December, 2014


31
Dec 14

Lizard Kids: A Long Trail of Fail

The Lizard Squad, a band of young hooligans that recently became Internet famous for launching crippling distributed denial-of-service (DDoS) attacks against the largest online gaming networks, is now advertising its own Lizard-branded DDoS-for-hire service. Read on for a decidedly different take on this offering than what’s being portrayed in the mainstream media.

Lizard Stresser login page taunts this author.

Lizard Stresser login page taunts this author.

The new service, lizardstresser[dot]su, seems a natural evolution for a group of misguided youngsters that has sought to profit from its attention-seeking activities. The Lizard kids only ceased their attack against Sony’s Playstation and Microsoft’s Xbox Live networks last week after MegaUpload founder Kim Dotcom offered the group $300,000 worth of vouchers for his service in exchange for ending the assault. And in a development probably that shocks no one, the gang’s members cynically told Dailydot that both attacks were just elaborate commercials for and a run-up to this DDoS-for-hire offering.

The group is advertising the new “booter service” via its Twitter account, which has some 132,000+ followers. Subscriptions range from $5.99 per month for the ability to knock a target offline for 100 seconds at a time, to $129.99 monthly for DDoS attacks lasting more than eight hours.

In any case, I’m not terribly interested in turning this post into a commercial for the Lizard kids; rather, it’s a brain dump of related information I’ve gathered from various sources in the past 24 hours about the individuals and infrastructure that support the site.

In a show of just how little this group knows about actual hacking and coding, the source code for the service appears to have been lifted in its entirety from titaniumstresser, another, more established DDoS-for-hire booter service. In fact, these Lizard geniuses are so inexperienced at coding that they inadvertently exposed information about all of their 1,700+ registered users (more on this in a moment).

These two services, like most booters, are hidden behind CloudFlare, a content distribution service that lets sites obscure their true Internet address. In case anyone cares, Lizardstresser’s real Internet address currently is 217.71.50.57, at a hosting facility in Bosnia.

In any database of leaked forum or service usernames, it is usually safe to say that the usernames which show up first in the list are the administrators and/or creators of the site. The usernames exposed by the coding and authentication weaknesses in LizardStresser show that the first few registered users are “anti” and “antichrist.” As far as I can tell, these two users are the same guy: A ne’er-do-well who has previously sold access to his personal DDoS-for-hire service on Darkode — a notorious English-language cybercrime forum that I have profiled extensively on this blog.

As detailed in a recent, highly entertaining post on the blog Malwaretech, LizardSquad and Darkode are practically synonymous and indistinguishable now. Anyone curious about why the Lizard kids have picked on Yours Truly can probably find the answer in that Malwaretech story. As that post notes, the main online chat room for the Lizard kids (at lizardpatrol[dot]com) also is hidden behind CloudFlare, but careful research shows that it is actually hosted at the same Internet address as Darkode (5,38,89,132).

A suggested new banner for this blog from the jokers at black hat forum Darkode, which shares a server with the main chat forum for the Lizard kids.

A suggested new banner for this blog from the jokers at black hat forum Darkode, which shares a server with the main chat forum for the Lizard kids.

In a show of just how desperate these kids are for attention, consider that the login page for LizardStresser currently says “Hosted somewhere on Brian Krebs’ forehead: Donate to the forehead reduction foundation, simply send money to krebsonsecurity@gmail.com on PayPal.” Many of you have done that in the past couple of days, although I doubt as a result of visiting the Lizard kids’ silly site. Anyway, for those generous donors, a hearty “thank you.” Continue reading →


30
Dec 14

Banks: Card Breach at Some Chick-fil-A’s

Sources at several U.S. financial institutions say they have traced a pattern of credit card fraud back to accounts that all were used at different Chick-fil-A fast food restaurants around the country. Chick-fil-A told KrebsOnSecurity that it has received similar reports and is working with IT security firms and law enforcement in an ongoing investigation.

Photo: Robert Du Bois

Photo: Robert Du Bois

KrebsOnSecurity first began hearing from banks about possible compromised payment systems at Chick-fil-A establishments in November, but the reports were spotty at best. Then, just before Christmas, one of the major credit card associations issued an alert to several financial institutions about a breach at an unnamed retailer that lasted between Dec. 2, 2013 and Sept. 30, 2014.

One financial institution that received that alert said the bank had nearly 9,000 customer cards listed in that alert, and that the only common point-of-purchase were Chick-fil-A locations.

“It’s crazy because 9,000 customer cards is more than the total number of cards we had impacted in the Target breach,” the banking source said, speaking on condition of anonymity.

The source said his institution saw Chick-fil-A locations across the country impacted, but that the bulk of the fraud seemed concentrated at locations in Georgia, Maryland, Pennsylvania, Texas and Virginia.

Reached for comment about the findings, Chick-fil-A issued the following statement:

“Chick-fil-A recently received reports of potential unusual activity involving payment cards used at a few of our restaurants.  We take our obligation to protect customer information seriously, and we are working with leading IT security firms, law enforcement and our payment industry contacts to determine all of the facts.”

“We want to assure our customers we are working hard to investigate these events and will share additional facts as we are able to do so.  If the investigation reveals that a breach has occurred, customers will not be liable for any fraudulent charges to their accounts — any fraudulent charges will be the responsibility of either Chick-fil-A or the bank that issued the card.  If our customers are impacted, we will arrange for free identity protection services, including credit monitoring.”

Continue reading →


30
Dec 14

Target Hackers Hit OneStopParking.com

Parking services have taken a beating this year at the hands of hackers bent on stealing credit and debit card data. This week’s victim — onestopparking.com — comes compliments of the same organized crime gang thought to be responsible for stealing tens of millions of card numbers from shoppers at Target and Home Depot.

onestopparkingLate last week, the cybercrime shop best known for being the first to sell cards stolen in the Target and Home Depot breach moved a new batch of cards taken from an unknown online merchant. Several banks contacted by KrebsOnSecurity acquired cards from this batch, and determined that all had one thing in common: They’d all been used at onestopparking.com, a Florence, Ky. based company that provides low-cost parking services at airport hotels and seaports throughout the United States.

Contacted about the suspicious activity that banks have traced back to onestopparking.com, Amer Ghanem, the site’s manager, said the company began receiving complaints from customers about a week before Christmas.

“It’s been something we have been dealing with for the past week, where some of our customers have called in and complained about fraudulent charges,” Ghanem said. He noted that the complaints stopped after the company performed several security scans and upgraded software for the Web site, but the investigation continues.

“We have been unable to identify any specific issues that has caused any credit card breach on our website,” Ghanem said in a written statement. “However, being a part of the e-commerce industry and staying up to date with the security news, we are aware of security threats that are always around, especially during the holiday season, when people tend to shop and travel more.  We currently have 2 different services that are always monitoring traffic on our website, 24/7 to ensure the safety of our customers.”

Cards from the "Solidus" base at Rescator map back to One Stop Parking.

Cards from the “Solidus” base at Rescator map back to One Stop Parking.

This was the second time in as many weeks that this cybercrime shop —Rescator[dot]cm — has put up for sale a batch of credit cards stolen from an online parking service: On Dec. 16, KrebsOnSecurity reported that the same shop was selling cards stolen from Park-n-Fly, a competing airport parking reservation service.  Sometime over the past few days, Park-n-Fly announced it was suspending its online service. Continue reading →


29
Dec 14

Happy 5th Birthday, KrebsOnSecurity!

It’s hard to believe, but KrebsOnSecurity turns five years old today! How time flies!

5reflectProbably the most rewarding part about being an independent reporter (for my part, anyway) is watching your readership grow and mature into a community that not only adds perspective and balance but also helps educate other readers.

I’m very proud of the community that’s sprung up around this site, and I’m extremely grateful for all of the support and encouragement from you, Dear Reader. A few dozen readers have sent PayPal or Bitcoin donations, but most have supported this site with their time, expertise and tips (keep those coming, please).

So, from the bottom of my heart, a big THANK YOU and high five to all of you! I wish you all a very happy, healthy and prosperous 2015. Here’s to another five great years!

Leaving aside the pieces in my All About Skimmers series, here are some of the most-read, exclusive posts from the past 365 days:

Lorem Ipsum: Of Good and Evil, Google and China

A Peek Inside a Professional Carding Shop

Who’s Selling Credit Cards from Target?

Are Credit Monitoring Services Worth it?

Antivirus is Dead: Long Live Antivirus

Target Hackers Broke in Via HVAC Company

A First Look at the Target Intrusion, Malware

Banks: Credit Card Breach at Home Depot

The Scrap Value of a Hacked PC, Revisited (oldie but a goodie)


29
Dec 14

Who’s in the Lizard Squad?

The core members of a group calling itself “Lizard Squad” — which took responsibility for attacking Sony’s Playstation and Microsoft‘s Xbox networks and knocking them offline for Christmas Day — want very much to be recognized for their actions. So, here’s a closer look at two young men who appear to be anxious to let the world know they are closely connected to the attacks.

Kim Dotcom offers Lizard Squad members vouchers to stop the attack.

Kim Dotcom offers Lizard Squad members vouchers to stop the attack.

The LizardSquad reportedly only called off their attacks after MegaUpload founder Kim Dotcom offered the group some 3,000 vouchers for his content hosting service. The vouchers sell for $99 apiece, meaning that Dotcom effectively offered the group the equivalent of $300,000 to stop their seige.

On Dec. 26, BBC Radio aired an interview with two young men who claimed to have been involved in the attacks. The two were referred to in the interview only as “Member 1” and “Member 2,” but both have each given on-camera interviews previously (more on that in a bit).

The BBC’s Stephen Nolan asks Member 2, “It was nothing really to do with exposing a company for the greater good? You took the money and you ran, didn’t you, like a petty criminal?”

M2: “Well, we didn’t really expect money from it in the first place. If we really cared about money we could have used the twitter accounts that we generated over 50,000 followers within 24-48 hours we could have used that for monetization, you know? We could have easily sent out a couple of linked….profiles or whatever where each click could gain us three to six cents.”

Vinnie Omari, speaking to Sky News on Dec. 27.

Vinnie Omari, speaking to Sky News on Dec. 27.

Nolan: “So why did you take the vouchers, then?

M2: “It was just an offer. It’s hard to say. It was just a one-time thing. It’s $300,000 worth of vouchers.”

Nolan: “Dirty, grubby, greed?”

M2: “Well, that’s what happens, I’m afraid. That’s what it is like in the security business.”

Member2, the guy that does most of the talking in the BBC interview, appears to be a 22-year-old from the United Kingdom named Vinnie Omari. Sky News ran an on-camera interview with Omari on Dec. 27, quoting him as a “computer security analyst” as he talks about the attacks by LizardSquad and their supposed feud with a rival hacker gang.

The same voice can be heard on this video from Vinnie’s Youtube channel, in which he enthuses about hackforums[dot]net, a forum that is overrun with teenage wannabe hackers who spend most of their time trying to impress, attack or steal from one another.

In a thread on Hackforums that Omari began on Dec. 26 using the Hackforums username “Vinnie” Omari says he’s been given vouchers from Kim Dotcom’s Mega, and wonders if the Hackforums rules allow him to sell the vouchers on the forum.

Hackforums user "Vinnie" asks about selling MegaUpload vouchers.

Hackforums user “Vinnie” asks about selling MegaUpload vouchers.

vinnie-profit

Continue reading →


26
Dec 14

Cowards Attack Sony PlayStation, Microsoft xBox Networks

A gaggle of young misfits that has long tried to silence this Web site now is taking credit for preventing millions of users from playing Sony Playstation and Microsoft Xbox Live games this holiday season.

The group, which calls itself LizardSquad, started attacking the gaming networks on or around Christmas Day. Various statements posted by self-described LizardSquad members on their open online chat forum — chat.lizardpatrol.com — suggest that these misguided individuals launched the attack for no other reason than because they thought it would be amusing to annoy and disappoint people who received new Xbox and Playstation consoles as holiday gifts.

Such assaults, known as distributed denial-of-service (DDoS) attacks — harness the Internet connectivity of many hacked or misconfigured systems so that those systems are forced to simultaneously flood a target network with junk internet traffic. The goal, of course, is to prevent legitimate visitors from being able to load the site or or use the service under attack.

It’s unfortunate that some companies which specialize in DDoS protection services have chosen to promote their products by categorizing these latest attacks as “herculean” and “sophisticated;” these adjectives describe neither the attackers nor their attacks. The sad truth is that these attacks take advantage of compromised and misconfigured systems online, and there are tens of millions of these systems that can be freely leveraged to launch such attacks. What’s more, the tools and instructions for launching such assaults are widely available.

The LizardSquad leadership is closely tied to a cybercrime forum called Darkode[dot]com, a network of ne’er-do-wells that I have written about extensively. So much so, in fact, that the LizardSquad has made attacking KrebsOnSecurity.com and keeping it offline for at least 30 minutes a prerequisite “proof of skills” for any new members who wish to join their ranks (see the screen shot below).

LizardSquad wannabes trying to prove their "skills" by knocking my site offline.

LizardSquad wannabes trying to prove their “skills” by knocking my site offline.

Continue reading →


26
Dec 14

Payday Loan Network Sold Info to Scammers

The Federal Trade Commission announced this week it is suing a consumer data broker that sold payday loan application data to scammers who used the information to pull money out of consumer bank accounts. The scam brings to mind an underground identity theft service I wrote about in 2012 that was gathering its data from a network of payday loan sites.

Usearching.info sold sensitive data taken from payday loan networks.

Usearching.info sold sensitive data taken from payday loan networks.

According to the FTC’s complaint, data broker LeapLab bought payday loan applications of financially strapped consumers, and then sold that information to marketers whom it knew had no legitimate need for it. “At least one of those marketers, Ideal Financial Solutions – a defendant in another FTC case – allegedly used the information to withdraw millions of dollars from consumers’ accounts without their authorization,” the FTC said.

The FTC charges that the defendants sold approximately five percent of these loan applications to online lenders, who paid them between $10 and $150 per lead. But the defendants also allegedly sold the remaining 95 percent for approximately $0.50 each to third parties who were not online lenders and had no legitimate need for this financial information.

In Sept. 2012, I published a blog post about “Usearching[dot]info,” a now-defunct ID theft service that offered the ability to purchase personal information on countless Americans, including SSN, mother’s maiden name, date of birth, email address, and physical address, as well as and driver license data for approximately 75 million citizens in Florida, Idaho, Iowa, Minnesota, Mississippi, Ohio, Texas and Wisconsin.

That story noted that Usearching[dot]info also included data that appeared to come from another source — more than 330,000 consumer bank account records pulled from an archipelago of satellite Web sites that negotiate with a variety of lenders to offer payday loans. From that piece:

“I first began to suspect the information was coming from loan sites when I had a look at the data fields available in each record. A trusted source opened and funded an account at Usearching.info, and purchased 80 of these records, at a total cost of about $20. Each includes the following data: A record number, date of record acquisition, status of application (rejected/appproved/pending), applicant’s name, email address, physical address, phone number, Social Security number, date of birth, bank name, account and routing number, employer name, and the length of time at the current job. These records are sold in bulk, with per-record prices ranging from 16 to 25 cents depending on volume.”

“But it wasn’t until I started calling the people listed in the records that a clearer picture began to emerge. I spoke with more than a dozen individuals whose data was being sold, and found that all had applied for payday loans on or around the date in their respective records. The trouble was, the records my source obtained were all dated October 2011, and almost nobody I spoke with could recall the name of the site they’d used to apply for the loan. All said, however, that they’d initially provided their information to one site, and then were redirected to a number of different payday loan options.”

I have no idea whether LeapLab sold information to this identity theft service, or whether Ideal Financial was a customer of Usearching[dot]info. LeapLab is no longer in business, and Ideal’s assets are frozen and in receivership. But it’s clear Ideal obtained consumer data from multiple sources: The FTC says LeapLab provided Ideal Financial with financial account information for only about 16 percent of Ideal Financial’s victims.

In this, as with so many financial scams, the people least able to afford it get scammed and fleeced. The FTC charges that Ideal Financial purchased information on at least 2.2 million consumers from data brokers and used it to make more than $43 million in unauthorized debits and charges for purported financial products that the consumers never purchased. Sadly, these “financial products” were mostly about how consumers could manage their money better or get themselves out of debt. Continue reading →


23
Dec 14

The Case for N. Korea’s Role in Sony Hack

There are still many unanswered questions about the recent attack on Sony Pictures Entertainment, such as how the attackers broke in, how long they were inside Sony’s network, whether they had inside help, and how the attackers managed to steal terabytes of data without notice. To date, a sizable number of readers remain unconvinced about the one conclusion that many security experts and the U.S. government now agree upon: That North Korea was to blame. This post examines some compelling evidence from past such attacks that has helped inform that conclusion.

An image from HP, captioned "North Korean students training for cyberwar."

An image from HP, captioned “North Korean students training for cyberwar.”

The last time the world saw an attack like the one that slammed SPE was on March 20, 2013, when computer networks running three major South Korean banks and two of the country’s largest television broadcasters were hit with crippling attacks that knocked them offline and left many South Koreans unable to withdraw money from ATMs. The attacks came as American and South Korean military forces were conducting joint exercises in the Korean Peninsula.

That attack relied in part on malware dubbed “Dark Seoul,” which was designed to overwrite the initial sections of an infected computer’s hard drive. The data wiping component used in the attack overwrote information on infected hard drives by repeating the words “hastati” or “principes,” depending on which version of the wiper malware was uploaded to the compromised host.

Both of those terms reference the military classes of ancient Rome: “hastati” were the younger, poorer soldiers typically on the front lines; the “principes” referred to more hardened, seasoned soldiers. According to a detailed white paper from McAfee, the attackers left a calling card a day after the attacks in the form of a web pop-up message claiming that the NewRomanic Cyber Army Team was responsible and had leaked private information from several banks and media companies and destroyed data on a large number of machines.

The message read:

“Hi, Dear Friends, We are very happy to inform you the following news. We, NewRomanic Cyber Army Team, verified our #OPFuckKorea2003. We have now a great deal of personal information in our hands. Those includes; 2.49M of [redacted by Mcafee] member table data, cms_info more than 50M from [redacted]. Much information from [redacted] Bank. We destroyed more than 0.18M of PCs. Many auth Hope you are lucky. 11th, 12th, 13th, 21st, 23rd and 27th HASTATI Detachment. Part of PRINCIPES Elements. p.s For more information, please visit www.dropbox.com login with joseph.r.ulatoski@gmail.com::lqaz@WSX3edc$RFV. Please also visit pastebin.com.”

The McAfee report, and a similarly in-depth report from HP Security, mentions that another group calling itself the Whois Team — which defaced a South Korean network provider during the attack — also took responsibility for the destructive Dark Seoul attacks in 2013. But both companies say they believe the NewRomanic Cyber Army Team and the Whois Team are essentially the same group. As Russian security firm Kaspersky notes, the images used by the WhoisTeam and the warning messages left for Sony are remarkably similar:

The defacement message left by the Whois Team in the 2013 Dark Seoul attacks (left) and the message left for Sony (right).

The defacement message left by the Whois Team in the 2013 Dark Seoul attacks (left) and the message left for Sony (right).

Interestingly, the attacks on Sony also were preceded by the theft of data that was later leaked on Pastebin and via Dropbox. But how long were the attackers in the Sony case inside Sony’s network before they began wiping drives? And how did they move tens of terabytes of data off of Sony’s network without notice? Those questions remain unanswered, but the McAfee paper holds a few possible clues. Continue reading →


22
Dec 14

Alleged Counterfeiter “Willy Clock” Arrested

In September 2014, I wrote about receiving a package of $500 in counterfeit U.S. currency from an unknown sender, after mentioning in a blog post about a rash of funny money resellers flooding underground cybercrime markets. Last week, U.S. authorities announced the arrest of a Texas man charged with leading the international counterfeit currency operation from a location in the Republic of Uganda.

Counterfeit $100s and $50s from "Willy Clock," allegedly the online alias of a Texas man living in Uganda.

Counterfeit $100s and $50s from “Willy Clock,” allegedly the online alias of a Texas man living in Uganda.

U.S. prosecutors say 27-year-old Ryan Andrew Gustafson – a.k.a. “Jack Farrel” and “Willy Clock” — is a U.S. citizen currently residing in Kampala, Uganda. Gustafson was arrested on Dec. 16 by Ugandan authorities and charged with conspiracy, counterfeiting, and unlawful possession of ammunition.

The defendant and his alleged accomplices are suspected of passing approximately $270,000 in fake U.S. currency in Uganda. In total, Ugandan authorities say they seized some $1.8 million in funny money from Gustafson’s operation.

The U.S. Secret Service, which investigates currency counterfeiting, said the investigation began in December 2013 when agents were alerted to the passing of counterfeit notes at retail stores and businesses in the Pittsburgh area. A press release from the Justice Department outlines the rest of the investigation:

“Agents determined that an individual identified as J.G. had passed these notes and was renting a postal box at The UPS Store on Pittsburgh’s South Side.  On Feb 19, 2014, law enforcement learned that J.G. received three packages addressed from Beyond Computers, located in Kampala, Uganda.  Agents executing a search warrant on the packages found $7,000 in counterfeit $100, $50 and $20 FRNs located in two hidden compartments within the packaging envelopes.  A fingerprint on a document inside one of the packages was identified as belonging to Ryan Andrew Gustafson.”

Jack Farrel's Facebook page. The U.S. Secret Service alleges that Farrel is Gustafson, a.k.a. counterfeiter "Willy Clock."

Jack Farrel’s Facebook page. The U.S. Secret Service alleges that Farrel is Gustafson, a.k.a. counterfeiter “Willy Clock.”

“The Secret Service subsequently worked with Ugandan authorities to identify the source of the counterfeit [cash].  Their efforts led to A.B., who admitted to sending the packages, explaining that an American named “Jack Farrel,” and another person, provided him the counterfeit notes to ship.  Based on information provided by A.B., the Secret Service used facial recognition to identify Jack Farrel as Ryan Andrew Gustafson.”

The government says Gustafson sold the bills through the Tor Carding Forum, a cybercrime shop that is unreachable from the regular Internet. Rather, visiting the Tor Carding Forum requires the visitor to route his communications through Tor, a free software-based service that helps users maintain anonymity by obfuscating their true location online. Continue reading →


22
Dec 14

Gang Hacked ATMs from Inside Banks

An organized gang of hackers from Russia and Ukraine has broken into internal networks at dozens of financial institutions and installed malicious software that allowed the gang to drain bank ATMs of cash. While none of the victim institutions were in the United States or Western Europe, experts say the stealthy methods used by the attackers in these heists would likely work across a broad range of western banks.

robotrobkbMost cybercrime targets consumers and businesses, stealing account information such as passwords and other data that lets thieves cash out hijacked bank accounts, as well as credit and debit cards. But this gang specializes in hacking into banks directly, and then working out ingenious ways to funnel cash directly from the financial institution itself.

A number of the gang’s members are believed to be tied to a group of Eastern European hackers accused of stealing more than USD $2 million from Russian banks using a powerful, custom-made banking trojan known as Carberp. Eight men in Moscow were arrested in 2012 and accused of building and using Carberp, but sources say the core members of the gang were out of jail within hours after their arrest and have been busy rebuilding their crime machine ever since.

According to report released today by Fox-IT and Group-IB, security firms based in The Netherlands and Russia, respectively, the Carberp guys have since changed their tactics: Instead of stealing from thousands of bank account holders, this gang has decided to focus on siphoning funds right out of banks’ coffers. So far, the security firms report, the gang has stolen more than $15 million from Eastern European banks.

To gain a foothold inside financial institutions, this crime group — dubbed the “Anunak group” — sent bank employees targeted, malware-laced emails made to look like the missives were sent by Russian banking regulators. The phishing emails contained malicious software designed to exploit recently-patched security holes in Microsoft Office products.

Incredibly, the group also reportedly bought access to Windows PCs at targeted banks that were already compromised by opportunistic malware spread by other cyber criminals. Indeed, Fox-IT and Group-IB report that the Anunak gang routinely purchased installations of their banking malware from other cybercriminals who operated massive botnets (collections of hacked PCs).

Once inside a financial institution, the criminals typically abused that access to launch even more convincing spear-phishing attacks against other banks. They also gained access to isolated bank network segments that handled ATM transactions, downloading malicious programs made to work specifically with Wincor ATMs. The hackers used that malware — along with a modified legitimate program for managing ATM cash trays — to change the denomination settings for bank notes in 52 different ATMs.

As a result, they were able to make it so that when co-conspirators went to affected ATMs to withdraw 10 bills totaling 100 Russian rubles, they were instead issued 10 bank notes with the denomination of 5,000 rubles, the report notes.

The Anunak gang reportedly modified this legitimate program for managing bill denominations in ATMs.

The Anunak gang reportedly modified this legitimate program for managing bill denominations in ATMs.

Continue reading →