The Coming Storm


17
Jan 18

Some Basic Rules for Securing Your IoT Stuff

Most readers here have likely heard or read various prognostications about the impending doom from the proliferation of poorly-secured “Internet of Things” or IoT devices. Loosely defined as any gadget or gizmo that connects to the Internet but which most consumers probably wouldn’t begin to know how to secure, IoT encompasses everything from security cameras, routers and digital video recorders to printers, wearable devices and “smart” lightbulbs.

Throughout 2016 and 2017, attacks from massive botnets made up entirely of hacked IoT devices had many experts warning of a dire outlook for Internet security. But the future of IoT doesn’t have to be so bleak. Here’s a primer on minimizing the chances that your IoT things become a security liability for you or for the Internet at large.

-Rule #1: Avoid connecting your devices directly to the Internet — either without a firewall or in front it, by poking holes in your firewall so you can access them remotely. Putting your devices in front of your firewall is generally a bad idea because many IoT products were simply not designed with security in mind and making these things accessible over the public Internet could invite attackers into your network. If you have a router, chances are it also comes with a built-in firewall. Keep your IoT devices behind the firewall as best you can.

-Rule #2: If you can, change the thing’s default credentials to a complex password that only you will know and can remember. And if you do happen to forget the password, it’s not the end of the world: Most devices have a recessed reset switch that can be used to restore to the thing to its factory-default settings (and credentials). Here’s some advice on picking better ones.

I say “if you can,” at the beginning of Rule #2 because very often IoT devices — particularly security cameras and DVRs — are so poorly designed from a security perspective that even changing the default password to the thing’s built-in Web interface does nothing to prevent the things from being reachable and vulnerable once connected to the Internet.

Also, many of these devices are found to have hidden, undocumented “backdoor” accounts that attackers can use to remotely control the devices. That’s why Rule #1 is so important. Continue reading →


11
Jan 18

Bitcoin Blackmail by Snail Mail Preys on Those with Guilty Conscience

KrebsOnSecurity heard from a reader whose friend recently received a remarkably customized extortion letter via snail mail that threatened to tell the recipient’s wife about his supposed extramarital affairs unless he paid $3,600 in bitcoin. The friend said he had nothing to hide and suspects this is part of a random but well-crafted campaign to prey on men who may have a guilty conscience.

The letter addressed the recipient by his first name and hometown throughout, and claimed to have evidence of the supposed dalliances.

“You don’t know me personally and nobody hired me to look into you,” the letter begins. “Nor did I go out looking to burn you. It is just your bad luck that I stumbled across your misadventures while working on a job around Bellevue.”

The missive continues:

“I then put in more time than I probably should have looking into your life. Frankly, I am ready to forget all about you and let you get on with your life. And I am going to give you two options that will accomplish that very thing. These two options are to either ignore this letter, or simply pay me $3,600. Let’s examine those two options in more detail.”

The letter goes on to say that option 1 (ignoring the threat) means the author will send copies of his alleged evidence to the man’s wife and to her friends and family if he does not receive payment within 12 days of the letter’s post marked date.

“So [name omitted], even if you decide to come clean with your wife, it won’t protect her from the humiliation she will feel when her friends and family find out your sordid details from me,” the extortionist wrote. Continue reading →


5
Jan 18

Scary Chip Flaws Raise Spectre of Meltdown

Apple, Google, Microsoft and other tech giants have released updates for a pair of serious security flaws present in most modern computers, smartphones, tablets and mobile devices. Here’s a brief rundown on the threat and what you can do to protect your devices.

At issue are two different vulnerabilities, dubbed “Meltdown” and “Spectre,” that were independently discovered and reported by security researchers at Cyberus Technology, Google, and the Graz University of Technology. The details behind these bugs are extraordinarily technical, but a Web site established to help explain the vulnerabilities sums them up well enough:

“These hardware bugs allow programs to steal data which is currently processed on the computer. While programs are typically not permitted to read data from other programs, a malicious program can exploit Meltdown and Spectre to get hold of secrets stored in the memory of other running programs. This might include your passwords stored in a password manager or browser, your personal photos, emails, instant messages and even business-critical documents.”

“Meltdown and Spectre work on personal computers, mobile devices, and in the cloud. Depending on the cloud provider’s infrastructure, it might be possible to steal data from other customers.”

The Meltdown bug affects every Intel processor shipped since 1995 (with the exception of Intel Itanium and Intel Atom before 2013), although researchers said the flaw could impact other chip makers. Spectre is a far more wide-ranging and troublesome flaw, impacting desktops, laptops, cloud servers and smartphones from a variety of vendors. However, according to Google researchers, Spectre also is considerably more difficult to exploit.

In short, if it has a computer chip in it, it’s likely affected by one or both of the flaws. For now, there don’t appear to be any signs that attackers are exploiting either to steal data from users. But researchers warn that the weaknesses could be exploited via Javascript — meaning it might not be long before we see attacks that leverage the vulnerabilities being stitched into hacked or malicious Web sites.

Microsoft this week released emergency updates to address Meltdown and Spectre in its various Windows operating systems. But the software giant reports that the updates aren’t playing nice with many antivirus products; the fix apparently is causing the dreaded “blue screen of death” (BSOD) for some antivirus users. In response, Microsoft has asked antivirus vendors who have updated their products to avoid the BSOD crash issue to install a special key in the Windows registry. That way, Windows Update can tell whether it’s safe to download and install the patch. Continue reading →


29
Dec 17

Kansas Man Killed In ‘SWATting’ Attack

A 28-year-old Kansas man was shot and killed by police officers on the evening of Dec. 28 after someone fraudulently reported a hostage situation ongoing at his home. The false report was the latest in a dangerous hoax known as “swatting,” wherein the perpetrator falsely reports a dangerous situation at an address with the goal of prompting authorities to respond to that address with deadly force. This particular swatting reportedly originated over a $1.50 wagered match in the online game Call of Duty. Compounding the tragedy is that the man killed was an innocent party who had no part in the dispute.

The following is an analysis of what is known so far about the incident, as well as a brief interview with the alleged and self-professed perpetrator of this crime.

It appears that the dispute and subsequent taunting originated on Twitter. One of the parties to that dispute — allegedly using the Twitter handle “SWauTistic” — threatened to swat another user who goes by the nickname “7aLeNT“. @7aLeNT dared someone to swat him, but then tweeted an address that was not his own.

Swautistic responded by falsely reporting to the Kansas police a domestic dispute at the address 7aLenT posted, telling the authorities that one person had already been murdered there and that several family members were being held hostage.

Image courtesey @mattcarries

A story in the Wichita Eagle says officers responded to the 1000 block of McCormick and got into position, preparing for a hostage situation.

“A male came to the front door,” Livingston said. “As he came to the front door, one of our officers discharged his weapon.”

“Livingston didn’t say if the man, who was 28, had a weapon when he came to the door, or what caused the officer to shoot the man. Police don’t think the man fired at officers, but the incident is still under investigation, he said. The man, who has not been identified by police, died at a local hospital.

“A family member identified that man who was shot by police as Andrew Finch. One of Finch’s cousins said Finch didn’t play video games.”

Not long after that, Swautistic was back on Twitter saying he could see on television that the police had fallen for his swatting attack. When it became apparent that a man had been killed as a result of the swatting, Swautistic tweeted that he didn’t get anyone killed because he didn’t pull the trigger (see image above).

Swautistic soon changed his Twitter handle to @GoredTutor36, but KrebsOnSecurity managed to obtain several weeks’ worth of tweets from Swautistic before his account was renamed. Those tweets indicate that Swautistic is a serial swatter — meaning he has claimed responsibility for a number of other recent false reports to the police.

Among the recent hoaxes he’s taken credit for include a false report of a bomb threat at the U.S. Federal Communications Commission (FCC) that disrupted a high-profile public meeting on the net neutrality debate. Swautistic also has claimed responsibility for a hoax bomb threat that forced the evacuation of the Dallas Convention Center, and another bomb threat at a high school in Panama City, Fla, among others.

After tweeting about the incident extensively this afternoon, KrebsOnSecurity was contacted by someone in control of the @GoredTutor36 Twitter account. GoredTutor36 said he’s been the victim of swatting attempts himself, and that this was the reason he decided to start swatting others.

He said the thrill of it “comes from having to hide from police via net connections.” Asked about the FCC incident, @GoredTutor36 acknowledged it was his bomb threat. “Yep. Raped em,” he wrote.

“Bomb threats are more fun and cooler than swats in my opinion and I should have just stuck to that,” he wrote. “But I began making $ doing some swat requests.”

Asked whether he feels remorse about the Kansas man’s death, he responded “of course I do.”

But evidently not enough to make him turn himself in.

“I won’t disclose my identity until it happens on its own,” the user said in a long series of direct messages on Twitter. “People will eventually (most likely those who know me) tell me to turn myself in or something. I can’t do that; though I know its [sic] morally right. I’m too scared admittedly.”

Update, 7:15 p.m.: A recording of the call to 911 operators that prompted this tragedy can be heard at this link. The playback of the recorded emergency calls starts around 10 minutes into the video.

Update, Dec. 30, 8:06 a.m. ET: Police in Los Angeles reportedly have arrested 25-year-old Tyler Raj Barriss in connection with the swatting attack.

Continue reading →


13
Aug 16

Visa Alert and Update on the Oracle Breach

Credit card industry giant Visa on Friday issued a security alert warning companies using point-of-sale devices made by Oracle‘s MICROS retail unit to double-check the machines for malicious software or unusual network activity, and to change passwords on the devices. Visa also published a list of Internet addresses that may have been involved in the Oracle breach and are thought to be closely tied to an Eastern European organized cybercrime gang.

VSA-oracle

The Visa alert is the first substantive document that tries to help explain what malware and which malefactors might have hit Oracle — and by extension many of Oracle’s customers — since KrebsOnSecurity broke news of the breach on Aug. 8. That story cited sources close to the investigation saying hackers had broken into hundreds of servers at Oracle’s retail division, and had completely compromised Oracle’s main online support portal for MICROS customers.

MICROS is among the top three point-of-sale vendors globally. Oracle’s MICROS division sells point-of-sale systems used at more than 330,000 cash registers worldwide. When Oracle bought MICROS in 2014, the company said MICROS’s systems were deployed at some 200,000+ food and beverage outlets, 100,000+ retail sites, and more than 30,000 hotels.

In short, tens of millions of credit cards are swiped at MICROS terminals monthly, and a breach involving the theft of credentials that might have granted remote access to even just a small percentage of those systems is potentially a big and costly problem for all involved.

So far, however, most MICROS customers are left scratching their heads for answers. A frequently asked questions bulletin (PDF) Oracle also released last Monday held little useful information. Oracle issued the same cryptic response to everyone who asked for particulars about how far the breach extended. “Oracle has detected and addressed malicious code in certain legacy MICROS systems.”

Oracle also urged MICROS customers to change their passwords, and said “we also recommend that you change the password for any account that was used by a MICROS representative to access your on-premises systems.”

One of two documents Oracle sent to MICROS customers and the sum total of information the company has released so far about the breach.

One of two documents Oracle sent to MICROS customers and the sum total of information the company has released so far about the breach.

Some technology and fraud experts, including Gartner Analyst Avivah Litan, read that statement highlighted in yellow above as an acknowledgement by Oracle that hackers may have abused credentials gained in the MICROS portal breach to plant malicious code on the point-of-sale devices run by an unknown number of MICROS customers.

“This [incident] could explain a lot about the source of some of these retail and merchant point-of-sale hacks that nobody has been able to definitively tie to any one point-of-sale services provider,” Litan told me last week. “I’d say there’s a big chance that the hackers in this case found a way to get remote access” to MICROS customers’ on-premises point-of-sale devices.”

Clearly, Visa is concerned about this possibility as well.

INDICATORS OF COMPROMISE

In my original story about the breach, I wasn’t able to reveal all the data I’d gathered about the apparent source of the attacks and attackers. A key source in that story asked that I temporarily delay publishing certain details of the investigation, specifically those known as indicators of compromise (IOCs). Basically, IOCs are list of suspect Internet addresses, domain names, filenames and other curious digital clues that are thought to connect the victim with its attacker.

I’ve been inundated all week with calls and emails from security experts asking for that very data, but sharing it wasn’t my call. That is, until yesterday (8/12/16), when Visa published a “merchant communication alert” to some customers. In that alert (PDF), Visa published IOCs that may be connected with the intrusion. These IOCs could be extremely useful to MICROS customers because the presence of Internet traffic to and from these online destinations would strongly suggest the organization’s point-of-sale systems may be similarly compromised.

Some of the addresses on this list from Visa are known to be associated with the Carbanak Gang, a group of Eastern European hackers that Russian security firm Kaspersky Lab estimates has stolen more than $1 billion from banks and retailers. Here’s the IOCs list from the alert Visa pushed out Friday:

VISA warned merchants to check their systems for any communications to and from these Internet addresses and domain names associated with a Russian organized cybercrime gang called "Carbanak."

Visa warned merchants to check their systems for any communications to and from these Internet addresses and domain names associated with a Russian organized cybercrime gang called “Carbanak.”

Thankfully, since at least one of the addresses listed above (192.169.82.86) matched what’s on my source’s list, the source agreed to let me publish the entire thing. Here it is. I checked my source’s list and found at least five Internet addresses that were seen in both the Oracle attack and in a Sept. 2015 writeup about Carbanak by ESET Security, a Slovakian antivirus and security company. [NB: If you are unskilled at safely visiting malicious Web sites and/or handling malware, it’s probably best not to visit the addresses in the above-linked list.]

Visa also mentioned a specific POS-malware threat in its alert called “MalumPOS.” According to researchers at Trend Micro, MalumPOS is malware designed to target point-of-sale systems in hotels and related industries. In fact, Trend found that MalumPOS is set up to collect data specifically from point-of-sale systems running on Oracle’s MICROS platform.

It should come as no surprise then that many of Oracle’s biggest customers in the hospitality industry are starting to make noise, accusing Oracle of holding back key information that could help MICROS-based companies stop and clean up breaches involving malware and stolen customer credit card data.

“Oracle’s silence has been deafening,” said Michael Blake, chief executive officer at HTNG, a trade association for hotels and technology. “They are still grappling and trying to answer questions on the extent of the breach. Oracle has been invited to the last three [industry] calls this week and they are still going about trying to reach each customer individually and in the process of doing so they have done nothing but given the lame advice of changing passwords.”

The hospitality industry has been particularly hard hit by point-of-sale compromises over the past two years. Last month, KrebsOnSecurity broke the news of a breach at Kimpton Hotels (Kimpton appears to run MICROS products, but the company declined to answer questions for this story).

Kimpton joins a long list of hotel brands that have acknowledged card breaches over the last year, including Trump Hotels (twice), Hilton, Mandarin Oriental, and White Lodging (twice), Starwood Hotels and Hyatt. In many of those incidents, thieves had planted malicious software on the point-of-sale devices at restaurants and bars inside of the hotel chains. And, no doubt, many of those cash registers were run on MICROS systems.

If Oracle doesn’t exactly know which — if any — of its MICROS customers had malware on their point-of-sale systems as a result of the breach, it may be because the network intruders didn’t have any reason to interact with Oracle’s customers via the MICROS portal after stealing usernames and passwords that would allow them to remotely access customer on-premises systems. In theory, at that point the fraudsters could have bypassed Oracle altogether from then on. Continue reading →


11
Aug 16

Road Warriors: Beware of ‘Video Jacking’

A little-known feature of many modern smartphones is their ability to duplicate video on the device’s screen so that it also shows up on a much larger display — like a TV. However, new research shows that this feature may quietly expose users to a simple and cheap new form of digital eavesdropping.

Dubbed “video jacking” by its masterminds, the attack uses custom electronics hidden inside what appears to be a USB charging station. As soon as you connect a vulnerable phone to the appropriate USB charging cord, the spy machine splits the phone’s video display and records a video of everything you tap, type or view on it as long as it’s plugged in — including PINs, passwords, account numbers, emails, texts, pictures and videos.

The part of the "video jacking" demonstration at the DEF CON security conference last week in Las Vegas.

Some of the equipment used in the “video jacking” demonstration at the DEF CON security conference last week in Las Vegas. Source: Brian Markus.

[Click here if you’re the TL;DR type and just want to know if your phone is at risk from this attack.]

Demonstrations of this simple but effective mobile spying technique were on full display at the DEF CON security conference in Las Vegas last week. I was busy chasing a story at DEF CON unrelated to the conference this year, so I missed many people and talks that I wanted to see. But I’m glad I caught up with the team behind DEF CON’s annual and infamous “Wall of Sheep,” a public shaming exercise aimed at educating people about the dangers of sending email and other plain text online communications over open wireless networks.

Brian Markus, co-founder and chief executive officer for Aries Security, said he and fellow researchers Joseph Mlodzianowski and Robert Rowley came up with the idea for video jacking when they were brainstorming about ways to expand on their “juice jacking” experiments at DEF CON in 2011.

“Juice jacking” refers to the ability to hijack stored data when the user unwittingly plugs his phone into a custom USB charging station filled with computers that are ready to suck down and record said data (both Android and iOS phones now ask users whether they trust the computer before allowing data transfers).

In contrast, video jacking lets the attacker record every key and finger stroke the user makes on the phone, so that the owner of the evil charging station can later replay the videos and see any numbers or keys pressed on the smart phone.

That’s because those numbers or keys will be raised briefly on the victim’s screen with each key press. Here’s an example: While the user may have enabled a special PIN that needs to be entered before the phone unlocks to the home screen, this method captures even that PIN as long as the device is vulnerable and plugged in before the phone is unlocked.

GREAT. IS MY PHONE VULNERABLE?

Most of the phones vulnerable to video jacking are Android or other HDMI-ready smartphones from Asus, Blackberry, HTC, LG, Samsung, and ZTE. This page of HDMI enabled smartphones at phonerated.com should not be considered all-inclusive. Here’s another list. When in doubt, search online for your phone’s make and model to find out if it is HDMI or MHL ready.

Video jacking is a problem for users of HDMI-ready phones mainly because it’s very difficult to tell a USB cord that merely charges the phone versus one that also taps the phone’s video-out capability. Also, there’s generally no warning on the phone to alert the user that the device’s video is being piped to another source, Markus said.

“All of those phones have an HDMI access feature that is turned on by default,” he said. “A few HDMI-ready phones will briefly flash something like ‘HDMI Connected’ whenever they’re plugged into a power connection that is also drawing on the HDMI feature, but most will display no warning at all. This worked on all the phones we tested with no prompting.”

Both Markus and Rowley said they did not test the attack against Apple iPhones prior to DEF CON, but today Markus said he tested it at an Apple store and the video of the iPhone 6’s home screen popped up on the display in the store without any prompt. Getting it to work on the display required a special lightning digital AV adapter from Apple, which could easily be hidden inside an evil charging station and fed an extension adapter and then a regular lightning cable in front of that.

Continue reading →


1
Aug 16

Social Security Administration Now Requires Two-Factor Authentication

The U.S. Social Security Administration announced last week that it will now require a cell phone number from all Americans who wish to manage their retirement benefits at ssa.gov. Unfortunately, the new security measure does little to prevent identity thieves from fraudulently creating online accounts to siphon benefits from Americans who haven’t yet created accounts for themselves.

ssasiteThe SSA said all new and existing ‘my Social Security’ account holders will need to provide a cell phone number. The agency said it will use the mobile numbers to send users an 8-digit code via text message that needs to be entered along with a username and password to log in to the site.

The SSA noted it was making the change to comply with an executive order for federal agencies to provide more secure authentication for their online services.

“People will not be able to access their personal my Social Security account if they do not have a cell phone or do not wish to provide the cell phone number,” the agency said. “The purpose of providing your cell phone number is that, each time you log in to your account with your username and password, we will send you a one-time security code you must also enter to log in successfully to your account. We expect to provide additional options in the future, dependent upon requirements of national guidelines currently being revised.”

Although the SSA’s policy change provides additional proof that the person signing in is the same individual who established multi-factor authentication in the the first place, it does not appear to provide any additional proof that the person creating an account at ssa.gov is who they say they are.

The SSA does offer other “extra security” options, such as the sending users a special code via the U.S. Mail that has to be entered on the agency’s site to complete the signup process. If you choose to enable extra security, the SSA will then ask you for:

  • The last eight digits of your Visa, MasterCard, or Discover credit card;
  • Information from your W2 tax form;
  • Information from a 1040 Schedule SE (self-employment) tax form; or
  • Your direct deposit amount, if you receive Social Security benefits.

Sadly, it is still relatively easy for thieves to create an account in the name of Americans who have not already created one for themselves. All one would need is the target’s name, date of birth, Social Security number, residential address, and phone number. This personal data can be bought for roughly $3-$4 from a variety of cybercrime shops online.

After that, the SSA relays four multiple-guess, so-called “knowledge-based authentication” or KBA questions from credit bureau Equifax. In practice, many of these KBA questions — such as previous address, loan amounts and dates — can be successfully enumerated with random guessing.  What’s more, very often the answers to these questions can be found by consulting free online services, such as Zillow and Facebook.

In September 2013, I warned that SSA and financial institutions were tracking a rise in cases wherein identity thieves register an account at the SSA’s portal using a retiree’s personal information and have the victim’s benefits diverted to prepaid debit cards that the crooks control. Unfortunately, because the SSA’s new security features are optional, they do little to block crooks from hijacking SSA benefit payments from retirees. Continue reading →


25
Jul 16

Trump, DNC, RNC Flunk Email Security Test

Donald J. Trump has repeatedly bashed Sen. Hillary Clinton for handling classified documents on her private email server, suggesting that anyone who is so lax with email security isn’t fit to become president. But a closer look at the Web sites for each candidate shows that in contrast to hillaryclinton.com, donaldjtrump.com has failed to take full advantage of a free and open email security technology designed to stymie email spoofing and phishing attacks.

atballAt issue is a fairly technical proposed standard called DMARC. Short for “domain-based messaging authentication reporting and conformance,” DMARC tries to solve a problem that has plagued email since its inception: It’s surprisingly difficult for email providers and end users alike to tell whether a given email is real – i.e. that it really was sent by the person or organization identified in the “from:” portion of the missive.

DMARC may not yet be widely deployed beyond the major email providers, but that’s about to change. Google announced late last year that it will soon move gmail.com to a policy of rejecting any messages that don’t pass the authentication checks spelled out in the DMARC specification. And others are already moving in the same direction.

Probably the easiest way to understand DMARC is to walk through a single site’s records. According to the DMARC compliance lookup tool at dmarcian.com — a DMARC awareness, training and support site — hillaryclinton.com has fully implemented DMARC. This means that the campaign has posted a public policy that enables email providers like Google, Microsoft and Yahoo to quickly determine whether a message claiming to have been sent from hillaryclinton.com was actually sent from that domain.

Specifically, (and this is where things can quickly descend into a Geek Factor 5 realm of nerdiness) DMARC sits on top of two existing technologies that try to make email easy to identify: Sender Policy Framework (SPF), and DomainKeys Identified Mail (DKIM).

SPF is basically a list of Internet addresses and domains which are authorized to send email on behalf of hillaryclinton.com (in case anyone’s interested, here’s a copy of the SPF record for hillaryclinton.com). DKIM allows email receivers to verify that a piece of email originated from an Internet domain through the use of public key cryptography. Deploying both technologies gives email receivers two ways to figure out if a piece of email is legitimate.

The DMARC record for Clinton’s site includes the text string “p=quarantine.” The “p” bit stands for policy, and “quarantine” means the Web site’s administrators have instructed email providers to quarantine all messages sent from addresses or domains not on that list and not signed with DKIM – effectively consigning them to the intended recipient’s “spam” or “junk” folder. Another blocking option available is “p=reject,” which tells email providers to outright drop or reject any mail sent from domains or addresses not specified in the organization’s SPF records and lacking any appropriate DKIM signatures.

Turning Dmarcian.com’s tool against donaldjtrump.com, we can see that although the site is thinking about turning on DMARC, it hasn’t actually done so yet. The site’s DMARC records are set to the third option — “p=none” — which means the site administrators haven’t yet asked email providers to block or quarantine any messages that fail to match the site’s SPF records. Rather, the site merely asks email providers to report to “postmaster@donaldjtrump.com” about the source of any email messages claiming to have been sent by that domain. Continue reading →


15
Jul 16

Cybercrime Overtakes Traditional Crime in UK

In a notable sign of the times, cybercrime has now surpassed all other forms of crime in the United Kingdom, the nation’s National Crime Agency (NCA) warned in a new report. It remains unclear how closely the rest of the world tracks the U.K.’s experience, but the report reminds readers that the problem is likely far worse than the numbers suggest, noting that cybercrime is vastly under-reported by victims.

ons-statThe NCA’s Cyber Crime Assessment 2016, released July 7, 2016, highlights the need for stronger law enforcement and business partnership to fight cybercrime. According to the NCA, cybercrime emerged as the largest proportion of total crime in the U.K., with “cyber enabled fraud” making up 36 percent of all crime reported, and “computer misuse” accounting for 17 percent.

One explanation for the growth of cybercrime reports in the U.K. may be that the Brits are getting better at tracking it. The report notes that the U.K. Office of National Statistics only began including cybercrime for the first time last year in its annual Crime Survey for England and Wales.

“The ONS estimated that there were 2.46 million cyber incidents and 2.11 million victims of cyber crime in the U.K. in 2015,” the report’s authors wrote. “These figures highlight the clear shortfall in established reporting, with only 16,349 cyber dependent and approximately 700,000 cyber-enabled incidents reported to Action Fraud over the same period.”

The report also focuses on the increasing sophistication of organized cybercrime gangs that develop and deploy targeted, complex malicious software — such as Dridex and Dyre, which are aimed at emptying consumer and business bank accounts in the U.K. and elsewhere.

Avivah Litan, a fraud analyst with Gartner Inc., said cyber fraudsters in the U.K. bring their best game when targeting U.K. banks, which generally require far more stringent customer-facing security measures than U.S. banks — including smart cards and one-time tokens.

“I’m definitely hearing more about advanced attacks on U.K. banks than in the U.S.,” Litan said, adding that the anti-fraud measures put in place by U.K. banks have forced cybercriminals to focus more on social engineering U.K. retail and commercial banking customers. Continue reading →


22
Jun 16

Rise of Darknet Stokes Fear of The Insider

With the proliferation of shadowy black markets on the so-called “darknet” — hidden crime bazaars that can only be accessed through special software that obscures one’s true location online — it has never been easier for disgruntled employees to harm their current or former employer. At least, this is the fear driving a growing stable of companies seeking technical solutions to detect would-be insiders.

Avivah Litan, a fraud analyst with Gartner Inc., says she’s been inundated recently with calls from organizations asking what they can do to counter the following scenario: A disaffected or disgruntled employee creates a persona on a darknet market and offers to sell his company’s intellectual property or access to his employer’s network.

A darknet forum discussion generated by a claimed insider at music retailer Guitar Center.

A darknet forum discussion generated by a claimed insider at music retailer Guitar Center.

Litan said a year ago she might have received one such inquiry a month; now Litan says she’s getting multiple calls a week, often from companies that are in a panic.

“I’m getting calls from lots of big companies, including manufacturers, banks, pharmaceutical firms and retailers,” she said. “A year ago, no one wanted to say whether they had or were seriously worried about insiders, but that’s changing.”

Insiders don't have to be smart or sophisticated to be dangerous.

Insiders don’t have to be smart or sophisticated to be dangerous, as this darknet forum discussion thread illustrates.

Some companies with tremendous investments in intellectual property — particularly pharmaceutical and healthcare firms — are working with law enforcement or paying security firms to monitor and track actors on the darknet that promise access to specific data or organizations, Litan said. Continue reading →