Data Breaches


24
May 19

First American Financial Corp. Leaked Hundreds of Millions of Title Insurance Records

The Web site for Fortune 500 real estate title insurance giant First American Financial Corp. [NYSE:FAF] leaked hundreds of millions of documents related to mortgage deals going back to 2003, until notified this week by KrebsOnSecurity. The digitized records — including bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts, and drivers license images — were available without authentication to anyone with a Web browser.

First American Financial Corp. Image: Linkedin.

Santa Ana, Calif.-based First American is a leading provider of title insurance and settlement services to the real estate and mortgage industries. It employs some 18,000 people and brought in more than $5.7 billion in 2018.

Earlier this week, KrebsOnSecurity was contacted by a real estate developer in Washington state who said he’d had little luck getting a response from the company about what he found, which was that a portion of its Web site (firstam.com) was leaking tens if not hundreds of millions of records. He said anyone who knew the URL for a valid document at the Web site could view other documents just by modifying a single digit in the link.

And this would potentially include anyone who’s ever been sent a document link via email by First American.

KrebsOnSecurity confirmed the real estate developer’s findings, which indicate that First American’s Web site exposed approximately 885 million files, the earliest dating back more than 16 years. No authentication was required to read the documents.

Many of the exposed files are records of wire transactions with bank account numbers and other information from home or property buyers and sellers. Ben Shoval, the developer who notified KrebsOnSecurity about the data exposure, said that’s because First American is one of the most widely-used companies for real estate title insurance and for closing real estate deals — where both parties to the sale meet in a room and sign stacks of legal documents.

“Closing agencies are supposed to be the only neutral party that doesn’t represent someone else’s interest, and you’re required to have title insurance if you have any kind of mortgage,” Shoval said.

“The title insurance agency collects all kinds of documents from both the buyer and seller, including Social Security numbers, drivers licenses, account statements, and even internal corporate documents if you’re a small business. You give them all kinds of private information and you expect that to stay private.

Shoval shared a document link he’d been given by First American from a recent transaction, which referenced a record number that was nine digits long and dated April 2019. Modifying the document number in his link by numbers in either direction yielded other peoples’ records before or after the same date and time, indicating the document numbers may have been issued sequentially.

The earliest document number available on the site – 000000075 — referenced a real estate transaction from 2003. From there, the dates on the documents get closer to real time with each forward increment in the record number.

A redacted screenshot of one of many millions of sensitive records exposed by First American’s Web site.

As of the morning of May 24, firstam.com was returning documents up to the present day (885,000,000+), including many PDFs and post-dated forms for upcoming real estate closings. By 2 p.m. ET Friday, the company had disabled the site that served the records. It’s not yet clear how long the site remained in its promiscuous state, but archive.org shows documents available from the site dating back to at least March 2017.

First American wouldn’t comment on the overall number of records potentially exposed via their site, or how long those records were publicly available. But a spokesperson for the company did share the following statement:

“First American has learned of a design defect in an application that made possible unauthorized access to customer data.  At First American, security, privacy and confidentiality are of the highest priority and we are committed to protecting our customers’ information. The company took immediate action to address the situation and shut down external access to the application. We are currently evaluating what effect, if any, this had on the security of customer information. We will have no further comment until our internal review is completed.”

I should emphasize that these documents were merely available from First American’s Web site; I do not have any information on whether this fact was known to fraudsters previously, nor do I have any information to suggest the documents were somehow mass-harvested (although a low-and-slow or distributed indexing of this data would not have been difficult for even a novice attacker). 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 →


17
Apr 19

How Not to Acknowledge a Data Breach

I’m not a huge fan of stories about stories, or those that explore the ins and outs of reporting a breach. But occasionally I feel obligated to publish such accounts when companies respond to a breach report in such a way that it’s crystal clear they wouldn’t know what to do with a data breach if it bit them in the nose, let alone festered unmolested in some dark corner of their operations.

And yet, here I am again writing the second story this week about a possibly serious security breach at an Indian company that provides IT support and outsourcing for a ridiculous number of major U.S. corporations (spoiler alert: the second half of this story actually contains quite a bit of news about the breach investigation).

On Monday, KrebsOnSecurity broke the news that multiple sources were reporting a cybersecurity breach at Wipro, the third-largest IT services provider in India and a major trusted vendor of IT outsourcing for U.S. companies. The story cited reports from multiple anonymous sources who said Wipro’s trusted networks and systems were being used to launch cyberattacks against the company’s customers.

Wipro asked me to give them several days to investigate the request and formulate a public comment. Three days after I reached out, the quote I ultimately got from them didn’t acknowledge any of the concerns raised by my sources. Nor did the statement even acknowledge a security incident.

Six hours after my story ran saying Wipro was in the throes of responding to a breach, the company was quoted in an Indian daily newspaper acknowledging a phishing incident. The company’s statement claimed its sophisticated systems detected the breach internally and identified the affected employees, and that it had hired an outside digital forensics firm to investigate further.

Less than 24 hours after my story ran, Wipro executives were asked on a quarterly investor conference call to respond to my reporting. Wipro Chief Operating Officer Bhanu Ballapuram told investors that many of the details in my story were in error, and implied that the breach was limited to a few employees who got phished. The matter was characterized as handled, and other journalists on the call moved on to different topics.

At this point, I added a question to the queue on the earnings conference call and was afforded the opportunity to ask Wipro’s executives what portion(s) of my story was inaccurate. A Wipro executive then proceeded to read bits of a written statement about their response to the incident, and the company’s chief operating officer agreed to have a one-on-one call with KrebsOnSecurity to address the stated grievances about my story. Security reporter Graham Cluley was kind enough to record that bit of the call and post it on Twitter.

In the follow-up call with Wipro, Ballapuram took issue with my characterization that the breach had lasted “months,” saying it had only been a matter of weeks since employees at the company had been successfully phished by the attackers. I then asked when the company believed the phishing attacks began, and Ballapuram said he could not confirm the approximate start date of the attacks beyond “weeks.”

Ballapuram also claimed that his corporation was hit by a “zero-day” attack. Actual zero-day vulnerabilities involve somewhat infrequent and quite dangerous weaknesses in software and/or hardware that not even the maker of the product in question understands before the vulnerability is discovered and exploited by attackers for private gain.

Because zero-day flaws usually refer to software that is widely in use, it’s generally considered good form if one experiences such an attack to share any available details with the rest of the world about how the attack appears to work — in much the same way you might hope a sick patient suffering from some unknown, highly infectious disease might nonetheless choose to help doctors diagnose how the infection could have been caught and spread.

Wipro has so far ignored specific questions about the supposed zero-day, other than to say “based on our interim investigation, we have shared the relevant information of the zero-day with our AV [antivirus] provider and they have released the necessary signatures for us.”

My guess is that what Wipro means by “zero-day” is a malicious email attachment that went undetected by all commercial antivirus tools before it infected Wipro employee systems with malware.

Ballapuram added that Wipro has gathered and disseminated to affected clients a set of “indicators of compromise,” telltale clues about tactics, tools and procedures used by the bad guys that might signify an attempted or successful intrusion.

Hours after that call with Ballapuram, I heard from a major U.S. company that is partnering with Wipro (at least for now). The source said his employer opted to sever all online access to Wipro employees within days of discovering that these Wipro accounts were being used to target his company’s operations.

The source said the indicators of compromise that Wipro shared with its customers came from a Wipro customer who was targeted by the attackers, but that Wipro was sending those indicators to customers as if they were something Wipro’s security team had put together on its own. Continue reading →


15
Apr 19

Experts: Breach at IT Outsourcing Giant Wipro

Indian information technology (IT) outsourcing and consulting giant Wipro Ltd. [NYSE:WIT] is investigating reports that its own IT systems have been hacked and are being used to launch attacks against some of the company’s customers, multiple sources tell KrebsOnSecurity. Wipro has refused to respond to questions about the alleged incident.

Earlier this month, KrebsOnSecurity heard independently from two trusted sources that Wipro — India’s third-largest IT outsourcing company — was dealing with a multi-month intrusion from an assumed state-sponsored attacker.

Both sources, who spoke on condition of anonymity, said Wipro’s systems were seen being used as jumping-off points for digital fishing expeditions targeting at least a dozen Wipro customer systems.

The security experts said Wipro’s customers traced malicious and suspicious network reconnaissance activity back to partner systems that were communicating directly with Wipro’s network.

On April 9, KrebsOnSecurity reached out to Wipro for comment. That prompted an email on Apr. 10 from Vipin Nair, Wipro’s head of communications. Nair said he was traveling and needed a few days to gather more information before offering an official response.

On Friday, Apr. 12, Nair sent a statement that acknowledged none of the questions Wipro was asked about an alleged security incident involving attacks against its own customers.

“Wipro has a multilayer security system,” the company wrote. “The company has robust internal processes and a system of advanced security technology in place to detect phishing attempts and protect itself from such attacks. We constantly monitor our entire infrastructure at heightened level of alertness to deal with any potential cyber threat.”

Wipro has not responded to multiple additional requests for comment. Since then, two more sources with knowledge of the investigation have come forward to confirm the outlines of the incident described above. Continue reading →


29
Mar 19

A Month After 2 Million Customer Cards Sold Online, Buca di Beppo Parent Admits Breach

On Feb. 21, 2019, KrebsOnSecurity contacted Italian restaurant chain Buca di Beppo after discovering strong evidence that two million credit and debit card numbers belonging to the company’s customers were being sold in the cybercrime underground. Today, Buca’s parent firm announced it had remediated a 10-month breach of its payment systems at dozens of restaurants, including some locations of its other brands such as Earl of Sandwich and Planet Hollywood.

Some 2.1 million+ credit and debit card accounts stolen from dozens of Earl Enterprises restaurant locations went up for sale on a popular carding forum on Feb. 20, 2019.

In a statement posted to its Web site today, Orlando, Fla. based hospitality firm Earl Enterprises said a data breach involving malware installed on its point-of-sale systems allowed cyber thieves to steal card details from customers between May 23, 2018 and March 18, 2019.

Earl Enterprises did not respond to requests for specifics about how many customers total may have been impacted by the 10-month breach. The company’s statement directs concerned customers to an online tool that allows one to look up breached locations by city and state.

According to an analysis of that page, it appears the breach impacts virtually all 67 Buca di Beppo locations in the United States; a handful out of the total 31 Earl of Sandwich locations; and Planet Hollywood locations in Las Vegas, New York City and Orlando. Also impacted were Tequila Taqueria in Las Vegas; Chicken Guy! in Disney Springs, Fla.; and Mixology in Los Angeles.

KrebsOnsecurity contacted the executive team at Buca di Beppo in late February after determining most of this restaurant’s locations were likely involved a data breach that first surfaced on Joker’s Stash, an underground shop that sells huge new batches of freshly-stolen credit and debit cards on a regular basis. Continue reading →


13
Mar 19

Ad Network Sizmek Probes Account Breach

Online advertising firm Sizmek Inc. [NASDAQ: SZMK] says it is investigating a security incident in which a hacker was reselling access to a user account with the ability to modify ads and analytics for a number of big-name advertisers.

In a recent posting to a Russian-language cybercrime forum, an individual who’s been known to sell access to hacked online accounts kicked off an auction for “the admin panel of a big American ad platform.”

“You can add new users to the ad system, edit existing ones and ad offers,” the seller wrote. The starting bid was $800.

The seller included several screen shots of the ad company’s user panel. A few minutes on LinkedIn showed that many of these people are current or former employees of Sizmek.

The seller also shared a screenshot of the ad network’s Alexa site rankings:

A screenshot of the Alexa ranking for the “big American ad network,” access to which was sold on a cybercrime forum.

I checked Sizmek’s Alexa page and at the time it almost mirrored the statistics shown in the screenshot above. Sizmek’s own marketing boilerplate says the company operates its ad platform in more than 70 countries, connecting more than 20,000 advertisers and 3,600 agencies to audiences around the world. The company is listed by market analysis firm Datanyze.com as the world third-largest ad server network.

After reaching out to a number of folks at Sizmek, I heard back from George Pappachen, the company’s general counsel.

Pappachen said the account being resold on the dark web is a regular user account (not a all-powerful administrator account, despite the seller’s claim) for its Sizmek Advertising Suite (SAS). Pappachen described Sizmek’s SAS product line as “a sizable and important one” for the company and a relatively new platform that has hundreds of users.

He acknowledged that the purloined account had the ability to add or modify the advertising creatives that get run on customer ad campaigns. And Sizmek is used in ad campaigns for some of the biggest brands out there. Some of the companies shown in the screenshot of the panel shared by the dark web seller include PR firm Fleishman-Hillard, media giants Fox Broadcasting, Gannett, and Hearst Digital, as well as Kohler, and Pandora.

A screenshot shared by the dark web seller. Portions of this panel — access to a Sizmek user account — was likely translated by the Chrome Web browser, which has a built-in page translate function. As seen here, that function tends to translate items in the frame of the panel, but it leaves untouched the data inside those frames.

Crooks who exploited this access could hijack existing ad campaigns running on some of the world’s top online properties, by inserting malicious scripts into the HTML code of ads that run on popular sites. Or they could hijack referral commissions destined for others and otherwise siphon ad profits from the system.

“Or someone who is looking to sabotage our systems in a bigger way or allow malicious code to enter our systems,” Pappachen offered.

Pappachen said Sizmek forced a password reset on all internal employees (“a few hundred”), and that the company is scrubbing its SAS user database for departed employees, partners and vendors whose accounts may have been hijacked.

“We’re now doing some level of screening to see if there’s been any kind of intrusion we can detect,” Pappachen said. “It seemed like [the screenshots were accounts from] past employees. I think there were even a couple of vendors that had access to the system previously.” Continue reading →


4
Mar 19

Hackers Sell Access to Bait-and-Switch Empire

Cybercriminals are auctioning off access to customer information stolen from an online data broker behind a dizzying array of bait-and-switch Web sites that sell access to a vast range of data on U.S. consumers, including DMV and arrest records, genealogy reports, phone number lookups and people searches. In an ironic twist, the marketing empire that owns the hacked online properties appears to be run by a Canadian man who’s been sued for fraud by the U.S. Federal Trade Commission, Microsoft and Oprah Winfrey, to name a few.

Earlier this week, a cybercriminal on a Dark Web forum posted an auction notice for access to a Web-based administrative panel for an unidentified “US Search center” that he claimed holds some four million customer records, including names, email addresses, passwords and phone numbers. The starting bid price for that auction was $800.

Several screen shots shared by the seller suggested the customers in question had all purchased subscriptions to a variety of sites that aggregate and sell public records, such as dmv.us.org, carhistory.us.org, police.us.org, and criminalrecords.us.org.

A (redacted) screen shot shared by the apparent hacker who was selling access to usernames and passwords for customers of multiple data-search Web sites.

A few hours of online sleuthing showed that these sites and dozens of others with similar names all at one time shared several toll-free phone numbers for customer support. The results returned by searching on those numbers suggests a singular reason this network of data-search Web sites changed their support numbers so frequently: They quickly became associated with online reports of fraud by angry customers.

That’s because countless people who were enticed to pay for reports generated by these services later complained that although the sites advertised access for just $1, they were soon hit with a series of much larger charges on their credit cards.

Using historic Web site registration records obtained from Domaintools.com (a former advertiser on this site), KrebsOnSecurity discovered that all of the sites linked back to two related companies — Las Vegas, Nev.-based Penguin Marketing, and Terra Marketing Group out of Alberta, Canada.

Both of these entities are owned by Jesse Willms, a man The Atlantic magazine described in an unflattering January 2014 profile as “The Dark Lord of the Internet” [not to be confused with The Dark Overlord].

Jesse Willms’ Linkedin profile.

The Atlantic pointed to a sprawling lawsuit filed by the Federal Trade Commission, which alleged that between 2007 and 2011, Willms defrauded consumers of some $467 million by enticing them to sign up for “risk free” product trials and then billing their cards recurring fees for a litany of automatically enrolled services they hadn’t noticed in the fine print.

“In just a few months, Willms’ companies could charge a consumer hundreds of dollars like this, and making the flurry of debits stop was such a convoluted process for those ensnared by one of his schemes that some customers just canceled their credit cards and opened new ones,” wrote The Atlantic’s Taylor Clark.

Willms’ various previous ventures reportedly extended far beyond selling access to public records. In fact, it’s likely everyone reading this story has at one time encountered an ad for one of his dodgy, bait-and-switch business schemes, The Atlantic noted:

“If you’ve used the Internet at all in the past six years, your cursor has probably lingered over ads for Willms’s Web sites more times than you’d suspect. His pitches generally fit in nicely with what have become the classics of the dubious-ad genre: tropes like photos of comely newscasters alongside fake headlines such as “Shocking Diet Secrets Exposed!”; too-good-to-be-true stories of a “local mom” who “earns $629/day working from home”; clusters of text links for miracle teeth whiteners and “loopholes” entitling you to government grants; and most notorious of all, eye-grabbing animations of disappearing “belly fat” coupled with a tagline promising the same results if you follow “1 weird old trick.” (A clue: the “trick” involves typing in 16 digits and an expiration date.)”

In a separate lawsuit, Microsoft accused Willms’ businesses of trafficking in massive quantities of counterfeit copies of its software. Oprah Winfrey also sued a Willms-affiliated site (oprahsdietscecrets.com) for linking her to products and services she claimed she had never endorsed.

KrebsOnSecurity reached out to multiple customers whose name, email address and cleartext passwords were exposed in the screenshot shared by the Dark Web auctioneer who apparently hacked Willms’ Web sites. All three of those who responded shared roughly the same experience: They said they’d ordered reports for specific criminal background checks from the sites on the promise of a $1 risk-free fee, never found what they were looking for, and were subsequently hit by the same merchant for credit card charges ranging from $20 to $38. Continue reading →


23
Feb 19

Payroll Provider Gives Extortionists a Payday

Payroll software provider Apex Human Capital Management suffered a ransomware attack this week that severed payroll management services for hundreds of the company’s customers for nearly three days. Faced with the threat of an extended outage, Apex chose to pay the ransom demand and begin the process of restoring service to customers.

Roswell, Ga. based Apex HCM is a cloud-based payroll software company that serves some 350 payroll service bureaus that in turn provide payroll services to small and mid-sized businesses. At 4 a.m. on Tuesday, Feb. 19, Apex was alerted that its systems had been infected with a destructive strain of ransomware that encrypts computer files and demands payment for a digital key needed to unscramble the data.

The company quickly took all of its systems offline, and began notifying customers that it was trying to remediate a security threat. Over a series of bi-hourly updates, Apex kept estimating that it expected to restore service in a few hours, only to have to walk back those estimates almost every other time a new customer update went out.

Contacted Wednesday by an Apex client who was nervous about being unable to make this week’s payroll for his clients, KrebsOnSecurity reached out to Apex for comment. Ian Oxman, the company’s chief marketing officer, said the ransomware never touched customer data, but instead encrypted and disrupted everything in the company’s computer systems and at its off-site disaster recovery systems.

“We had just recently completed a pretty state-of-the-art disaster recovery plan off-site out and out of state that was mirroring our live system,” Oxman said. “But when the ransomware bomb went off, not only did it go through and infect our own network, it was then immediately picked up in our disaster recovery site, which made switching over to that site unusable.”

Oxman said Apex hired two outside security firms, and by Feb. 20 the consensus among all three was that paying the ransom was the fastest way to get back online. The company declined to specify how much was paid or what strain of ransomware was responsible for the attack.

“We paid the ransom, and it sucked,” Oxman said. “In respect for our clients who needed to get their businesses up and running that was going to be obviously the quicker path.”

Unfortunately for Apex, paying up didn’t completely solve its problems. For one thing, Oxman said, the decryption key they were given after paying the ransom didn’t work exactly as promised. Instead of restoring all files and folders to their pre-encrypted state, the decryption process broke countless file directories and rendered many executable files inoperable — causing even more delays.

“When they encrypt the data, that happens really fast,” he said. “When they gave us the keys to decrypt it, things didn’t go quite as cleanly.” Continue reading →


18
Feb 19

A Deep Dive on the Recent Widespread DNS Hijacking Attacks

The U.S. government — along with a number of leading security companies — recently warned about a series of highly complex and widespread attacks that allowed suspected Iranian hackers to siphon huge volumes of email passwords and other sensitive data from multiple governments and private companies. But to date, the specifics of exactly how that attack went down and who was hit have remained shrouded in secrecy.

This post seeks to document the extent of those attacks, and traces the origins of this overwhelmingly successful cyber espionage campaign back to a cascading series of breaches at key Internet infrastructure providers.

Before we delve into the extensive research that culminated in this post, it’s helpful to review the facts disclosed publicly so far. On Nov. 27, 2018, Cisco’s Talos research division published a write-up outlining the contours of a sophisticated cyber espionage campaign it dubbed “DNSpionage.”

The DNS part of that moniker refers to the global “Domain Name System,” which serves as a kind of phone book for the Internet by translating human-friendly Web site names (example.com) into numeric Internet address that are easier for computers to manage.

Talos said the perpetrators of DNSpionage were able to steal email and other login credentials from a number of government and private sector entities in Lebanon and the United Arab Emirates by hijacking the DNS servers for these targets, so that all email and virtual private networking (VPN) traffic was redirected to an Internet address controlled by the attackers.

Talos reported that these DNS hijacks also paved the way for the attackers to obtain SSL encryption certificates for the targeted domains (e.g. webmail.finance.gov.lb), which allowed them to decrypt the intercepted email and VPN credentials and view them in plain text.

On January 9, 2019, security vendor FireEye released its report, “Global DNS Hijacking Campaign: DNS Record Manipulation at Scale,” which went into far greater technical detail about the “how” of the espionage campaign, but contained few additional details about its victims.

About the same time as the FireEye report, the U.S. Department of Homeland Security issued a rare emergency directive ordering all U.S. federal civilian agencies to secure the login credentials for their Internet domain records. As part of that mandate, DHS published a short list of domain names and Internet addresses that were used in the DNSpionage campaign, although those details did not go beyond what was previously released by either Cisco Talos or FireEye.

That changed on Jan. 25, 2019, when security firm CrowdStrike published a blog post listing virtually every Internet address known to be (ab)used by the espionage campaign to date. The remainder of this story is based on open-source research and interviews conducted by KrebsOnSecurity in an effort to shed more light on the true extent of this extraordinary — and ongoing — attack.

The “indicators of compromise” related to the DNSpionage campaign, as published by CrowdStrike.

PASSIVE DNS

I began my research by taking each of the Internet addresses laid out in the CrowdStrike report and running them through both Farsight Security and SecurityTrails, services that passively collect data about changes to DNS records tied to tens of millions of Web site domains around the world.

Working backwards from each Internet address, I was able to see that in the last few months of 2018 the hackers behind DNSpionage succeeded in compromising key components of DNS infrastructure for more than 50 Middle Eastern companies and government agencies, including targets in Albania, Cyprus, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Saudi Arabia and the United Arab Emirates.

For example, the passive DNS data shows the attackers were able to hijack the DNS records for mail.gov.ae, which handles email for government offices of the United Arab Emirates. Here are just a few other interesting assets successfully compromised in this cyber espionage campaign:

-nsa.gov.iq: the National Security Advisory of Iraq
-webmail.mofa.gov.ae: email for the United Arab Emirates’ Ministry of Foreign Affairs
-shish.gov.al: the State Intelligence Service of Albania
-mail.mfa.gov.eg: mail server for Egypt’s Ministry of Foreign Affairs
-mod.gov.eg: Egyptian Ministry of Defense
-embassy.ly: Embassy of Libya
-owa.e-albania.al: the Outlook Web Access portal for the e-government portal of Albania
-mail.dgca.gov.kw: email server for Kuwait’s Civil Aviation Bureau
-gid.gov.jo: Jordan’s General Intelligence Directorate
-adpvpn.adpolice.gov.ae: VPN service for the Abu Dhabi Police
-mail.asp.gov.al: email for Albanian State Police
-owa.gov.cy: Microsoft Outlook Web Access for Government of Cyprus
-webmail.finance.gov.lb: email for Lebanon Ministry of Finance
-mail.petroleum.gov.eg: Egyptian Ministry of Petroleum
-mail.cyta.com.cy: Cyta telecommunications and Internet provider, Cyprus
-mail.mea.com.lb: email access for Middle East Airlines

The passive DNS data provided by Farsight and SecurityTrails also offered clues about when each of these domains was hijacked. In most cases, the attackers appear to have changed the DNS records for these domains (we’ll get to the “how” in a moment) so that the domains pointed to servers in Europe that they controlled.

Shortly after the DNS records for these TLDs were hijacked — sometimes weeks, sometimes just days or hours — the attackers were able to obtain SSL certificates for those domains from SSL providers Comodo and/or Let’s Encrypt. The preparation for several of these attacks can be seen at crt.sh, which provides a searchable database of all new SSL certificate creations.

Let’s take a closer look at one example. The CrowdStrike report references the Internet address 139.59.134[.]216 (see above), which according to Farsight was home to just seven different domains over the years. Two of those domains only appeared at that Internet address in December 2018, including domains in Lebanon and — curiously — Sweden.

The first domain was “ns0.idm.net.lb,” which is a server for the Lebanese Internet service provider IDM. From early 2014 until December 2018, ns0.idm.net.lb pointed to 194.126.10[.]18, which appropriately enough is an Internet address based in Lebanon. But as we can see in the screenshot from Farsight’s data below, on Dec. 18, 2018, the DNS records for this ISP were changed to point Internet traffic destined for IDM to a hosting provider in Germany (the 139.59.134[.]216 address).

Source: Farsight Security

Notice what else is listed along with IDM’s domain at 139.59.134[.]216, according to Farsight:

The DNS records for the domains sa1.dnsnode.net and fork.sth.dnsnode.net also were changed from their rightful home in Sweden to the German hosting provider controlled by the attackers in December. These domains are owned by Netnod Internet Exchange, a major global DNS provider based in Sweden. Netnod also operates one of the 13 “root” name servers, a critical resource that forms the very foundation of the global DNS system.

We’ll come back to Netnod in a moment. But first let’s look at another Internet address referenced in the CrowdStrike report as part of the infrastructure abused by the DNSpionage hackers: 82.196.11[.]127. This address in The Netherlands also is home to the domain mmfasi[.]com, which Crowdstrike says was one of the attacker’s domains that was used as a DNS server for some of the hijacked infrastructure.

As we can see in the screenshot above, 82.196.11[.]127 was temporarily home to another pair of Netnod DNS servers, as well as the server “ns.anycast.woodynet.net.” That domain is derived from the nickname of Bill Woodcock, who serves as executive director of Packet Clearing House (PCH).

PCH is a nonprofit entity based in northern California that also manages significant amounts of the world’s DNS infrastructure, particularly the DNS for more than 500 top-level domains and a number of the Middle East top-level domains targeted by DNSpionage. Continue reading →


12
Feb 19

Email Provider VFEmail Suffers ‘Catastrophic’ Hack

Email provider VFEmail has suffered what the company is calling “catastrophic destruction” at the hands of an as-yet unknown intruder who trashed all of the company’s primary and backup data in the United States. The firm’s founder says he now fears some 18 years’ worth of customer email may be gone forever.

Founded in 2001 and based in Milwaukee, Wisc., VFEmail provides email service to businesses and end users. The first signs of the attack came on the morning of Feb. 11, when the company’s Twitter account started fielding reports from users who said they were no longer receiving messages. VFEmail’s Twitter account responded that “external facing systems, of differing OS’s and remote authentication, in multiple data centers are down.”

Two hours later, VFEmail tweeted that it had caught a hacker in the act of formatting one of the company’s mail servers in The Netherlands.

“nl101 is up, but no incoming email,” read a tweet shortly thereafter. “I fear all US based data my be lost.”

“At this time, the attacker has formatted all the disks on every server,” wrote VFEmail. “Every VM [virtual machine] is lost. Every file server is lost, every backup server is lost. Strangely, not all VMs shared the same authentication, but all were destroyed. This was more than a multi-password via ssh exploit, and there was no ransom. Just attack and destroy.”

In an update posted to the company’s Web site, VFEmail owner Rick Romero wrote that new email was being delivered and that efforts were being made to recover what user data could be salvaged.

“At this time I am unsure of the status of existing mail for US users,” Romero wrote. “If you have your own email client, DO NOT TRY TO MAKE IT WORK. If you reconnect your client to your new mailbox, all your local mail will be lost.”

Reached by KrebsOnSecurity on Tuesday morning, Romero said he was able to recover a backup drive hosted in The Netherlands, but that he fears all of the mail for U.S. users may be irreparably lost.

“I don’t have very high expectations of getting any U.S. data back,” Romero said in an online chat. Continue reading →