Author Archives: BrianKrebs

AshleyMadison: $500K Bounty for Hackers

August 24, 2015

AshleyMadison.com, an online cheating service whose motto is “Life is Short, Have an Affair,” is offering a $500,000 reward for information leading to the arrest and prosecution of the individual or group of people responsible for leaking the highly personal information on the company’s more than 30 million users.

Extortionists Target Ashley Madison Users

August 21, 2015

People who cheat on their partners are always open to extortion by the parties involved. But when the personal details of millions of cheaters get posted online for anyone to download — as is the case with the recent hack of infidelity hookup site AshleyMadison.com — random blackmailers are bound to pounce on the opportunity.

Street Gangs, Tax Fraud and ‘Drop Hoes’

August 20, 2015

Authorities across the United States this week arrested dozens of gang members who stand accused of making millions of dollars stealing consumer identities in order to file fraudulent tax refund requests with the Internal Revenue Service (IRS). The arrests highlight the dramatic shift in gang activity in recent years from high-risk drug dealing to identity fraud — a far less risky yet equally lucrative crime.

Was the Ashley Madison Database Leaked?

August 18, 2015

Many news sites and blogs are reporting that the data stolen last month from 37 million users of AshleyMadison.com — a site that facilitates cheating and extramarital affairs — has finally been posted online for the world to see. In the past 48 hours, several huge dumps of data claiming to be the actual AshleyMadison database have turned up online. But there are precious few details in them that would allow one to verify these claims, and the company itself says it so far sees no indication that the files are legitimate.

How Not to Start an Encryption Company

August 18, 2015

Probably the quickest way for a security company to prompt an overwhelmingly hostile response from the security research community is to claim that its products and services are “unbreakable” by hackers. The second-fastest way to achieve that outcome is to have that statement come from an encryption company CEO who served several years in federal prison for running a $210 million Ponzi scheme. Here’s the story of a company that managed to accomplish both at the same time and is now trying to learn from (and survive) the experience.

IRS: 330K Taxpayers Hit by ‘Get Transcript’ Scam

August 17, 2015

The Internal Revenue Service (IRS) disclosed today that identity thieves abused a feature on the agency’s Web site to pull sensitive data on more than 330,000 potential victims as part of a scheme to file fraudulent tax refund requests. The new figure is far larger than the number of Americans the IRS said were potentially impacted when it first acknowledged the vulnerability in May 2015 — two months after KrebsOnSecurity first raised alarms about the weakness.

Stress-Testing the Booter Services, Financially

August 17, 2015

The past few years have witnessed a rapid proliferation of cheap, Web-based services that troublemakers can hire to knock virtually any person or site offline for hours on end. Such services succeed partly because they’ve enabled users to pay for attacks with PayPal. But a collaborative effort by PayPal and security researchers has made it far more difficult for these services to transact with their would-be customers.

Cyberheist Victim Trades Smokes for Cash

August 14, 2015

Earlier this month, KrebsOnSecurity featured the exclusive story of a Russian organized cybercrime gang that stole more than $100 million from small to mid-sized businesses with the help of phantom corporations on the border with China. Today, we’ll look at the stranger-than-fiction true tale of an American firm that lost $197,000 in a remarkably similar 2013 cyberheist, only to later recover most of the money after allegedly plying Chinese authorities with a carton of cigarettes and a hefty bounty for their trouble.