The Coming Storm


26
Nov 19

It’s Way Too Easy to Get a .gov Domain Name

Many readers probably believe they can trust links and emails coming from U.S. federal government domain names, or else assume there are at least more stringent verification requirements involved in obtaining a .gov domain versus a commercial one ending in .com or .org. But a recent experience suggests this trust may be severely misplaced, and that it is relatively straightforward for anyone to obtain their very own .gov domain.

Earlier this month, KrebsOnSecurity received an email from a researcher who said he got a .gov domain simply by filling out and emailing an online form, grabbing some letterhead off the homepage of a small U.S. town that only has a “.us” domain name, and impersonating the town’s mayor in the application.

“I used a fake Google Voice number and fake Gmail address,” said the source, who asked to remain anonymous for this story but who said he did it mainly as a thought experiment. “The only thing that was real was the mayor’s name.”

The email from this source was sent from exeterri[.]gov, a domain registered on Nov. 14 that at the time displayed the same content as the .us domain it was impersonating — town.exeter.ri.us — which belongs to the town of Exeter, Rhode Island (the impostor domain is no longer resolving).

“I had to [fill out] ‘an official authorization form,’ which basically just lists your admin, tech guy, and billing guy,” the source continued. “Also, it needs to be printed on ‘official letterhead,’ which of course can be easily forged just by Googling a document from said municipality. Then you either mail or fax it in. After that, they send account creation links to all the contacts.”

Technically, what my source did was wire fraud (obtaining something of value via the Internet/telephone/fax through false pretenses); had he done it through the U.S. mail, he could be facing mail fraud charges if caught.

But a cybercriminal — particularly a state-sponsored actor operating outside the United States — likely would not hesitate to do so if he thought registering a .gov was worth it to make his malicious website, emails or fake news social media campaign more believable.

“I never said it was legal, just that it was easy,” the source said. “I assumed there would be at least ID verification. The deepest research I needed to do was Yellow Pages records.”

Earlier today, KrebsOnSecurity contacted officials in the real town of Exeter, RI to find out if anyone from the U.S. General Services Administration — the federal agency responsible for managing the .gov domain registration process — had sought to validate the request prior to granting a .gov in their name.

A person who called back from the town clerk’s office but who asked not to be named said someone from the GSA did phone their office on Nov. 24 — which was four days after I reached out to the federal agency about the domain in question and approximately 10 days after the GSA had already granted the phony request.

WHO WANTS TO BE A GOVERNMENT?

Responding today via email, a GSA spokesperson said the agency doesn’t comment on open investigations.

“GSA is working with the appropriate authorities and has already implemented additional fraud prevention controls,” the agency wrote, without elaborating on what those additional controls might be.

KrebsOnSecurity did get a substantive response from the Cybersecurity and Infrastructure Security Agency, a division of the U.S. Department of Homeland Security which is leading efforts to protect the federal .gov domain of civilian government networks [NB: The head of CISA, Christopher C. Krebs, is of no relation to this author].

The CISA said this matter is so critical to maintaining the security and integrity of the .gov space that DHS is now making a play to assume control over the issuance of all .gov domains.

“The .gov top-level domain (TLD) is critical infrastructure for thousands of federal, state and local government organizations across the country,” reads a statement CISA sent to KrebsOnSecurity. “Its use by these institutions should instill trust. In order to increase the security of all US-based government organizations, CISA is seeking the authority to manage the .gov TLD and assume governance from the General Services Administration.”

The statement continues:

“This transfer would allow CISA to modernize the .gov registrar, enhance the security of individual .gov domains, ensure that only authorized users obtain a .gov domain, proactively validate existing .gov holders, and better secure everyone that relies on .gov. We are appreciative of Congress’ efforts to put forth the DOTGOV bill [link added] that would grant CISA this important authority moving forward. GSA has been an important partner in these efforts and our two agencies will continue to work hand-in-hand to identify and implement near-term security enhancements to the .gov.” Continue reading →


26
Nov 19

Sale of 4 Million Stolen Cards Tied to Breaches at 4 Restaurant Chains

On Nov. 23, one of the cybercrime underground’s largest bazaars for buying and selling stolen payment card data announced the immediate availability of some four million freshly-hacked debit and credit cards. KrebsOnSecurity has learned this latest batch of cards was siphoned from four different compromised restaurant chains that are most prevalent across the midwest and eastern United States.

An advertisement on the cybercrime store Joker’s Stash for a new batch of ~4 million credit/debit cards stolen from four different restaurant chains across the midwest and eastern United States.

Two financial industry sources who track payment card fraud and asked to remain anonymous for this story said the four million cards were taken in breaches recently disclosed by restaurant chains Krystal, Moe’s, McAlister’s Deli and Schlotzsky’s. Krystal announced a card breach last month. The other three restaurants are all part of the same parent company and disclosed breaches in August 2019.

KrebsOnSecurity heard the same conclusion from Gemini Advisory, a New York-based fraud intelligence company.

“Gemini found that the four breached restaurants, ranked from most to least affected, were Krystal, Moe’s, McAlister’s and Schlotzsky’s,”  Gemini wrote in an analysis of the New World Order batch shared with this author. “Of the 1,750+ locations belonging to these restaurants, nearly 50% were breached and had customer payment card data exposed. These breached locations were concentrated in the central and eastern United States, with the highest exposure in Florida, Georgia, South Carolina, North Carolina, and Alabama.”

McAlister’s (green), Schlotzsky’s (blue), Moe’s (gray), and Krystal (orange) locations across the United States. There is an additional Moe’s location in Hawaii that is not depicted. Image: Gemini Advisory.

Focus Brands (which owns Moe’s, McAlister’s, and Schlotzsky’s) was breached between April and July 2019, and publicly disclosed this on August 23. Krystal claims to have been breached between July and September 2019, and disclosed this in late October.

The stolen cards went up for sale at the infamous Joker’s Stash carding bazaar. The most recent big breach marketed on Joker’s Stash was dubbed “Solar Energy,” and included more than five million cards stolen from restaurants, fuel pumps and drive-through coffee shops operated by Hy-Vee, a supermarket chain based in Iowa.

According to Gemini, Joker’s Stash likely delayed the debut of the New World Order cards to keep from flooding the market with too much stolen card data all at once, which can have the effect of lowering prices for stolen cards across the board.

“Joker’s Stash first announced their breach on November 11, 2019 and published the data on November 22,” Gemini found. “This delay between breaches occurring as early as July and data being offered in the dark web in November appears to be an effort to avoid oversaturating the dark web market with an excess of stolen payment records.” Continue reading →


23
Nov 19

110 Nursing Homes Cut Off from Health Records in Ransomware Attack

A ransomware outbreak has besieged a Wisconsin based IT company that provides cloud data hosting, security and access management to more than 100 nursing homes across the United States. The ongoing attack is preventing these care centers from accessing crucial patient medical records, and the IT company’s owner says she fears this incident could soon lead not only to the closure of her business, but also to the untimely demise of some patients.

Milwaukee, Wisc. based Virtual Care Provider Inc. (VCPI) provides IT consulting, Internet access, data storage and security services to some 110 nursing homes and acute-care facilities in 45 states. All told, VCPI is responsible for maintaining approximately 80,000 computers and servers that assist those facilities.

At around 1:30 a.m. CT on Nov. 17, unknown attackers launched a ransomware strain known as Ryuk inside VCPI’s networks, encrypting all data the company hosts for its clients and demanding a whopping $14 million ransom in exchange for a digital key needed to unlock access to the files. Ryuk has made a name for itself targeting businesses that supply services to other companies — particularly cloud-data firms — with the ransom demands set according to the victim’s perceived ability to pay.

In an interview with KrebsOnSecurity today, VCPI chief executive and owner Karen Christianson said the attack had affected virtually all of their core offerings, including Internet service and email, access to patient records, client billing and phone systems, and even VCPI’s own payroll operations that serve nearly 150 company employees.

The care facilities that VCPI serves access their records and other systems outsourced to VCPI by using a Citrix-based virtual private networking (VPN) platform, and Christianson said restoring customer access to this functionality is the company’s top priority right now.

“We have employees asking when we’re going to make payroll,” Christianson said. “But right now all we’re dealing with is getting electronic medical records back up and life-threatening situations handled first.”

Christianson said her firm cannot afford to pay the ransom amount being demanded — roughly $14 million worth of Bitcoin — and said some clients will soon be in danger of having to shut their doors if VCPI can’t recover from the attack.

“We’ve got some facilities where the nurses can’t get the drugs updated and the order put in so the drugs can arrive on time,” she said. “In another case, we have this one small assisted living place that is just a single unit that connects to billing. And if they don’t get their billing into Medicaid by December 5, they close their doors. Seniors that don’t have family to go to are then done. We have a lot of [clients] right now who are like, ‘Just give me my data,’ but we can’t.” Continue reading →


7
Nov 19

Study: Ransomware, Data Breaches at Hospitals tied to Uptick in Fatal Heart Attacks

Hospitals that have been hit by a data breach or ransomware attack can expect to see an increase in the death rate among heart patients in the following months or years because of cybersecurity remediation efforts, a new study posits. Health industry experts say the findings should prompt a larger review of how security — or the lack thereof — may be impacting patient outcomes.

Researchers at Vanderbilt University‘s Owen Graduate School of Management took the Department of Health and Human Services (HHS) list of healthcare data breaches and used it to drill down on data about patient mortality rates at more than 3,000 Medicare-certified hospitals, about 10 percent of which had experienced a data breach.

As PBS noted in its coverage of the Vanderbilt study, after data breaches as many as 36 additional deaths per 10,000 heart attacks occurred annually at the hundreds of hospitals examined.

The researchers found that for care centers that experienced a breach, it took an additional 2.7 minutes for suspected heart attack patients to receive an electrocardiogram.

“Breach remediation efforts were associated with deterioration in timeliness of care and patient outcomes,” the authors found. “Remediation activity may introduce changes that delay, complicate or disrupt health IT and patient care processes.”

Leo Scanlon, former deputy chief information security officer at the HHS, said the findings in this report practically beg for a similar study to be done in the United Kingdom, whose healthcare system was particularly disrupted by the Wannacry virus, a global contagion in May 2017 that spread through a Microsoft Windows vulnerability prevalent in older healthcare systems.

“The exploitation of cybersecurity vulnerabilities is killing people,” Scanlon told KrebsOnSecurity. “There is a lot of possible research that might be unleashed by this study. I believe that nothing less than a congressional investigation will give the subject the attention it deserves.”

A post-mortem on the impact of WannaCry found the outbreak cost U.K. hospitals almost $100 million pounds and caused significant disruption to patient care, such as the cancellation of some 19,000 appointments — including operations — and the disruption of IT systems for at least a third of all U.K. National Health Service (NHS) hospitals and eight percent of general practitioners. In several cases, hospitals in the U.K. were forced to divert emergency room visitors to other hospitals.

But what isn’t yet known is how Wannacry affected mortality rates among heart attack and stroke patients whose ambulances were diverted to other hospitals because of IT system outages related to the malware. Or how many hospitals and practices experienced delays in getting test results back needed to make critical healthcare decisions.

Scanlon said although he’s asked around quite a bit over the years to see if any researchers have taken up the challenge of finding out, and that so far he hasn’t found anyone doing that analysis.

“A colleague who is familiar with large scale healthcare data sets told me that unless you are associated with a research institution, it would be almost impossible to pry that kind of data out of the institutions that have it,” Scanlon said. “The problem is this data is hard to come by — nobody likes to admit that death can be attributable to a non-natural cause like this — and is otherwise considered sensitive at a very high and proprietary level by the institutions that have the facts.”

A study published in the April 2017 edition of The New England Journal of Medicine would seem to suggest applying the approach used by the Vanderbilt researchers to measuring patient outcomes at U.K. hospitals in the wake of Wannacry might be worth carrying out.

In the NEJM study, morbidity and mortality data was used to show that there is a measurable impact when ambulances and emergency response teams are removed from normal service and redirected to standby during public events like marathons and other potential targets of terrorism.

The study found that “medicare beneficiaries who were admitted to marathon-affected hospitals with acute myocardial infarction or cardiac arrest on marathon dates had longer ambulance transport times before noon (4.4 minutes longer) and higher 30-day mortality than beneficiaries who were hospitalized on nonmarathon dates.” Continue reading →


3
Nov 19

NCR Barred Mint, QuickBooks from Banking Platform During Account Takeover Storm

Banking industry giant NCR Corp. [NYSE: NCR] late last month took the unusual step of temporarily blocking third-party financial data aggregators Mint and QuickBooks Online from accessing Digital Insight, an online banking platform used by hundreds of financial institutions. That ban, which came in response to a series of bank account takeovers in which cybercriminals used aggregation sites to surveil and drain consumer accounts, has since been rescinded. But the incident raises fresh questions about the proper role of digital banking platforms in fighting password abuse.

Part of a communication NCR sent Oct. 25 to banks on its Digital Insight online banking platform.

On Oct. 29, KrebsOnSecurity heard from a chief security officer at a U.S.-based credit union and Digital Insight customer who said his institution just had several dozen customer accounts hacked over the previous week.

My banking source said the attackers appeared to automate the unauthorized logins, which took place over a week in several distinct 12-hour periods in which a new account was accessed every five to ten minutes.

Most concerning, the source said, was that in many cases the aggregator service did not pass through prompts sent by the credit union’s site for multi-factor authentication, meaning the attackers could access customer accounts with nothing more than a username and password.

“The weird part is sometimes the attackers are getting the multi-factor challenge, and sometimes they aren’t,” said the source, who added that he suspected a breach at Mint and/QuickBooks because NCR had just blocked the two companies from accessing bank Web sites on its platform.

In a statement provided to KrebsOnSecurity, NCR said that on Friday, Oct. 25, the company notified Digital Insight customers “that the aggregation capabilities of certain third-party product were being temporarily suspended.”

“The notification was sent while we investigated a report involving a single user and a third-party product that aggregates bank data,” reads their statement, which was sent to customers on Oct. 29. After confirming that the incident was contained, NCR restored connectivity that is used for account aggregation. “As we noted, the criminals are getting aggressive and creative in accessing tools to access online information, NCR continues to evaluate and proactively defend against these activities.””

What were these sophisticated methods? NCR wouldn’t say, but it seems clear the hacked accounts are tied to customers re-using their online banking passwords at other sites that got hacked.

As I noted earlier this year in The Risk of Weak Online Banking Passwords, if you bank online and choose weak or re-used passwords, there’s a decent chance your account could be pilfered by cyberthieves — even if your bank offers multi-factor authentication as part of its login process. Continue reading →


24
Oct 19

Cachet Financial Reeling from MyPayrollHR Fraud

When New York-based cloud payroll provider MyPayrollHR unexpectedly shuttered its doors last month and disappeared with $26 million worth of customer payroll deposits, its payment processor Cachet Financial Services ended up funding the bank accounts of MyPayrollHR client company employees anyway, graciously eating a $26 million loss which it is now suing to recover.

But on Oct. 23 — less than 24 hours before another weekly payroll rush — Pasadena, Calif.-based Cachet threw much of its customer base into disarray when it said its bank was no longer willing to risk another MyPayrollHR debacle, and that customers would need to wire payroll deposits instead of relying on the usual method of automated clearinghouse (ACH) payments (essentially bank-to-bank checks).

Cachet processes some $150 billion in payroll payments annually for more than 110,000 employers. But payroll experts say this week’s actions by Cachet’s bank may well soon put the 22-year-old company out of business.

“We apologize for the inconvenience of this message,” reads the communication from Cachet that went out to customers just after 6:30 PM ET on Oct. 23. It continued:

“Due to ongoing fraud protocol with our bank, they are requiring pre-funding via Direct Wire for all batches that were uploaded this week, unless employees were already paid or tax payments were already transmitted. This includes all batch files moving forward.”

All files that were uploaded today for collection and disbursement will not be processed. In order to process disbursement, we will need to receive a wire first thing tomorrow in order to release the disbursements.

All collections that were processed prior to today will be reviewed by the bank and disbursements will be released once the funds are cleared. Credit trans

Deadline for wires is 1 P.M. PST.

This will be the process until further notice. If you need a backup processor, please contact us.

If you require wire instructions, please respond to this email and they will be sent to you.

We welcome and anticipate your phone calls and inquiries. We remain committed to our clients and are determined to see this through. We appreciate and thank you for your patience and understanding.”

In a follow-up communication sent Thursday evening, Cachet said all debit transactions with a settlement date of Oct. 23 had been processed, but that any transactions uploaded after Oct. 23 were not being processed at all, and that wires are no longer being accepted.

Cachet’s financial institution, Wilmington, Del. based The Bancorp Bank (NASDAQ: TBBK), did not respond to requests for comment.

Cachet also did not respond to requests for comment. But in an email Thursday evening, the company sought to offer customers a range of alternatives — including other providers — to help process payrolls this week.

Steve Friedl, an IT consultant in the payroll service bureau industry, said the Cachet announcement has sent payroll providers scrambling to cut and mail or courier paper checks to client employees.  But he said many payroll providers also use Cachet to process tax withholdings for client employees, and that this, too, could be disrupted by the funding changes.

“There’s a lot of same day stuff that goes on in the payroll industry that depends on people being honest and having money available at certain times,” Friedl said. “When that’s not possible because a bank in that process says it doesn’t want to be stuck in the middle that can create problems for a lot of people who are then stuck in the middle.”

Another payroll expert at a company that uses Cachet but who asked not to be named said, “everyone I know at payroll providers is scrambling to get it done another way this week” as a result of the decision by Cachet’s bank.

“Those bureaus will do whatever they can to keep their clients happy because something like this can quickly put them out of business,” the source said. “Unlike what happened with MyPayrollHR — which harmed consumers directly — the payment service bureaus are the ones potentially getting hurt here.” Continue reading →


2
Sep 19

Feds Allege Adconion Employees Hijacked IP Addresses for Spamming

Federal prosecutors in California have filed criminal charges against four employees of Adconion Direct, an email advertising firm, alleging they unlawfully hijacked vast swaths of Internet addresses and used them in large-scale spam campaigns. KrebsOnSecurity has learned that the charges are likely just the opening salvo in a much larger, ongoing federal investigation into the company’s commercial email practices.

Prior to its acquisition, Adconion offered digital advertising solutions to some of the world’s biggest companies, including Adidas, AT&T, Fidelity, Honda, Kohl’s and T-Mobile. Amobee, the Redwood City, Calif. online ad firm that acquired Adconion in 2014, bills itself as the world’s leading independent advertising platform. The CEO of Amobee is Kim Perell, formerly CEO of Adconion.

In October 2018, prosecutors in the Southern District of California named four Adconion employees — Jacob Bychak, Mark ManoogianPetr Pacas, and Mohammed Abdul Qayyum —  in a ten-count indictment on charges of conspiracy, wire fraud, and electronic mail fraud. All four men have pleaded not guilty to the charges, which stem from a grand jury indictment handed down in June 2017.

‘COMPANY A’

The indictment and other court filings in this case refer to the employer of the four men only as “Company A.” However, LinkedIn profiles under the names of three of the accused show they each work(ed) for Adconion and/or Amobee.

Mark Manoogian is an attorney whose LinkedIn profile states that he is director of legal and business affairs at Amobee, and formerly was senior business development manager at Adconion Direct; Bychak is listed as director of operations at Adconion Direct; Quayyum’s LinkedIn page lists him as manager of technical operations at Adconion. A statement of facts filed by the government indicates Petr Pacas was at one point director of operations at Company A (Adconion).

According to the indictment, between December 2010 and September 2014 the defendants engaged in a conspiracy to identify or pay to identify blocks of Internet Protocol (IP) addresses that were registered to others but which were otherwise inactive.

The government alleges the men sent forged letters to an Internet hosting firm claiming they had been authorized by the registrants of the inactive IP addresses to use that space for their own purposes.

“Members of the conspiracy would use the fraudulently acquired IP addresses to send commercial email (‘spam’) messages,” the government charged.

HOSTING IN THE WIND

Prosecutors say the accused were able to spam from the purloined IP address blocks after tricking the owner of Hostwinds, an Oklahoma-based Internet hosting firm, into routing the fraudulently obtained IP addresses on their behalf.

Hostwinds owner Peter Holden was the subject of a 2015 KrebsOnSecurity story titled, “Like Cutting Off a Limb to Save the Body,” which described how he’d initially built a lucrative business catering mainly to spammers, only to later have a change of heart and aggressively work to keep spammers off of his network.

That a case of such potential import for the digital marketing industry has escaped any media attention for so long is unusual but not surprising given what’s at stake for the companies involved and for the government’s ongoing investigations.

Adconion’s parent Amobee manages ad campaigns for some of the world’s top brands, and has every reason not to call attention to charges that some of its key employees may have been involved in criminal activity.

Meanwhile, prosecutors are busy following up on evidence supplied by several cooperating witnesses in this and a related grand jury investigation, including a confidential informant who received information from an Adconion employee about the company’s internal operations. Continue reading →


30
Aug 19

Phishers are Angling for Your Cloud Providers

Many companies are now outsourcing their marketing efforts to cloud-based Customer Relationship Management (CRM) providers. But when accounts at those CRM providers get hacked or phished, the results can be damaging for both the client’s brand and their customers. Here’s a look at a recent CRM-based phishing campaign that targeted customers of Fortune 500 construction equipment vendor United Rentals.

Stamford, Ct.-based United Rentals [NYSE:URI] is the world’s largest equipment rental company, with some 18,000 employees and earnings of approximately $4 billion in 2018. On August 21, multiple United Rental customers reported receiving invoice emails with booby-trapped links that led to a malware download for anyone who clicked.

While phony invoices are a common malware lure, this particular campaign sent users to a page on United Rentals’ own Web site (unitedrentals.com).

A screen shot of the malicious email that spoofed United Rentals.

In a notice to customers, the company said the unauthorized messages were not sent by United Rentals. One source who had at least two employees fall for the scheme forwarded KrebsOnSecurity a response from UR’s privacy division, which blamed the incident on a third-party advertising partner.

“Based on current knowledge, we believe that an unauthorized party gained access to a vendor platform United Rentals uses in connection with designing and executing email campaigns,” the response read.

“The unauthorized party was able to send a phishing email that appears to be from United Rentals through this platform,” the reply continued. “The phishing email contained links to a purported invoice that, if clicked on, could deliver malware to the recipient’s system. While our investigation is continuing, we currently have no reason to believe that there was unauthorized access to the United Rentals systems used by customers, or to any internal United Rentals systems.”

United Rentals told KrebsOnSecurity that its investigation so far reveals no compromise of its internal systems.

“At this point, we believe this to be an email phishing incident in which an unauthorized third party used a third-party system to generate an email campaign to deliver what we believe to be a banking trojan,” said Dan Higgins, UR’s chief information officer.

United Rentals would not name the third party marketing firm thought to be involved, but passive DNS lookups on the UR subdomain referenced in the phishing email (used by UL for marketing since 2014 and visible in the screenshot above as “wVw.unitedrentals.com”) points to Pardot, an email marketing division of cloud CRM giant Salesforce. Continue reading →


19
Aug 19

The Rise of “Bulletproof” Residential Networks

Cybercrooks increasingly are anonymizing their malicious traffic by routing it through residential broadband and wireless data connections. Traditionally, those connections have been mainly hacked computers, mobile phones, or home routers. But this story is about so-called “bulletproof residential VPN services” that appear to be built by purchasing or otherwise acquiring discrete chunks of Internet addresses from some of the world’s largest ISPs and mobile data providers.

In late April 2019, KrebsOnSecurity received a tip from an online retailer who’d seen an unusual number of suspicious transactions originating from a series of Internet addresses assigned to a relatively new Internet provider based in Maryland called Residential Networking Solutions LLC.

Now, this in itself isn’t unusual; virtually every provider has the occasional customers who abuse their access for fraudulent purposes. But upon closer inspection, several factors caused me to look more carefully at this company, also known as “Resnet.”

An examination of the IP address ranges assigned to Resnet shows that it maintains an impressive stable of IP blocks — totaling almost 70,000 IPv4 addresses — many of which had until quite recently been assigned to someone else.

Most interestingly, about ten percent of those IPs — more than 7,000 of them — had until late 2018 been under the control of AT&T Mobility. Additionally, the WHOIS registration records for each of these mobile data blocks suggest Resnet has been somehow reselling data services for major mobile and broadband providers, including AT&T, Verizon, and Comcast Cable.

The WHOIS records for one of several networks associated with Residential Networking Solutions LLC.

Drilling down into the tracts of IPs assigned to Resnet’s core network indicates those 7,000+ mobile IP addresses under Resnet’s control were given the label  “Service Provider Corporation” — mostly those beginning with IPs in the range 198.228.x.x.

An Internet search reveals this IP range is administered by the Wireless Data Service Provider Corporation (WDSPC), a non-profit formed in the 1990s to manage IP address ranges that could be handed out to various licensed mobile carriers in the United States.

Back when the WDSPC was first created, there were quite a few mobile wireless data companies. But today the vast majority of the IP space managed by the WDSPC is leased by AT&T Mobility and Verizon Wireless — which have gradually acquired most of their competing providers over the years.

A call to the WDSPC revealed the nonprofit hadn’t leased any new wireless data IP space in more than 10 years. That is, until the organization received a communication at the beginning of this year that it believed was from AT&T, which recommended Resnet as a customer who could occupy some of the company’s mobile data IP address blocks.

“I’m afraid we got duped,” said the person answering the phone at the WDSPC, while declining to elaborate on the precise nature of the alleged duping or the medium that was used to convey the recommendation.

AT&T declined to discuss its exact relationship with Resnet  — or if indeed it ever had one to begin with. It responded to multiple questions about Resnet with a short statement that said, “We have taken steps to terminate this company’s services and have referred the matter to law enforcement.”

Why exactly AT&T would forward the matter to law enforcement remains unclear. But it’s not unheard of for hosting providers to forge certain documents in their quest for additional IP space, and anyone caught doing so via email, phone or fax could be charged with wire fraud, which is a federal offense that carries punishments of up to $500,000 in fines and as much as 20 years in prison.

WHAT IS RESNET?

The WHOIS registration records for Resnet’s main Web site, resnetworking[.]com, are hidden behind domain privacy protection. However, a cursory Internet search on that domain turned up plenty of references to it on Hackforums[.]net, a sprawling community that hosts a seemingly never-ending supply of up-and-coming hackers seeking affordable and anonymous ways to monetize various online moneymaking schemes.

One user in particular — a Hackforums member who goes by the nickname “Profitvolt” — has spent several years advertising resnetworking[.]com and a number of related sites and services, including “unlimited” AT&T 4G/LTE data services, and the immediate availability of more than 1 million residential IPs that he suggested were “perfect for botting, shoe buying.”

The Hackforums user “Profitvolt” advertising residential proxies.

Profitvolt advertises his mobile and residential data services as ideal for anyone who wishes to run “various bots,” or “advertising campaigns.” Those services are meant to provide anonymity when customers are doing things such as automating ad clicks on platforms like Google Adsense and Facebook; generating new PayPal accounts; sneaker bot activity; credential stuffing attacks; and different types of social media spam.

For readers unfamiliar with this term, “shoe botting” or “sneaker bots” refers to the use of automated bot programs and services that aid in the rapid acquisition of limited-release, highly sought-after designer shoes that can then be resold at a profit on secondary markets. All too often, it seems, the people who profit the most in this scheme are using multiple sets of compromised credentials from consumer accounts at online retailers, and/or stolen payment card data.

To say shoe botting has become a thorn in the side of online retailers and regular consumers alike would be a major understatement: A recent State of The Internet Security Report (PDF) from Akamai (an advertiser on this site) noted that such automated bot activity now accounts for almost half of the Internet bandwidth directed at online retailers. The prevalance of shoe botting also might help explain Footlocker‘s recent $100 million investment in goat.com, the largest secondary shoe resale market on the Web.

In other discussion threads, Profitvolt advertises he can rent out an “unlimited number” of so-called “residential proxies,” a term that describes home or mobile Internet connections that can be used to anonymously relay Internet traffic for a variety of dodgy deals.

From a ne’er-do-well’s perspective, the beauty of routing one’s traffic through residential IPs is that few online businesses will bother to block malicious or suspicious activity emanating from them.

That’s because in general the pool of IP addresses assigned to residential or mobile wireless connections cycles intermittently from one user to the next, meaning that blacklisting one residential IP for abuse or malicious activity may only serve to then block legitimate traffic (and e-commerce) from the next user who gets assigned that same IP. Continue reading →


12
Aug 19

SEC Investigating Data Leak at First American Financial Corp.

The U.S. Securities and Exchange Commission (SEC) is investigating a security failure on the Web site of real estate title insurance giant First American Financial Corp. that exposed more than 885 million personal and financial records tied to mortgage deals going back to 2003, KrebsOnSecurity has learned.

First American Financial Corp.

In May, KrebsOnSecurity broke the news that the Web site for Santa Ana, Calif.-based First American [NYSE:FAFexposed some 885 million documents related to real estate closings over the past 16 years, including bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts and drivers license images. No authentication was required to view the documents.

The initial tip on that story came from Ben Shoval, a real estate developer based in Seattle. Shoval said he recently received a letter from the SEC’s enforcement division which stated the agency was investigating the data exposure to determine if First American had violated federal securities laws.

In its letter, the SEC asked Shoval to preserve and share any documents or evidence he had related to the data exposure.

“This investigation is a non-public, fact-finding inquiry,” the letter explained. “The investigation does not mean that we have concluded that anyone has violated the law.”

The SEC declined to comment for this story.

Word of the SEC investigation comes weeks after regulators in New York said they were investigating the company in what could turn out to be the first test of the state’s strict new cybersecurity regulation, which requires financial companies to periodically audit and report on how they protect sensitive data, and provides for fines in cases where violations were reckless or willful. First American also is now the target of a class action lawsuit that alleges it “failed to implement even rudimentary security measures.” Continue reading →