The Coming Storm


15
Jul 19

Is ‘REvil’ the New GandCrab Ransomware?

The cybercriminals behind the GandCrab ransomware-as-a-service (RaaS) offering recently announced they were closing up shop and retiring after having allegedly earned more than $2 billion in extortion payments from victims. But a growing body of evidence suggests the GandCrab team have instead quietly regrouped behind a more exclusive and advanced ransomware program known variously as “REvil,” “Sodin,” and “Sodinokibi.”

“We are getting a well-deserved retirement,” the GandCrab administrator(s) wrote in their farewell message on May 31. “We are a living proof that you can do evil and get off scot-free.”

However, it now appears the GandCrab team had already begun preparations to re-brand under a far more private ransomware-as-a-service offering months before their official “retirement.”

In late April, researchers at Cisco Talos spotted a new ransomware strain dubbed Sodinokibi that was used to deploy GandCrab, which encrypts files on infected systems unless and until the victim pays the demanded sum. A month later, GandCrab would announce its closure.

A payment page for a victim of REvil, a.k.a. Sodin and Sodinokibi.

Meanwhile, in the first half of May an individual using the nickname “Unknown” began making deposits totaling more than USD $130,000 worth of virtual currencies on two top cybercrime forums. The down payments were meant to demonstrate the actor meant business in his offer to hire just a handful of affiliates to drive a new, as-yet unnamed ransomware-as-a-service offering.

“We are not going to hire as many people as possible,” Unknown told forum members in announcing the new RaaS program. “Five affiliates more can join the program and then we’ll go under the radar. Each affiliate is guaranteed USD 10,000. Your cut is 60 percent at the beginning and 70 percent after the first three payments are made. Five affiliates are guaranteed [USD] 50,000 in total. We have been working for several years, specifically five years in this field. We are interested in professionals.”

Asked by forum members to name the ransomware service, Unknown said it had been mentioned in media reports but that he wouldn’t be disclosing technical details of the program or its name for the time being. Continue reading →


25
Jun 19

Tracing the Supply Chain Attack on Android

Earlier this month, Google disclosed that a supply chain attack by one of its vendors resulted in malicious software being pre-installed on millions of new budget Android devices. Google didn’t exactly name those responsible, but said it believes the offending vendor uses the nicknames “Yehuo” or “Blazefire.” What follows is a deep dive into the identity of that Chinese vendor, which appears to have a long and storied history of pushing the envelope on mobile malware.

“Yehuo” () is Mandarin for “wildfire,” so one might be forgiven for concluding that Google was perhaps using another dictionary than most Mandarin speakers. But Google was probably just being coy: The vendor in question appears to have used both “blazefire” and “wildfire” in two of many corporate names adopted for the same entity.

An online search for the term “yehuo” reveals an account on the Chinese Software Developer Network which uses that same nickname and references the domain blazefire[.]com. More searching points to a Yehuo user on gamerbbs[.]cn who advertises a mobile game called “Xiaojun Junji,” and says the game is available at blazefire[.]com.

Research on blazefire[.]com via Domaintools.com shows the domain was assigned in 2015 to a company called “Shanghai Blazefire Network Technology Co. Ltd.” just a short time after it was registered by someone using the email address “tosaka1027@gmail.com“.

The Shanghai Blazefire Network is part of a group of similarly-named Chinese entities in the “mobile phone pre-installation business and in marketing for advertisers’ products to install services through mobile phone installed software.”

“At present, pre-installed partners cover the entire mobile phone industry chain, including mobile phone chip manufacturers, mobile phone design companies, mobile phone brand manufacturers, mobile phone agents, mobile terminal stores and major e-commerce platforms,” reads a descriptive blurb about the company.

A historic records search at Domaintools on that tosaka1027@gmail.com address says it was used to register 24 Internet domain names, including at least seven that have been conclusively tied to the spread of powerful Android mobile malware.

Two of those domains registered to tosaka1027@gmail.com — elsyzsmc[.]com and rurimeter[.]com — were implicated in propagating the Triada malware. Triada is the very same malicious software Google said was found pre-installed on many of its devices and being used to install spam apps that display ads.

In July 2017, Russian antivirus vendor Dr.Web published research showing that Triada had been installed by default on at least four low-cost Android models. In 2018, Dr.Web expanded its research when it discovered the Triada malware installed on 40 different models of Android devices.

At least another five of the domains registered to tosaka1027@gmail.com — 99youx[.]com, buydudu[.]com, kelisrim[.]com, opnixi[.]com and sonyba[.]comwere seen as early as 2016 as distribution points for the Hummer Trojan, a potent strain of Android malware often bundled with games that completely compromises the infected device. Continue reading →


22
May 19

Legal Threats Make Powerful Phishing Lures

Some of the most convincing email phishing and malware attacks come disguised as nastygrams from a law firm. Such scams typically notify the recipient that he/she is being sued, and instruct them to review the attached file and respond within a few days — or else. Here’s a look at a recent spam campaign that peppered more than 100,000 business email addresses with fake legal threats harboring malware.

On or around May 12, at least two antivirus firms began detecting booby-trapped Microsoft Word files that were sent along with some variation of the following message:

{Pullman & Assoc. | Wiseman & Assoc.| Steinburg & Assoc. | Swartz & Assoc. | Quartermain & Assoc.} <legal@wpslaw.com>

Hi,

The following {e-mail | mail} is to advise you that you are being charged by the city.

Our {legal team | legal council | legal departement} has prepared a document explaining the {litigation | legal dispute | legal contset}.

Please download and read the attached encrypted document carefully.

You have 7 days to reply to this e-mail or we will be forced to step forward with this action.

Note: The password for the document is 123456

The template above was part of a phishing kit being traded on the underground, and the user of this kit decides which of the options in brackets actually get used in the phishing message.

Yes, the spelling/grammar is poor and awkward (e.g., the salutation), but so is the overall antivirus detection rate of the attached malicious Word document. This phishing kit included five booby-trapped Microsoft Word documents to choose from, and none of those files are detected as malicious by more than three of the five dozen or so antivirus products that scanned the Word docs on May 22 — 10 days after they were spammed out.

According to both Fortinet and Sophos, the attached Word documents include a trojan that is typically used to drop additional malware on the victim’s computer. Previous detections of this trojan have been associated with ransomware, but the attackers in this case can use the trojan to install malware of their choice.

Also part of the phishing kit was a text document containing some 100,000 business email addresses — most of them ending in Canadian (.ca) domains — although there were also some targets at companies in the northeastern United States. If only a tiny fraction of the recipients of this scam were unwary enough to open the attachment, it would still be a nice payday for the phishers. Continue reading →


15
May 19

A Tough Week for IP Address Scammers

In the early days of the Internet, there was a period when Internet Protocol version 4 (IPv4) addresses (e.g. 4.4.4.4) were given out like cotton candy to anyone who asked. But these days companies are queuing up to obtain new IP space from the various regional registries that periodically dole out the prized digits. With the value of a single IP hovering between $15-$25, those registries are now fighting a wave of shady brokers who specialize in securing new IP address blocks under false pretenses and then reselling to spammers. Here’s the story of one broker who fought back in the courts, and lost spectacularly.

On May 14, South Carolina U.S. Attorney Sherri Lydon filed criminal wire fraud charges against Amir Golestan, alleging he and his Charleston, S.C. based company Micfo LLC orchestrated an elaborate network of phony companies and aliases to secure more than 735,000 IPs from the American Registry for Internet Numbers (ARIN), a nonprofit which oversees IP addresses assigned to entities in the U.S., Canada, and parts of the Caribbean.

Interestingly, Micfo itself set this process in motion late last year when it sued ARIN. In December 2018, Micfo’s attorneys asked a federal court in Virginia to issue a temporary restraining order against ARIN, which had already told the company about its discovery of the phony front companies and was threatening to revoke some 735,000 IP addresses. That is, unless Micfo agreed to provide more information about its operations and customers.

At the time, many of the IP address blocks assigned to Micfo had been freshly resold to spammers. Micfo ultimately declined to provide ARIN the requested information, and as a result the court denied Micfo’s request (the transcript of that hearing is instructive and amusing).

But by virtue of the contract Micfo signed with ARIN, any further dispute had to be settled via arbitration. On May 13, that arbitration panel ordered Micfo to pay $350,000 for ARIN’s legal fees and to cough up any of those 735,000 IPs the company hadn’t already sold.

According to the criminal indictment in South Carolina, in 2017 and 2018 Golestan sold IP addresses using a third party broker:

“Golestan sold 65,536 IPv4 addresses for $13 each, for a total of $851,896,” the indictment alleges. “Golestan also organized a second transaction for another 65,536 IP addresses, for another approximately $1 million. During this same time period, Golestan had a contract to sell 327,680 IP addresses at $19 per address, for a total of $6.22 million” [this last transaction would be blocked.] Continue reading →


3
May 19

Feds Bust Up Dark Web Hub Wall Street Market

Federal investigators in the United States, Germany and the Netherlands announced today the arrest and charging of three German nationals and a Brazilian man as the alleged masterminds behind the Wall Street Market (WSM), one of the world’s largest dark web bazaars that allowed vendors to sell illegal drugs, counterfeit goods and malware. Now, at least one former WSM administrator is reportedly trying to extort money from WSM vendors and buyers (supposedly including Yours Truly) — in exchange for not publishing details of the transactions.

The now-defunct Wall Street Market (WSM). Image: Dark Web Reviews.

A complaint filed Wednesday in Los Angeles alleges that the three defendants, who currently are in custody in Germany, were the administrators of WSM, a sophisticated online marketplace available in six languages that allowed approximately 5,400 vendors to sell illegal goods to about 1.15 million customers around the world.

“Like other dark web marketplaces previously shut down by authorities – Silk Road and AlphaBay, for example – WSM functioned like a conventional e-commerce website, but it was a hidden service located beyond the reach of traditional internet browsers, accessible only through the use of networks designed to conceal user identities, such as the Tor network,” reads a Justice Department release issued Friday morning.

The complaint alleges that for nearly three years, WSM was operated on the dark web by three men who engineered an “exit scam” last month, absconding with all of the virtual currency held in marketplace escrow and user accounts. Prosecutors say they believe approximately $11 million worth of virtual currencies was then diverted into the three men’s own accounts.

The defendants charged in the United States and arrested Germany on April 23 and 24 include 23-year-old resident of Kleve, Germany; a 31-year-old resident of Wurzburg, Germany; and a 29-year-old resident of Stuttgart, Germany. The complaint charges the men with two felony counts – conspiracy to launder monetary instruments, and distribution and conspiracy to distribute controlled substances. These three defendants also face charges in Germany.

Signs of the dark market seizure first appeared Thursday when WSM’s site was replaced by a banner saying it had been seized by the German Federal Criminal Police Office (BKA).

The seizure message that replaced the homepage of the Wall Street Market on on May 2.

Writing for ZDNet’s Zero Day blog, Catalin Cimpanu noted that “in this midst of all of this, one of the site’s moderators –named Med3l1n— began blackmailing WSM vendors and buyers, asking for 0.05 Bitcoin (~$280), and threatening to disclose to law enforcement the details of WSM vendors and buyers who made the mistake of sharing various details in support requests in an unencrypted form.

In a direct message sent to my Twitter account this morning, a Twitter user named @FerucciFrances who claimed to be part of the exit scam demanded 0.05 bitcoin (~$286) to keep quiet about a transaction or transactions allegedly made in my name on the dark web market. Continue reading →


3
May 19

Credit Union Sues Fintech Giant Fiserv Over Security Claims

A Pennsylvania credit union is suing financial industry technology giant Fiserv, alleging that “baffling” security vulnerabilities in the company’s software are “wreaking havoc” on its customers. The credit union said the investigation that fueled the lawsuit was prompted by a 2018 KrebsOnSecurity report about glaring security weaknesses in a Fiserv platform that exposed personal and financial details of customers across hundreds of bank Web sites.

Brookfield, Wisc.-based Fiserv [NASDAQ:FISV] is a Fortune 500 company with 24,000 employees and $5.8 billion in earnings last year. Its account and transaction processing systems power the Web sites for hundreds of financial institutions — mostly small community banks and credit unions.

In August 2018, in response to inquiries by KrebsOnSecurity, Fiserv fixed a pervasive security and privacy hole in its online banking platform. The authentication weakness allowed bank customers to view account data for other customers, including account number, balance, phone numbers and email addresses.

In late April 2019, Fiserv was sued by Bessemer System Federal Credit Union, a comparatively tiny financial institution with just $38 million in assets. Bessemer said it was moved by that story to launch its own investigation into Fiserv’s systems, and it found a startlingly simple flaw: Firsev’s platform would let anyone reset the online banking password for a customer just by knowing their account number and the last four digits of their Social Security number.

Bessemer claims Fiserv’s systems let anyone reset a customer’s online banking password just by knowing their SSN and account number.

Recall that in my Aug 2018 report, Fiserv’s own systems were exposing online banking account numbers for its customers. Thus, an attacker would only need to know the last four digits of a target’s SSN to reset that customer’s password, according to Bessemer. And that information is for sale in multiple places online and in the cybercrime underground for a few bucks per person.

Bessemer further alleges Fiserv’s systems had no checks in place to prevent automated attacks that might let thieves rapidly guess the last four digits of the customer’s SSN — such as limiting the number of times a user can submit a login request, or imposing a waiting period after a certain number of failed login attempts.

The lawsuit says the fix Fiserv scrambled to put in place after Bessemer complained was “pitifully deficient and ineffective:”

“Fiserv attempted to fortify Bessemer’s online banking website by requiring users registering for an account to supply a member’s house number. This was ineffective because residential street addresses can be readily found on the internet and through other public sources. Moreover, this information can be guessed through a trial-and-error process. Most alarmingly, this security control was purely illusory. Because some servers were not enforcing this security check, it could be readily bypassed.”

Continue reading →


30
Apr 19

Data: E-Retail Hacks More Lucrative Than Ever

For many years and until quite recently, credit card data stolen from online merchants has been worth far less in the cybercrime underground than cards pilfered from hacked brick-and-mortar stores. But new data suggests that over the past year, the economics of supply-and-demand have helped to double the average price fetched by card-not-present data, meaning cybercrooks now have far more incentive than ever to target e-commerce stores.

Traditionally, the average price for card data nabbed from online retailers — referred to in the underground as “CVVs” — has ranged somewhere between $2 and $8 per account. CVVs are are almost exclusively purchased by criminals looking to make unauthorized purchases at online stores, a form of thievery known as “card not present” fraud.

In contrast, the value of “dumps” — hacker slang for card data swiped from compromised retail stores, hotels and restaurants with the help of malware installed on point-of-sale systems — has long hovered around $15-$20 per card. Dumps allow street thieves to create physical clones of debit and credit cards, which are then used to perpetrate so-called “card present” fraud at brick and mortar stores.

But according to Gemini Advisory, a New York-based company that works with financial institutions to monitor dozens of underground markets trafficking in both types of data, over the past year the demand for CVVs has far outstripped supply, bringing prices for both CVVs and dumps roughly in line with each other.

Median price of card not present (CNP) vs. card-present (CP) over the past year. Image: Gemini

Stas Alforov, director of research and development at Gemini, says his company is currently monitoring most underground stores that peddle stolen card data — including such heavy hitters as Joker’s Stash, Trump’s Dumps, and BriansDump.

Contrary to popular belief, when these shops sell a CVV or dump, that record is then removed from the inventory of items for sale, allowing companies that track such activity to determine roughly how many new cards are put up for sale and how many have sold. Underground markets that do otherwise quickly earn a reputation among criminals for selling unreliable card data and are soon forced out of business.

“We can see in pretty much real-time what’s being sold and which marketplaces are the most active or have the highest number of records and where the bad guys shop the most,” Alforov said. “The biggest trend we’ve seen recently is there appears to be a much greater demand than there is supply of card not present data being uploaded to these markets.”

Alforov said dumps are still way ahead in terms of the overall number of compromised records for sale. For example, over the past year Gemini has seen some 66 million new dumps show up on underground markets, and roughly half as many CVVs.

“The demand for card not present data remains strong while the supply is not as great as the bad guys need it to be, which means prices have been steadily going up,” Alforov said. “A lot of the bad guys who used to do card present fraud are now shifting to card-not-present fraud.”

One likely reason for that shift is the United States is the last of the G20 nations to make the transition to more secure chip-based payment cards, which is slowly making it more difficult and expensive for thieves to turn dumps into cold hard cash. This same increase in card-not-present fraud has occurred in virtually every other country that long ago made the chip card transition, including AustraliaCanadaFrance and the United Kingdom.

The increasing value of CVV data may help explain why we’ve seen such a huge uptick over the past year in e-commerce sites getting hacked. In a typical online retailer intrusion, the attackers will use vulnerabilities in content management systems, shopping cart software, or third-party hosted scripts to upload malicious code that snarfs customer payment details directly from the site before it can be encrypted and sent to card processors. Continue reading →


26
Apr 19

P2P Weakness Exposes Millions of IoT Devices

A peer-to-peer (P2P) communications technology built into millions of security cameras and other consumer electronics includes several critical security flaws that expose the devices to eavesdropping, credential theft and remote compromise, new research has found.

A map showing the distribution of some 2 million iLinkP2P-enabled devices that are vulnerable to eavesdropping, password theft and possibly remote compromise, according to new research.

The security flaws involve iLnkP2P, software developed by China-based Shenzhen Yunni Technology. iLnkP2p is bundled with millions of Internet of Things (IoT) devices, including security cameras and Webcams, baby monitors, smart doorbells, and digital video recorders.

iLnkP2P is designed to allow users of these devices to quickly and easily access them remotely from anywhere in the world, without having to tinker with one’s firewall: Users simply download a mobile app, scan a barcode or enter the six-digit ID stamped onto the bottom of the device, and the P2P software handles the rest.

A Webcam made by HiChip that includes the iLnkP2P software.

But according to an in-depth analysis shared with KrebsOnSecurity by security researcher Paul Marrapese, iLnkP2P devices offer no authentication or encryption and can be easily enumerated, allowing potential attackers to establish a direct connection to these devices while bypassing any firewall restrictions.

Marrapese said a proof-of-concept script he built identified more than two million vulnerable devices around the globe (see map above). He found that 39 percent of the vulnerable IoT things were in China; another 19 percent are located in Europe; seven percent of them are in use in the United States.

Although it may seem impossible to enumerate more than a million devices with just a six-digit ID, Marrapese notes that each ID begins with a unique alphabetic prefix that identifies which manufacturer produced the device, and there are dozens of companies that white-label the iLnkP2P software.

For example, HiChip — a Chinese IoT vendor that Marrapese said accounts for nearly half of the vulnerable devices — uses the prefixes FFFF, GGGG, HHHH, IIII, MMMM, ZZZZ.

These prefixes identify different product lines and vendors that use iLnkP2P. If the code stamped on your IoT device begins with one of these, it is vulnerable.

“In theory, this allows them to support nearly 6 million devices for these prefixes alone,” Marrapese said. “In reality, enumeration of these prefixes has shown that the number of online devices was ~1,517,260 in March 2019. By enumerating all of the other vendor prefixes, that pushes the number toward 2 million.”

Marrapese said he also built a proof-of-concept attack that can steal passwords from devices by abusing their built-in “heartbeat” feature. Upon being connected to a network, iLnkP2P devices will regularly send a heartbeat or “here I am” message to their preconfigured P2P servers and await further instructions.

“A P2P server will direct connection requests to the origin of the most recently-received heartbeat message,” Marrapese said. “Simply by knowing a valid device UID, it is possible for an attacker to issue fraudulent heartbeat messages that will supersede any issued by the genuine device. Upon connecting, most clients will immediately attempt to authenticate as an administrative user in plaintext, allowing an attacker to obtain the credentials to the device.” Continue reading →


31
Mar 19

Annual Protest Raises $250K to Cure Krebs

For the second year in a row, denizens of a large German-language online forum have donated more than USD $250,000 to cancer research organizations in protest of a story KrebsOnSecurity published in 2018 that unmasked the creators of Coinhive, a now-defunct cryptocurrency mining service that was massively abused by cybercriminals. Krebs is translated as “cancer” in German.

Images posted to the decidedly not-safe-for-work German-language image forum pr0gramm[.]com. Members have posted thousands of thank you receipts from cancer research organizations that benefited from their fight cancer/krebs campaign.

On March 26, 2018, KrebsOnSecurity published Who and What is Coinhive, which showed the founder of Coinhive was the co-creator of the German image hosting and discussion forum pr0gramm[dot]com (not safe for work).  I undertook the research because Coinhive’s code at the time was found on tens of thousands of hacked Web sites, and Coinhive seemed uninterested in curbing widespread abuse of its platform.

Pr0gramm’s top members accused KrebsOnSecurity of violating their privacy, even though all of the research published about them was publicly available online. In protest, the forum’s leaders urged members to donate money to medical research in a bid to find a cure for Krebs (i.e. “cancer”).

All told, thousands of Pr0gramm’s members donated more than USD $250,000 to cancer cure efforts within days of that March 2018 story. This week, the Pr0gramm administrators rallied members to commemorate that successful fundraiser with yet another.

“As announced there will be a donation marathon at anniversary day of Krebsaction,” Pr0gramm’s administrators announced. “Today, March 27th, we’re firing the starting shot for the marathon. Please tag your donation bills properly if they shall be accounted. The official tag is ‘krebsspende.’

According to a running tally on Pr0gramm’s site, this year’s campaign has raised 252,000 euros for cancer research so far, or about USD $284,000. That brings the total that Pr0gramm members have donated to cancer research to more than a half-million dollars.

As a bonus, Coinhive announced last month that it was shutting down, citing a perfect storm of negative circumstances. Coinhive had made structural changes to its systems following my 2018 story so that it would no longer profit from accounts used on hacked Web sites. Perhaps more importantly, the value of the cryptocurrency Coinhive’s code helped to mine dropped precipitously over the past year.


22
Mar 19

Alleged Child Porn Lord Faces US Extradition

In 2013, the FBI exploited a zero-day vulnerability in Firefox to seize control over a Dark Web network of child pornography sites. The alleged owner of that ring – 33-year-old Freedom Hosting operator Eric Eoin Marques – was arrested in Ireland later that year on a U.S. warrant and has been in custody ever since. This week, Ireland’s Supreme Court cleared the way for Marques to be extradited to the United States.

Eric Eoin Marques. Photo: Irishtimes.com

The FBI has called Marques the world’s largest facilitator of child porn. He is wanted on four charges linked to hidden child porn sites like “Lolita City” and “PedoEmpire,” which the government says were extremely violent, graphic and depicting the rape and torture of pre-pubescent children. Investigators allege that sites on Freedom Hosting had thousands of customers, and earned Marques more than $1.5 million.

For years Freedom Hosting had developed a reputation as a safe haven for hosting child porn. Marques allegedly operated Freedom Hosting as a turnkey solution for Web sites that hide their true location using Tor, an online anonymity tool.

The sites could only be accessed using the Tor Browser Bundle, which is built on the Firefox Web browser. On Aug. 4, 2013, U.S. federal agents exploited a previously unknown vulnerability in Firefox version 17 that allowed them to identify the true Internet addresses and computer names of people using Tor Browser to visit the child porn sites at Freedom Hosting.

Irish public media service RTE reported in 2013 that Marques briefly regained access to one of his hosting servers even after the FBI had seized control over it and changed the password, briefly locking the feds out of the system.

As Wired.com observed at the time, “in addition to the wrestling match over Freedom Hosting’s servers, Marques allegedly dove for his laptop when the police raided him, in an effort to shut it down.”

Marques, who holds dual Irish-US citizenship, was denied bail and held pending his nearly six-year appeal process to contest his extradition. FBI investigators told the courts they feared he would try to destroy evidence and/or flee the country. FBI agents testified that Marques had made inquiries about how to get a visa and entry into Russia and set up residence and citizenship there. Continue reading →