Ne’er-Do-Well News


12
Aug 18

FBI Warns of ‘Unlimited’ ATM Cashout Blitz

The Federal Bureau of Investigation (FBI) is warning banks that cybercriminals are preparing to carry out a highly choreographed, global fraud scheme known as an “ATM cash-out,” in which crooks hack a bank or payment card processor and use cloned cards at cash machines around the world to fraudulently withdraw millions of dollars in just a few hours.

“The FBI has obtained unspecified reporting indicating cyber criminals are planning to conduct a global Automated Teller Machine (ATM) cash-out scheme in the coming days, likely associated with an unknown card issuer breach and commonly referred to as an ‘unlimited operation’,” reads a confidential alert the FBI shared with banks privately on Friday.

The FBI said unlimited operations compromise a financial institution or payment card processor with malware to access bank customer card information and exploit network access, enabling large scale theft of funds from ATMs.

“Historic compromises have included small-to-medium size financial institutions, likely due to less robust implementation of cyber security controls, budgets, or third-party vendor vulnerabilities,” the alert continues. “The FBI expects the ubiquity of this activity to continue or possibly increase in the near future.”

Organized cybercrime gangs that coordinate unlimited attacks typically do so by hacking or phishing their way into a bank or payment card processor. Just prior to executing on ATM cashouts, the intruders will remove many fraud controls at the financial institution, such as maximum ATM withdrawal amounts and any limits on the number of customer ATM transactions daily.

The perpetrators also alter account balances and security measures to make an unlimited amount of money available at the time of the transactions, allowing for large amounts of cash to be quickly removed from the ATM.

“The cyber criminals typically create fraudulent copies of legitimate cards by sending stolen card data to co-conspirators who imprint the data on reusable magnetic strip cards, such as gift cards purchased at retail stores,” the FBI warned. “At a pre-determined time, the co-conspirators withdraw account funds from ATMs using these cards.”

Virtually all ATM cashout operations are launched on weekends, often just after financial institutions begin closing for business on Saturday. Last month, KrebsOnSecurity broke a story about an apparent unlimited operation used to extract a total of $2.4 million from accounts at the National Bank of Blacksburg in two separate ATM cashouts between May 2016 and January 2017.

In both cases, the attackers managed to phish someone working at the Blacksburg, Virginia-based small bank. From there, the intruders compromised systems the bank used to manage credits and debits to customer accounts. Continue reading →


7
Aug 18

Florida Man Arrested in SIM Swap Conspiracy

Police in Florida have arrested a 25-year-old man accused of being part of a multi-state cyber fraud ring that hijacked mobile phone numbers in online attacks that siphoned hundreds of thousands of dollars worth of bitcoin and other cryptocurrencies from victims.

On July 18, 2018, Pasco County authorities arrested Ricky Joseph Handschumacher, an employee of the city of Port Richey, Fla, charging him with grand theft and money laundering. Investigators allege Handschumacher was part of a group of at least nine individuals scattered across multiple states who for the past two years have drained bank accounts via an increasingly common scheme involving mobile phone “SIM swaps.”

A SIM card is the tiny, removable chip in a mobile device that allows it to connect to the provider’s network. Customers can legitimately request a SIM swap when their existing SIM card has been damaged, or when they are switching to a different phone that requires a SIM card of another size.

But SIM swaps are frequently abused by scam artists who trick mobile providers into tying a target’s service to a new SIM card and mobile phone that the attackers control. Unauthorized SIM swaps often are perpetrated by fraudsters who have already stolen or phished a target’s password, as many banks and online services rely on text messages to send users a one-time code that needs to be entered in addition to a password for online authentication.

In some cases, fraudulent SIM swaps succeed thanks to lax authentication procedures at mobile phone stores. In other instances, mobile store employees work directly with cyber criminals to help conduct unauthorized SIM swaps, as appears to be the case with the crime gang that allegedly included Handschumacher.

A WORRIED MOM

According to court documents, investigators first learned of the group’s activities in February 2018, when a Michigan woman called police after she overheard her son talking on the phone and pretending to be an AT&T employee. Officers responding to the report searched the residence and found multiple cell phones and SIM cards, as well as files on the kid’s computer that included “an extensive list of names and phone numbers of people from around the world.”

The following month, Michigan authorities found the same individual accessing personal consumer data via public Wi-Fi at a local library, and seized 45 SIM cards, a laptop and a Trezor wallet — a hardware device designed to store crytpocurrency account data. In April 2018, the mom again called the cops on her son — identified only as confidential source #1 (“CS1”) in the criminal complaint — saying he’d obtained yet another mobile phone.

Once again, law enforcement officers were invited to search the kid’s residence, and this time found two bags of SIM cards and numerous driver’s licenses and passports. Investigators said they used those phony documents to locate and contact several victims; two of the victims each reported losing approximately $150,000 in cryptocurrencies after their phones were cloned; the third told investigators her account was drained of $50,000.

CS1 later told investigators he routinely conducted the phone cloning and cashouts in conjunction with eight other individuals, including Handschumacher, who allegedly used the handle “coinmission” in the group’s daily chats via Discord and Telegram. Search warrants revealed that in mid-May 2018 the group worked in tandem to steal 57 bitcoins from one victim — then valued at almost $470,000 — and agreed to divide the spoils among members.

GRAND PLANS

Investigators soon obtained search warrants to monitor the group’s Discord server chat conversations, and observed Handschumacher allegedly bragging in these chats about using the proceeds of his alleged crimes to purchase land, a house, a vehicle and a “quad vehicle.” Interestingly, Handschumacher’s public Facebook page remains public, and is replete with pictures that he posted of recent new vehicle aquisitions, including a pickup truck and multiple all-terrain vehicles and jet skis.

The Pasco County Sheriff’s office says their surveillance of the Discord server revealed that the group routinely paid employees at cellular phone companies to assist in their attacks, and that they even discussed a plan to hack accounts belonging to the CEO of cryptocurrency exchange Gemini Trust Company. The complaint doesn’t mention the CEO by name, but the current CEO is bitcoin billionaire Tyler Winklevoss, who co-founded the exchange along with his twin brother Cameron.

“Handschumacher and another co-conspirator talk about compromising the CEO of Gemini and posted his name, date of birth, Skype username and email address into the conversation,” the complaint reads. “Handschumacher and the co-conspirators discuss compromising the CEO’s Skype account and T-Mobile account. The co-conspirator states he will call his ‘guy’ at T-Mobile to ask about the CEO’s account.” Continue reading →


16
Jul 18

‘LuminosityLink RAT’ Author Pleads Guilty

A 21-year-old Kentucky man has pleaded guilty to authoring and distributing a popular hacking tool called “LuminosityLink,” a malware strain that security experts say was used by thousands of customers to gain unauthorized access to tens of thousands of computers across 78 countries worldwide.

The LuminosityLink Remote Access Tool (RAT) was sold for $40 to thousands of customers, who used the tool to gain unauthorized access to tens of thousands of computers worldwide.

Federal prosecutors say Colton Ray Grubbs of Stanford, Ky. conspired with others to market and distribute the LuminosityLink RAT, a $40 Remote Access Tool that made it simple for buyers to hack into computers to surreptitiously view documents, photographs and other files on victim PCs. The RAT also let users view what victims were typing on their keyboards, disable security software, and secretly activate the webcam on the target’s computer.

Grubbs, who went by the pseudonym “KFC Watermelon,” began selling the tool in May 2015. By mid-2017 he’d sold LuminosityLink to more than 8,600 customers, according to Europol, the European Union’s law enforcement agency.

Speculation that Grubbs had been arrested began surfacing last year after KFC Watermelon stopped responding to customer support queries on Hackforums[dot]net, the Web site where he primarily sold his product. Continue reading →


29
May 18

Will the Real Joker’s Stash Come Forward?

For as long as scam artists have been around so too have opportunistic thieves who specialize in ripping off other scam artists. This is the story about a group of Pakistani Web site designers who apparently have made an impressive living impersonating some of the most popular and well known “carding” markets, or online stores that sell stolen credit cards.

An ad for new stolen cards on Joker’s Stash.

One wildly popular carding site that has been featured in-depth at KrebsOnSecurity — Joker’s Stash — brags that the millions of credit and debit card accounts for sale via their service were stolen from merchants firsthand.

That is, the people running Joker’s Stash say they are hacking merchants and directly selling card data stolen from those merchants. Joker’s Stash has been tied to several recent retail breaches, including those at Saks Fifth Avenue, Lord and Taylor, Bebe Stores, Hilton HotelsJason’s Deli, Whole Foods, Chipotle and Sonic. Indeed, with most of these breaches, the first signs that any of the companies were hacked was when their customers’ credit cards started showing up for sale on Joker’s Stash.

Joker’s Stash maintains a presence on several cybercrime forums, and its owners use those forum accounts to remind prospective customers that its Web site — jokerstash[dot]bazar — is the only way in to the marketplace.

The administrators constantly warn buyers to be aware there are many look-alike shops set up to steal logins to the real Joker’s Stash or to make off with any funds deposited with the impostor carding shop as a prerequisite to shopping there.

But that didn’t stop a prominent security researcher (not this author) from recently plunking down $100 in bitcoin at a site he thought was run by Joker’s Stash (jokersstash[dot]su). Instead, the proprietors of the impostor site said the minimum deposit for viewing stolen card data on the marketplace had increased to $200 in bitcoin.

The researcher, who asked not to be named, said he obliged with an additional $100 bitcoin deposit, only to find that his username and password to the card shop no longer worked. He’d been conned by scammers scamming scammers.

As it happens, prior to hearing from this researcher I’d received a mountain of research from Jett Chapman, another security researcher who swore he’d unmasked the real-world identity of the people behind the Joker’s Stash carding empire.

Chapman’s research, detailed in a 57-page report shared with KrebsOnSecurity, pivoted off of public information leading from the same jokersstash[dot]su that ripped off my researcher friend.

“I’ve gone to a few cybercrime forums where people who have used jokersstash[dot]su that were confused about who they really were,” Chapman said. “Many of them left feedback saying they’re scammers who will just ask for money to deposit on the site, and then you’ll never hear from them again.”

But the conclusion of Chapman’s report — that somehow jokersstash[dot]su was related to the real criminals running Joker’s Stash — didn’t ring completely accurate, although it was expertly documented and thoroughly researched. So with Chapman’s blessing, I shared his report with both the researcher who’d been scammed and a law enforcement source who’d been tracking Joker’s Stash.

Both confirmed my suspicions: Chapman had unearthed a vast network of sites registered and set up over several years to impersonate some of the biggest and longest-running criminal credit card theft syndicates on the Internet. Continue reading →


24
May 18

3 Charged In Fatal Kansas ‘Swatting’ Attack

Federal prosecutors have charged three men with carrying out a deadly hoax known as “swatting,” in which perpetrators call or message a target’s local 911 operators claiming a fake hostage situation or a bomb threat in progress at the target’s address — with the expectation that local police may respond to the scene with deadly force. While only one of the three men is accused of making the phony call to police that got an innocent man shot and killed, investigators say the other two men’s efforts to taunt and deceive one another ultimately helped point the gun.

Tyler “SWAuTistic” Barriss. Photo: AP

According to prosecutors, the tragic hoax started with a dispute over a match in the online game “Call of Duty.” The indictment says Shane M. Gaskill, a 19-year-old Wichita, Kansas resident, and Casey S. Viner, 18, had a falling out over a $1.50 game wager.

Viner allegedly wanted to get back at Gaskill, and so enlisted the help of another man — Tyler R. Barriss — a serial swatter known by the alias “SWAuTistic” who’d bragged of “swatting” hundreds of schools and dozens of private residences.

The federal indictment references transcripts of alleged online chats among the three men. In an exchange on Dec. 28, 2017, Gaskill taunts Barriss on Twitter after noticing that Barriss’s Twitter account (@swattingaccount) had suddenly started following him.

Viner and Barriss both allegedly say if Gaskill isn’t scared of getting swatted, he should give up his home address. But the address that Gaskill gave Viner to pass on to Barriss no longer belonged to him and was occupied by a new tenant.

Barriss allegedly then called the emergency 911 operators in Wichita and said he was at the address provided by Viner, that he’d just shot his father in the head, was holding his mom and sister at gunpoint, and was thinking about burning down the home with everyone inside.

Wichita police quickly responded to the fake hostage report and surrounded the address given by Gaskill. Seconds later, 28-year-old Andrew Finch exited his mom’s home and was killed by a single shot from a Wichita police officer. Finch, a father of two, had no party to the gamers’ dispute and was simply in the wrong place at the wrong time.

Just minutes after the fatal shooting, Barriss — who is in Los Angeles  — is allegedly anxious to learn if his Kansas swat attempt was successful. Someone has just sent Barriss a screenshot of a conversation between Viner and Gaskill mentioning police at Gaskill’s home and someone getting killed. So Barriss allegedly then starts needling Gaskill via instant message:

Defendant BARRISS: Yo answer me this
Defendant BARRISS: Did police show up to your house yes or no
Defendant GASKILL: No dumb fuck
Defendant BARRISS: Lmao here’s how I know you’re lying

Prosecutors say Barriss then posted a screen shot showing the following conversation between Viner and Gaskill:

Defendant VINER: Oi
Defendant GASKILL: Hi
Defendant VINER: Did anyone show @ your house?
Defendant VINER: Be honest
Defendant GASKILL: Nope
Defendant GASKILL: The cops are at my house because someone ik just killed his dad

Barriss and Gaskill then allegedly continued their conversation:

Defendant GASKILL: They showed up to my old house retard
Defendant BARRISS: That was the call script
Defendant BARRISS: Lol
Defendant GASKILL: Your literally retarded
Defendant GASKILL: Ik dumb ass
Defendant BARRISS: So you just got caught in a lie
Defendant GASKILL: No I played along with you
Defendant GASKILL: They showed up to my old house that we own and rented out
Defendant GASKILL: We don’t live there anymore bahahaha
Defendant GASKILL: ik you just wasted your time and now your pissed
Defendant BARRISS: Not really
Defendant BARRISS: Once you said “killed his dad” I knew it worked lol
Defendant BARRISS: That was the call lol
Defendant GASKILL: Yes it did buy they never showed up to my house
Defendant GASKILL: You guys got trolled
Defendant GASKILL: Look up who live there we moved out almost a year ago
Defendant GASKILL: I give you props though you’re the 1% that can actually swat babahaha
Defendant BARRISS: Dude MY point is You gave an address that you dont live at but you were acting tough lol
Defendant BARRISS: So you’re a bitch

Later on the evening of Dec. 28, after news of the fatal swatting started blanketing the local television coverage in Kansas, Gaskill allegedly told Barriss to delete their previous messages. “Bape” in this conversation refers to a nickname allegedly used by Casey Viner: Continue reading →


25
Apr 18

DDoS-for-Hire Service Webstresser Dismantled

Authorities in the U.S., U.K. and the Netherlands on Tuesday took down popular online attack-for-hire service WebStresser.org and arrested its alleged administrators. Investigators say that prior to the takedown, the service had more than 136,000 registered users and was responsible for launching somewhere between four and six million attacks over the past three years.

The action, dubbed “Operation Power Off,” targeted WebStresser.org (previously Webstresser.co), one of the most active services for launching point-and-click distributed denial-of-service (DDoS) attacks. WebStresser was one of many so-called “booter” or “stresser” services — virtual hired muscle that anyone can rent to knock nearly any website or Internet user offline.

Webstresser.org (formerly Webstresser.co), as it appeared in 2017.

“The damage of these attacks is substantial,” reads a statement from the Dutch National Police in a Reddit thread about the takedown. “Victims are out of business for a period of time, and spend money on mitigation and on (other) security measures.”

In a separate statement released this morning, Europol — the law enforcement agency of the European Union — said “further measures were taken against the top users of this marketplace in the Netherlands, Italy, Spain, Croatia, the United Kingdom, Australia, Canada and Hong Kong.” The servers powering WebStresser were located in Germany, the Netherlands and the United States, according to Europol.

The U.K.’s National Crime Agency said WebStresser could be rented for as little as $14.99, and that the service allowed people with little or no technical knowledge to launch crippling DDoS attacks around the world.

Neither the Dutch nor U.K. authorities would say who was arrested in connection with this takedown. But according to information obtained by KrebsOnSecurity, the administrator of WebStresser allegedly was a 19-year-old from Prokuplje, Serbia named Jovan Mirkovic.

Mirkovic, who went by the hacker nickname “m1rk,” also used the alias “Mirkovik Babs” on Facebook where for years he openly discussed his role in programming and ultimately running WebStresser. The last post on Mirkovic’s Facebook page, dated April 3 (the day before the takedown), shows the young hacker sipping what appears to be liquor while bathing. Below that image are dozens of comments left in the past few hours, most of them simply, “RIP.”

Continue reading →


20
Apr 18

Is Facebook’s Anti-Abuse System Broken?

Facebook has built some of the most advanced algorithms for tracking users, but when it comes to acting on user abuse reports about Facebook groups and content that clearly violate the company’s “community standards,” the social media giant’s technology appears to be woefully inadequate.

Last week, Facebook deleted almost 120 groups totaling more than 300,000 members. The groups were mostly closed — requiring approval from group administrators before outsiders could view the day-to-day postings of group members.

However, the titles, images and postings available on each group’s front page left little doubt about their true purpose: Selling everything from stolen credit cards, identities and hacked accounts to services that help automate things like spamming, phishing and denial-of-service attacks for hire.

To its credit, Facebook deleted the groups within just a few hours of KrebsOnSecurity sharing via email a spreadsheet detailing each group, which concluded that the average length of time the groups had been active on Facebook was two years. But I suspect that the company took this extraordinary step mainly because I informed them that I intended to write about the proliferation of cybercrime-based groups on Facebook.

That story, Deleted Facebook Cybercrime Groups had 300,000 Members, ended with a statement from Facebook promising to crack down on such activity and instructing users on how to report groups that violate it its community standards.

In short order, some of the groups I reported that were removed re-established themselves within hours of Facebook’s action. I decided instead of contacting Facebook’s public relations arm directly that I would report those resurrected groups and others using Facebook’s stated process. Roughly two days later I received a series replies saying that Facebook had reviewed my reports but that none of the groups were found to have violated its standards. Here’s a snippet from those replies:

Perhaps I should give Facebook the benefit of the doubt: Maybe my multiple reports one after the other triggered some kind of anti-abuse feature that is designed to throttle those who would seek to abuse it to get otherwise legitimate groups taken offline — much in the way that pools of automated bot accounts have been known to abuse Twitter’s reporting system to successfully sideline accounts of specific targets.

Or it could be that I simply didn’t click the proper sequence of buttons when reporting these groups. The closest match I could find in Facebook’s abuse reporting system were, “Doesn’t belong on Facebook,” and “Purchase or sale of drugs, guns or regulated products.” There was/is no option for “selling hacked accounts, credit cards and identities,” or anything of that sort.

In any case, one thing seems clear: Naming and shaming these shady Facebook groups via Twitter seems to work better right now for getting them removed from Facebook than using Facebook’s own formal abuse reporting process. So that’s what I did on Thursday. Here’s an example: Continue reading →


29
Mar 18

Omitting the “o” in .com Could Be Costly

Take care when typing a domain name into a browser address bar, because it’s far too easy to fat-finger a key and wind up somewhere you don’t want to go. For example, if you try to visit some of the most popular destinations on the Web but omit the “o” in .com (and type .cm instead), there’s a good chance your browser will be bombarded with malware alerts and other misleading messages — potentially even causing your computer to lock up completely. As it happens, many of these domains appear tied to a marketing company whose CEO is a convicted felon and once self-proclaimed “Spam King.”

Matthew Chambers is a security professional and researcher in Atlanta. Earlier this month Chambers penned a post on his personal blog detailing what he found after several users he looks after accidentally mistyped different domains — such as espn[dot]cm.

Chambers said the user who visited that domain told him that after typing in espn.com he quickly had his computer screen filled with alerts about malware and countless other pop-ups. Security logs for that user’s system revealed the user had actually typed espn[dot]cm, but when Chambers reviewed the source code at that Web page he found an innocuous placeholder content page instead.

“One thing we notice is that any links generated off these domains tend to only work one time, if you try to revisit it’s a 404,” Chambers wrote, referring to the standard 404 message displayed in the browser when a Web page is not found. “The file is deleted to prevent researchers from trying to grab it, or automatic scanners from downloading it. Also, some of the exploit code on these sites will randomly vaporize, and they will have no code on them, but were just being weaponized in campaigns. It could be the user agent, or some other factor, but they definitely go dormant for periods of time.”

Espn[dot]cm is one of more than a thousand so-called “typosquatting” domains hosted on the same Internet address (85.25.199.30), including aetna[dot]cmaol[dot]cm, box[dot]cm, chase[dot]cm, citicards[dot]cmcostco[dot]cm, facebook[dot]cmgeico[dot]cm, hulu[dot]cmitunes[dot]cm, pnc[dot]cmslate[dot]cmsuntrust[dot]cm, turbotax[dot]cm, and walmart[dot]cm. I’ve compiled a partial list of the most popular typosquatting domains that are part of this network here (PDF).

KrebsOnSecurity sought to dig a bit deeper into Chambers’ findings, researching some of the domain registration records tied to the list of dot-cm typosquatting domains. Helpfully, all of the domains currently redirect visitors to just one of two landing pages — either antistrophebail[dot]com or chillcardiac[dot]com.

For the moment, if one visits either of these domains directly via a desktop Web browser (I’d advise against this) chances are the site will display a message saying, “Sorry, we currently have no promotions available right now.” Browsing some of them with a mobile device sometimes leads to a page urging the visitor to complete a “short survey” in exchange for “a chance to get an gift [sic] cards, coupons and other amazing deals!”

Those antistrophebail and chillcardiac domains — as well as 1,500+ others — were registered to the email address: ryanteraksxe1@yahoo.com. A Web search on that address doesn’t tell us much, but entering it at Yahoo‘s “forgot password” page lists a partially obfuscated address to which Yahoo can send an account key that may be used to reset the password for the account. That address is k*****ng@mediabreakaway[dot]com.

The full email address is kmanning@mediabreakaway[dot]com. According to the “leadership” page at mediabreakaway[dot]com, the email address ryanteraksxe1@yahoo.com almost certainly belongs to one Kacy Manning, who is listed as the “Manager of Special Projects” at Colorado based marketing firm Media Breakaway LLC.

Media Breakaway is headed by Scott Richter, a convicted felon who’s been successfully sued for spamming by some of the biggest media companies over the years. Continue reading →


27
Feb 18

Bot Roundup: Avalanche, Kronos, NanoCore

It’s been a busy few weeks in cybercrime news, justifying updates to a couple of cases we’ve been following closely at KrebsOnSecurity. In Ukraine, the alleged ringleader of the Avalanche malware spam botnet was arrested after eluding authorities in the wake of a global cybercrime crackdown there in 2016. Separately, a case that was hailed as a test of whether programmers can be held accountable for how customers use their product turned out poorly for 27-year-old programmer Taylor Huddleston, who was sentenced to almost three years in prison for making and marketing a complex spyware program.

First, the Ukrainian case. On Nov. 30, 2016, authorities across Europe coordinated the arrest of five individuals thought to be tied to the Avalanche crime gang, in an operation that the FBI and its partners abroad described as an unprecedented global law enforcement response to cybercrime. Hundreds of malicious web servers and hundreds of thousands of domains were blocked in the coordinated action.

The global distribution of servers used in the Avalanche crime machine. Source: Shadowserver.org

The alleged leader of the Avalanche gang — 33-year-old Russian Gennady Kapkanov — did not go quietly at the time. Kapkanov allegedly shot at officers with a Kalashnikov assault rifle through the front door as they prepared to raid his home, and then attempted to escape off of his 4th floor apartment balcony. He was later released, after police allegedly failed to file proper arrest records for him.

But on Monday Agence France-Presse (AFP) reported that Ukrainian authorities had once again collared Kapkanov, who was allegedly living under a phony passport in Poltav, a city in central Ukraine. No word yet on whether Kapkanov has been charged, which was supposed to happen Monday.

Kapkanov’s drivers license. Source: npu.gov.ua.

HOW WELL DO YOU REALLY WANT TO KNOW YOUR CUSTOMERS?

Lawyers for Taylor Huddleston, a 27-year-old programmer from Hot Springs, Ark., originally asked a federal court to believe that the software he sold on the sprawling hacker marketplace Hackforums — a “remote administration tool” or “RAT” designed to let someone remotely administer one or many computers remotely — was just a benign tool.

The bad things done with Mr. Huddleston’s tools, the defendant argued, were not Mr. Huddleston’s doing. Furthermore, no one had accused Mr. Huddleston of even using his own software.

The Daily Beast first wrote about Huddleston’s case in 2017, and at the time suggested his prosecution raised questions of whether a programmer could be held criminally responsible for the actions of his users. My response to that piece was “Dual-Use Software Criminal Case Not So Novel.

Photo illustration by Lyne Lucien/The Daily Beast

The court was swayed by evidence that yes, Mr. Huddleston could be held criminally responsible for those actions. It sentenced him to 33 months in prison after the defendant acknowledged that he knew his RAT — a Remote Access Trojan dubbed “NanoCore RAT” — was being used to spy on webcams and steal passwords from systems running the software.

Of course Huddleston knew: He didn’t market his wares on some Craigslist software marketplace ad, or via video promos on his local cable channel: He marketed the NanoCore RAT and another software licensing program called Net Seal exclusively on Hackforums[dot]net.

This sprawling, English language forum has a deep bench of technical forum discussions about using RATs and other tools to surreptitiously record passwords and videos of “slaves,” the derisive term for systems secretly infected with these RATs.

Huddleston knew what many of his customers were doing because many NanoCore users also used Huddleston’s Net Seal program to keep their own RATs and other custom hacking tools from being disassembled or “cracked” and posted online for free. In short: He knew what programs his customers were using Net Seal on, and he knew what those customers had done or intended to do with tools like NanoCore.

The sentencing suggests that where you choose to sell something online says a lot about what you think of your own product and who’s likely buying it.

Daily Beast author Kevin Poulsen noted in a July 2017 story that Huddleston changed his tune and pleaded guilty. The story pointed to an accompanying plea in which Huddleston stipulated that he “knowingly and intentionally aided and abetted thousands of unlawful computer intrusions” in selling the program to hackers and that he “acted with the purpose of furthering these unauthorized computer intrusions and causing them to occur.” Continue reading →


8
Feb 18

U.S. Arrests 13, Charges 36 in ‘Infraud’ Cybercrime Forum Bust

The U.S. Justice Department announced charges on Wednesday against three dozen individuals thought to be key members of ‘Infraud,” a long-running cybercrime forum that federal prosecutors say cost consumers more than a half billion dollars. In conjunction with the forum takedown, 13 alleged Infraud members from the United States and six other countries were arrested.

A screenshot of the Infraud forum, circa Oct. 2014. Like most other crime forums, it had special sections dedicated to vendors of virtually every kind of cybercriminal goods or services imaginable. Click to enlarge.

Started in October 2010, Infraud was short for “In Fraud We Trust,” and collectively the forum referred to itself as the “Ministry of Fraudulently [sic] Affairs.” As a mostly English-language fraud forum, Infraud attracted nearly 11,000 members from around the globe who sold, traded and bought everything from stolen identities and credit card accounts to ATM skimmers, botnet hosting and malicious software.

“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said John P. Cronan, acting assistant attorney general of the Justice Department’s criminal division. “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale.”

The complaint released by the DOJ lists 36 Infraud members — some only by their hacker nicknames, others by their alleged real names and handles, and still others just as “John Does.” Having been a fairly regular lurker on Infraud over the past seven years who has sought to independently identify many of these individuals, I can say that some of these names and nick associations sound accurate but several do not.

The government says the founder and top member of Infraud was Svyatoslav Bondarenko, a hacker from Ukraine who used the nicknames “Rector” and “Helkern.” The first nickname is well supported by copies of the forum obtained by this author several years back; indeed, Rector’s profile listed him an administrator, and Rector can be seen on countless Infraud discussion threads vouching for sellers who had paid the monthly fee to advertise their services in “sticky” threads on the forum.

However, I’m not sure the Helkern association with Bondarenko is accurate. In December 2014, just days after breaking the story about the theft of some 40 million credit and debit cards from retail giant Target, KrebsOnSecurity posted a lengthy investigation into the identity of “Rescator” — the hacker whose cybercrime shop was identified as the primary vendor of cards stolen from Target.

That story showed that Rescator changed his nickname from Helkern after Helkern’s previous cybercrime forum (Darklife) got massively hacked, and it presented clues indicating that Rescator/Helkern was a different Ukrainian man named Andrey Hodirevski. For more on that connection, see Who’s Selling Cards from Target.

Also, Rescator was a separate vendor on Infraud, and there are no indications that I could find suggesting that Rector and Rescator were the same people. Here is Rescator’s most recent sales thread for his credit card shop on Infraud — dated almost a year after the Target breach. Notice the last comment on that thread alleges that Rescator had recently been arrested and that his shop was being run by law enforcement officials: 

Another top administrator of Infraud used the nickname “Stells.” According to the Justice Department, Stells’ real name is Sergey Medvedev. The government doesn’t describe his exact role, but it appears to have been administering the forum’s escrow service (see screenshot below).

Most large cybercrime forums have an escrow service, which holds the buyer’s virtual currency until forum administrators can confirm the seller has consummated the transaction acceptably to both parties. The escrow feature is designed to cut down on members ripping one another off — but it also can add considerably to the final price of the item(s) for sale.

In April 2016, Medvedev would take over as the “admin and owner” of Infraud, after he posted a note online saying that Bondarenko had gone missing, the Justice Department said.

One defendant in the case, a well-known vendor of stolen credit and debit cards who goes by the nickname “Zo0mer,” is listed as a John Doe. But according to a New York Times story from 2006, Zo0mer’s real name is Sergey Kozerev, and he hails from St. Petersburg, Russia. Continue reading →