Category Archives: Web Fraud 2.0

The Role of Phony Returns in Gift Card Fraud

December 10, 2015
77 Comments

On any given day, there are thousands of gift cards from top retailers for sale online that can be had for a fraction of their face value. Some of these are exactly what they appear to be: legitimate gift cards sold through third-party sites that specialize in reselling used or unwanted cards. But many discounted gift cards for sale online are in fact the product of merchandise return fraud, meaning consumers who purchase them unwittingly help thieves rob the stores that issued the cards.

When Undercover Credit Card Buys Go Bad

December 7, 2015
55 Comments

I recently heard from a source in law enforcement who had a peculiar problem. The source investigates cybercrime, and he was reaching out for advice after trying but failing to conduct undercover buys of stolen credit cards from a well-known underground card market. Turns out, the cybercrime bazaar’s own security system triggered a “pig alert” and brazenly flagged the fed’s transactions as an undercover purchase placed by a law enforcement officer.

JPMorgan Hackers Breached Anti-Fraud Vendor G2 Web Services

November 13, 2015
17 Comments

Buried in the federal indictments unsealed this week against four men accused of stealing tens of millions of consumer records from JPMorgan Chase and other brokerage firms are a series of other unnamed companies that were similarly victimized by the accused. One of them, identified in the indictments only as “Victim #12,” is an entity that helps banks block transactions for dodgy goods advertised in spam. Turns out, the hackers targeted this company so that they could better push through payments for spam-advertised prescription drugs and fake antivirus schemes.

According to multiple sources, Victim #12 is none other than Bellevue, Wash. based G2 Web Services LLC, a company that helps banks figure out if a website is fraudulent or is selling contraband. G2 Web Services did not respond to multiple requests for comment.

Ransomware Now Gunning for Your Web Sites

November 9, 2015
66 Comments

One of the more common and destructive computer crimes to emerge over the past few years involves ransomware — malicious code that quietly scrambles all of the infected user’s documents and files with very strong encryption. A ransom, to be paid in Bitcon, is demanded in exchange for a key to unlock the files. Well, now it appears fraudsters are developing ransomware that does the same but for Web sites — essentially holding the site’s files, pages and images for ransom.

TalkTalk, Script Kids & The Quest for ‘OG’

November 5, 2015
52 Comments

So you’ve got two-step authentication set up to harden the security of your email account (you do, right?). But when was the last time you took a good look at the security of your inbox’s recovery email address? That may well be the weakest link in your email security chain, as evidenced by the following tale of a IT professional who saw two of his linked email accounts recently hijacked in a bid to steal his Twitter identity.

Earlier this week, I heard from Chris Blake, a longtime KrebsOnSecurity reader from the United Kingdom. Blake reached out because I’d recently written about a character of interest in the breach at British phone and broadband provider TalkTalk: an individual using the Twitter handle “@Fearful”. Blake proceeded to explain how that same Fearful account had belonged to him for some time until May 2015, when an elaborate social engineering attack on his Internet service provider (ISP) allowed the current occupant of the account to swipe it out from under him.

With Stolen Cards, Fraudsters Shop to Drop

September 28, 2015
40 Comments

A time-honored method of extracting cash from stolen credit cards involves “reshipping” scams, which manage the purchase, reshipment and resale of carded consumer goods from America to Eastern Europe — primarily Russia. A new study suggests that some 1.6 million credit and debit cards are used to commit at least $1.8 billion in reshipping fraud each year, and identifies some choke points for disrupting this lucrative money laundering activity.

Bidding for Breaches, Redefining Targeted Attacks

September 23, 2015
28 Comments

A growing community of private and highly-vetted cybercrime forums is redefining the very meaning of “targeted attacks.” These bid-and-ask forums match crooks who are looking for access to specific data, resources or systems within major corporations with hired muscle who are up to the task or who already have access to those resources.

IRS: 330K Taxpayers Hit by ‘Get Transcript’ Scam

August 17, 2015
28 Comments

The Internal Revenue Service (IRS) disclosed today that identity thieves abused a feature on the agency’s Web site to pull sensitive data on more than 330,000 potential victims as part of a scheme to file fraudulent tax refund requests. The new figure is far larger than the number of Americans the IRS said were potentially impacted when it first acknowledged the vulnerability in May 2015 — two months after KrebsOnSecurity first raised alarms about the weakness.

Stress-Testing the Booter Services, Financially

August 17, 2015
29 Comments

The past few years have witnessed a rapid proliferation of cheap, Web-based services that troublemakers can hire to knock virtually any person or site offline for hours on end. Such services succeed partly because they’ve enabled users to pay for attacks with PayPal. But a collaborative effort by PayPal and security researchers has made it far more difficult for these services to transact with their would-be customers.