Data Breaches


9
Sep 19

Secret Service Investigates Breach at U.S. Govt IT Contractor

The U.S. Secret Service is investigating a breach at a Virginia-based government technology contractor that saw access to several of its systems put up for sale in the cybercrime underground, KrebsOnSecurity has learned. The contractor claims the access being auctioned off was to old test systems that do not have direct connections to its government partner networks.

In mid-August, a member of a popular Russian-language cybercrime forum offered to sell access to the internal network of a U.S. government IT contractor that does business with more than 20 federal agencies, including several branches of the military. The seller bragged that he had access to email correspondence and credentials needed to view databases of the client agencies, and set the opening price at six bitcoins (~USD $60,000).

A review of the screenshots posted to the cybercrime forum as evidence of the unauthorized access revealed several Internet addresses tied to systems at the U.S. Department of Transportation, the National Institutes of Health (NIH), and U.S. Citizenship and Immigration Services (USCIS), a component of the U.S. Department of Homeland Security that manages the nation’s naturalization and immigration system.

Other domains and Internet addresses included in those screenshots pointed to Miracle Systems LLC, an Arlington, Va. based IT contractor that states on its site that it serves 20+ federal agencies as a prime contractor, including the aforementioned agencies.

In an interview with KrebsOnSecurity, Miracle Systems CEO Sandesh Sharda confirmed that the auction concerned credentials and databases were managed by his company, and that an investigating agent from the Secret Service was in his firm’s offices at that very moment looking into the matter.

But he maintained that the purloined data shown in the screenshots was years-old and mapped only to internal test systems that were never connected to its government agency clients.

“The Secret Service came to us and said they’re looking into the issue,” Sharda said. “But it was all old stuff [that was] in our own internal test environment, and it is no longer valid.”

Still, Sharda did acknowledge information shared by Wisconsin-based security firm Hold Security, which alerted KrebsOnSecurity to this incident, indicating that at least eight of its internal systems had been compromised on three separate occasions between November 2018 and July 2019 by Emotet, a malware strain usually distributed via malware-laced email attachments that typically is used to deploy other malicious software.

The Department of Homeland Security did not respond to requests for comment, nor did the Department of Transportation. A spokesperson for the NIH said the agency had investigated the activity and found it was not compromised by the incident.

“As is the case for all agencies of the Federal Government, the NIH is constantly under threat of cyber-attack,” NIH spokesperson Julius Patterson said. “The NIH has a comprehensive security program that is continuously monitoring and responding to security events, and cyber-related incidents are reported to the Department of Homeland Security through the HHS Computer Security Incident Response Center.”

One of several screenshots offered by the dark web seller as proof of access to a federal IT contractor later identified as Arlington, Va. based Miracle Systems. Image: Hold Security.

Continue reading →


29
Aug 19

Ransomware Bites Dental Data Backup Firm

PerCSoft, a Wisconsin-based company that manages a remote data backup service relied upon by hundreds of dental offices across the country, is struggling to restore access to client systems after falling victim to a ransomware attack.

West Allis, Wis.-based PerCSoft is a cloud management provider for Digital Dental Record (DDR), which operates an online data backup service called DDS Safe that archives medical records, charts, insurance documents and other personal information for various dental offices across the United States.

The ransomware attack hit PerCSoft on the morning of Monday, Aug. 26, and encrypted dental records for some — but not all — of the practices that rely on DDS Safe.

PercSoft did not respond to requests for comment. But Brenna Sadler, director of  communications for the Wisconsin Dental Association, said the ransomware encrypted files for approximate 400 dental practices, and that somewhere between 80-100 of those clients have now had their files restored.

Sadler said she did not know whether PerCSoft and/or DDR had paid the ransom demand, what ransomware strain was involved, or how much the attackers had demanded.

But updates to PerCSoft’s Facebook page and statements published by both PerCSoft and DDR suggest someone may have paid up: The statements note that both companies worked with a third party software company and were able to obtain a decryptor to help clients regain access to files that were locked by the ransomware.

Update: Several sources are now reporting that PerCSoft did pay the ransom, although it is not clear how much was paid. One member of a private Facebook group dedicated to IT professionals serving the dental industry shared the following screenshot, which is purportedly from a conversation between PerCSoft and an affected dental office, indicating the cloud provider was planning to pay the ransom:

Another image shared by members of that Facebook group indicates the ransomware that attacked PerCSoft is an extremely advanced and fairly recent strain known variously as REvil and Sodinokibi.

Original story:

However, some affected dental offices have reported that the decryptor did not work to unlock at least some of the files encrypted by the ransomware. Meanwhile, several affected dentistry practices said they feared they might be unable to process payroll payments this week as a result of the attack. Continue reading →


27
Aug 19

Cybersecurity Firm Imperva Discloses Breach

Imperva, a leading provider of Internet firewall services that help Web sites block malicious cyberattacks, alerted customers on Tuesday that a recent data breach exposed email addresses, scrambled passwords, API keys and SSL certificates for a subset of its firewall users.

Redwood Shores, Calif.-based Imperva sells technology and services designed to detect and block various types of malicious Web traffic, from denial-of-service attacks to digital probes aimed at undermining the security of Web-based software applications.

Image: Imperva

Earlier today, Imperva told customers that it learned on Aug. 20 about a security incident that exposed sensitive information for some users of Incapsula, the company’s cloud-based Web Application Firewall (WAF) product.

“On August 20, 2019, we learned from a third party of a data exposure that impacts a subset of customers of our Cloud WAF product who had accounts through September 15, 2017,” wrote Heli Erickson, director of analyst relations at Imperva.

“We want to be very clear that this data exposure is limited to our Cloud WAF product,” Erickson’s message continued. “While the situation remains under investigation, what we know today is that elements of our Incapsula customer database from 2017, including email addresses and hashed and salted passwords, and, for a subset of the Incapsula customers from 2017, API keys and customer-provided SSL certificates, were exposed.”

Companies that use the Incapsula WAF route all of their Web site traffic through the service, which scrubs the communications for any suspicious activity or attacks and then forwards the benign traffic on to its intended destination.

Rich Mogull, founder and vice president of product at Kansas City-based cloud security firm DisruptOps, said Imperva is among the top three Web-based firewall providers in business today.

According to Mogull, an attacker in possession of a customer’s API keys and SSL certificates could use that access to significantly undermine the security of traffic flowing to and from a customer’s various Web sites.

At a minimum, he said, an attacker in possession of these key assets could reduce the security of the WAF settings and exempt or “whitelist” from the WAF’s scrubbing technology any traffic coming from the attacker. A worst-case scenario could allow an attacker to intercept, view or modify traffic destined for an Incapsula client Web site, and even to divert all traffic for that site to or through a site owned by the attacker. Continue reading →


22
Aug 19

Breach at Hy-Vee Supermarket Chain Tied to Sale of 5M+ Stolen Credit, Debit Cards

On Tuesday of this week, one of the more popular underground stores peddling credit and debit card data stolen from hacked merchants announced a blockbuster new sale: More than 5.3 million new accounts belonging to cardholders from 35 U.S. states. Multiple sources now tell KrebsOnSecurity that the card data came from compromised gas pumps, coffee shops and restaurants operated by Hy-Vee, an Iowa-based company that operates a chain of more than 245 supermarkets throughout the Midwestern United States.

Hy-Vee, based in Des Moines, announced on Aug. 14 it was investigating a data breach involving payment processing systems that handle transactions at some Hy-Vee fuel pumps, drive-thru coffee shops and restaurants.

The restaurants affected include Hy-Vee Market Grilles, Market Grille Expresses and Wahlburgers locations that the company owns and operates. Hy-Vee said it was too early to tell when the breach initially began or for how long intruders were inside their payment systems.

But typically, such breaches occur when cybercriminals manage to remotely install malicious software on a retailer’s card-processing systems. This type of point-of-sale malware is capable of copying data stored on a credit or debit card’s magnetic stripe when those cards are swiped at compromised payment terminals. This data can then be used to create counterfeit copies of the cards.

Hy-Vee said it believes the breach does not affect payment card terminals used at its grocery store checkout lanes, pharmacies or convenience stores, as these systems rely on a security technology designed to defeat card-skimming malware.

“These locations have different point-of-sale systems than those located at our grocery stores, drugstores and inside our convenience stores, which utilize point-to-point encryption technology for processing payment card transactions,” Hy-Vee said. “This encryption technology protects card data by making it unreadable. Based on our preliminary investigation, we believe payment card transactions that were swiped or inserted on these systems, which are utilized at our front-end checkout lanes, pharmacies, customer service counters, wine & spirits locations, floral departments, clinics and all other food service areas, as well as transactions processed through Aisles Online, are not involved.”

According to two sources who asked not to be identified for this story — including one at a major U.S. financial institution — the card data stolen from Hy-Vee is now being sold under the code name “Solar Energy,” at the infamous Joker’s Stash carding bazaar.

An ad at the Joker’s Stash carding site for “Solar Energy,” a batch of more than 5 million credit and debit cards sources say was stolen from customers of supermarket chain Hy-Vee.

Hy-Vee said the company’s investigation is continuing.

“We are aware of reports from payment processors and the card networks of payment data being offered for sale and are working with the payment card networks so that they can identify the cards and work with issuing banks to initiate heightened monitoring on accounts,” Hy-Vee spokesperson Tina Pothoff said. 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 →


30
Jul 19

Capital One Data Theft Impacts 106M People

Federal prosecutors this week charged a Seattle woman with stealing data from more than 100 million credit applications made with Capital One Financial Corp. Incredibly, much of this breach played out publicly over several months on social media and other open online platforms. What follows is a closer look at the accused, and what this incident may mean for consumers and businesses.

Paige “erratic” Thompson, in an undated photo posted to her Slack channel.

On July 29, FBI agents arrested Paige A. Thompson on suspicion of downloading nearly 30 GB of Capital One credit application data from a rented cloud data server. Capital One said the incident affected approximately 100 million people in the United States and six million in Canada.

That data included approximately 140,000 Social Security numbers and approximately 80,000 bank account numbers on U.S. consumers, and roughly 1 million Social Insurance Numbers (SINs) for Canadian credit card customers.

“Importantly, no credit card account numbers or log-in credentials were compromised and over 99 percent of Social Security numbers were not compromised,” Capital One said in a statement posted to its site.

“The largest category of information accessed was information on consumers and small businesses as of the time they applied for one of our credit card products from 2005 through early 2019,” the statement continues. “This information included personal information Capital One routinely collects at the time it receives credit card applications, including names, addresses, zip codes/postal codes, phone numbers, email addresses, dates of birth, and self-reported income.”

The FBI says Capital One learned about the theft from a tip sent via email on July 17, which alerted the company that some of its leaked data was being stored out in the open on the software development platform Github. That Github account was for a user named “Netcrave,” which includes the resume and name of one Paige A. Thompson.

The tip that alerted Capital One to its data breach.

The complaint doesn’t explicitly name the cloud hosting provider from which the Capital One credit data was taken, but it does say the accused’s resume states that she worked as a systems engineer at the provider between 2015 and 2016. That resume, available on Gitlab here, reveals Thompson’s most recent employer was Amazon Inc.

Further investigation revealed that Thompson used the nickname “erratic” on Twitter, where she spoke openly over several months about finding huge stores of data intended to be secured on various Amazon instances.

The Twitter user “erratic” posting about tools and processes used to access various Amazon cloud instances.

According to the FBI, Thompson also used a public Meetup group under the same alias, where she invited others to join a Slack channel named “Netcrave Communications.”

KrebsOnSecurity was able to join this open Slack channel Monday evening and review many months of postings apparently made by Erratic about her personal life, interests and online explorations. One of the more interesting posts by Erratic on the Slack channel is a June 27 comment listing various databases she found by hacking into improperly secured Amazon cloud instances.

That posting suggests Erratic may also have located tens of gigabytes of data belonging to other major corporations:

According to Erratic’s posts on Slack, the two items in the list above beginning with “ISRM-WAF” belong to Capital One.

Continue reading →


19
Jul 19

QuickBooks Cloud Hosting Firm iNSYNQ Hit in Ransomware Attack

Cloud hosting provider iNSYNQ says it is trying to recover from a ransomware attack that shut down its network and has left customers unable to access their accounting data for the past three days. Unfortunately for iNSYNQ, the company appears to be turning a deaf ear to the increasingly anxious cries from its users for more information about the incident.

A message from iNSYNQ to customers.

Gig Harbor, Wash.-based iNSYNQ specializes in providing cloud-based QuickBooks accounting software and services. In a statement posted to its status page, iNSYNQ said it experienced a ransomware attack on July 16, and took its network offline in a bid to contain the spread of the malware.

“The attack impacted data belonging to certain iNSYNQ clients, rendering such data inaccessible,” the company said. “As soon as iNSYNQ discovered the attack, iNSYNQ took steps to contain it. This included turning off some servers in the iNSYNQ environment.”

iNSYNQ said it has engaged outside cybersecurity assistance and to determine whether any customer data was accessed without authorization, but that so far it has no estimate for when those files might be available again to customers.

Meanwhile, iNSYNQ’s customers — many of them accountants who manage financial data for a number of their own clients — have taken to Twitter to vent their frustration over a lack of updates since that initial message to users.

In response, the company appears to have simply deleted or deactivated its Twitter account (a cached copy from June 2019 is available here). Several customers venting about the outage on Twitter also accused the company of unpublishing negative comments about the incident from its Facebook page.

Some of those customers also said iNSYNQ initially blamed the outage on an alleged problem with U.S.-based nationwide cable ISP giant Comcast. Meanwhile, competing cloud hosting providers have been piling on to the tweetstorms about the iNSYNQ outage by marketing their own services, claiming they would never subject their customers to a three-day outage.

iNSYNQ has not yet responded to requests for comment.

Update, 4:35 p.m. ET: I just heard from iNSYNQ’s CEO Elliot Luchansky, who shared the following:

While we have continually updated our website and have emailed customers once if not twice daily during this malware attack, I acknowledge we’ve had to keep the detail fairly minimal.

Unfortunately, and as I’m sure you’re familiar with, the lack of detailed information we’ve shared has been purposeful and in an effort to protect our customers and their data- we’re in a behind the scenes trench warfare doing everything we possibly can to secure and restore our system and customer data and backups. I understand why our customers are frustrated, and we want more than anything to share every piece of information that we have.

Our customers and their businesses are our number one priority right now. Our team is working around the clock to secure and restore access to all impacted data, and we believe we have an end in sight in the near future.

You know as well as we that no one is 100% impervious to this – businesses large and small, governments and individuals are susceptible. iNSYNQ and our customers were the victims of a malware attack that’s a totally new variant that hadn’t been detected before, confirmed by the experienced and knowledgeable cybersecurity team we’ve employed.

Continue reading →


27
Jun 19

Breach at Cloud Solution Provider PCM Inc.

A digital intrusion at PCM Inc., a major U.S.-based cloud solution provider, allowed hackers to access email and file sharing systems for some of the company’s clients, KrebsOnSecurity has learned.

El Segundo, Calif. based PCM [NASDAQ:PCMI] is a provider of technology products, services and solutions to businesses as well as state and federal governments. PCM has nearly 4,000 employees, more than 2,000 customers, and generated approximately $2.2 billion in revenue in 2018.

Sources say PCM discovered the intrusion in mid-May 2019. Those sources say the attackers stole administrative credentials that PCM uses to manage client accounts within Office 365, a cloud-based file and email sharing service run by Microsoft Corp.

One security expert at a PCM customer who was recently notified about the incident said the intruders appeared primarily interested in stealing information that could be used to conduct gift card fraud at various retailers and financial institutions.

In that respect, the motivations of the attackers seem similar to the goals of intruders who breached Indian IT outsourcing giant Wipro Ltd. earlier this year. In April, KrebsOnSecurity broke the news that the Wipro intruders appeared to be after anything they could quickly turn into cash, and used their access to harvest gift card information from a number of the company’s customers.

It’s unclear whether PCM was a follow-on victim from the Wipro breach, or if it was attacked separately. As noted in that April story, PCM was one of the companies targeted by the same hacking group that compromised Wipro. Continue reading →


19
Jun 19

Collections Firm Behind LabCorp, Quest Breaches Files for Bankruptcy

A medical billing firm responsible for a recent eight-month data breach that exposed the personal information on nearly 20 million Americans has filed for bankruptcy, citing “enormous expenses” from notifying affected consumers and the loss of its four largest customers.

The filing, first reported by Bloomberg, comes from the Retrieval-Masters Creditors Bureau, the parent company of the American Medical Collection Agency (AMCA). Earlier this month, medical testing firm Quest Diagnostics said a breach at the AMCA between Aug. 1, 2018 and March 30, 2019 led to the theft of personal and medical information on 11.9 million patients.

On June 4, KrebsOnSecurity broke the news that another major AMCA client — LabCorp — was blaming the company for a breach affecting 7.7 million of its patients.

According to a bankruptcy filing, LabCorp and Quest Diagnostics both stopped sending the AMCA business after the breach disclosure, as did the AMCA’s two other biggest customers — Conduent Inc. and CareCentrix Inc.

Bloomberg reports the data breach created a “cascade of events,” which incurred “enormous expenses that were beyond the ability of the debtor to bear.”

“Those expenses included more than $3.8 million spent on mailing more than 7 million individual notices to people whose information had been potentially hacked,” wrote Jeremy Hill. Retrieval Masters CEO Russell H. Fuchs “personally lent the company $2.5 million to help pay for those mailings, he said in the declaration. In addition, IT professionals and consultants hired in connection with the breach had cost Retrieval-Masters about $400,000 by the time of the filing.”

Retrieval Masters said it learned of the breach after a significant number of credit cards people used to pay their outstanding medical bills via the company’s site ended up with fraud charges on them soon after. The company also reportedly slashed its staff from 113 to 25 at the end of 2018.

The bankruptcy filing may also be something of a preemptive strike: Retrieval-Masters is already facing at least three class-action lawsuits from plaintiffs in New York and California.

A copy of the bankruptcy filing is available here (PDF).