UK Charges Four in ‘Scattered Spider’ Ransom Group

July 10, 2025
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Authorities in the United Kingdom this week arrested four alleged members of “Scattered Spider,” a prolific data theft and extortion group whose recent victims include multiple airlines and the U.K. retail chain Marks & Spencer.

Scattered Spider is the name given to an English-speaking cybercrime group known for using social engineering tactics to break into companies and steal data for ransom, often impersonating employees or contractors to deceive IT help desks into granting access. The FBI warned last month that Scattered Spider had recently shifted to targeting companies in the retail and airline sectors.

The U.K.’s National Crime Agency (NCA) declined verify the names of those arrested, saying only that they included two males aged 19, another aged 17, and 20-year-old female. The NCA said the defendants were charged in cyberattacks against Marks & Spencer, the U.K. retailer Harrods, and the British food retailer Co-op Group.

KrebsOnSecurity has learned the identities of the two 19-year-old suspects. Multiple sources close to the investigation said those arrested include Owen David Flowers, a U.K. man alleged to have been involved in the cyber intrusion and ransomware attack that shut down several MGM Casino properties in September 2023. Those same sources said the woman arrested is or recently was in a relationship with Flowers.

Sources told KrebsOnSecurity that Flowers, who allegedly went by the hacker handles “bo764,” “Holy,” and “Nazi,” was the group member who anonymously gave interviews to the media in the days after the MGM hack. His real name was omitted from a September 2024 story about the group because he was not yet charged in that incident.

The bigger fish netted as part of the Scattered Spider dragnet is Thalha Jubair, a U.K. man whose alleged exploits under various monikers have been well-documented in stories on this site. Jubair is believed to have used the nickname “Earth2Star,” which corresponds to a founding member of the cybercrime-focused Telegram channel “Star Fraud Chat.”

In 2023, KrebsOnSecurity published an investigation into the work of three different SIM-swapping groups that phished credentials from T-Mobile employees and used that access to offer a service whereby any T-Mobile phone number could be swapped to a new device. Star Chat was by far the most active and consequential of the three SIM-swapping groups, who collectively broke into T-Mobile’s network more than 100 times in the second half of 2022.

Jubair allegedly used the handles “Earth2Star” and “Star Ace,” and was a core member of a prolific SIM-swapping group operating in 2022. Star Ace posted this image to the Star Fraud chat channel on Telegram, and it lists various prices for SIM-swaps.

Sources tell KrebsOnSecurity that Jubair also was a core member of the LAPSUS$ cybercrime group that broke into dozens of technology companies in 2022, stealing source code and other internal data from tech giants including Microsoft, Nvidia, Okta, Rockstar Games, Samsung, T-Mobile, and Uber.

In April 2022, KrebsOnSecurity published internal chat records from LAPSUS$, and those chats indicated Jubair was using the nicknames Amtrak and Asyntax. At one point in the chats, Amtrak told the LAPSUS$ group leader not to share T-Mobile’s logo in images sent to the group because he’d been previously busted for SIM-swapping and his parents would suspect he was back at it again.

As shown in those chats, the leader of LAPSUS$ eventually decided to betray Amtrak by posting his real name, phone number, and other hacker handles into a public chat room on Telegram.

In March 2022, the leader of the LAPSUS$ data extortion group exposed Thalha Jubair’s name and hacker handles in a public chat room on Telegram.

Continue reading →

Microsoft Patch Tuesday, July 2025 Edition

July 8, 2025
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Microsoft today released updates to fix at least 137 security vulnerabilities in its Windows operating systems and supported software. None of the weaknesses addressed this month are known to be actively exploited, but 14 of the flaws earned Microsoft’s most-dire “critical” rating, meaning they could be exploited to seize control over vulnerable Windows PCs with little or no help from users.

While not listed as critical, CVE-2025-49719 is a publicly disclosed information disclosure vulnerability, with all versions as far back as SQL Server 2016 receiving patches. Microsoft rates CVE-2025-49719 as less likely to be exploited, but the availability of proof-of-concept code for this flaw means its patch should probably be a priority for affected enterprises.

Mike Walters, co-founder of Action1, said CVE-2025-49719 can be exploited without authentication, and that many third-party applications depend on SQL server and the affected drivers — potentially introducing a supply-chain risk that extends beyond direct SQL Server users.

“The potential exposure of sensitive information makes this a high-priority concern for organizations handling valuable or regulated data,” Walters said. “The comprehensive nature of the affected versions, spanning multiple SQL Server releases from 2016 through 2022, indicates a fundamental issue in how SQL Server handles memory management and input validation.”

Adam Barnett at Rapid7 notes that today is the end of the road for SQL Server 2012, meaning there will be no future security patches even for critical vulnerabilities, even if you’re willing to pay Microsoft for the privilege.

Barnett also called attention to CVE-2025-47981, a vulnerability with a CVSS score of 9.8 (10 being the worst), a remote code execution bug in the way Windows servers and clients negotiate to discover mutually supported authentication mechanisms. This pre-authentication vulnerability affects any Windows client machine running Windows 10 1607 or above, and all current versions of Windows Server. Microsoft considers it more likely that attackers will exploit this flaw.

Microsoft also patched at least four critical, remote code execution flaws in Office (CVE-2025-49695, CVE-2025-49696, CVE-2025-49697, CVE-2025-49702). The first two are both rated by Microsoft as having a higher likelihood of exploitation, do not require user interaction, and can be triggered through the Preview Pane. Continue reading →

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Big Tech’s Mixed Response to U.S. Treasury Sanctions

July 3, 2025
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In May 2025, the U.S. government sanctioned a Chinese national for operating a cloud provider linked to the majority of virtual currency investment scam websites reported to the FBI. But a new report finds the accused continues to operate a slew of established accounts at American tech companies — including Facebook, Github, PayPal and Twitter/X.

On May 29, the U.S. Department of the Treasury announced economic sanctions against Funnull Technology Inc., a Philippines-based company alleged to provide infrastructure for hundreds of thousands of websites involved in virtual currency investment scams known as “pig butchering.” In January 2025, KrebsOnSecurity detailed how Funnull was designed as a content delivery network that catered to foreign cybercriminals seeking to route their traffic through U.S.-based cloud providers.

The Treasury also sanctioned Funnull’s alleged operator, a 40-year-old Chinese national named Liu “Steve” Lizhi. The government says Funnull directly facilitated financial schemes resulting in more than $200 million in financial losses by Americans, and that the company’s operations were linked to the majority of pig butchering scams reported to the FBI.

It is generally illegal for U.S. companies or individuals to transact with people sanctioned by the Treasury. However, as Mr. Lizhi’s case makes clear, just because someone is sanctioned doesn’t necessarily mean big tech companies are going to suspend their online accounts.

The government says Lizhi was born November 13, 1984, and used the nicknames “XXL4” and “Nice Lizhi.” Nevertheless, Steve Liu’s 17-year-old account on LinkedIn (in the name “Liulizhi”) had hundreds of followers (Lizhi’s LinkedIn profile helpfully confirms his birthday) until quite recently: The account was deleted this morning, just hours after KrebsOnSecurity sought comment from LinkedIn.

Mr. Lizhi’s LinkedIn account was suspended sometime in the last 24 hours, after KrebsOnSecurity sought comment from LinkedIn.

In an emailed response, a LinkedIn spokesperson said the company’s “Prohibited countries policy” states that LinkedIn “does not sell, license, support or otherwise make available its Premium accounts or other paid products and services to individuals and companies sanctioned by the U.S. government.” LinkedIn declined to say whether the profile in question was a premium or free account.

Mr. Lizhi also maintains a working PayPal account under the name Liu Lizhi and username “@nicelizhi,” another nickname listed in the Treasury sanctions. A 15-year-old Twitter/X account named “Lizhi” that links to Mr. Lizhi’s personal domain remains active, although it has few followers and hasn’t posted in years.

These accounts and many others were flagged by the security firm Silent Push, which has been tracking Funnull’s operations for the past year and calling out U.S. cloud providers like Amazon and Microsoft for failing to more quickly sever ties with the company.

Liu Lizhi’s PayPal account.

In a report released today, Silent Push found Lizhi still operates numerous Facebook accounts and groups, including a private Facebook account under the name Liu Lizhi. Another Facebook account clearly connected to Lizhi is a tourism page for Ganzhou, China called “EnjoyGanzhou” that was named in the Treasury Department sanctions.

“This guy is the technical administrator for the infrastructure that is hosting a majority of scams targeting people in the United States, and hundreds of millions have been lost based on the websites he’s been hosting,” said Zach Edwards, senior threat researcher at Silent Push. “It’s crazy that the vast majority of big tech companies haven’t done anything to cut ties with this guy.”

The FBI says it received nearly 150,000 complaints last year involving digital assets and $9.3 billion in losses — a 66 percent increase from the previous year. Investment scams were the top crypto-related crimes reported, with $5.8 billion in losses. Continue reading →

Senator Chides FBI for Weak Advice on Mobile Security

June 30, 2025
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Agents with the Federal Bureau of Investigation (FBI) briefed Capitol Hill staff recently on hardening the security of their mobile devices, after a contacts list stolen from the personal phone of the White House Chief of Staff Susie Wiles was reportedly used to fuel a series of text messages and phone calls impersonating her to U.S. lawmakers. But in a letter this week to the FBI, one of the Senate’s most tech-savvy lawmakers says the feds aren’t doing enough to recommend more appropriate security protections that are already built into most consumer mobile devices.

A screenshot of the first page from Sen. Wyden’s letter to FBI Director Kash Patel.

On May 29, The Wall Street Journal reported that federal authorities were investigating a clandestine effort to impersonate Ms. Wiles via text messages and in phone calls that may have used AI to spoof her voice. According to The Journal, Wiles told associates her cellphone contacts were hacked, giving the impersonator access to the private phone numbers of some of the country’s most influential people.

The execution of this phishing and impersonation campaign — whatever its goals may have been — suggested the attackers were financially motivated, and not particularly sophisticated.

“It became clear to some of the lawmakers that the requests were suspicious when the impersonator began asking questions about Trump that Wiles should have known the answers to—and in one case, when the impersonator asked for a cash transfer, some of the people said,” the Journal wrote. “In many cases, the impersonator’s grammar was broken and the messages were more formal than the way Wiles typically communicates, people who have received the messages said. The calls and text messages also didn’t come from Wiles’s phone number.”

Sophisticated or not, the impersonation campaign was soon punctuated by the murder of Minnesota House of Representatives Speaker Emerita Melissa Hortman and her husband, and the shooting of Minnesota State Senator John Hoffman and his wife. So when FBI agents offered in mid-June to brief U.S. Senate staff on mobile threats, more than 140 staffers took them up on that invitation (a remarkably high number considering that no food was offered at the event).

But according to Sen. Ron Wyden (D-Ore.), the advice the FBI provided to Senate staffers was largely limited to remedial tips, such as not clicking on suspicious links or attachments, not using public wifi networks, turning off bluetooth, keeping phone software up to date, and rebooting regularly.

“This is insufficient to protect Senate employees and other high-value targets against foreign spies using advanced cyber tools,” Wyden wrote in a letter sent today to FBI Director Kash Patel. “Well-funded foreign intelligence agencies do not have to rely on phishing messages and malicious attachments to infect unsuspecting victims with spyware. Cyber mercenary companies sell their government customers advanced ‘zero-click’ capabilities to deliver spyware that do not require any action by the victim.”

Wyden stressed that to help counter sophisticated attacks, the FBI should be encouraging lawmakers and their staff to enable anti-spyware defenses that are built into Apple’s iOS and Google’s Android phone software.

These include Apple’s Lockdown Mode, which is designed for users who are worried they may be subject to targeted attacks. Lockdown Mode restricts non-essential iOS features to reduce the device’s overall attack surface. Google Android devices carry a similar feature called Advanced Protection Mode.

Wyden also urged the FBI to update its training to recommend a number of other steps that people can take to make their mobile devices less trackable, including the use of ad blockers to guard against malicious advertisements, disabling ad tracking IDs in mobile devices, and opting out of commercial data brokers (the suspect charged in the Minnesota shootings reportedly used multiple people-search services to find the home addresses of his targets). Continue reading →

Inside a Dark Adtech Empire Fed by Fake CAPTCHAs

June 12, 2025
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Late last year, security researchers made a startling discovery: Kremlin-backed disinformation campaigns were bypassing moderation on social media platforms by leveraging the same malicious advertising technology that powers a sprawling ecosystem of online hucksters and website hackers. A new report on the fallout from that investigation finds this dark ad tech industry is far more resilient and incestuous than previously known.

Image: Infoblox.

In November 2024, researchers at the security firm Qurium published an investigation into “Doppelganger,” a disinformation network that promotes pro-Russian narratives and infiltrates Europe’s media landscape by pushing fake news through a network of cloned websites.

Doppelganger campaigns use specialized links that bounce the visitor’s browser through a long series of domains before the fake news content is served. Qurium found Doppelganger relies on a sophisticated “domain cloaking” service, a technology that allows websites to present different content to search engines compared to what regular visitors see. The use of cloaking services helps the disinformation sites remain online longer than they otherwise would, while ensuring that only the targeted audience gets to view the intended content.

Qurium discovered that Doppelganger’s cloaking service also promoted online dating sites, and shared much of the same infrastructure with VexTrio, which is thought to be the oldest malicious traffic distribution system (TDS) in existence. While TDSs are commonly used by legitimate advertising networks to manage traffic from disparate sources and to track who or what is behind each click, VexTrio’s TDS largely manages web traffic from victims of phishing, malware, and social engineering scams.

BREAKING BAD

Digging deeper, Qurium noticed Doppelganger’s cloaking service used an Internet provider in Switzerland as the first entry point in a chain of domain redirections. They also noticed the same infrastructure hosted a pair of co-branded affiliate marketing services that were driving traffic to sketchy adult dating sites: LosPollos[.]com and TacoLoco[.]co.

The LosPollos ad network incorporates many elements and references from the hit series “Breaking Bad,” mirroring the fictional “Los Pollos Hermanos” restaurant chain that served as a money laundering operation for a violent methamphetamine cartel.

The LosPollos advertising network invokes characters and themes from the hit show Breaking Bad. The logo for LosPollos (upper left) is the image of Gustavo Fring, the fictional chicken restaurant chain owner in the show.

Affiliates who sign up with LosPollos are given JavaScript-heavy “smartlinks” that drive traffic into the VexTrio TDS, which in turn distributes the traffic among a variety of advertising partners, including dating services, sweepstakes offers, bait-and-switch mobile apps, financial scams and malware download sites.

LosPollos affiliates typically stitch these smart links into WordPress websites that have been hacked via known vulnerabilities, and those affiliates will earn a small commission each time an Internet user referred by any of their hacked sites falls for one of these lures.

The Los Pollos advertising network promoting itself on LinkedIn.

According to Qurium, TacoLoco is a traffic monetization network that uses deceptive tactics to trick Internet users into enabling “push notifications,” a cross-platform browser standard that allows websites to show pop-up messages which appear outside of the browser. For example, on Microsoft Windows systems these notifications typically show up in the bottom right corner of the screen — just above the system clock.

In the case of VexTrio and TacoLoco, the notification approval requests themselves are deceptive — disguised as “CAPTCHA” challenges designed to distinguish automated bot traffic from real visitors. For years, VexTrio and its partners have successfully tricked countless users into enabling these site notifications, which are then used to continuously pepper the victim’s device with a variety of phony virus alerts and misleading pop-up messages.

Examples of VexTrio landing pages that lead users to accept push notifications on their device.

According to a December 2024 annual report from GoDaddy, nearly 40 percent of compromised websites in 2024 redirected visitors to VexTrio via LosPollos smartlinks. Continue reading →

Patch Tuesday, June 2025 Edition

June 10, 2025
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Microsoft today released security updates to fix at least 67 vulnerabilities in its Windows operating systems and software. Redmond warns that one of the flaws is already under active attack, and that software blueprints showing how to exploit a pervasive Windows bug patched this month are now public.

The sole zero-day flaw this month is CVE-2025-33053, a remote code execution flaw in the Windows implementation of WebDAV — an HTTP extension that lets users remotely manage files and directories on a server. While WebDAV isn’t enabled by default in Windows, its presence in legacy or specialized systems still makes it a relevant target, said Seth Hoyt, senior security engineer at Automox.

Adam Barnett, lead software engineer at Rapid7, said Microsoft’s advisory for CVE-2025-33053 does not mention that the Windows implementation of WebDAV is listed as deprecated since November 2023, which in practical terms means that the WebClient service no longer starts by default.

“The advisory also has attack complexity as low, which means that exploitation does not require preparation of the target environment in any way that is beyond the attacker’s control,” Barnett said. “Exploitation relies on the user clicking a malicious link. It’s not clear how an asset would be immediately vulnerable if the service isn’t running, but all versions of Windows receive a patch, including those released since the deprecation of WebClient, like Server 2025 and Windows 11 24H2.” Continue reading →

Proxy Services Feast on Ukraine’s IP Address Exodus

June 5, 2025
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Image: Mark Rademaker, via Shutterstock.

Ukraine has seen nearly one-fifth of its Internet space come under Russian control or sold to Internet address brokers since February 2022, a new study finds. The analysis indicates large chunks of Ukrainian Internet address space are now in the hands of shadowy proxy and anonymity services that are nested at some of America’s largest Internet service providers (ISPs).

The findings come in a report examining how the Russian invasion has affected Ukraine’s domestic supply of Internet Protocol Version 4 (IPv4) addresses. Researchers at Kentik, a company that measures the performance of Internet networks, found that while a majority of ISPs in Ukraine haven’t changed their infrastructure much since the war began in 2022, others have resorted to selling swathes of their valuable IPv4 address space just to keep the lights on.

For example, Ukraine’s incumbent ISP Ukrtelecom is now routing just 29 percent of the IPv4 address ranges that the company controlled at the start of the war, Kentik found. Although much of that former IP space remains dormant, Ukrtelecom told Kentik’s Doug Madory they were forced to sell many of their address blocks “to secure financial stability and continue delivering essential services.”

“Leasing out a portion of our IPv4 resources allowed us to mitigate some of the extraordinary challenges we have been facing since the full-scale invasion began,” Ukrtelecom told Madory.

Madory found much of the IPv4 space previously allocated to Ukrtelecom is now scattered to more than 100 providers globally, particularly at three large American ISPs — Amazon (AS16509), AT&T (AS7018), and Cogent (AS174).

Another Ukrainian Internet provider — LVS (AS43310) — in 2022 was routing approximately 6,000 IPv4 addresses across the nation. Kentik learned that by November 2022, much of that address space had been parceled out to over a dozen different locations, with the bulk of it being announced at AT&T.

IP addresses routed over time by Ukrainian provider LVS (AS43310) shows a large chunk of it being routed by AT&T (AS7018). Image: Kentik.

Ditto for the Ukrainian ISP TVCOM, which currently routes nearly 15,000 fewer IPv4 addresses than it did at the start of the war. Madory said most of those addresses have been scattered to 37 other networks outside of Eastern Europe, including Amazon, AT&T, and Microsoft.

The Ukrainian ISP Trinity (AS43554) went offline in early March 2022 during the bloody siege of Mariupol, but its address space eventually began showing up in more than 50 different networks worldwide. Madory found more than 1,000 of Trinity’s IPv4 addresses suddenly appeared on AT&T’s network.

Why are all these former Ukrainian IP addresses being routed by U.S.-based networks like AT&T? According to spur.us, a company that tracks VPN and proxy services, nearly all of the address ranges identified by Kentik now map to commercial proxy services that allow customers to anonymously route their Internet traffic through someone else’s computer.

From a website’s perspective, the traffic from a proxy network user appears to originate from the rented IP address, not from the proxy service customer. These services can be used for several business purposes, such as price comparisons, sales intelligence, web crawlers and content-scraping bots. However, proxy services also are massively abused for hiding cybercrime activity because they can make it difficult to trace malicious traffic to its original source.

IPv4 address ranges are always in high demand, which means they are also quite valuable. There are now multiple companies that will pay ISPs to lease out their unwanted or unused IPv4 address space. Madory said these IPv4 brokers will pay between $100-$500 per month to lease a block of 256 IPv4 addresses, and very often the entities most willing to pay those rental rates are proxy and VPN providers.

A cursory review of all Internet address blocks currently routed through AT&T — as seen in public records maintained by the Internet backbone provider Hurricane Electric — shows a preponderance of country flags other than the United States, including networks originating in Hungary, Lithuania, Moldova, Mauritius, Palestine, Seychelles, Slovenia, and Ukraine.

AT&T’s IPv4 address space seems to be routing a great deal of proxy traffic, including a large number of IP address ranges that were until recently routed by ISPs in Ukraine.

Asked about the apparent high incidence of proxy services routing foreign address blocks through AT&T, the telecommunications giant said it recently changed its policy about originating routes for network blocks that are not owned and managed by AT&T. That new policy, spelled out in a February 2025 update to AT&T’s terms of service, gives those customers until Sept. 1, 2025 to originate their own IP space from their own autonomous system number (ASN), a unique number assigned to each ISP (AT&T’s is AS7018).

“To ensure our customers receive the best quality of service, we changed our terms for dedicated internet in February 2025,” an AT&T spokesperson said in an emailed reply. “We no longer permit static routes with IP addresses that we have not provided. We have been in the process of identifying and notifying affected customers that they have 90 days to transition to Border Gateway Protocol routing using their own autonomous system number.” Continue reading →

U.S. Sanctions Cloud Provider ‘Funnull’ as Top Source of ‘Pig Butchering’ Scams

May 29, 2025
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Image: Shutterstock, ArtHead.

The U.S. government today imposed economic sanctions on Funnull Technology Inc., a Philippines-based company that provides computer infrastructure for hundreds of thousands of websites involved in virtual currency investment scams known as “pig butchering.” In January 2025, KrebsOnSecurity detailed how Funnull was being used as a content delivery network that catered to cybercriminals seeking to route their traffic through U.S.-based cloud providers.

“Americans lose billions of dollars annually to these cyber scams, with revenues generated from these crimes rising to record levels in 2024,” reads a statement from the U.S. Department of the Treasury, which sanctioned Funnull and its 40-year-old Chinese administrator Liu Lizhi. “Funnull has directly facilitated several of these schemes, resulting in over $200 million in U.S. victim-reported losses.”

The Treasury Department said Funnull’s operations are linked to the majority of virtual currency investment scam websites reported to the FBI. The agency said Funnull directly facilitated pig butchering and other schemes that resulted in more than $200 million in financial losses by Americans.

Pig butchering is a rampant form of fraud wherein people are lured by flirtatious strangers online into investing in fraudulent cryptocurrency trading platforms. Victims are coached to invest more and more money into what appears to be an extremely profitable trading platform, only to find their money is gone when they wish to cash out.

The scammers often insist that investors pay additional “taxes” on their crypto “earnings” before they can see their invested funds again (spoiler: they never do), and a shocking number of people have lost six figures or more through these pig butchering scams.

KrebsOnSecurity’s January story on Funnull was based on research from the security firm Silent Push, which discovered in October 2024 that a vast number of domains hosted via Funnull were promoting gambling sites that bore the logo of the Suncity Group, a Chinese entity named in a 2024 UN report (PDF) for laundering millions of dollars for the North Korean state-sponsored hacking group Lazarus.

Silent Push found Funnull was a criminal content delivery network (CDN) that carried a great deal of traffic tied to scam websites, funneling the traffic through a dizzying chain of auto-generated domain names and U.S.-based cloud providers before redirecting to malicious or phishous websites. The FBI has released a technical writeup (PDF) of the infrastructure used to manage the malicious Funnull domains between October 2023 and April 2025.

A graphic from the FBI explaining how Funnull generated a slew of new domains on a regular basis and mapped them to Internet addresses on U.S. cloud providers.

Silent Push revisited Funnull’s infrastructure in January 2025 and found Funnull was still using many of the same Amazon and Microsoft cloud Internet addresses identified as malicious in its October report. Both Amazon and Microsoft pledged to rid their networks of Funnull’s presence following that story, but according to Silent Push’s Zach Edwards only one of those companies has followed through.

Edwards said Silent Push no longer sees Microsoft Internet addresses showing up in Funnull’s infrastructure, while Amazon continues to struggle with removing Funnull servers, including one that appears to have first materialized in 2023.

“Amazon is doing a terrible job — every day since they made those claims to you and us in our public blog they have had IPs still mapped to Funnull, including some that have stayed mapped for inexplicable periods of time,” Edwards said.

Amazon said its Amazon Web Services (AWS) hosting platform actively counters abuse attempts.

“We have stopped hundreds of attempts this year related to this group and we are looking into the information you shared earlier today,” reads a statement shared by Amazon. “If anyone suspects that AWS resources are being used for abusive activity, they can report it to AWS Trust & Safety using the report abuse form here.”

Continue reading →

Pakistan Arrests 21 in ‘Heartsender’ Malware Service

May 28, 2025
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Authorities in Pakistan have arrested 21 individuals accused of operating “Heartsender,” a once popular spam and malware dissemination service that operated for more than a decade. The main clientele for HeartSender were organized crime groups that tried to trick victim companies into making payments to a third party, and its alleged proprietors were publicly identified by KrebsOnSecurity in 2021 after they inadvertently infected their computers with malware.

Some of the core developers and sellers of Heartsender posing at a work outing in 2021. WeCodeSolutions boss Rameez Shahzad (in sunglasses) is in the center of this group photo, which was posted by employee Burhan Ul Haq, pictured just to the right of Shahzad.

A report from the Pakistani media outlet Dawn states that authorities there arrested 21 people alleged to have operated Heartsender, a spam delivery service whose homepage openly advertised phishing kits targeting users of various Internet companies, including Microsoft 365, Yahoo, AOL, Intuit, iCloud and ID.me. Pakistan’s National Cyber Crime Investigation Agency (NCCIA) reportedly conducted raids in Lahore’s Bahria Town and Multan on May 15 and 16.

The NCCIA told reporters the group’s tools were connected to more than $50m in losses in the United States alone, with European authorities investigating 63 additional cases.

“This wasn’t just a scam operation – it was essentially a cybercrime university that empowered fraudsters globally,” NCCIA Director Abdul Ghaffar said at a press briefing.

In January 2025, the FBI and the Dutch Police seized the technical infrastructure for the cybercrime service, which was marketed under the brands Heartsender, Fudpage and Fudtools (and many other “fud” variations). The “fud” bit stands for “Fully Un-Detectable,” and it refers to cybercrime resources that will evade detection by security tools like antivirus software or anti-spam appliances.

The FBI says transnational organized crime groups that purchased these services primarily used them to run business email compromise (BEC) schemes, wherein the cybercrime actors tricked victim companies into making payments to a third party.

Dawn reported that those arrested included Rameez Shahzad, the alleged ringleader of the Heartsender cybercrime business, which most recently operated under the Pakistani front company WeCodeSolutions. Mr. Shahzad was named and pictured in a 2021 KrebsOnSecurity story about a series of remarkable operational security mistakes that exposed their identities and Facebook pages showing employees posing for group photos and socializing at work-related outings. Continue reading →

Oops: DanaBot Malware Devs Infected Their Own PCs

May 22, 2025
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The U.S. government today unsealed criminal charges against 16 individuals accused of operating and selling DanaBot, a prolific strain of information-stealing malware that has been sold on Russian cybercrime forums since 2018. The FBI says a newer version of DanaBot was used for espionage, and that many of the defendants exposed their real-life identities after accidentally infecting their own systems with the malware.

DanaBot’s features, as promoted on its support site. Image: welivesecurity.com.

Initially spotted in May 2018 by researchers at the email security firm Proofpoint, DanaBot is a malware-as-a-service platform that specializes in credential theft and banking fraud.

Today, the U.S. Department of Justice unsealed a criminal complaint and indictment from 2022, which said the FBI identified at least 40 affiliates who were paying between $3,000 and $4,000 a month for access to the information stealer platform.

The government says the malware infected more than 300,000 systems globally, causing estimated losses of more than $50 million. The ringleaders of the DanaBot conspiracy are named as Aleksandr Stepanov, 39, a.k.a. “JimmBee,” and Artem Aleksandrovich Kalinkin, 34, a.k.a. “Onix”, both of Novosibirsk, Russia. Kalinkin is an IT engineer for the Russian state-owned energy giant Gazprom. His Facebook profile name is “Maffiozi.”

According to the FBI, there were at least two major versions of DanaBot; the first was sold between 2018 and June 2020, when the malware stopped being offered on Russian cybercrime forums. The government alleges that the second version of DanaBot — emerging in January 2021 — was provided to co-conspirators for use in targeting military, diplomatic and non-governmental organization computers in several countries, including the United States, Belarus, the United Kingdom, Germany, and Russia.

“Unindicted co-conspirators would use the Espionage Variant to compromise computers around the world and steal sensitive diplomatic communications, credentials, and other data from these targeted victims,” reads a grand jury indictment dated Sept. 20, 2022. “This stolen data included financial transactions by diplomatic staff, correspondence concerning day-to-day diplomatic activity, as well as summaries of a particular country’s interactions with the United States.”

The indictment says the FBI in 2022 seized servers used by the DanaBot authors to control their malware, as well as the servers that stored stolen victim data. The government said the server data also show numerous instances in which the DanaBot defendants infected their own PCs, resulting in their credential data being uploaded to stolen data repositories that were seized by the feds.

“In some cases, such self-infections appeared to be deliberately done in order to test, analyze, or improve the malware,” the criminal complaint reads. “In other cases, the infections seemed to be inadvertent – one of the hazards of committing cybercrime is that criminals will sometimes infect themselves with their own malware by mistake.” Continue reading →