08
Oct 14

Spam Nation Book Offer + Tour Details

As many of you know, my first book — Spam Nation — hits bookstore shelves on Nov. 18. I want to thank those of you who have already pre-ordered the book, and offer a small enticement for those who have yet to secure a copy.

Pre-order two or more copies of Spam Nation and get this "Krebs Edition" branded ZeusGard.

Pre-order two or more copies of Spam Nation and get this “Krebs Edition” branded ZeusGard.

Spam Nation is a true story about organized cybercriminals, some of whom are actively involved in using malware-laced spam to empty bank accounts belonging to small- and medium-sized businesses in the United States and Europe. I’ve written extensively about organizations that have lost tens of millions of dollars from these cyberheists. I’ve also encouraged online banking customers to take advantage of various “Live CD” technologies that allow users to sidestep the very malware that powers these cyberheists.

In July, I wrote about ZeusGard, one such technology that’s designed to streamline the process of adopting the Live CD approach for online banking. The makers of ZeusGard got such a positive response from that story that they offered to partner with Yours Truly in promoting Spam Nation!

I’m pleased to report that the first 1,000 customers to purchase two or more copies of Spam Nation — including any combination of digital, physical and/or audio versions of the book — before the official book launch on Nov. 18 will receive a complimentary KrebsOnSecurity-branded version of ZeusGard (pictured above)! Continue reading →


07
Oct 14

Huge Data Leak at Largest U.S. Bond Insurer

On Monday, KrebsOnSecurity notified MBIA Inc. — the nation’s largest bond insurer — that a misconfiguration in a company Web server had exposed countless customer account numbers, balances and other sensitive data. Much of the information had been indexed by search engines, including a page listing administrative credentials that attackers could use to access data that wasn’t already accessible via a simple Web search.

A redacted screenshot of MBIA account information exposed to search engines.

A redacted screenshot of MBIA account information exposed to search engines.

MBIA Inc., based in Purchase, N.Y., is a public holding company that offers municipal bond insurance and investment management products. According to the firm’s Wiki page, MBIA, formerly known as the Municipal Bond Insurance Association, was formed in 1973 to diversify the holdings of several insurance companies, including Aetna, Fireman’s Fund, Travelers, Cigna and Continental.

Notified about the breach, the company quickly disabled the vulnerable site — mbiaweb.com. This Web property contained customer data from Cutwater Asset Management, a fixed-income unit of MBIA that is slated to be acquired by BNY Mellon Corp.

“We have been notified that certain information related to clients of MBIA’s asset management subsidiary, Cutwater Asset Management, may have been illegally accessed,” said MBIA spokesman Kevin Brown. “We are conducting a thorough investigation and will take all measures necessary to protect our customers’ data, secure our systems, and preserve evidence for law enforcement.”

Brown said MBIA notified all current customers about the incident Monday evening, and that it planned to notify former customers today.

Some 230 pages of account statements from Cutwater had been indexed by Google, including account and routing numbers, balances, dividends and account holder names for the Texas CLASS (a local government investment pool) ; the Louisiana Asset Management Pool; the New Hampshire Public Deposit Investment Pool; Connecticut CLASS Plus; and the Town of Richmond, NH.

In some cases, the documents indexed by search engines featured detailed instructions on how to authorize new bank accounts for deposits, including the forms and fax numbers needed to submit the account information.

Bryan Seely, an independent security expert with Seely Security, discovered the exposed data using a search engine. Seely said the data was exposed thanks to a poorly configured Oracle Reports database server. Normally, Seely said, this type of database server is configured to serve information only to authorized users who are accessing the data from within a trusted, private network — and certainly not open to the Web.

Continue reading →


06
Oct 14

Bugzilla Zero-Day Exposes Zero-Day Bugs

A previously unknown security flaw in Bugzilla — a popular online bug-tracking tool used by Mozilla and many of the open source Linux distributions — allows anyone to view detailed reports about unfixed vulnerabilities in a broad swath of software. Bugzilla is expected today to issue a fix for this very serious weakness, which potentially exposes a veritable gold mine of vulnerabilities that would be highly prized by cyber criminals and nation-state actors.

The Bugzilla mascot.

The Bugzilla mascot.

Multiple software projects use Bugzilla to keep track of bugs and flaws that are reported by users. The Bugzilla platform allows anyone to create an account that can be used to report glitches or security issues in those projects. But as it turns out, that same reporting mechanism can be abused to reveal sensitive information about as-yet unfixed security holes in software packages that rely on Bugzilla.

A developer or security researcher who wants to report a flaw in Mozilla Firefox, for example, can sign up for an account at Mozilla’s Bugzilla platform. Bugzilla responds automatically by sending a validation email to the address specified in the signup request. But recently, researchers at security firm Check Point Software Technologies discovered that it was possible to create Bugzilla user accounts that bypass that validation process.

“Our exploit allows us to bypass that and register using any email we want, even if we don’t have access to it, because there is no validation that you actually control that domain,” said Shahar Tal, vulnerability research team leader for Check Point. “Because of the way permissions work on Bugzilla, we can get administrative privileges by simply registering using an address from one of the domains of the Bugzilla installation owner. For example, we registered as admin@mozilla.org, and suddenly we could see every private bug under Firefox and everything else under Mozilla.”

Continue reading →


02
Oct 14

Silk Road Lawyers Poke Holes in FBI’s Story

New court documents released this week by the U.S. government in its case against the alleged ringleader of the Silk Road online black market and drug bazaar suggest that the feds may have some ‘splaining to do.

The login prompt and CAPTCHA from the Silk Road home page.

The login prompt and CAPTCHA from the Silk Road home page.

Prior to its disconnection last year, the Silk Road was reachable only via Tor, software that protects users’ anonymity by bouncing their traffic between different servers and encrypting the traffic at every step of the way. Tor also lets anyone run a Web server without revealing the server’s true Internet address to the site’s users, and this was the very technology that the Silk road used to obscure its location.

Last month, the U.S. government released court records claiming that FBI investigators were able to divine the location of the hidden Silk Road servers because the community’s login page employed an anti-abuse CAPTCHA service that pulled content from the open Internet — thus leaking the site’s true Internet address.

But lawyers for alleged Silk Road captain Ross W. Ulbricht (a.k.a. the “Dread Pirate Roberts”) asked the court to compel prosecutors to prove their version of events.  And indeed, discovery documents reluctantly released by the government this week appear to poke serious holes in the FBI’s story.

Continue reading →


01
Oct 14

ID Theft Service Customer Gets 27 Months

A Florida man was sentenced today to 27 months in prison for trying to purchase Social Security numbers and other data from an identity theft service that pulled consumer records from a subsidiary of credit bureau Experian.

Ngo's ID theft service superget.info

Ngo’s ID theft service superget.info

Derric Theoc, 36, pleaded guilty to attempting to purchase Social Security and bank account records on more than 100 Americans with the intent to open credit card accounts and file fraudulent tax returns in the victims’ names. According to prosecutors, Theoc had purchased numerous records from Superget.info, a now-defunct online identity theft service that was run by Vietnamese individual named Hieu Minh Ngo.

Ngo was arrested in 2012 by U.S. Secret Service agents, after he was lured to Guam by an undercover investigator who’d proposed a business deal to expand Ngo’s personal consumer data stores. As part of a guilty plea, Ngo later admitted that he’d obtained personal information on consumers from a variety of data broker companies by posing as a private investigator based in the United States.

Among the biggest brokers that Ngo bought from was Court Ventures, a company that was acquired in March 2012 by Experian — one of the three major credit bureaus. Court records show that for almost ten months after Experian completed that acquisition, Ngo continued siphoning consumer data and paying for the information via cash wire transfers from a bank in Singapore.

After Ngo’s arrest, Secret Service investigators in early 2013 quietly assumed control over his identity theft service in the hopes of identifying and arresting at least some of his more than 1,000 paying customers.

Theoc is just the latest in a string of identity thieves to have been rounded up for attempting to purchase additional records after the service came under the government’s control. In May, I wrote about another big beneficiary of Ngo’s service: An identity theft ring of at least 32 people who were arrested last year for allegedly using the information to steal millions from more than 1,000 victims across the country. Continue reading →


30
Sep 14

Apple Releases Patches for Shellshock Bug

Apple has released updates to insulate Mac OS X systems from the dangerous “Shellshock” bug, a pervasive vulnerability that is already being exploited in active attacks.

osxPatches are available via Software Update, or from the following links for OS X Mavericks, Mountain Lion, and Lion.

After installing the updates, Mac users can check to see whether the flaw has been truly fixed by taking the following steps:

* Open Terminal, which you can find in the Applications folder (under the Utilities subfolder on Mavericks) or via Spotlight search.

* Execute this command:
bash –version [author's note: my WordPress install is combining these two dashes; it should read the word "bash" followed by a space, then two dashes, and the word "version"].

* The version after applying this update will be:

OS X Mavericks:  GNU bash, version 3.2.53(1)-release (x86_64-apple-darwin13)
OS X Mountain Lion:  GNU bash, version 3.2.53(1)-release (x86_64-apple-darwin12)
OS X Lion:  GNU bash, version 3.2.53(1)-release (x86_64-apple-darwin11)


29
Sep 14

We Take Your Privacy and Security. Seriously.

“Please note that [COMPANY NAME] takes the security of your personal data very seriously.” If you’ve been on the Internet for any length of time, chances are very good that you’ve received at least one breach notification email or letter that includes some version of this obligatory line. But as far as lines go, this one is about as convincing as the classic break-up line, “It’s not you, it’s me.”

coxletter

I was reminded of the sheer emptiness of this corporate breach-speak approximately two weeks ago, after receiving a snail mail letter from my Internet service provider — Cox Communications. In its letter, the company explained:

“On or about Aug. 13, 2014, “we learned that one of our customer service representatives had her account credentials compromised by an unknown individual. This incident allowed the unauthorized person to view personal information associated with a small number of Cox accounts. The information which could have been viewed included your name, address, email address, your Secret Question/Answer, PIN and in some cases, the last four digits only of your Social Security number or drivers’ license number.”

The letter ended with the textbook offer of free credit monitoring services (through Experian, no less), and the obligatory “Please note that Cox takes the security of your personal data very seriously.” But I wondered how seriously they really take it. So, I called the number on the back of the letter, and was directed to Stephen Boggs, director of public affairs at Cox.

Boggs said that the trouble started after a female customer account representative was “socially engineered” or tricked into giving away her account credentials to a caller posing as a Cox tech support staffer. Boggs informed me that I was one of just 52 customers whose information the attacker(s) looked up after hijacking the customer service rep’s account.

The nature of the attack described by Boggs suggested two things: 1) That the login page that Cox employees use to access customer information is available on the larger Internet (i.e., it is not an internal-only application); and that 2) the customer support representative was able to access that public portal with nothing more than a username and a password.

Boggs either did not want to answer or did not know the answer to my main question: Were Cox customer support employees required to use multi-factor or two-factor authentication to access their accounts? Boggs promised to call back with an definitive response. To Cox’s credit, he did call back a few hours later, and confirmed my suspicions. Continue reading →


26
Sep 14

Signature Systems Breach Expands

Signature Systems Inc., the point-of-sale vendor blamed for a credit and debit card breach involving some 216 Jimmy John’s sandwich shop locations, now says the breach also may have jeopardized customer card numbers at nearly 100 other independent restaurants across the country that use its products.

pdqEarlier this week, Champaign, Ill.-based Jimmy John’s confirmed suspicions first raised by this author on July 31, 2014: That hackers had installed card-stealing malware on cash registers at some of its store locations. Jimmy John’s said the intrusion — which lasted from June 16, 2014 to Sept. 5, 2014 — occurred when hackers compromised the username and password needed to remotely administer point-of-sale systems at 216 stores.

Those point-of-sale systems were produced by Newtown, Pa., based payment vendor Signature Systems. In a statement issued in the last 24 hours, Signature Systems released more information about the break-in, as well as a list of nearly 100 other stores — mostly small mom-and-pop eateries and pizza shops — that were compromised in the same attack.

“We have determined that an unauthorized person gained access to a user name and password that Signature Systems used to remotely access POS systems,” the company wrote. “The unauthorized person used that access to install malware designed to capture payment card data from cards that were swiped through terminals in certain restaurants. The malware was capable of capturing the cardholder’s name, card number, expiration date, and verification code from the magnetic stripe of the card.”

Meanwhile, there are questions about whether Signature’s core product — PDQ POS — met even the most basic security requirements set forth by the PCI Security Standards Council for point-of-sale payment systems. According to the council’s records, PDQ POS was not approved for new installations after Oct. 28, 2013. As a result, any Jimmy John’s stores and other affected restaurants that installed PDQ’s product after the Oct. 28, 2013 sunset date could be facing fines and other penalties.

This snapshot from the PCI Council shows that PDQ POS was not approved for new installations after Oct. 28, 2013.

This snapshot from the PCI Council shows that PDQ POS was not approved for new installations after Oct. 28, 2013.

Continue reading →


25
Sep 14

‘Shellshock’ Bug Spells Trouble for Web Security

As if consumers weren’t already suffering from breach fatigue: Experts warn that attackers are exploiting a critical, newly-disclosed security vulnerability present in countless networks and Web sites that rely on Unix and Linux operating systems. Experts say the flaw, dubbed “Shellshock,” is so intertwined with the modern Internet that it could prove challenging to fix, and in the short run is likely to put millions of networks and countless consumer records at risk of compromise.

The bug is being compared to the recent Heartbleed vulnerability because of its ubiquity and sheer potential for causing havoc on Internet-connected systems — particularly Web sites. Worse yet, experts say the official patch for the security hole is incomplete and could still let attackers seize control over vulnerable systems.

The problem resides with a weakness in the GNU Bourne Again Shell (Bash), the text-based, command-line utility on multiple Linux and Unix operating systems. Researchers discovered that if Bash is set up to be the default command line utility on these systems, it opens those systems up to specially crafted remote attacks via a range of network tools that rely on it to execute scripts, from telnet and secure shell (SSH) sessions to Web requests.

According to several security firms, attackers are already probing systems for the weakness, and that at least two computer worms are actively exploiting the flaw to install malware. Jaime Blasco, labs director at AlienVault, has been running a honeypot on the vulnerability since yesterday to emulate a vulnerable system.

“With the honeypot, we found several machines trying to exploit the Bash vulnerability,” Blasco said. “The majority of them are only probing to check if systems are vulnerable. On the other hand, we found two worms that are actively exploiting the vulnerability and installing a piece of malware on the system. This malware turns the systems into bots that connect to a C&C server where the attackers can send commands, and we have seen the main purpose of the bots is to perform distributed denial of service attacks.”

The vulnerability does not impact Microsoft Windows users, but there are patches available for Linux and Unix systems. In addition, Mac users are likely vulnerable, although there is no official patch for this flaw from Apple yet. I’ll update this post if we see any patches from Apple.

Update, Sept. 29 9:06 p.m. ET: Apple has released an update for this bug, available for OS X Mavericks, Mountain Lion, and Lion.

The U.S.-CERT’s advisory includes a simple command line script that Mac users can run to test for the vulnerability. To check your system from a command line, type or cut and paste this text:

env x='() { :;}; echo vulnerable' bash -c "echo this is a test"

If the system is vulnerable, the output will be:

vulnerable
 this is a test

An unaffected (or patched) system will output:

 bash: warning: x: ignoring function definition attempt
 bash: error importing function definition for `x'
 this is a test

US-CERT has a list of operating systems that are vulnerable. Red Hat and several other Linux distributions have released fixes for the bug, but according to US-CERT the patch has an issue that prevents it from fully addressing the problem. Continue reading →


25
Sep 14

$1.66M in Limbo After FBI Seizes Funds from Cyberheist

A Texas bank that’s suing a customer to recover $1.66 million spirited out of the country in a 2012 cyberheist says it now believes the missing funds are still here in the United States — in a bank account that’s been frozen by the federal government as part of an FBI cybercrime investigation.

robotrobkbIn late June 2012, unknown hackers broke into the computer systems of Luna & Luna, LLP, a real estate escrow firm based in Garland, Texas. Unbeknownst to Luna, hackers had stolen the username and password that the company used to managed its account at Texas Brand Bank (TBB), a financial institution also based in Garland.

Between June 21, 2012 and July 2, 2012, fraudsters stole approximately $1.75 million in three separate wire transfers. Two of those transfers went to an account at the Industrial and Commercial Bank of China. That account was tied to the Jixi City Tianfeng Trade Limited Company in China. The third wire, in the amount of $89,651, was sent to a company in the United States, and was recovered by the bank.

Jixi is in the Heilongjiang province of China on the border with Russia, a region apparently replete with companies willing to accept huge international wire transfers without asking too many questions. A year before this cyberheist took place, the FBI issued a warning that cyberthieves operating out of the region had been the recipients of approximately $20 million in the year prior — all funds stolen from small to mid-sized businesses through a series of fraudulent wire transfers sent to Chinese economic and trade companies (PDF) on the border with Russia.

Luna became aware of the fraudulent transfers on July 2, 2012, when the bank notified the company that it was about to overdraw its accounts. The theft put Luna & Luna in a tough spot: The money the thieves stole was being held in escrow for the U.S. Department of Housing and Urban Development (HUD). In essence, the crooks had robbed Uncle Sam, and this was exactly the argument that Luna used to talk its bank into replacing the missing funds as quickly as possible.

“Luna argued that unless TBB restored the funds, Luna and HUD would be severely damaged with consequences to TBB far greater than the sum of the swindled funds,” TBB wrote in its original complaint (PDF). TBB notes that it agreed to reimburse the stolen funds, but that it also reserved its right to legal claims against Luna to recover the money.

When TBB later demanded repayment, Luna refused. The bank filed suit on July 1, 2013, in state court, suing to recover the approximately $1.66 million that it could not claw back, plus interest and attorney’s fees. Continue reading →