17
Feb 20

Pay Up, Or We’ll Make Google Ban Your Ads

A new email-based extortion scheme apparently is making the rounds, targeting Web site owners serving banner ads through Google’s AdSense program. In this scam, the fraudsters demand bitcoin in exchange for a promise not to flood the publisher’s ads with so much bot and junk traffic that Google’s automated anti-fraud systems suspend the user’s AdSense account for suspicious traffic.

A redacted extortion email targeting users of Google’s AdSense program.

Earlier this month, KrebsOnSecurity heard from a reader who maintains several sites that receive a fair amount of traffic. The message this reader shared began by quoting from an automated email Google’s systems might send if they detect your site is seeking to benefit from automated clicks. The message continues:

“Very soon the warning notice from above will appear at the dashboard of your AdSense account undoubtedly! This will happen due to the fact that we’re about to flood your site with huge amount of direct bot generated web traffic with 100% bounce ratio and thousands of IP’s in rotation — a nightmare for every AdSense publisher. More also we’ll adjust our sophisticated bots to open, in endless cycle with different time duration, every AdSense banner which runs on your site.”

The message goes on to warn that while the targeted site’s ad revenue will be briefly increased, “AdSense traffic assessment algorithms will detect very fast such a web traffic pattern as fraudulent.”

“Next an ad serving limit will be placed on your publisher account and all the revenue will be refunded to advertisers. This means that the main source of profit for your site will be temporarily suspended. It will take some time, usually a month, for the AdSense to lift your ad ban, but if this happens we will have all the resources needed to flood your site again with bad quality web traffic which will lead to second AdSense ban that could be permanent!”

The message demands $5,000 worth of bitcoin to forestall the attack. In this scam, the extortionists are likely betting that some publishers may see paying up as a cheaper alternative to having their main source of advertising revenue evaporate.

The reader who shared this email said while he considered the message likely to be a baseless threat, a review of his recent AdSense traffic statistics showed that detections in his “AdSense invalid traffic report” from the past month had increased substantially. Continue reading →


14
Feb 20

A Light at the End of Liberty Reserve’s Demise?

In May 2013, the U.S. Justice Department seized Liberty Reserve, alleging the virtual currency service acted as a $6 billion financial hub for the cybercrime world. Prompted by assurances that the government would one day afford Liberty Reserve users a chance to reclaim any funds seized as part of the takedown, KrebsOnSecurity filed a claim shortly thereafter to see if and when this process might take place. This week, an investigator with the U.S. Internal Revenue service finally got in touch to discuss my claim.

Federal officials charged that Liberty Reserve facilitated a “broad range of criminal activity, including credit card fraud, identity theft, investment fraud, computer hacking, child pornography, and narcotics trafficking.” The government says from 2006 until the service’s takedown, Liberty Reserve processed an estimated 55 million financial transactions worth more than $6 billion, with more than 600,000 accounts associated with users in the United States alone.

While it’s clear that the digital currency system for years was the go-to money-moving vehicle for many engaged in dodgy online activities, it also was favored by users primarily because it offered a relatively anonymous way to send irrevocable transfers globally with low fees.

The two stories I wrote about the closure of Liberty Reserve in 2013 remain among the most-read on this site, and have generated an enormous volume of emails from readers who saw many thousands of dollars held in legal limbo — much of it related to investments in online gaming platforms, payments to and from adult entertainment services, and various investment schemes.

The IRS official who contacted me was not authorized to be quoted in the media (and indeed did not initially realize he was speaking to a member of the press when he called). But he told me the government had recently obtained legal access to some of the funds held in overseas bank accounts that were used by Liberty Reserve, and that IRS investigators were now starting to contact people and vet any claims made in the wake of the takedown.

“We’re just getting to the point where we have received funds,” the investigator said. “We’ve started to contact people who originally contacted us, to vet their claims, make sure they weren’t involved in any illegal activity, and that the claim amounts match the records that we have.” Continue reading →


11
Feb 20

Microsoft Patch Tuesday, February 2020 Edition

Microsoft today released updates to plug nearly 100 security holes in various versions of its Windows operating system and related software, including a zero-day vulnerability in Internet Explorer (IE) that is actively being exploited. Also, Adobe has issued a bevy of security updates for its various products, including Flash Player and Adobe Reader/Acrobat.

A dozen of the vulnerabilities Microsoft patched today are rated “critical,” meaning malware or miscreants could exploit them remotely to gain complete control over an affected system with little to no help from the user.

Last month, Microsoft released an advisory warning that attackers were exploiting a previously unknown flaw in IE. That vulnerability, assigned as CVE-2020-0674, has been patched with this month’s release. It could be used to install malware just by getting a user to browse to a malicious or hacked Web site.

Microsoft once again fixed a critical flaw in the way Windows handles shortcut (.lnk) files (CVE-2020-0729) that affects Windows 8 and 10 systems, as well as Windows Server 2008-2012. Allan Liska, intelligence analyst at Recorded Future, says Microsoft considers exploitation of the vulnerability unlikely, but that a similar vulnerability discovered last year, CVE-2019-1280, was being actively exploited by the Astaroth trojan as recently as September.

Another flaw fixed this month in Microsoft Exchange 2010 through 2019 may merit special attention. The bug could allow attackers to exploit the Exchange Server and execute arbitrary code just by sending a specially crafted email. This vulnerability (CVE-2020-0688) is rated “important” rather than “critical,” but Liska says it seems potentially dangerous, as Microsoft identifies this as a vulnerability that is likely to be exploited.

In addition, Redmond addressed a critical issue (CVE-2020-0618) in the way Microsoft SQL Server versions 2012-2016 handle page requests.

After a several-month respite from patches for its Flash Player browser plug-in, Adobe has once again blessed us with a security update for this program (fixes one critical flaw). Thankfully, Chrome and Firefox both now disable Flash by default, and Chrome and IE/Edge auto-update the program when new security updates are available. Adobe is slated to retire Flash Player later this year. Continue reading →


10
Feb 20

U.S. Charges 4 Chinese Military Officers in 2017 Equifax Hack

The U.S. Justice Department today unsealed indictments against four Chinese officers of the People’s Liberation Army (PLA) accused of perpetrating the 2017 hack against consumer credit bureau Equifax that led to the theft of personal data on nearly 150 million Americans. DOJ officials said the four men were responsible for carrying out the largest theft of sensitive personal information by state-sponsored hackers ever recorded.

The nine-count indictment names Wu Zhiyong (吴志勇), Wang Qian (王乾), Xu Ke (许可) and Liu Lei (刘磊) as members of the PLA’s 54th Research Institute, a component of the Chinese military. They are each charged with three counts of conspiracy to commit computer fraud, economic espionage and wire fraud.

The government says the men disguised their hacking activity by routing attack traffic through 34 servers located in nearly 20 countries, using encrypted communications channels within Equifax’s network to blend in with normal network activity, and deleting log files daily to remove evidence of their meanderings through the company’s systems.

U.S. Attorney General Bill Barr said at a press conference today that the Justice Department doesn’t normally charge members of another country’s military with crimes (this is only the second time the agency has indicted Chinese military hackers). But in a carefully worded statement that seemed designed to deflect any criticism of past offensive cyber actions by the U.S. military against foreign targets, Barr said the DOJ did so in this case because the accused “indiscriminately” targeted American civilians on a massive scale.

“The United States, like other nations, has gathered intelligence throughout its history to ensure that national security and foreign policy decision makers have access to timely, accurate and insightful information,” Barr said. “But we collect information only for legitimate national security purposes. We don’t indiscriminately violate the privacy of ordinary citizens.”

FBI Deputy Director David Bowdich sought to address the criticism about the wisdom of indicting Chinese military officers for attacking U.S. commercial and government interests. Some security experts have charged that such indictments could both lessen the charges’ impact and leave American officials open to parallel criminal allegations from Chinese authorities.

“Some might wonder what good it does when these hackers are seemingly beyond our reach,” Bowdich said. “We answer this question all the time. We can’t take them into custody, try them in a court of law and lock them up. Not today, anyway. But one day these criminals will slip up, and when they do we’ll be there. We in law enforcement will not let hackers off the hook just because they’re halfway around the world.”

The attorney general said the attack on Equifax was just the latest in a long string of cyber espionage attacks that sought trade secrets and sensitive data from a broad range of industries, and including managed service providers and their clients worldwide, as well as U.S. companies in the nuclear power, metals and solar products industries.

“Indeed, about 80 percent of our economic espionage prosecutions have implicated the Chinese government, and about 60 percent of all trade secret thefts cases in recent years involved some connection with China,” he said.

The indictments come on the heels of a conference held by US government officials this week that detailed the breadth of hacking attacks involving the theft of intellectual property by Chinese entities.

“The FBI has about a thousand investigations involving China’s attempted theft of U.S.-based technology in all 56 of our field offices and spanning just about every industry and sector,” FBI Director Christopher Wray reportedly told attendees at the gathering in Washington, D.C., dubbed the “China Initiative Conference.”

At a time when increasingly combative trade relations with China combined with public fears over the ongoing Coronavirus flu outbreak are stirring Sinophobia in some pockets of the U.S. and other countries, Bowdich was quick to clarify that the DOJ’s beef was with the Chinese government, not its citizenry.

“Our concern is not with the Chinese people or with the Chinese American,” he said. “It is with the Chinese government and the Chinese Communist Party. Confronting this threat directly doesn’t mean we should not do business with China, host Chinese students, welcome Chinese visitors or co-exist with China as a country on the world stage. What it does mean is when China violates our criminal laws and international norms, we will hold them accountable for it.”

A copy of the indictment is available here.

ANALYSIS

DOJ officials praised Equifax for their “close collaboration” in sharing data that helped investigators piece together this whodunnit. Attorney General Barr noted that the accused not only stole personal and in some cases financial data on Americans, they also stole Equifax’s trade secrets, which he said were “embodied by the compiled data and complex database designs used to store personal information.”

While the DOJ’s announcement today portrays Equifax in a somewhat sympathetic light, it’s important to remember that Equifax repeatedly has proven itself an extremely poor steward of the highly sensitive information that it holds on most Americans.

Equifax’s actions immediately before and after its breach disclosure on Sept 7, 2017 revealed a company so inept at managing its public response that one couldn’t help but wonder how it might have handled its internal affairs and security. Indeed, Equifax and its leadership careened from one feckless blunder to the next in a series of debacles that KrebsOnSecurity described at the time as a complete “dumpster fire” of a breach response. Continue reading →


08
Feb 20

Dangerous Domain Corp.com Goes Up for Sale

As an early domain name investor, Mike O’Connor had by 1994 snatched up several choice online destinations, including bar.com, cafes.com, grill.com, place.com, pub.com and television.com. Some he sold over the years, but for the past 26 years O’Connor refused to auction perhaps the most sensitive domain in his stable — corp.com. It is sensitive because years of testing shows whoever wields it would have access to an unending stream of passwords, email and other proprietary data belonging to hundreds of thousands of systems at major companies around the globe.

Now, facing 70 and seeking to simplify his estate, O’Connor is finally selling corp.com. The asking price — $1.7 million — is hardly outlandish for a 4-letter domain with such strong commercial appeal. O’Connor said he hopes Microsoft Corp. will buy it, but fears they won’t and instead it will get snatched up by someone working with organized cybercriminals or state-funded hacking groups bent on undermining the interests of Western corporations.

One reason O’Connor hopes Microsoft will buy it is that by virtue of the unique way Windows handles resolving domain names on a local network, virtually all of the computers trying to share sensitive data with corp.com are somewhat confused Windows PCs. More importantly, early versions of Windows actually encouraged the adoption of insecure settings that made it more likely Windows computers might try to share sensitive data with corp.com.

At issue is a problem known as “namespace collision,” a situation where domain names intended to be used exclusively on an internal company network end up overlapping with domains that can resolve normally on the open Internet.

Windows computers on an internal corporate network validate other things on that network using a Microsoft innovation called Active Directory, which is the umbrella term for a broad range of identity-related services in Windows environments. A core part of the way these things find each other involves a Windows feature called “DNS name devolution,” which is a kind of network shorthand that makes it easier to find other computers or servers without having to specify a full, legitimate domain name for those resources.

For instance, if a company runs an internal network with the name internalnetwork.example.com, and an employee on that network wishes to access a shared drive called “drive1,” there’s no need to type “drive1.internalnetwork.example.com” into Windows Explorer; typing “\\drive1\” alone will suffice, and Windows takes care of the rest.

But things can get far trickier with an internal Windows domain that does not map back to a second-level domain the organization actually owns and controls. And unfortunately, in early versions of Windows that supported Active Directory — Windows 2000 Server, for example — the default or example Active Directory path was given as “corp,” and many companies apparently adopted this setting without modifying it to include a domain they controlled.

Compounding things further, some companies then went on to build (and/or assimilate) vast networks of networks on top of this erroneous setting.

Now, none of this was much of a security concern back in the day when it was impractical for employees to lug their bulky desktop computers and monitors outside of the corporate network. But what happens when an employee working at a company with an Active Directory network path called “corp” takes a company laptop to the local Starbucks?

Chances are good that at least some resources on the employee’s laptop will still try to access that internal “corp” domain. And because of the way DNS name devolution works on Windows, that company laptop online via the Starbucks wireless connection is likely to then seek those same resources at “corp.com.”

In practical terms, this means that whoever controls corp.com can passively intercept private communications from hundreds of thousands of computers that end up being taken outside of a corporate environment which uses this “corp” designation for its Active Directory domain.

INSTANT CORPORATE BOTNET, ANYONE?

That’s according to Jeff Schmidt, a security expert who conducted a lengthy study on DNS namespace collisions funded in part by grants from the U.S. Department of Homeland Security. As part of that analysis, Schmidt convinced O’Connor to hold off selling corp.com so he and others could better understand and document the volume and types of traffic flowing to it each day.

During an eight month analysis of wayward internal corporate traffic destined for corp.com in 2019, Schmidt found more than 375,000 Windows PCs were trying to send this domain information it had no business receiving — including attempts to log in to internal corporate networks and access specific file shares on those networks.

For a brief period during that testing, Schmidt’s company JAS Global Advisors accepted connections at corp.com that mimicked the way local Windows networks handle logins and file-sharing attempts.

“It was terrifying,” Schmidt said. “We discontinued the experiment after 15 minutes and destroyed the data. A well-known offensive tester that consulted with JAS on this remarked that during the experiment it was ‘raining credentials’ and that he’d never seen anything like it.”

Likewise, JAS temporarily configured corp.com to accept incoming email.

“After about an hour we received in excess of 12 million emails and discontinued the experiment,” Schmidt said. “While the vast majority of the emails were of an automated nature, we found some of the emails to be sensitive and thus destroyed the entire corpus without further analysis.”

Schmidt said he and others concluded that whoever ends up controlling corp.com could have an instant botnet of well-connected enterprise machines.

“Hundreds of thousands of machines directly exploitable and countless more exploitable via lateral movement once in the enterprise,” he said. “Want an instant foothold into about 30 of the world’s largest companies according to the Forbes Global 2000? Control corp.com.” Continue reading →


05
Feb 20

When Your Used Car is a Little Too ‘Mobile’

Many modern vehicles let owners use the Internet or a mobile device to control the car’s locks, track location and performance data, and start the engine. But who exactly owns that control is not always clear when these smart cars are sold or leased anew. Here’s the story of one former electric vehicle owner who discovered he could still gain remote, online access to his old automobile years after his lease ended.

Mathew Marulla began leasing a Ford Focus electric vehicle in 2013, but turned the car back in to Ford at the end of his lease in 2016. So Marulla was surprised when he recently received an email from Ford.com stating that the clock in his car was set incorrectly.

Out of curiosity, Marulla decided to check if his old MyFordMobile.com credentials from 2016 still worked. They did, and Marulla was presented with an online dashboard showing the current location of his old ride and its mileage statistics.

The dashboard also allowed him to remotely start the vehicle, as well as lock and unlock its doors.

Mathew Marulla turned in his leased Ford EV to Ford 4 years ago, so he is no longer the legal owner of the car. But he can still remotely track its location and usage, lock and unlock it, and start the engine.

“It was a three-year lease from Ford and I turned it in to Ford four years ago, so Ford definitely knows I am no longer the owner,” Marulla said, noting that the dashboard also included historic records showing where the Focus had been driven in days prior.

“I can track its movements, see where it plugs in,” he said. “Now I know where the current owner likely lives, and if I watch it tomorrow I can probably figure out where he works. I have not been the owner of this vehicle for four years, Ford knows this, yet they took no action whatsoever to remove me as the owner in this application.”

Asked to comment on Marulla’s experience, a spokesperson for Ford said all Ford dealerships are supposed to perform a “master reset” as part of their used car checklist prior to the resale of a vehicle. A master reset (carried out via the vehicle’s SYNC infotainment screen by a customer or dealer) disassociates the vehicle from all current accounts. Continue reading →


04
Feb 20

Booter Boss Busted By Bacon Pizza Buy

A Pennsylvania man who operated one of the Internet’s longest-running online attack-for-hire or “booter” services was sentenced to five years probation today. While the young man’s punishment was heavily tempered by his current poor health, the defendant’s dietary choices may have contributed to both his capture and the lenient sentencing: Investigators say the onetime booter boss’s identity became clear after he ordered a bacon and chicken pizza delivered to his home using the same email address he originally used to register his criminal attack service.

David Bukoski, 24, of Hanover Township, Pa., pleaded guilty to running Quantum Stresser, an attack-for-hire business — also known as a “booter” or “stresser” service — that helped paying customers launch tens of thousands of digital sieges capable of knocking Web sites and entire network providers offline.

The landing page for the Quantum Stresser attack-for-hire service.

Investigators say Bukoski’s booter service was among the longest running services targeted by the FBI, operating since at least 2012. The government says Quantum Stresser had more than 80,000 customer subscriptions, and that during 2018 the service was used to conduct approximately 50,000 actual or attempted attacks targeting people and networks worldwide.

The Quantum Stresser Web site — quantumstress[.]net — was among 15 booter services that were seized by U.S. and international authorities in December 2018 as part of a coordinated takedown targeting attack-for-hire services.

Federal prosecutors in Alaska said search warrants served on the email accounts Bukoski used in conjunction with Quantum Stresser revealed that he was banned from several companies he used to advertise and accept payments for the booter service.

The government’s sentencing memorandum says Bukoski’s replies demanding to know the reasons for the suspensions were instrumental in discovering his real name.  FBI agents were able to zero in on Bukoski’s real-life location after a review of his email account showed a receipt from May 2018 in which he’d gone online and ordered a handmade pan pizza to be delivered to his home address.

When an online pizza delivery order brings FBI agents to raid your home.

While getting busted on account of ordering a pizza online might sound like a bone-headed or rookie mistake for a cybercriminal, it is hardly unprecedented. In 2012 KrebsOnSecurity wrote about the plight of Yuriy “Jtk” Konovalenko, a then 30-year-old Ukrainian man who was rounded up as part of an international crackdown on an organized crime gang that used the ZeuS malware to steal tens of millions of dollars from companies and consumers. In that case, Konovalenko ultimately unmasked himself because he used his Internet connection to order the delivery of a “Veggie Roma” pizza to his apartment in the United Kingdom. Continue reading →


31
Jan 20

Iowa Prosecutors Drop Charges Against Men Hired to Test Their Security

On Sept. 11, 2019, two security experts at a company that had been hired by the state of Iowa to test the physical and network security of its judicial system were arrested while probing the security of an Iowa county courthouse, jailed in orange jumpsuits, charged with burglary, and held on $100,000 bail. On Thursday Jan. 30, prosecutors in Iowa announced they had dropped the criminal charges. The news came while KrebsOnSecurity was conducting a video interview with the two accused (featured below).

The courthouse in Dallas County, Iowa. Image: Wikipedia.

Gary DeMercurio, 43 of Seattle, and Justin Wynn, 29 of Naples, Fla., are both professional penetration testers employed by Coalfire Labs, a security firm based in Westminster, Colo. Iowa’s State Court Administration had hired the company to test the security of its judicial buildings.

Under the terms of their contract (PDF), DeMercurio and Wynn were permitted to impersonate staff and contractors, provide false pretenses to gain physical access to facilities, “tailgate” employees into buildings, and access restricted areas of those facilities. The contract said the men could not attempt to subvert alarm systems, force-open doors, or access areas that require protective equipment.

When the duo’s early-morning Sept. 11 test of the security at the courthouse in Dallas County, Iowa set off an audible security alarm, they followed procedure and waited on-site for the police. DeMercurio and Wynn said when the county’s sheriff deputies arrived on the scene just a few minutes later, they told the officers who they were and why they were there, and that they’d obtained entry to the premises via an unlocked door.

“They said they found a courthouse door unlocked, so they closed it from the outside and let it lock,” Dan Goodin of Ars Technica wrote of the ordeal in November. “Then they slipped a plastic cutting board through a crack in the door and manipulated its locking mechanism. (Pentesters frequently use makeshift or self-created tools in their craft to flip latches, trigger motion-detected mechanisms, and test other security systems.) The deputies seemed impressed.”

To assuage concerns they might be burglars, DeMercurio and Wynn produced an authorization letter detailing the job they’d been hired to do and listing the names and mobile phone numbers of Iowa state employees who could verify their story.

After contacting some of the court officials listed in the letter, the deputies seemed satisfied that the men weren’t thieves. That is, until Dallas County Sheriff Chad Leonard showed up.

“The pentesters had already said they used a tool to open the front door,” Goodin recounted. “Leonard took that to mean the men had violated the restriction against forcing doors open. Leonard also said the men attempted to turn off the alarm—something Coalfire officials vehemently deny. In Leonard’s mind that was a second violation. Another reason for doubt: one of the people listed as a contact on the get-out-of-jail-free letter didn’t answer the deputies’ calls, while another said he didn’t believe the men had permission to conduct physical intrusions.”

DeMercurio and Wynn were arrested, jailed, and held for nearly 24 hours before being released on a $100,000 bail. Initially they were charged with felony third-degree burglary and possessing burglary tools, although those charges were later downgraded to misdemeanor trespass.

What initially seemed to Coalfire as a momentary lapse of judgment by Iowa authorities quickly morphed into the surreal when state lawmakers held hearings questioning why and how someone in the state’s employ could have so recklessly endangered the safety and security of its citizens.

DeMercurio and Wynn, minus the orange jumpsuits.

Judicial Branch officials in Dallas County said in response to this grilling that they didn’t expect Coalfire’s physical penetration testing to be conducted outside of business hours. State Sen. Amy Sinclair was quoted as telling her colleagues that “the hiring of an outside company to break into the courthouses in September created ‘significant danger, not only to the contractors, but to local law enforcement, and members of the public.'”

“Essentially a branch of government has contracted with a company to commit crimes, and that’s very troubling,” lamented Iowa state Sen. Zach Whiting. “I want to find out who needs to be held accountable for this and how we can do that.”

Those strong words clashed with a joint statement released Thursday by Coalfire and Dallas County Attorney Charles Sinnard:

“Ultimately, the long-term interests of justice and protection of the public are not best served by continued prosecution of the trespass charges,” the statement reads. “Those interests are best served by all the parties working together to ensure that there is clear communication on the actions to be taken to secure the sensitive information maintained by the judicial branch, without endangering the life or property of the citizens of Iowa, law enforcement or the persons carrying out the testing.

Matthew Linholm, an attorney representing DeMercurio and Wynn in the case, said the justice system ceases to serve its crucial function and loses credibility when criminal accusations are used to advance personal or political agendas.

“Such a practice endangers the effective administration of justice and our confidence in the criminal justice system,” Linholm told The Des Moines Register, which broke the news of the dropped charges. Continue reading →


29
Jan 20

Sprint Exposed Customer Support Site to Web

Fresh on the heels of a disclosure that Microsoft Corp. leaked internal customer support data to the Internet, mobile provider Sprint has addressed a mix-up in which posts to a private customer support community were exposed to the Web.

KrebsOnSecurity recently contacted Sprint to let the company know that an internal customer support forum called “Social Care” was being indexed by search engines, and that several months worth of postings about customer complaints and other issues were viewable without authentication to anyone with a Web browser.

A redacted screen shot of one Sprint customer support thread exposed to the Web.

A Sprint spokesperson responded that the forum was indeed intended to be a private section of its support community, but that an error caused the section to become public.

“These conversations include minimal customer information and are used for frontline reps to escalate issues to managers,” said Lisa Belot, Sprint’s communications manager.

A review of the exposed support forum by this author suggests that while none of the posts exposed customer information such as payment card data, a number of them did include customer account information, such customer names, device identifiers and in some cases location information.

Perhaps more importantly for Sprint and its customers, the forum also included numerous links and references to internal tools and procedures. This sort of information would no doubt be of interest to scammers seeking to conduct social engineering attacks against Sprint employees as way to perpetrate other types of fraud, including unauthorized SIM swaps or in gleaning more account information from targeted customers. Continue reading →


28
Jan 20

Wawa Breach May Have Compromised More Than 30 Million Payment Cards

In late December 2019, fuel and convenience store chain Wawa Inc. said a nine-month-long breach of its payment card processing systems may have led to the theft of card data from customers who visited any of its 850 locations nationwide. Now, fraud experts say the first batch of card data stolen from Wawa customers is being sold at one of the underground’s most popular crime shops, which claims to have 30 million records to peddle from a new nationwide breach.

On the evening of Monday, Jan. 27, a popular fraud bazaar known as Joker’s Stash began selling card data from “a new huge nationwide breach” that purportedly includes more than 30 million card accounts issued by thousands of financial institutions across 40+ U.S. states.

The fraud bazaar Joker’s Stash on Monday began selling some 30 million stolen payment card accounts that experts say have been tied back to a breach at Wawa in 2019.

Two sources that work closely with financial institutions nationwide tell KrebsOnSecurity the new batch of cards that went on sale Monday evening — dubbed “BIGBADABOOM-III” by Joker’s Stash — map squarely back to cardholder purchases at Wawa.

On Dec. 19, 2019, Wawa sent a notice to customers saying the company had discovered card-stealing malware installed on in-store payment processing systems and fuel dispensers at potentially all Wawa locations.

Pennsylvania-based Wawa says it discovered the intrusion on Dec. 10 and contained the breach by Dec. 12, but that the malware was thought to have been installed more than nine months earlier, around March 4. The exposed information includes debit and credit card numbers, expiration dates, and cardholder names. Wawa said the breach did not expose personal identification numbers (PINs) or CVV records (the three-digit security code printed on the back of a payment card).

A spokesperson for Wawa confirmed that the company today became aware of reports of criminal attempts to sell some customer payment card information potentially involved in the data security incident announced by Wawa on December 19, 2019.

“We have alerted our payment card processor, payment card brands, and card issuers to heighten fraud monitoring activities to help further protect any customer information,” Wawa said in a statement released to KrebsOnSecurity. “We continue to work closely with federal law enforcement in connection with their ongoing investigation to determine the scope of the disclosure of Wawa-specific customer payment card data.”

“We continue to encourage our customers to remain vigilant in reviewing charges on their payment card statements and to promptly report any unauthorized use to the bank or financial institution that issued their payment card by calling the number on the back of the card,” the statement continues. “Under federal law and card company rules, customers who notify their payment card issuer in a timely manner of fraudulent charges will not be responsible for those charges. In the unlikely event any individual customer who has promptly notified their card issuer of fraudulent charges related to this incident is not reimbursed, Wawa will work with them to reimburse them for those charges.”

Gemini Advisory, a New York-based fraud intelligence company, said the biggest concentrations of stolen cards for sale in the BIGBADABOOM-III batch map back to Wawa customer card use in Florida and Pennsylvania, the two most populous states where Wawa operates. Wawa also has locations in Delaware, Maryland, New Jersey, Virginia and the District of Columbia.

According to Gemini, Joker’s Stash has so far released only a small portion of the claimed 30 million. However, this is not an uncommon practice: Releasing too many stolen cards for sale at once tends to have the effect of depressing the overall price of stolen cards across the underground market.

“Based on Gemini’s analysis, the initial set of bases linked to “BIGBADABOOM-III” consisted of nearly 100,000 records,” Gemini observed. “While the majority of those records were from US banks and were linked to US-based cardholders, some records also linked to cardholders from Latin America, Europe, and several Asian countries. Non-US-based cardholders likely fell victim to this breach when traveling to the United States and utilizing Wawa gas stations during the period of exposure.”

Gemini’s director of research Stas Alforov stressed that some of the 30 million cards advertised for sale as part of this BIGBADABOOM batch may in fact be sourced from breaches at other retailers, something Joker’s Stash has been known to do in previous large batches.

Gemini monitors multiple carding sites like Joker’s Stash. The company found the median price of U.S.-issued records in the new Joker’s Stash batch is currently $17, with some of the international records priced as high as $210 per card.

“Apart from banks with a nationwide presence, only financial institutions along the East Coast had significant exposure,” Gemini concluded.

Representatives from MasterCard did not respond to requests for comment. Visa declined to comment for this story, but pointed to a series of alerts it issued in November and December 2019 about cybercrime groups increasingly targeting fuel dispenser merchants. Continue reading →