A Little Sunshine


21
Jul 14

Banks: Card Breach at Goodwill Industries

Heads up, bargain shoppers: Financial institutions across the country report that they are tracking what appears to be a series of credit card breaches involving Goodwill locations nationwide. For its part, Goodwill Industries International Inc. says it is working with the U.S. Secret Service on an investigation into these reports.

goodwillHeadquartered in Rockville, Md., Goodwill Industries International, Inc. is a network of 165 independent agencies in the United States and Canada with a presence in 14 other countries. The organizations sell donated clothing and household items, and use the proceeds to fund job training programs, employment placement services and other community-based initiatives.

According to sources in the financial industry, multiple locations of Goodwill Industries stores have been identified as a likely point of compromise for an unknown number of credit and debit cards.

In a statement sent to KrebsOnSecurity, Goodwill Industries said it first learned about a possible incident last Friday, July 18. The organization said it has not yet confirmed a breach, but that it is working with federal authorities on an investigation into the matter.

“Goodwill Industries International was contacted last Friday afternoon by a payment card industry fraud investigative unit and federal authorities informing us that select U.S. store locations may have been the victims of possible theft of payment card numbers,” the company wrote in an email. Continue reading →


18
Jul 14

Even Script Kids Have a Right to Be Forgotten

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

Indexeus[dot]org

Indexeus[dot]org

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

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

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

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


16
Jul 14

Wireless Live CD Alternative: ZeusGard

I’ve long recommended that small business owners and others concerned about malware-driven bank account takeovers consider adopting a “Live CD” solution, which is a free and relatively easy way of temporarily converting your Windows PC into a Linux operating system. The trouble with many of these Live CD solutions is that they require a CD player (something many laptops no longer have) — but more importantly – they don’t play well with wireless access. Today’s post looks at an alternative that addresses both of these issues.

Zeusgard, with wireless adapter, on a Macbook Air.

Zeusgard, with wireless adapter, on a Macbook Air.

As I noted in my 2012 column, “Banking on a Live CD,” the beauty of the “Live CD” approach is that it allows you to safely bank online from any machine — even from a system that is already riddled with malware. That’s because it lets you boot your existing PC into an entirely different (read: non-Windows) operating system. [Not sure why you should consider banking online from a non-Windows PC? Check out this series].

The device I’ll be looking at today is not free, nor is the the tiny dongle that enables its ability to be used on a wireless network. Nor is it an actual CD or anything more than a stripped-down Web browser. But it is one of the safest, most easy-to-use solutions I’ve seen yet.

The device, called ZeusGard, is a small, silver USB flash drive that boots into a usable browser within about 30 seconds after starting the machine. The non-writeable drive boots directly into the browser (on top of Debian Linux), and if your system is hard-wired to your router with an Ethernet connection, you should be good to go.

Nearly all Live CD solution have one glaring weakness: They typically are not usable over a wireless connection. The Live CD solution I most frequently recommend — which is based on a version of Puppy Linux — technically can work with wireless networks, but I found that setting it up is not at all intuitive, especially for people who’ve never used anything but Windows before.

zgbox My review copy of ZeusGard came with a tiny USB wireless Wi-Fi adapter, which makes jumping on a wireless network a complete breeze. When you boot up with both ZeusGard and the adapter plugged in, ZeusGard automatically searches for available wireless networks, and asks you to choose yours from a list of those in range.

Assuming access to your wireless network is secured with WPA/WPA2  (hopefully not the weaker WEP) , click the “properties” box next to your network, and enter your network’s encryption key (if you need to see the key in plain text while you’re typing, tick the box next to “key”). Hit “OK” and then the “Connect” button. Once you’re connected, click the down arrow at the top of the dialog box and select “Exit to Browser Session.” Continue reading →


14
Jul 14

Beware Keyloggers at Hotel Business Centers

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

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

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

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

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

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

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

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


10
Jul 14

Crooks Seek Revival of ‘Gameover Zeus’ Botnet

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

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

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

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

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


10
Jul 14

Interview With Fresh Air’s Terry Gross

nprlock On Monday, I had the distinct pleasure of being a guest on Terry Gross‘s Fresh Air radio show on National Public Radio. I’m a huge fan of Gross’s show and was quite flattered and honored to have been invited.

The roughly 39-minute interview covered a range of topics, including my reporting on the Target and Neiman Marcus breaches, as well as an investigation into how an identity theft service conned its way into getting access to a subsidiary of big three credit bureau Experian.

Gross also asked about some of the responses that my reporting has engendered from various denizens of the cybercrime underground, hence the title of the segment, “The Hazards of Probing the Internet’s Dark Side.”

The archived podcast of the show is available here.


2
Jul 14

Brazilian ‘Boleto’ Bandits Bilk Billions

With the eyes of the world trained on Brazil for the 2014 FIFA World Cup, it seems a fitting time to spotlight a growing form of computer fraud that’s giving Brazilian banks and consumers a run for their money. Today’s post looks at new research into a mostly small-time cybercrime practice that in the aggregate appears to have netted thieves the equivalent of billions of dollars over the past two years.

A boleto.

A boleto.

At issue is the “boleto” (officially “Boleto Bancario”), a popular payment method in Brazil that is used by consumers and for most business-to-business payments. Brazilians can use boletos to complete online purchases via their bank’s Web site, but unlike credit card payments — which can be disputed and reversed — payments made via boletos are not subject to chargebacks and can only be reverted by bank transfer.

Brazil has an extremely active and talented cybercrime underground, and increasingly Brazilian organized  crime gangs are setting their sights on boleto users who bank online. This is typically done through malware that lies in wait until the user of the hacked PC visits their bank’s site and fills out the account information for the recipient of a boleto transaction. In this scenario, the unwitting victim submits the transfer for payment and the malware modifies the request by substituting a recipient account that the attackers control.

Many of the hijacked boleto transactions are low-dollar amounts, but in the aggregate these purloined payments can generate an impressive income stream for even a small malware gang. On Tuesday, for example, a source forwarded me a link to a Web-based control panel for a boleto-thieving botnet (see screenshot below); in this operation, we can see that the thieves had hijacked some 383 boleto transactions between February 2014 and the end of June, but had stolen the equivalent of nearly USD $250,000 during that time.

The records kept by a boleto-stealing botnet. Next to the date and time is the account of the intended recipient of the transfer; the "linea alterada" column shows the accounts used by the thieves to accept diverted payments. "Valor" refers to the amount, expressed in Brazilian Real.

The records kept by a boleto-stealing botnet. Next to the date and time is the account of the intended recipient of the transfer; the “linha alterada” column shows the accounts used by the thieves to accept diverted payments. “Valor” refers to the amount, expressed in Brazilian Real.

But a recent discovery by researchers at RSA, the security division of EMC, exposes far more lucrative and ambitious boleto banditry. RSA says the fraud ring it is tracking — known as the “Bolware” operation — affects more than 30 different banks in Brazil, and may be responsible for up to $3.75 billion USD in losses. RSA arrived at this estimate based on the discovery of a similar botnet control panel that tracked nearly a half-million fraudulent transactions. Continue reading →


1
Jul 14

Microsoft Darkens 4MM Sites in Malware Fight

Millions of Web sites were shuttered Monday morning after Microsoft executed a legal sneak attack against a malware network thought to be responsible for more than 7.4 million infections of Windows PCs worldwide.

A diagram showing how crooks abused no-ip.com's services to control malware networks. Source: Microsoft.

A diagram showing how crooks abused no-ip.com’s services to control malware networks. Source: Microsoft.

In its latest bid to harness the power of the U.S. legal system to combat malicious software and cybercrooks, Microsoft convinced a Nevada court to grant the software giant authority over nearly two dozen domains belonging to no-ip.com, a company that provides dynamic domain name services.

Dynamic DNS services are used to map domain names to numeric Internet address that may change frequently. Typically, the biggest users of dynamic DNS services are home Internet users who wish to have a domain name that will always point back to their home computer, no matter how many times their ISP changes the numeric Internet address assigned to that computer.

In this case, however, the attackers responsible for leveraging two malware families — remote-access Trojans known as “njrat” and “njw0rm” — were using no-ip.com’s services to guarantee that PCs they infected would always be able to reach the Internet servers.

Microsoft told the court that miscreants who were using these two malware strains were leveraging more than 18,400 hostnames that belonged to no-ip.com. On June 26, the court granted Microsoft the authority to temporarily seize control over 23 domains owned by no-ip.com — essentially all of the domains that power no-ip.com’s free dynamic DNS services.

Microsoft was supposed to filter out the traffic flowing to and from those 18,400+ hostnames, and allow the remaining, harmless traffic to flow through to its rightful destination. But according to no-ip.com marketing manager Natalie Goguen, that’s not at all what happened.

“They made comments that they’d only taken down bad hostnames and were supposedly redirecting all good traffic through to users, but it’s not happening, and they’re not able to handle our traffic volumes,” Goguen said. “Many legitimate users that use our services have been down all day.”

Goguen said while Microsoft claimed that there were more than 18,000 malicious hostnames involved, no-ip.com could only find a little more than 2,000 from that list that were still active as of Monday morning. Meanwhile, some four million hostnames remain offline, with customer support requests piling up.

“So, to go after 2,000 or so bad sites, [Microsoft] has taken down four million,” Goguen said. Continue reading →


26
Jun 14

2014: The Year Extortion Went Mainstream

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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