks. Fixing the glitch caused subscribers to receive 10 days’ worth of email notifications all at once. Sorry for the inconvenience.


10
Jun 15

Breach at Winery Card Processor Missing Link

Missing Link Networks Inc., a credit card processor and point-of-sale vendor that serves a number of wineries in Northern California and elsewhere, disclosed today that a breach of its networks exposed card data for transactions it processed in the month of April 2015.

ecellarEarlier this week, I heard from a source at one of Sonoma, Calif.’s fancier wineries that their card processor had been breached. On Tuesday, I reached out to Calistoga, Calif. based Missing Link. Today, the company responded that it had begun notifying its customers about the incident, and that it was working with law enforcement and the card associations on an investigation.

“Beginning on May 27, 2015, we began notifying our winery customers that eCellar Systems, our consumer-direct sales platform, had been breached during the month of April, 2015 by an unknown intruder,” the company’s founder and CEO, Paul Thienes, said in a written statement. “To that end, each of our winery clients will be sending out notice of this event to their customers and it is likely that individual consumers may receive a similar notice from multiple wineries.”

“The intruder gained access to customer names, credit/debit card numbers, the related billing addresses, and any dates of birth in our system during the window of April 1st through 30th this year,” Thienes wrote. “The intruder did not have access to any driver license numbers, Social Security numbers, CVV verification numbers, or PIN numbers (data which we would typically not collect anyway). We have identified and secured the method that was used to breach our platform. Additionally, to prevent a future reoccurrence, we are in the process of converting to a ‘token’ system so that credit card numbers will no longer be stored by the eCellar platform.” Continue reading →


1
Apr 15

‘Revolution’ Crimeware & EMV Replay Attacks

In October 2014, KrebsOnSecurity examined a novel “replay” attack that sought to exploit implementation weaknesses at U.S. financial institutions that were in the process of transitioning to more secure chip-based credit and debit cards. Today’s post looks at one service offered in the cybercrime underground to help thieves perpetrate this type of fraud.

Several U.S. financial institutions last year reported receiving tens of thousands of dollars in fraudulent credit and debit card transactions coming from Brazil and hitting card accounts stolen in recent retail heists, principally cards compromised as part of the October 2014 breach at Home Depot. The affected banks were puzzled by the attacks because the fraudulent transactions were all submitted through Visa and MasterCard‘s networks as chip-enabled transactions, even though the banks that issued the cards in question hadn’t yet begun sending customers chip-enabled cards.

Seller in underground forum describes his "Revolution" software to conduct  EMV card fraud against banks that haven't implemented EMV correctly .

Seller in underground forum describes his “Revolution” software to conduct EMV card fraud against banks that haven’t implemented EMV fully.

Fraud experts said the most likely explanation for the activity was that crooks were pushing regular magnetic stripe transactions through the card network as chip card purchases using a technique known as a “replay” attack. According to one bank interviewed at the time, MasterCard officials explained that the thieves were likely in control of a payment terminal and had the ability to manipulate data fields for transactions put through that terminal. After capturing traffic from a real chip-based chip card transaction, the thieves could insert stolen card data into the transaction stream, while modifying the merchant and acquirer bank account data on-the-fly.

Recently, KrebsOnSecurity encountered a fraudster in a popular cybercrime forum selling a fairly sophisticated software-as-a-service package to do just that. The seller, a hacker who reportedly specializes in selling skimming products to help thieves steal card data from ATMs and point-of-sale devices, calls his product “Revolution” and offers to provide buyers with a list of U.S. financial institutions that have not fully or properly implemented systems for accepting and validating chip-card transactions. Continue reading →


26
Mar 15

Who Is the Antidetect Author?

Earlier this month I wrote about Antidetect, a commercial tool designed to help thieves evade fraud detection schemes employed by many e-commerce companies. That piece walked readers through a sales video for Antidetect showing the software being used to buy products online with stolen credit cards. Today, we’ll take a closer look at clues to a possible real-life identity of this tool’s creator.

The author of Antidetect uses the nickname “Byte Catcher,” and advertises on several crime forums that he can be reached at the ICQ address 737084, and at the jabber instant messaging handles “byte.catcher@xmpp.ru” and “byte.catcher@0nl1ne.at”. His software is for sale at antidetect[dot]net and antidetect[dot]org.

Antidetect is marketed to fraudsters involved in ripping off online stores.

Antidetect is marketed to fraudsters involved in ripping off online stores.

Searching on that ICQ number turns up a post on a Russian forum from 2006, wherein a fifth-year computer science student posting under the name “pavelvladimirovich” says he is looking for a job and that he can be reached at the following contact points:

ICQ: 737084

Skype name: pavelvladimirovich1

email: gpvx@yandex.ru

According to a reverse WHOIS lookup ordered from Domaintools.com, that email address is the same one used to register the aforementioned antidetect[dot]org, as well as antifraud[dot]biz and hwidspoofer[dot]com (HWID is short for hardware identification, a common method that software makers use to ensure a given program license can only be used on one computer).

These were quite recent registrations (mid-2014), but that gpvx@yandex.ru email also was used to register domains in 2007, including allfreelance[dot]org and a domain called casinohackers[dot]com. Interestingly, one of the main uses that Byte Catcher advertises for his Antidetect software is to help beat fraud detection mechanisms used by online casinos. As we can see from this page at archive.org, a subsection of casinohackers.com was at one time dedicated to advertising Antidetect Patch — a version that comes with its own virtual machine.

That ICQ number is tied to a user named “collisionsoftware” at the Russian cybercrime forum antichat[dot]ru, in which the seller is advertising software that routes the user’s Internet connection through hacked PCs. He directs interested buyers to the web site cn[dot]viamk[dot]com, which is no longer online. But an archived version of that page at archive.org shows the same “collision” name and the words “freelance team.” The contact form on this site also lists the above-referenced ICQ number and email gpvx@yandex.ru, and even includes a résumé of the site’s owner.

Another domain connected to that antichat profile is cnsoft[dot]ru, the now defunct domain for Collision Software, which bills itself as a firm that can be hired to write software. The homepage lists the same ICQ number (737084).

The ICQ.com profile page for that number includes links to accounts on Russian fraud forums that are all named “Mysterious Killer.” In one of those accounts, on the fraud forum exploit[dot]in, Mysterious Killer lists the same Jabber and ICQ addresses, and offers a variety of services, including a tool to mass-check PayPal account credentials, as well as a full instructional course on click-fraud.

Antidetect retails for between $399 and $999, and includes live support.

Antidetect retails for between $399 and $999, and includes (somewhat unreliable) live support.

Both antifraud[dot]biz and allfreelance[dot]org were originally registered by an individual in Kaliningrad, Russia named Pavel V. Golub. Note that this name matches the initials in the email address gpvx@yandex.ru. KrebsOnSecurity has yet to receive a response to inquiries sent to that email and to the above-referenced Skype profile. Update, 1:05 p.m.: Pavel replied to my email, denying that he produced the video selling his software. “My software was cracked few years ago and then it as spreaded, selled by other people,” he wrote. Meanwhile, someone has started deleting photos and other items linked in this story.

Original story:

A little searching turns up this profile on Russian social networking giant Odnoklassniki.ru for one Pavel Golub, a 29-year-old male from Koenig, Russia. Written in Russian as “Кениг,” this is Russian slang for Kaliningrad and refers to the city’s previous German name.

One of Pavel’s five friends on Odnoklassniki is 27-year-old Vera Golub, also of Kaliningrad. A search of “Vera Golub, Kaliningrad” on vkontakte.com — Russia’s version of Facebook — reveals a vk.com group in Kaliningrad about artificial fingernails that has two contacts: Vera Ivanova (referred to as “master” in this group), and Pavel Vladimirovich (listed as “husband”). Continue reading →


16
Mar 15

‘AntiDetect’ Helps Thieves Hide Digital Fingerprints

As a greater number of banks in the United States shift to issuing more secure credit and debit cards with embedded chip technology, fraudsters are going to direct more of their attacks against online merchants. No surprise, then, that thieves increasingly are turning to an emerging set of software tools to help them evade fraud detection schemes employed by many e-commerce companies.

Every browser has a relatively unique “fingerprint” that is shared with Web sites. That signature is derived from dozens of qualities, including the computer’s operating system type, various plugins installed, the browser’s language setting and its time zone. Banks can leverage fingerprinting to flag transactions that occur from a browser the bank has never seen associated with a customer’s account.

Payment service providers and online stores often use browser fingerprinting to block transactions from browsers that have previously been associated with unauthorized sales (or a high volume of sales for the same or similar product in a short period of time).

In January, several media outlets wrote about a crimeware tool called FraudFox, which is marketed as a way to help crooks sidestep browser fingerprinting. However, FraudFox is merely the latest competitor to emerge in a fairly established marketplace of tools aimed at helping thieves cash out stolen cards at online merchants.

Another fraudster-friendly tool that’s been around the underground hacker forums even longer is called Antidetect. Currently in version 6.0.0.1, Antidetect allows users to very quickly and easily change components of the their system to avoid browser fingerprinting, including the browser type (Safari, IE, Chrome, etc.), version, language, user agent, Adobe Flash version, number and type of other plugins, as well as operating system settings such as OS and processor type, time zone and screen resolution.

Antidetect is marketed to fraudsters involved in ripping off online stores.

Antidetect is marketed to fraudsters involved in ripping off online stores.

The seller of this product shared the video below of someone using Antidetect along with a stolen credit card to buy three different downloadable software titles from gaming giant Origin.com. That video has been edited for brevity and to remove sensitive information; my version also includes captions to describe what’s going on throughout the video. Continue reading →


12
Mar 15

MS Update 3033929 Causing Reboot Loop

One of the operating system updates Microsoft released on Tuesday of this week — KB3033929 — is causing a reboot loop for a fair number of Windows 7 users, according to postings on multiple help forums. The update in question does not appear to address a pressing security vulnerability, so users who have not  yet installed it should probably delay doing so until Microsoft straightens things out. Continue reading →


10
Mar 15

Microsoft Fixes Stuxnet Bug, Again

Microsoft today shipped a bundle of security updates to address more than three dozen vulnerabilities in Windows and associated software. Included in the batch is a fix for a flaw first patched in 2010 — the very same vulnerability that led to the discovery of the infamous cyberweapon known as Stuxnet. Turns out, the patch that Microsoft shipped to fix that flaw in 2010 didn’t quite do the trick, leaving Windows users dangerously exposed all this time.

brokenwindowsOn this, the third Patch Tuesday of 2015, Microsoft pushed 14 update bundles to address at least 43 separate vulnerabilities in Internet Explorer, Exchange, Office and a host of other components.

Five of the the patches released today fix flaws that Microsoft has assigned its most serious “critical” label, meaning the vulnerabilities these patches fix can be exploited to compromise vulnerable systems through little or no action on the part of the user — save for perhaps opening a booby-trapped file or visiting a hacked/malicious Web site.

One of the more curious critical fixes is MS15-020, which according to HP’s Zero Day Initiative researchers addresses the same vulnerability that Microsoft patched in August 2010. That vulnerability — first revealed in a post on this blog July 15, 2010 — was later discovered to have been one of four zero-day flaws used in Stuxnet, a weapon of unprecedented sophistication that is now widely considered to have been a joint U.S. and Israeli project aimed at delaying Iran’s nuclear ambitions. The folks at HP TippingPoint have published a blog post on their work in uncovering the failed fix, and how the original 2010 patch missed the mark. For more on Stuxnet, check out Kim Zetter‘s excellent new book, Countdown To Zero Day. Continue reading →


10
Mar 15

Spoofing the Boss Turns Thieves a Tidy Profit

Judy came within a whisker of losing $315,000 in cash belonging to her employer, a mid-sized manufacturing company in northeast Ohio. Judy’s boss had emailed her, asking her to wire the money to China to pay for some raw materials. The boss, who was traveling abroad at the time, had requested such transfers before — at even higher amounts to manufacturers in China and elsewhere — so the request didn’t seem unusual or suspicious.

athookUntil it did. After Judy sent the wire instructions on to the finance department, something about the email stuck in her head: The message was far more formal-sounding than the tone of voice her boss normally used to express himself via email.

By the time she went back to review the missive and found she’d been scammed by an imposter, it was too late — the employee in charge of initiating wires at her company had already sent it on to the bank. Luckily, the bank hadn’t yet processed the wire, and they were able to claw back the funds.

“Judy” is a pseudonym; she asked to remain anonymous so as not to further embarrass herself or her employer. But for every close call like Judy’s there are many more small businesses each week that fall for these scams and lose millions in the process.

Known variously as “CEO fraud,” and the “business email compromise,” this swindle is a sophisticated and increasingly common one targeting businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments.  In January 2015, the FBI warned that cyber thieves stole nearly $215 million from businesses in the previous 14 months through such scams, which start when crooks spoof or hijack the email accounts of business executives or employees.

In February, con artists made off with a whopping $17.2 million from one of Omaha, Nebraska’s oldest companies —  The Scoular Co., an employee-owned commodities trader. According to Omaha.com, an executive with the 800-employee company wired the money in installments last summer to a bank in China after receiving emails ordering him to do so.

The scam email that nearly cost Judy her job appeared to have come from her company’s chief financial officer, who she said is not usually in the office. The message was made to appear as though it was a conversation between the CFO and the CEO, in which the CEO told the CFO that money needed to be wired to China.

“$315,000 is definitely a high amount, but I did a transaction for $1.4 million before, and I wire money to China for goods that we buy from there,” she said. “But truly, the email did bother me. It didn’t feel quite right when it came in, but at no point did I think, ‘this is someone imitating the boss.'”

After sending a co-worker in finance instructions to execute the wire transfer, Judy sent a note to the CFO asking if she should also notify the CEO that the wire had been sent. When the response came back in wording she couldn’t imagine the CFO putting in writing, she studied the forwarded email more closely. Sure enough, Judy discovered the message had been sent from a domain name that was one look-alike letter different from her employer’s true domain name. Continue reading →


9
Mar 15

Point-of-Sale Vendor NEXTEP Probes Breach

NEXTEP Systems, a Troy, Mich.-based vendor of point-of-sale solutions for restaurants, corporate cafeterias, casinos, airports and other food service venues, was recently notified by law enforcement that some of its customer locations have been compromised in a potentially wide-ranging credit card breach, KrebsOnSecurity has learned.

nextepThe acknowledgement came in response to reports by sources in the financial industry who spotted a pattern of fraud on credit cards all recently used at one of NEXTEP’S biggest customers: Zoup, a chain of some 75 soup eateries spread across the northern half of the United States and Canada.

Last week, KrebsOnSecurity reached out to Zoup after hearing from financial industry sources about fraud patterns indicating some sort of card compromise at many Zoup locations. Zoup CEO Eric Ersher referred calls to NEXTEP, saying that NEXTEP was recently informed of a security issue with its point-of-sale devices. Ersher said Zoup runs NEXTEP’s point-of-sale devices across its entire chain of stores.

In an emailed statement, NEXTEP President Tommy Woycik confirmed Ersher’s account, but emphasized that the company does not believe all of its customers are impacted.

“NEXTEP was recently notified by law enforcement that the security of the systems at some of our customer locations may have been compromised,” Woycik wrote. “NEXTEP immediately launched an investigation in cooperation with law enforcement and data security experts we retained to determine the root cause and remediate the issue. We do know that this is NOT affecting all NEXTEP customers, and we have been working with our customers to ensure that any issues are addressed.  This remains an ongoing investigation with law enforcement. At this stage, we are not certain of the extent of the breach, and are working around the clock to ensure a complete resolution.”

A breach at a point-of-sale vendor can impact a large number of organizations, and historically the chief victims of POS vendor breaches have been food service establishments. Last year, a pattern of credit card fraud at hundreds of Jimmy Johns sandwich shops across the country was traced back to security weaknesses that fraudsters were exploiting in point-of-sale systems produced by POS vendor Signature Systems Inc. Signature later disclosed that the breach also impacted at least 100 other independent restaurants that use its products. Continue reading →


6
Mar 15

Feds Indict Three in 2011 Epsilon Hack

U.S. federal prosecutors in Atlanta today unsealed indictments against two Vietnamese men and a Canadian citizen in connection with what’s being called “one of the largest reported data breaches in U.S. history.” The government isn’t naming the victims in this case, but all signs point to the 2011 hack of Texas-based email marketing giant Epsilon.

epsilonThe government alleges the defendants made more than $2 million blasting out spam to more than one billion email addresses stolen from several email service providers (ESPs), companies that manage customer email marketing on behalf of major corporate brands.  The indictments further allege that the men sent the junk missives by hijacking the email servers used by these ESPs.

“This case reflects the cutting-edge problems posed by today’s cybercrime cases, where the hackers didn’t target just a single company; they infiltrated most of the country’s email distribution firms,” said Acting U.S. Attorney John Horn.  “And the scope of the intrusion is unnerving, in that the hackers didn’t stop after stealing the companies’ proprietary data—they then hijacked the companies’ own distribution platforms to send out bulk emails and reaped the profits from email traffic directed to specific websites.”

To be clear, prosecutors haven’t specifically outed Epsilon as the victim, nor did they name any of the other email service providers (ESPs) allegedly harmed by the defendants. But a press release issued today Horn’s office states that “the data breach into certain ESPs was the subject of a congressional inquiry and testimony before a U.S House of Representatives subcommittee on June 2, 2011.”

That date aligns with a June 2, 2011 House Energy and Commerce Committee panel on the data breaches at Sony and Epsilon. Epsilon officials could not be immediately reached for comment.

Update, 11:27 p.m. ET: Epsilon confirmed that it is among the victims in this case. See the end of this story for their full statement.

Original story:

In early April 2011, customers at dozens of Fortune 500 companies began complaining of receiving spam to email addresses they’d created specifically for use with those companies. On April 2, 2011, Epsilon started notifying consumers that hackers had stolen customer email addresses and names belonging to a “subset of its clients.”

Those clients were ESPs that send email to customers on behalf of some the biggest firms in the world. Epsilon didn’t name which ESPs were impacted, but the voluminous complaints from consumers about spam indicated that those ESPs served a broad range of major companies, including JP Morgan Chase, U.S. Bank, Barclays, Kroger, McDonalds, Walgreens, and Honda, to name but a few.

A scam web site that tried to sell copies of Adobe Reader.

A scam web site that tried to sell copies of Adobe Reader.

As I noted in that April 2011 story, consumers had complained of received junk email with links to sites that tried to sell versions of software made by Adobe Systems Inc. Some of the sites reportedly even tried to sell copies of Adobe Reader — software that Adobe gives away for free.

Sure enough, the men indicted today are accused of hacking into a major ESP to steal more than a billion email addresses, which they allegedly used to promote knockoff versions of Adobe software (among other dubious products).

Prosecutors in Atlanta today unsealed indictments against Viet Quoc Nguyen and Giang Hoang Vu, both citizens of Vietnam who resided for a period of time in the Netherlands. The government also unsealed an indictment against David-Manuel Santos Da Silva, a Canadian citizen who was charged with conspiring with Nguyen and others to launder the proceeds of Nguyen’s alleged computer hacking offenses.

The government alleges that Nguyen used various methods — including targeted email phishing campaigns — to trick recipients at email marketing firms into clicking links to sites which attempted to exploit browser vulnerabilities in a bid to install malicious software. For more on those targeted attacks, see my Nov. 24, 2010 story, Spear Phishing Attacks Snag E-Mail Marketers.

Continue reading →