Posts Tagged: Blackshades


27
Jun 15

A Busy Week for Ne’er-Do-Well News

We often hear about the impact of cybercrime, but too seldom do we read about the successes that law enforcement officials have in apprehending those responsible and bringing them to justice. Last week was an especially busy time for cybercrime justice, with authorities across the globe bringing arrests, prosecutions and some cases stiff sentences in connection with a broad range of cyber crimes, including ATM and bank account cashouts, malware distribution and “swatting” attacks.

Ercan Findikoglu, posing with piles of cash.

Ercan Findikoglu, posing with piles of cash.

Prosecutors in New York had a big week. Appearing in the U.S. court system for the first time last week was Ercan “Segate” Findikoglu, a 33-year-old Turkish man who investigators say was the mastermind behind a series of Oceans 11-type ATM heists between 2011 and 2013 that netted thieves more than $55 million.

According to prosecutors, Findikoglu organized the so-called “ATM cashouts” by hacking into networks of several credit and debit card payment processors. With each processor, the intruders were able to simultaneously lift the daily withdrawal limits on numerous prepaid accounts and dramatically increase the account balances on those cards to allow ATM withdrawals far in excess of the legitimate card balances.

The cards were then cloned and sent to dozens of co-conspirators around the globe, who used the cards at ATMs to withdraw millions in cash in the span of just a few hours. Investigators say these attacks are known in the cybercrime underground as “unlimited operations” because the manipulation of withdrawal limits lets the crooks steal literally unlimited amounts of cash until the operation is shut down.

Two of the attacks attributed to Findikoglu and his alleged associates were first reported on this blog, including a February 2011 attack against Fidelity National Information Services (FIS), and a $5 million heist in late 2012 involving a card network in India. The most brazen and lucrative heist, a nearly $40 million cashout against the Bank of Muscat in Oman, was covered in a May 2013 New York Times piece, which concludes with a vignette about the violent murder of alleged accomplice in the scheme.

Also in New York, a Manhattan federal judge sentenced the co-creator of the “Blackshades” Trojan to nearly five years in prison after pleading guilty to helping hundreds of people use and spread the malware. Twenty-five year old Swedish national Alexander Yucel was ordered to forfeit $200,000 and relinquish all of the computer equipment he used in commission of his crimes.

As detailed in this May 2014 piece, Blackshades Users Had It Coming, the malware was sophisticated but marketed mainly on English language cybecrime forums to young men who probably would have a hard time hacking their way out of a paper bag, let alone into someone’s computer. Initially sold via PayPal for just $40, Blackshades offered users a way to remotely spy on victims, and even included tools and tutorials to help users infect victim PCs. Many of Yucel’s customers also have been rounded up by law enforcement here in the U.S. an abroad. Continue reading →


19
May 14

‘Blackshades’ Trojan Users Had It Coming

The U.S. Justice Department today announced a series of actions against more than 100 people accused of purchasing and using “Blackshades,” a password-stealing Trojan horse program designed to infect computers throughout the world to spy on victims through their web cameras, steal files and account information, and log victims’ key strokes. While any effort that discourages the use of point-and-click tools for ill-gotten gains is a welcome development, the most remarkable aspect of this crackdown is that those who were targeted in this operation lacked any clue that it was forthcoming.

The Blackshades user forum.

The Blackshades user forum.

To be sure, Blackshades is an effective and easy-to-use tool for remotely compromising and spying on your targets. Early on in its development, researchers at CitzenLab discovered that Blackshades was being used to spy on activists seeking to overthrow the regime in Syria.

The product was sold via well-traveled and fairly open hacker forums, and even included an active user forum where customers could get help configuring and wielding the powerful surveillance tool. Although in recent years a license to Blackshades sold for several hundred Euros, early versions of the product were sold via PayPal for just USD $40.

In short, Blackshades was a tool created and marketed principally for buyers who wouldn’t know how to hack their way out of a paper bag. From the Justice Department’s press release today:

“After purchasing a copy of the RAT, a user had to install the RAT on a victim’s computer – i.e., “infect” a victim’s computer. The infection of a victim’s computer could be accomplished in several ways, including by tricking victims into clicking on malicious links or by hiring others to install the RAT on victims’ computers.

The RAT contained tools known as ‘spreaders’ that helped users of the RAT maximize the number of infections. The spreader tools generally worked by using computers that had already been infected to help spread the RAT further to other computers. For instance, in order to lure additional victims to click on malicious links that would install the RAT on their computers, the RAT allowed cybercriminals to send those malicious links to others via the initial victim’s social media service, making it appear as if the message had come from the initial victim.”

News that the FBI and other national law enforcement organizations had begun rounding up Blackshades customers started surfacing online last week, when multiple denizens of the noob-friendly hacker forum Hackforums[dot]net began posting firsthand experiences of receiving a visit from local authorities related to their prior alleged Blackshades use. See the image gallery at the end of this post for a glimpse into the angst that accompanied that development.

While there is a certain amount of schadenfreude in today’s action, the truth is that any longtime Blackshades customer who didn’t know this day would be coming should turn in his hacker card immediately. In June 2012, the Justice Department announced a series of indictments against at least two dozen individuals who had taken the bait and signed up to be active members of “Carderprofit,” a fraud forum that was created and maintained by the Federal Bureau of Investigation.

Among those arrested in the CarderProfit sting was Michael Hogue, the alleged co-creator of Blackshades. That so many of the customers of this product are teenagers who wouldn’t know a command line prompt from a hole in the ground is evident by the large number of users who vented their outrage over their arrests and/or visits by the local authorities on Hackforums, which by the way was the genesis of the CarderProfit sting from Day One.

In June 2010, Hackforums administrator Jesse Labrocca — a.k.a. “Omniscient” — posted a message to all users of the forum, notifying them that the forum would no longer tolerate the posting of messages about ways to buy and use the ZeuS Trojan, a far more sophisticated remote-access Trojan that is heavily used by cybercriminals worldwide and has been implicated in the theft of hundreds of millions of dollars from small- to mid-sized businesses worldwide.

Hackforums admin Jesse "Omniscient" LaBrocca urging users to register at a new forum -- Carderprofit.eu -- a sting Web site set up by the FBI.

Hackforums admin Jesse “Omniscient” LaBrocca urging users to register at a new forum — Carderprofit.cc — a sting Web site set up by the FBI.

Continue reading →


12
Nov 12

Malware Spy Network Targeted Israelis, Palestinians

Researchers in Norway have uncovered evidence of a vast Middle Eastern espionage network that for the past year has deployed malicious software to spy on Israeli and Palestinian targets.

The discovery, by Oslo-based antivirus and security firm Norman ASA, is the latest in a series of revelations involving digital surveillance activity of unknown origin that appears designed to gather intelligence from specific targets in the Middle East.

Norman’s experts say the true extent of the spy network came into focus after news of a cyber attack in late October 2012 that caused Israeli authorities to shut down Internet access for its police force. According to press reports, that incursion was spearheaded by a booby-trapped email that was made to look as if it was sent by Benny Gantz, the chief of general staff of the Israel Defense Forces.

Security vendor Trend Micro suggested that the initial target of that attack were systems within the Israeli Customs agency, and said the malware deployed was a version of Xtreme RAT, a Remote Access Trojan that can be used to steal information and receive commands from a remote attacker. According to Trend, the latest iterations of Xtreme Rat have Windows 8 compatibility, improved Chrome and Firefox password grabbing, and improved audio and desktop capture capabilities features.

All of the malware files Fagerland discovered as part of this campaign were signed with this phony Microsoft certificate.

Snorre Fagerland, a senior virus researcher at Norman, said he examined a sample of the Trojan used to deploy the malware in that attack, and found that it included a rather telltale trait: It was signed with a digital certificate that was spoofed to appear as though it had been digitally signed by Microsoft.

The faked digital certificate would not stand up to validation by Windows— or anyone who cared to verify it with the trusted root certificates shipped with Windows PCs. But it proved to be a convenient marker for Fagerland, who’s been scouring malware databases for other samples that used the same phony certificate ever since. So far, he’s mapped out an expanding network of malware and control servers that have been used in dozens of targeted email attacks (see graphic below).

“These malwares are set up to use the same framework, talk to same control servers, and have same spoofed digital certificate,” Fagerland said in an interview with KrebsOnSecurity. “In my view, they are same attackers.”

Fagerland discovered a vast network of command and control servers (yellow) that all bore the same forged Microsoft certificate and powered malware that targeted Israeli and Palestinian users.

Fagerland found that the oldest of the malicious files bearing the forged Microsoft certificate were created back in October 2011, and that the Arabic language email lures used in tandem with those samples highlighted Palestinian news issues. He observed that the attackers used dynamic DNS providers to periodically shift the Internet addresses of their control networks, but that those addresses nearly always traced back to networks in Gaza assigned to a hosting provider in Ramallah in the West Bank.

After about eight months of this activity, the focus of the malware operation pivoted to attacking Israeli targets, Fagerland discovered. When that happened, the attackers shifted the location of their control servers to networks in the United States.

Continue reading →


17
May 12

Facebook Takes Aim at Cross-Browser ‘LilyJade’ Worm

Facebook is attempting to nip in the bud a new social networking worm that spreads via an application built to run seamlessly as a plugin across multiple browsers and operating systems. In an odd twist, the author of the program is doing little to hide his identity, and claims that his “users” actually gain a security benefit from installing the software.

At issue is a program that the author calls “LilyJade,” a browser plugin that uses Crossrider, an emerging programming framework designed to simplify the process of writing plugins that will run on Google ChromeInternet Explorer, and Mozilla Firefox.  The plugin spreads by posting a link to a video on a user’s Facebook wall, and friends who follow the link are told they need to accept the installation of the plugin in order to view the video. Users who install LilyJade will have their accounts modified to periodically post links that help pimp the program.

The goal of LilyJade is to substitute code that specifies who should get paid when users click on ads that run on top Internet properties, such as Facebook.com, Yahoo.com, Youtube.com, Bing.com, Google.com and MSN.com. In short, the plugin allows customers to swap in their own ads on virtually any site that users visit.

I first read about LilyJade in an analysis published earlier this month by Russian security firm Kaspersky Labs, and quickly recognized the background from the screenshot included in that writeup as belonging to user from hackforums.net. This is a relatively open online hacking community that is often derided by more elite and established underground forums because it has more than its share of adolescent, novice hackers (a.k.a. “script kiddies”) who are eager to break onto the scene, impress peers, and make money.

It turns out that the Hackforums user who is selling this plugin is doing so openly using his real name. Phoenix, Ariz. based hacker Dru Mundorff sells the LilyJade plugin for $1,000 to fellow Hackforums members. Mundorff, 29, says he isn’t worried about the legalities of his offering; he’s even had his attorney sign off on the terms of service that each user is required to agree to before installing it.

“We’re not forcing any users to be bypassed, exploited or anything like that,” Mundorff said in a phone interview.  “At that point, if they do agree, it will allow us to make posts on their wall through our system.”

Mundorff claims his software is actually a benefit to Facebook and the Internet community at large because it is designed to also remove infections from some of the more popular bot and Trojan programs currently for sale on Hackforums, including Darkcomet, Cybergate, Blackshades and Andromeda (the latter being a competitor to the password-stealing ZeuS Trojan that hides behind Facebook comments). Mundorff maintains that his plugin will result in a positive experience for the average Facebook user, although he acknowledges that customers who purchase LilyJade can modify at will the link that “users” are forced to spread, and may at any time swap in links to malware or exploit sites. Continue reading →