A Little Sunshine


15
Aug 14

How Secure is Your Security Badge?

Security conferences are a great place to learn about the latest hacking tricks, tools and exploits, but they also remind us of important stuff that was shown to be hackable in previous years yet never really got fixed. Perhaps the best example of this at last week’s annual DefCon security conference in Las Vegas came from hackers who built on research first released in 2010 to show just how trivial it still is to read, modify and clone most HID cards — the rectangular white plastic “smart” cards that organizations worldwide distribute to employees for security badges.

HID iClass proximity card.

HID iClass proximity card.

Nearly four years ago, researchers at the Chaos Communication Congress (CCC), a security conference in Berlin, released a paper (PDF) demonstrating a serious vulnerability in smart cards made by Austin, Texas-based HID Global, by far the largest manufacturer of these devices. The CCC researchers showed that the card reader device that HID sells to validate the data stored on its then-new line of iClass proximity cards includes the master encryption key needed to read data on those cards.

More importantly, the researchers proved that anyone with physical access to one of these readers could extract the encryption key and use it to read, clone, and modify data stored on any HID cards made to work with those readers.

At the time, HID responded by modifying future models of card readers so that the firmware stored inside them could not be so easily dumped or read (i.e., the company removed the external serial interface on new readers). But according to researchers, HID never changed the master encryption key for its readers, likely because doing so would require customers using the product to modify or replace all of their readers and cards — a costly proposition by any measure given HID’s huge market share.

Unfortunately, this means that anyone with a modicum of hardware hacking skills, an eBay account, and a budget of less than $500 can grab a copy of the master encryption key and create a portable system for reading and cloning HID cards. At least, that was the gist of the DefCon talk given last week by the co-founders of Lares Consulting, a company that gets hired to test clients’ physical and network security.

Lares’ Joshua Perrymon and Eric Smith demonstrated how an HID parking garage reader capable of reading cards up to three feet away was purchased off of eBay and modified to fit inside of a common backpack. Wearing this backpack, an attacker looking to gain access to a building protected by HID’s iClass cards could obtain that access simply by walking up to a employee of the targeted organization and asking for directions, a light of a cigarette, or some other pretext.

Card cloning gear fits in a briefcase. Image: Lares Consulting.

Card cloning gear fits in a briefcase. Image: Lares Consulting.

Continue reading →


13
Aug 14

Tenn. Firm Sues Bank Over $327K Cyberheist

An industrial maintenance and construction firm in Tennessee that was hit by a $327,000 cyberheist is suing its financial institution to recover the stolen funds, charging the bank with negligence and breach of contract. Court-watchers say the lawsuit — if it proceeds to trial — could make it easier and cheaper for cyberheist victims to recover losses.

teciIn May, 2012, Kingsport, Tenn.-based Tennessee Electric Company Inc. (now TEC Industrial) was the target of a corporate account takeover that saw cyber thieves use a network of more than four dozen money mules to siphon $327,804 out of the company’s accounts at TriSummit Bank.

TriSummit was able to claw back roughly $135,000 of those unauthorized transfers, leaving Tennessee Electric with a loss of $192,656. Earlier this month, the company sued TriSummit in state court, alleging negligence, breach of contract, gross negligence and fraudulent concealment.

Both companies declined to comment for this story. But as Tennessee Electric’s complaint (PDF) notes (albeit by misspelling my name), I called Tennessee Electric on May 10, 2012 to alert the company about a possible cyberheist targeting its accounts. I’d contacted the company after speaking with a money mule who’d acknowledged receiving thousands of dollars pulled from the firm’s accounts at TriSummit.

According to the complaint, the attackers first struck on May 8, after Tennessee Electric’s controller tried, unsuccessfully, to log into the bank’s site and upload that week’s payroll batch (typically from $200,000 to $240,000 per week). When the controller called TriSummit to inquire about the site problems, the bank said the site was probably undergoing maintenance and that the controller was welcome to visit the local bank branch and upload the file there. The controller did just that, uploading four payroll batches worth $202,664.47.

[SIDE NOTE: When I spoke with Tennessee Electric's controller back in 2012, the controller for the company told me she was asked for and supplied the output of a one-time token upon login. This would make sense given the controller's apparent problems accessing the bank's Web site. Cyber thieves involved in these heists typically use password-stealing malware to control what the victim sees in his or her browser; when a victim logs in at a bank that requires a one-time token, the malware will intercept that token and then redirect the victim's browser to an error page or a "down for maintenance" message -- all the while allowing the thieves to use the one-time token and the victim's credentials to log in as the legitimate user.]

On May 9, Tennessee Electric alleges, TriSummit Bank called to confirm the $202,664.47 payroll batch — as per an agreement the bank and the utility had which called for the bank to verbally verify all payment orders by phone. But according to Tennessee Electric, the bank for some reason had already approved a payroll draft of $327,804 to be sent to 55 different accounts across the United States — even though the bank allegedly never called to get verification of that payment order.

Tennessee Electric alleges that the bank only called to seek approval for the fraudulent batch on May 10, more than a day after having approved it and after I contacted Tennessee Electric to let them know they’d been robbed by the Russian cyber mob.

ANALYSIS

This lawsuit, if it heads to trial, could help set a more certain and even standard for figuring out who’s at fault when businesses are hit by cyberheists (for better or worse, most such legal challenges are overwhelmingly weighted toward banks and quietly settled for a fraction of the loss).

Consumers who bank online are protected by Regulation E, which dramatically limits the liability for consumers who lose money from unauthorized account activity online (provided the victim notifies their financial institution of the fraudulent activity within 60 days of receiving a disputed account statement).

Businesses, however, do not enjoy such protections. States across the country have adopted the Uniform Commercial Code (UCC), which holds that a payment order received by the [bank] is “effective as the order of the customer, whether or not authorized, if the security procedure is a commercially reasonable method of providing security against unauthorized payment orders, and the bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer.”

Under state interpretations of the UCC, the most that a business hit with a cyberheist can hope to recover is the amount that was stolen. That means that it’s generally not in the business’s best interests to sue their bank unless the amount of theft was quite high, because the litigation fees required to win a court battle can quickly equal or surpass the amount stolen. Continue reading →


11
Aug 14

Personalize Your Copy of Spam Nation

Good news for fans of this blog who have not yet pre-ordered a copy of my upcoming book, Spam Nation. Politics & Prose, a literary landmark in the District of Columbia, will be helping me launch a six-city book tour, and is offering a personalized message from this author for anyone who pre-orders a copy of Spam Nation through the D.C. store’s Web site.

Politics&ProseLogoUse this link to purchase from Politics & Prose and receive a signed and personalized print copy of Spam Nation. The offer is good through November 18. Please send your proof-of-purchase to spamnation@sourcebookspr.com. Buyers have the option of picking the book up in the store, or having it shipped.

Other cities that we will visit on the book tour include Austin, Chicago, New York, San Francisco and Seattle. Stay tuned for more information about those events.

And as always, thank you for your readership!


6
Aug 14

New Site Recovers Files Locked by Cryptolocker Ransomware

Until today, Microsoft Windows users who’ve been unfortunate enough to have the personal files on their computer encrypted and held for ransom by a nasty strain of malware called CryptoLocker have been faced with a tough choice: Pay cybercrooks a ransom of a few hundred to several thousand dollars to unlock the files, or kiss those files goodbye forever. That changed this morning, when two security firms teamed up to launch a free new online service that can help victims unlock and recover files scrambled by the malware.

clssFirst spotted in September 2013, CryptoLocker is a prolific and very damaging strain of malware that uses strong encryption to lock files that are likely to be the most valued by victim users, including Microsoft Office documents, photos, and MP3 files.

Infected machines typically display a warning that the victim’s files have been locked and can only be decrypted by sending a certain fraction or number of Bitcoins to a decryption service run by the perpetrators. Victims are given 72 hours to pay the ransom — typically a few hundred dollars worth of Bitcoins — after which time the ransom demand increases fivefold or more.

But early Wednesday morning, two security firms – Milpitas, Calf. based FireEye and Fox-IT in the Netherlands — launched decryptcryptolocker.com, a site that victims can use to recover their files. Victims need to provide an email address and upload just one of the encrypted files from their computer, and the service will email a link that victims can use to download a recovery program to decrypt all of their scrambled files.

The free decryption service was made possible because Fox-IT was somehow able to recover the private keys that the cybercriminals who were running the CryptoLocker scam used on their own (not free) decryption service. Neither company is disclosing much about how exactly those keys were recovered other than to say that the opportunity arose as the crooks were attempting to recover from Operation Tovar, an international effort in June that sought to dismantle the infrastructure that CryptoLocker used to infect PCs.

Continue reading →


6
Aug 14

Q&A on the Reported Theft of 1.2B Email Accounts

My phone and email have been flooded with questions and interview requests from various media outlets since security consultancy Hold Security dropped the news that a Russian gang has stolen more than a billion email account credentials. Rather than respond to each of these requests in turn, allow me to add a bit of perspective here in the most direct way possible: The Q&A.

Q: Who the heck is Alex Holden?

A: I’ve known Hold Security’s Founder Alex Holden for nearly seven years. Coincidentally, I initially met him in Las Vegas at the Black Hat security convention (where I am now). Alex is a talented and tireless researcher, as well as a forthright and honest guy. He is originally from Ukraine, and speaks/reads Russian and Ukrainian fluently. His research has been central to several of my big scoops over the past year, including the breach at Adobe that exposed tens of millions of customer records.

Q: Is this for real?

A: Alex isn’t keen on disclosing his methods, but I have seen his research and data firsthand and can say it’s definitely for real. Without spilling his secrets or methods, it is clear that he has a first-hand view on the day-to-day activities of some very active organized cybercrime networks and actors.

Q: Ok, but more than a billion credentials? That seems like a lot.

A: For those unfamiliar with the operations of large-scale organized crime syndicates, yes, it does. Unfortunately, there are more than a few successful cybercrooks who are quite good at what they do, and do it full-time. These actors — mostly spammers and malware purveyors (usually both) — focus on acquiring as many email addresses and account credentials as they can. Their favorite methods of gathering this information include SQL injection (exploiting weaknesses in Web sites that can be used to force the site to cough up user data) and abusing stolen credentials to steal even more credentials from victim organizations.

One micro example of this: Last year, I wrote about a botnet that enslaved thousands of hacked computers which disguised itself as a legitimate add-on for Mozilla Firefox and forced infected PCs to scour Web sites for SQL vulnerabilities. Continue reading →


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 →