March, 2014


12
Mar 14

NoMoreRack.com Probes Possible Card Breach

For the second time since Aug. 2013, online retailer NoMoreRack.com has hired a computer forensics team after being notified by Discover about a potential breach of customer card data, KrebsOnSecurity has learned.

nomorerackOver the past several weeks, a number of banks have shared information with this reporter indicating that they are seeing fraud on cards that were all recently used by nomorerack.com customers. Turns out, nomorerack.com has heard this as well, and for the second time in the last seven months has called in outside investigators to check for signs of a digital break-in.

Vishal Agarwal, director of business development for the New York City-based online retailer, said the company was first approached by Discover Card back in August 2013, when the card association said it had isolated nomorerack.com as a likely point-of-compromise.

“They requested then that we go through a forensics audit, and we did that late October by engaging with Trustwave,” Agarwal said. “Trustwave came out with a report at end of October saying there was no clear cut evidence that our systems had been compromised. There were a few minor bugs reported, but not conclusive evidence of anything that caused a leakage in our systems.”

Then, just last month, NoMoreRack heard once again from Discover, which said that between Nov. 1, 2013 and Jan. 15, 2014, the company had determined there were more incidents of fraud tied to cards that were all used at the company’s online store.

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11
Mar 14

Adobe, Microsoft Push Security Updates

Adobe and Microsoft today each released software updates to fix serious security flaws in their products. Adobe pushed an update that plugs a pair of holes in its Flash Player software. Microsoft issued five updates, including one that addresses a zero-day vulnerability in Internet Explorer that attackers have been exploiting of late.

crackedwinMicrosoft’s five bulletins address 23 distinct security weaknesses in Microsoft Windows, Internet Explorer and Silverlight. The Internet Explorer patch is rated critical for virtually all supported versions of IE, and plugs at least 18 security holes, including a severe weakness in IE 9 and 10 that is already being exploited in targeted attacks.

Microsoft notes that the exploits targeting the IE bug seen so far appear to perform a check for the presence of Microsoft’s Enhanced Mitigation Experience Toolkit (EMET); according to Microsoft, the exploits fail to proceed if EMET is detected. I’ve recommended EMET on several occasions, and would encourage any Windows users who haven’t yet deployed this tool to spend a few minutes reading this post and consider taking advantage of it to further harden their systems. The latest version — 4.1 — is available at this link and requires Microsoft’s .NET Framework 4 platform. For those of you who don’t mind beta-testing software, Microsoft has released a preview version of the next generation of EMET — EMET 5.0 Technical Preview.

This month’s updates include a fix for another dangerous bug — deep within the operating system on just about every major version of Windows  — that also was publicly disclosed prior to today’s patches. Microsoft’s Technet Blog has more details on these and other bulletins released today.

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11
Mar 14

KrebsOnSecurity.com Wins Awards

mlaIn February, this blog and its author were recognized for three separate awards. At the RSA Security conference in San Francisco, KrebsOnSecurity.com was voted the “Most Educational Security Blog” at the Security Bloggers Meetup (for the second year in a row). The judges at the meetup also gave KrebsOnSecurity.com the honor of the “Best Blog Post of the Year,” for my reporting on the Adobe breach.

Separately, I am honored to have received the Mary Litynsky Award for Protecting the Online Community, a lifetime achievement recognition given by the Messaging, Malware and Mobile Anti-Abuse Working Group. M3AAWG’s announcement about the award is here. Past recipients of this award are listed here.


10
Mar 14

Experian Lapse Allowed ID Theft Service Access to 200 Million Consumer Records

In October 2013, KrebsOnSecurity published an exclusive story detailing how a Vietnamese man running an online identity theft service bought personal and financial records on Americans directly from a company owned by Experian, one of the three major U.S. credit bureaus. Today’s story looks deeper at the damage wrought in this colossal misstep by one of the nation’s largest data brokers.

Vietnamese national Hieu Minh Ngo pleaded guilty last week to running the ID theft service Superget.info.

Vietnamese national Hieu Minh Ngo pleaded guilty last week to running the ID theft service Superget.info.

Last week, Hieu Minh Ngo, a 24-year-old Vietnamese national, pleaded guilty to running an identity theft service out of his home in Vietnam. Ngo was arrested last year in Guam by U.S. Secret Service agents after he was lured into visiting the U.S. territory to consummate a business deal with a man he believed could deliver huge volumes of consumers’ personal and financial data for resale.

But according to prosecutors, Ngo had already struck deals with one of the world’s biggest data brokers: Experian. Court records just released last week show that Ngo tricked an Experian subsidiary into giving him direct access to personal and financial data on more than 200 million Americans. 

HIEU KNOWS YOUR SECRETS?

As I reported last year, the data was not obtained directly from Experian, but rather via Columbus, Ohio-based US Info Search. US Info Search had a contractual agreement with a California company named Court Ventures, whereby customers of Court Ventures had access to the US Info Search data as well as Court Ventures’ data, and vice versa.

Posing as a private investigator operating out of Singapore, Ngo contracted with Court Ventures, paying for his access to consumer records via regular cash wire transfers from a bank in Singapore. Through that contract, Ngo was able to make available to his clients access to the US Info Search database containing Social Security, date of birth and other records on more than 200 million Americans.

Experian came into the picture in March 2012, when it purchased Court Ventures (along with all of its customers — including Mr. Ngo). For almost ten months after Experian completed that acquisition, Ngo continued siphoning consumer data and making his wire transfers.

Until last week, the government had shared few details about the scope and the size of the data breach, such as how many Americans may have been targeted by thieves using Ngo’s identity theft service.  According to a transcript of Ngo’s guilty plea proceedings obtained by KrebsOnSecurity, Ngo’s ID theft business attracted more than 1,300 customers who paid at least $1.9 million between 2007 and Feb. 2013 to look up Social Security numbers, dates of birth, addresses, previous addresses, phone numbers, email addresses and other sensitive data.

The government alleges that the service’s customers used the information for a variety of fraud schemes, including filing fraudulent tax returns on Americans, and opening new lines of credit and racking up huge bills in the names of unsuspecting victims. The transcript shows government investigators found that over an 18-month period ending Feb. 2013, Ngo’s customers made approximately 3.1 million queries on Americans.

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5
Mar 14

Sally Beauty Hit By Credit Card Breach

Nationwide beauty products chain Sally Beauty appears to be the latest victim of a breach targeting their payment systems in stores, according to both sources in the banking industry and new raw data from underground cybercrime shops that traffic in stolen credit and debit cards.

On March 2, a fresh batch of 282,000 stolen credit and debit cards went on sale in a popular underground crime store. Three different banks contacted by KrebsOnSecurity made targeted purchases from this store, buying back cards they had previously issued to customers.

The card shop Rescator advertising a new batch of cards. 15 cards purchased by banks from of them from this batch all were found to have been recently used at Sally Beauty stores.

The card shop Rescator advertising a new batch of cards. 15 cards purchased by banks from this batch all were found to have been recently used at Sally Beauty stores.

The banks each then sought to determine whether all of the cards they bought had been used at the same merchant over the same time period. This test, known as “common point of purchase” or CPP, is the core means by which financial institutions determine the source of a card breach.

Each bank independently reported that all of the cards (15 in total) had been used within the last ten days at Sally Beauty locations across the United States. Denton, Texas-based Sally Beauty maintains some 2,600 stores, and the company has stores in every U.S. state.

Asked about the banks’ findings, Sally Beauty spokeswoman Karen Fugate said the company recently detected an intrusion into its network, but that neither the company’s information technology experts nor an outside forensics firm could find evidence that customer card data had been stolen from the company’s systems.

Fugate said Sally Beauty uses an intrusion detection product called Tripwire, and that a couple of weeks ago — around Feb. 24 — Tripwire detected activity. Unlike other products that try to detect intrusions based on odd or anomalous network traffic, Tripwire fires off alerts if it detects that certain key system files have been modified.

In response to the Tripwire alert, Fugate said, the company’s information technology department “shut down all external communications” and began an investigation. That included bringing in Verizon Enterprise Solutions, a company often hired to help businesses respond to cyber intrusions.

“Since [Verizon’s] involvement, which has included a deconstruction of the methods used, an examination of network traffic, all our logs and all potentially accessed servers, we found no evidence that any data got out of our stores,” Fugate said. “But our investigation continues, of course with their assistance.”

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4
Mar 14

Thieves Jam Up Smucker’s, Card Processor

Jam and jelly maker Smucker’s last week shuttered its online store, notifying visitors that the site was being retooled because of a security breach that jeopardized customers’ credit card data. Closer examination of the attack suggests that the company was but one of several dozen firms — including at least one credit card processor — hacked last year by the same criminal gang that infiltrated some of the world’s biggest data brokers.

Smuckers's letter to visitors.

Smucker’s alerts Website visitors.

As Smucker’s referenced in its FAQ about the breach, the malware that hit this company’s site behaves much like a banking Trojan does on PCs, except it’s designed to steal data from Web server applications.

PC Trojans like ZeuS, for example, siphon information using two major techniques: snarfing passwords stored in the browser, and conducting “form grabbing” — capturing any data entered into a form field in the browser before it can be encrypted in the Web session and sent to whatever site the victim is visiting.

The malware that tore into the Smucker’s site behaved similarly, ripping out form data submitted by visitors — including names, addresses, phone numbers, credit card numbers and card verification code — as customers were submitting the data during the online checkout process.

What’s interesting about this attack is that it drives home one important point about malware’s role in subverting secure connections: Whether resident on a Web server or on an end-user computer, if either endpoint is compromised, it’s ‘game over’ for the security of that Web session. With Zeus, it’s all about surveillance on the client side pre-encryption, whereas what the bad guys are doing with these Web site attacks involves sucking down customer data post- or pre-encryption (depending on whether the data was incoming or outgoing).

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3
Mar 14

Illinois Bank: Use Cash for Chicago Taxis

First American Bank in Illinois is urging residents and tourists alike to avoid paying for cab rides in Chicago with credit or debit cards, warning that an ongoing data breach seems to be connected with card processing systems used by a large number of taxis in the Windy City.

The notice that First American sent to customers on Friday.

The notice that First American sent to customers on Friday.

In an unusually blunt and public statement sent to customers on Friday, Elk Grove, Ill.-based First American Bank said, “We are advising you not to use your First American Bank debit cards (or any other cards) in local taxis.” The message, penned by the bank’s chairman Tom Wells, continued:

“We have become aware of a data breach that occurs when a card is used in Chicago taxis, including American United, Checker, Yellow, and Blue Diamond and others that utilize Taxi Affiliation Services and Dispatch Taxi to process card transactions.”

“We have reported the breach to MasterCard® and have kept them apprised of details as they’ve developed. We have also made repeated attempts to deal directly with Banc of America Merchant Services and Bank of America, the payment processors for the taxis, to discontinue payment processing for the companies suffering this compromise until its source is discovered and remediated. These companies have not shared information about their actions and appear to not have stopped the breach.”

Bank of America, in a written statement, declined to discuss the matter, saying BofA “cannot discuss specific client matters.” Neither Taxi Affiliation Services nor Dispatch Taxi returned messages seeking comment.

Christi Childers, associate general counsel and compliance officer at First American Bank, said the bank made the decision to issue the warning about 18 days after being alerted to a pattern of fraud on cards that were all previously used at taxis in Chicago. The bank, which only issues MasterCard debit cards, has begun canceling cards used in Chicago taxis, and has already reissued 220 cards related to the fraud pattern. So far, the bank has seen more than 466 suspicious charges totaling more than $62,000 subsequent to those cards being used in Chicago taxis.

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