Data Breaches


8
Aug 16

Data Breach At Oracle’s MICROS Point-of-Sale Division

A Russian organized cybercrime group known for hacking into banks and retailers appears to have breached hundreds of computer systems at software giant Oracle Corp., KrebsOnSecurity has learned. More alarmingly, the attackers have compromised a customer support portal for companies using Oracle’s MICROS point-of-sale credit card payment systems.

ocAsked this weekend for comment on rumors of a large data breach potentially affecting customers of its retail division, Oracle acknowledged that it had “detected and addressed malicious code in certain legacy MICROS systems.” It also said that it is asking all MICROS customers to reset their passwords for the MICROS online support portal.

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.

The size and scope of the break-in is still being investigated, and it remains unclear when the attackers first gained access to Oracle’s systems. Sources close to the investigation say Oracle first considered the breach to be limited to a small number of computers and servers at the company’s retail division. That source said that soon after Oracle pushed new security tools to systems in the affected network investigators realized the intrusion impacted more than 700 infected systems.

KrebsOnSecurity first began investigating this incident on July 25, 2016 after receiving an email from an Oracle MICROS customer and reader who reported hearing about a potentially large breach at Oracle’s retail division.

“I do not know to what extent other than they discovered it last week,” said the reader, who agreed to be quoted here in exchange for anonymity. “Out of abundance of caution they informed us and seem to have indicated the incident was isolated to Oracle staff members and not customers like us.  In addition, this notice was to serve to customers the reason for any delays in customer support and service as they were refreshing/re-imaging employees’ computers.”

Two security experts briefed on the breach investigation and who asked to remain anonymous because they did not have permission from their employer to speak on the record said Oracle’s MICROS customer support portal was seen communicating with a server known to be used by the Carbanak Gang. Carbanak is part of a Russian cybercrime syndicate that is suspected of stealing more than $1 billion from banks, retailers and hospitality firms over the past several years.

Many well-known retail, hotel and food & beverage brands use MICROS.

Many well-known retail, hotel and food & beverage brands use MICROS.

A source briefed on the investigation says the breach likely started with a single infected system inside of Oracle’s network that was then used to compromise additional systems. Among those was a customer “ticketing portal” that Oracle uses to help MICROS customers remotely troubleshoot problems with their point-of-sale systems.

Those sources further stated that the intruders placed malicious code on the MICROS support portal, and that the malware allowed the attackers to steal MICROS customer usernames and passwords when customers logged in the support Web site.

Oracle declined to answer direct questions about the breach, saying only that Oracle’s corporate network and Oracle’s other cloud and service offerings were not impacted. The company also sought to downplay the impact of the incident, emphasizing that “payment card data is encrypted both at rest and in transit in the MICROS hosted customer environments.”

In a statement that Oracle is apparently in the process of sending to MICROS customers, Oracle said it was forcing a password reset for all support accounts on the MICROS portal. Oracle added: “We also recommend that you change the password for any account that was used by a MICROS representative to access your on-premises systems.” Continue reading →


26
Jul 16

Kimpton Hotels Probes Card Breach Claims

Kimpton Hotels, a boutique hotel brand that includes 62 properties across the United States, said today it is investigating reports of a credit card breach at multiple locations.

kimptonOn July 22, KrebsOnSecurity reached out to San Francisco-based Kimpton after hearing from three different sources in the financial industry about a pattern of card fraud that suggested a card breach at close to two-dozen Kimpton hotels across the country.

Today, Kimpton responded by issuing and posting the following statement:

“Kimpton Hotels & Restaurants takes the protection of payment card data very seriously. Kimpton was recently made aware of a report of unauthorized charges occurring on cards that were previously used legitimately at Kimpton properties. As soon as we learned of this, we immediately launched an investigation and engaged a leading security firm to provide us with support.”

“We are committed to swiftly resolving this matter. In the meantime, and in line with best practice, we recommend that individuals closely monitor their payment card account statements. If there are unauthorized charges, individuals should immediately notify their bank. Payment card network rules generally state that cardholders are not responsible for such charges.” Continue reading →


19
Jul 16

Cici’s Pizza: Card Breach at 130+ Locations

Cici’s Pizza, a Coppell, Texas-based fast-casual restaurant chain, today acknowledged a credit card breach at more than 135 locations. The disclosure comes more than a month after KrebsOnSecurity first broke the news of the intrusion, offering readers a sneak peak inside the sprawling cybercrime machine that thieves used to siphon card data from Cici’s customers in real-time.

cicisIn a statement released Tuesday evening, Cici’s said that in early March 2016, the company received reports from several of its restaurant locations that point-of-sale systems were not working properly.

“The point-of-sale vendor immediately began an investigation to assess the problem and initiated heightened security measures,” the company said in a press release. “After malware was found on some point-of-sale systems, the company began a restaurant-by-restaurant review and remediation, and retained a third-party cybersecurity firm, 403 Labs, to perform a forensic analysis.”

According to Cici’s, “the vast majority of the intrusions began in March of 2016,” but the company acknowledges that the breach started as early as 2015 at some locations. Cici’s said it was confident the malware has been removed from all stores. A list of affected locations is here (PDF).

On June 3, 2016, KrebsOnSecurity reported that sources at multiple financial institutions suspected a card breach at Cici’s. That story featured a quote from Stephen P. Warne, vice president of service and support for Datapoint POS, a point-of-sale provider that services a large number of Cici’s locations. Warne told this author that the fraudsters responsible for the intrusions had tricked employees into installing the card-stealing malicious software. Continue reading →


8
Jul 16

1,025 Wendy’s Locations Hit in Card Breach

At least 1,025 Wendy’s locations were hit by a malware-driven credit card breach that began in the fall of 2015, the nationwide fast-food chain said Thursday. The announcement marks a significant expansion in a data breach that is costing banks and credit unions plenty: Previously, Wendy’s had said the breach impacted fewer than 300 locations.

An ad for Wendy's (in Russian).

An ad for Wendy’s (in Russian).

On January 27, 2016, this publication was the first to report that Wendy’s was investigating a card breach. In mid-May, the company announced in its first quarter financial statement that the fraud impacted just five percent of stores. But in a statement last month, Wendy’s warned that its estimates about the size and scope of the breach were about to get much meatier.

Wendy’s has published a page that breaks down the breached restaurant locations by state.

Wendy’s is placing blame for the breach on an unnamed third-party that serves franchised Wendy’s locations, saying that a “service provider” that had remote access to the compromised cash registers got hacked.

For better or worse, countless restaurant franchises outsource the management and upkeep of their point-of-sale systems to third party providers, most of whom use remote administration tools to access and manage the systems remotely over the Internet.

Unsurprisingly, the attackers have focused on hacking the third-party providers and have had much success with this tactic. Very often, the hackers just guess at the usernames and passwords needed to remotely access point-of-sale devices. But as more POS vendors start to tighten up on that front, the criminals are shifting their focus to social engineering attacks — that is, manipulating employees at the targeted organization into opening the backdoor for the attackers.

As detailed in Slicing Into a Point-of-Sale Botnet, hackers responsible for stealing millions of customer credit card numbers from pizza chain Cici’s Pizza used social engineering attacks to trick employees at third party point-of-sale providers into installing malicious software. Continue reading →


20
Jun 16

Citing Attack, GoToMyPC Resets All Passwords

GoToMyPC, a service that helps people access and control their computers remotely over the Internet, is forcing all users to change their passwords, citing a spike in attacks that target people who re-use passwords across multiple sites.

gtpcOwned by Santa Clara, Calif. based networking giant Citrix, GoToMyPC is a popular software-as-a-service product that lets users access and control their PC or Mac from anywhere in the world. On June 19, the company posted a status update and began notifying users that a system-wide password update was underway.

“Unfortunately, the GoToMYPC service has been targeted by a very sophisticated password attack,” reads the notice posted to status.gotomypc.com. “To protect you, the security team recommended that we reset all customer passwords immediately. Effective immediately, you will be required to reset your GoToMYPC password before you can login again. To reset your password please use your regular GoToMYPC login link.”

John Bennett, product line director at Citrix, said once the company learned about the attack it took immediate action. But contrary to previous published reports, there is no indication Citrix or its platforms have been compromised, he said.

“Citrix can confirm the recent incident was a password re-use attack, where attackers used usernames and passwords leaked from other websites to access the accounts of GoToMyPC users,” Bennett wrote in an emailed statement. “At this time, the response includes a mandatory password reset for all GoToMyPC users. Citrix encourages customers to visit the  GoToMyPC status page to learn about enabling two-step verification, and to use strong passwords in order to keep accounts as safe as possible. ”

Citrix’s GoTo division also operates GoToAssist, which is geared toward technical support specialists, and GoToMeeting, a product marketed at businesses. The company said it has no indication that user accounts at other GoTo services were compromised, but assuming that’s true it’s likely because the attackers haven’t gotten around to trying yet.

It’s a fair bet that whoever perpetrated this attack had help from huge email and password lists recently leaked online from older breaches at LinkedIn, MySpace and Tumblr to name a few. Re-using passwords at multiple sites is a bad idea to begin with, but re-using your GoToMyPC remote administrator password at other sites seems like an exceptionally lousy idea.


9
Jun 16

There’s the Beef: Wendy’s Breach Numbers About to Get Much Meatier

When news broke last month that the credit card breach at fast food chain Wendy’s impacted fewer than 300 out of the company’s 5,800 locations, the response from many readers was, “Where’s the Breach?” Today, Wendy’s said the number of stores impacted by the breach is “significantly higher” and that the intrusion may not yet be contained.

wendyskyOn January 27, 2016, this publication was the first to report that Wendy’s was investigating a card breach. In mid-May, the company announced in its first quarter financial statement that the fraud impacted just five percent of stores.

But since that announcement last month, a number of sources in the fraud and banking community have complained to this author that there was no way the Wendy’s breach only affected five percent of stores — given the volume of fraud that the banks have traced back to Wendy’s customers.

What’s more, some of those same sources said they were certain the breach was still ongoing well after Wendy’s made the five percent claim in May. In my March 02 piece Credit Unions Feeling Pinch in Wendy’s Breach, I quoted B. Dan Berger, CEO of the National Association of Federal Credit Unions, saying the he’d heard from three credit union CEOs who said the fraud they’ve experienced so far from the Wendy’s breach has eclipsed what they were hit with in the wake of the Home Depot and Target breaches.

Today, Wendy’s acknowledged in a statement that the breach is now expected to be “considerably higher than the 300 restaurants already implicated.” Company spokesman Bob Bertini declined to be more specific about the number of stores involved, citing an ongoing investigation. Bertini also declined to say whether the company is confident that the breach has been contained.

“Wherever we are finding it we’ve taken action,” he said. “But we can’t rule out that there aren’t others.”

Bertini said part of the problem was that the breach happened in two waves. He said the outside forensics investigators that were assigned to the case by the credit card associations initially found 300 locations that had malware on the point-of-sale devices, but that the company’s own investigators later discovered a different strain of the malware at some locations. Bertini declined to provide additional details about either of the malware strains found in the intrusions.

“In recent days, our investigator has identified this additional strain or mutation of the original malware,” he said. “It just so happens that this new strain targets a different point of sale system than the original one, and we just within the last few days discovered this.” Continue reading →


8
Jun 16

Slicing Into a Point-of-Sale Botnet

Last week, KrebsOnSecurity broke the news of an ongoing credit card breach involving CiCi’s Pizza, a restaurant chain in the United States with more than 500 locations. What follows is an exclusive look at a point-of-sale botnet that appears to have enslaved dozens of hacked payment terminals inside of CiCi’s locations that are being relieved of customer credit card data in real time.

Over the weekend, I heard from a source who said that since November 2015 he’s been tracking a collection of hacked cash registers. This point-of-sale botnet currently includes more than 100 infected systems, and according to the administrative panel for this crime machine at least half of the compromised systems are running a malicious Microsoft Windows process called cicipos.exe.

This admin panel shows the Internet address of a number of infected point-of-sale devices as of June 4, 2016. Many of these appear to be at Cici's Pizza locations.

This admin panel shows the Internet address of a number of infected point-of-sale devices as of June 4, 2016. Many of these appear to be at Cici’s Pizza locations.

KrebsOnSecurity has not been able to conclusively tie the botnet to CiCi’s. Neither CiCi’s nor its outside public relations firm have responded to multiple requests for comment. However, the control panel for this botnet includes the full credit card number and name attached to the card, and several individuals whose names appeared in the botnet control panel confirmed having eaten at CiCi’s Pizza locations on the same date that their credit card data was siphoned by this botnet.

Among those was Richard Higgins of Prattville, Ala., whose card data was recorded in the botnet logs on June 4, 2016. Reached via phone, Higgins confirmed that he used his debit card to pay for a meal he and his family enjoyed at a CiCi’s location in Prattville on that same date.

An analysis of the botnet data reveals more than 100 distinct infected systems scattered across the country. However, the panel only displayed hacked systems that were presently reachable online, so the actual number of infected systems may be larger.

Most of the hacked cash registers map back to dynamic Internet addresses assigned by broadband Internet service providers, and those addresses provide little useful information about the owners of the infected systems — other than offering a general idea of the city and state tied to each address.

For example, the Internet address of the compromised point-of-sale system that stole Mr. Higgins’ card data is 72.242.109.130, which maps back to an Earthlink system in a pool of IP addresses managed out of Montgomery, Ala.

higgins-cicis

Many of the botnet logs include brief notes or messages apparently left by CiCi’s employees for other employees. Most of these messages concern banal details about an employee’s shift, or issues that need to be addressed when the next employee shift comes in to work. Continue reading →


6
Jun 16

Password Re-user? Get Ready to Get Busy

In the wake of megabreaches at some of the Internet’s most-recognized destinations, don’t be surprised if you receive password reset requests from numerous companies that didn’t experience a breach: Some big name companies — including Facebook and Netflix — are in the habit of combing through huge data leak troves for credentials that match those of their customers and then forcing a password reset for those users.

Netflix sent out notices to customers who re-used their Netflix password at other sites that were hacked.

Netflix sent out notices to customers who re-used their Netflix password at other sites that were hacked. This notice was shared by a reader who had re-used his Netflix password at one of the breached companies.

Netflix.com, for example, sent out a notification late last week to users who made the mistake of re-using their Netflix password at Linkedin, Tumblr or MySpace. All of three of those breaches are years old, but the scope of the intrusions (more than a half billion usernames and passwords leaked in total) only became apparent recently when the credentials were posted online at various sites and services.

“We believe your Netflix account credentials may have been included in a recent release of email addresses and passwords from an older breach at another company,” the message from Neflix reads. “Just to be safe, we’ve reset your password as a precautionary measure.”

The missive goes on to urge recipients to visit Netflix.com and click the “forgot your email or password” link to reset their passwords.

Netflix is taking this step because it knows from experience that cybercriminals will be using the credentials leaked from Tumblr, MySpace and LinkedIn to see if they work on a variety of third-party sites (including Netflix).

As I wrote last year in the aftermath of the AshleyMadison breach that exposed tens of millions of user credentials, Netflix’s forensics team has been using a tool that the company released in 2014 called Scumblr, which scours high-profile sites for specific terms and data.

“Some Netflix members have received emails encouraging them to change their account passwords as a precautionary measure due to the recent disclosure of additional credentials from an older breach at another internet company,” Netflix said in a statement released to KrebsOnSecurity. “Note that we are always engaged in these types of proactive security measures (leveraging Scumblr in addition to other mechanisms and data sources), not just in the case of major security breaches such as this one.”

Continue reading →


3
Jun 16

Banks: Credit Card Breach at CiCi’s Pizza

CiCi’s Pizza, an American fast food business based in Coppell, Texas with more than 500 stores in 35 states, appears to be the latest restaurant chain to struggle with a credit card breach. The data available so far suggests that hackers obtained access to card data at affected restaurants by posing as technical support specialists for the company’s point-of-sale provider, and that multiple other retailers have been targeted by this same cybercrime gang.

cicisOver the past two months, KrebsOnSecurity has received inquiries from fraud fighters at more than a half-dozen financial institutions in the United States — all asking if I had any information about a possible credit card breach at CiCi’s. Every one of these banking industry sources said the same thing: They’d detected a pattern of fraud on cards that all had all been used in the last few months at various CiCi’s Pizza locations.

Earlier today, I finally got around to reaching out to the CiCi’s headquarters in Texas and was referred to a third-party restaurant management firm called Champion Management. When I called Champion and told them why I was inquiring, they said “the issue” was being handled by an outside public relations firm called SPM Communications.

I never did get a substantive response from SPM, which according to their email and phone messages closes at 1 pm on Fridays during the summer. So I decided to follow up on a tip I’d received from a fraud fighter at one affected bank who said they’d heard from the U.S. Secret Service that the fraud was related to a breach or security weakness at Datapoint (CiCi’s point-of-sale provider).

Incredibly, I went to look up the contact information for datapoint[dot]com, and found that Google was trying to prevent me from visiting this site: According to the search engine giant, Datapoint’s Web site appears to be compromised! It appears Google has listed the site as hacked and that it was once abused by spammers to promote knockoff male enhancement pills.  Continue reading →


2
Jun 16

Dropbox Smeared in Week of Megabreaches

Last week, LifeLock and several other identity theft protection firms erroneously alerted their customers to a breach at cloud storage giant Dropbox.com — an incident that reportedly exposed some 73 million usernames and passwords. The only problem with that notification was that Dropbox didn’t have a breach; the data appears instead to have come from another breach revealed this week at social network Tumblr.

Today’s post examines some of the missteps that preceded this embarrassing and potentially brand-damaging “oops.” We’ll also explore the limits of automated threat intelligence gathering in an era of megabreaches like the ones revealed over the past week that exposed more than a half billion usernames and passwords stolen from Tumblr, MySpace and LinkedIn.

The credentials leaked in connection with breaches at those social networking sites were stolen years ago, but the full extent of the intrusions only became clear recently — when several huge archives of email addresses and hashed passwords from each service were posted to the dark web and to file-sharing sites.

Last week, a reader referred me to a post by a guy named Andrew on the dropbox.com help forum. Andrew said he’d just received alerts blasted out by two different credit monitoring firms that his dropbox credentials had been compromised and were found online (see screenshot below).

A user on the dropbox forum complains of receiving alerts from separate companies warning of a huge password breach at dropbox.com.

A user on the dropbox forum complains of receiving alerts from separate companies warning of a huge password breach at dropbox.com.

Here’s what LifeLock sent out on May 23, 2016 to many customers who pay for the company’s credential recovery services:

Alert Date: 05-23-2016
Alert Type: Monitoring
Alert Category: Internet-Black Market Website
**Member has received a File Sharing Network alert Email: *****
Password: ****************************************
Where your data was found: social media
Type of Compromise: breach
Breached Sector: business
Breached Site: www.dropbox.com
Breached Record Count: 73361477
Password Status: hashed
Severity: red|email,password
Site: www.dropbox.com

LifeLock said it got the alert data via an information sharing agreement with a third party threat intelligence service, but it declined to name the service that sent the false positive alert.

“We can confirm that we recently notified a small segment of LifeLock members that a version of their dropbox.com credentials were detected on the internet,” LifeLock said in a written statement provided to KrebsOnSecurity. “When we are notified about this type of information from a partner, it is usually a “list” that is being given away, traded or sold on the dark web. The safety and security of our members’ data is our highest priority. We are continuing to monitor for any activity within our source network. At this time, we recommend that these LifeLock members change their Dropbox password(s) as a precautionary measure.”

Dropbox says it didn’t have a breach, and if it had the company would be seeing huge amounts of account checking activity and other oddities going on right now. And that’s just not happening, they say.

“We have learned that LifeLock and MyIdCare.com are reporting that Dropbox account details of some of their customers are potentially compromised,” said Patrick Heim, head of trust and security at Dropbox. “An initial investigation into these reports has found no evidence of Dropbox accounts being impacted. We’re continuing to look into this issue and will update our users if we find evidence that Dropbox accounts have been impacted.” Continue reading →