Adobe Fined $1M in Multistate Suit Over 2013 Breach; No Jail for Spamhaus Attacker

November 17, 2016

Adobe will pay just $1 million to settle a lawsuit filed by 15 state attorneys general over its huge 2013 data breach that exposed payment records on approximately 38 million people. In other news, the 39-year-old Dutchman responsible for coordinating an epic, weeks-long distributed denial-of-service attack against anti-spam provider Spamhaus in 2013 will avoid any jail time for his crimes thanks to a court ruling in Amsterdam this week.

On Oct. 3, 2013, KrebsOnSecurity broke the story that Adobe had just suffered a breach in which hackers siphoned usernames, passwords and payment card data on 38 million customers. The intruders also made off with digital truckloads of source code for some of Adobe’s most valuable software properties — including Adobe Acrobat and Reader, Photoshop and ColdFusion.

On Monday, Nov. 11, North Carolina Attorney General  Roy Cooper joined his counterparts in 14 other states in announcing a $1 million settlement with Adobe over the 2013 breach. According to Cooper, the hacked Adobe servers contained the personal information of approximately 552,000 residents of the participating 15 states. That works out to about $1.80 per victim across all 15 states.

A posting on anonnews.org that was later deleted.

A posting on anonnews.org that was later deleted.

According to a statement by Massachusetts Attorney General Maura Healey, “an investigation by the states revealed that in September 2013, Adobe received an alert that the hard drive for one of its application servers was nearing capacity. In responding to the alert, Adobe learned that an unauthorized attempt was being made to decrypt customer payment card numbers maintained on the server.”

“Adobe discovered that one or more unauthorized intruder(s) had compromised a public-facing web server and used it to access other servers on Adobe’s network, including areas where Adobe stored consumer data,” the statement from Healey’s office reads. “The intruder(s) ultimately stole consumer data from Adobe’s servers, including encrypted payment card numbers and expiration dates, names, addresses, telephone numbers, e-mail addresses, usernames (Adobe IDs), and passwords associated with the usernames.”

When I think of the Adobe breach I’m reminded of that scene out of the 1982 Spielberg horror classic “Poltergeist,” when Craig T. Nelson as “Steve Freeling” seizes the horrified neighborhood developer Mr. Teague by his coat collars and screams, “You son of a bitch! You moved the cemetery but you left the bodies, didn’t ya?! You left left the bodies and you only moved the headstones!! Why?!?!?! Whyyyyyyeeeiee??!?!?”

A scene from Poltergeist. Image: IMDB.

A scene from Poltergeist. Image: IMDB.

Likewise, Adobe had various storefronts for its various software products, but it eventually centralized many store operations. The main trouble was the company left copies of their customer records in multiple internal network locations that were no longer as protected as Adobe’s globally centralized storefront.

North Carolina’s Cooper said in a statement on the settlement that businesses and government must do more to protect consumer data. But if this settlement was meant as a deterrent to dissuade other companies from hosting customer payment data on public-facing Web servers, the fine might be more effective if it were more commensurate with the company’s size and the number of customers impacted.

As Digital Trends notes, such a breach under the new General Data Protection Regulation going into effect in 2018, would be quite a bit more costly. “Adobe could face fines of up to four percent of its annual global turnover,” wrote Jonathan Keane for DT. “Last we checked, Adobe’s previous quarterly earnings were $1.4 billion.”

Keane also notes that Adobe had previously settled a similar case in California where it settled for an undisclosed amount and $1.1 million in legal fees.

One interesting nugget tucked in at the end of the statement from the North Carolina AG’s office is this bit: More than 3,700 breaches impacting nearly 10 million North Carolinians have been reported since the state’s data breach notification law took effect in 2005, including 677 breaches reported so far in 2016. According to the United States Census Bureau, there were just over 10 million residents in North Carolina as of July 2015. Continue reading

Chinese IoT Firm Siphoned Text Messages, Call Records

November 16, 2016

A Chinese technology firm has been siphoning text messages and call records from cheap Android-based mobile smart phones and secretly sending the data to servers in China, researchers revealed this week. The revelations came the same day the White House and the U.S. Department of Homeland Security issued sweeping guidelines aimed at building security into Internet-connected devices, and just hours before a key congressional panel sought recommendations from industry in regulating basic security standards for so-called “Internet of Things” (IoT) devices.

At the center of the spyware controversy is software made by Shanghai ADUPS Technology, a Chinese firm whose product touts the ability to wirelessly update software installed on mobile and and IoT devices. The ADUPS technology is typically bundled with smart phones made by dozens of global wireless firms including ZTE, BLU and Huawei, and sold at popular consumer destinations like Amazon and BestBuy. Often retailing for between $50 and $100, the sleek and powerful devices sell so cheaply because they also require the user to accept on-screen advertisements.

An About Us page at ADUPS's Web site explains the company's foothold in the IoT market.

An About Us page at ADUPS’s Web site explains the company’s foothold in the IoT market.

According to research released this week, the low up-front cost of these smart phones may be subsidized not just by ads but by also by the theft of private information stolen from users. Researchers at Fairfax, Va.-based security firm Kryptowire say the ADUPS software gives the company near-total control over the devices that it runs on, and that they have proof ADUPS has abused that control to siphon personal data from countless consumers.

Kryptowire researchers say they stumbled upon ADUPS’s spyware capabilities by accident after purchasing a $59 BLU R1 HD smart phone from Amazon.com for use during international travel. Prying apart the phone and the ADUPS software, they discovered that all call records and text messages to and from the device were being digitally copied, encrypted and secretly forwarded to a server in Shanghai, China every 72 hours.

They also learned that ADUPS’s product was able to mine user text messages for specific strings of text, as well as install and remove any software from host devices.

“This behavior cannot be detected by mobile anti-virus tools because they assume that software that ships with the device is not malware and that it is white-listed,” Kryptowire wrote in an advisory published Tuesday. “We were able to capture, decrypt, and trace the data on the network as they were sent to multiple server locations that are located in Shanghai, China.”

In a statement posted to its Web site, ADUPS said it collects “model information, device status, application information, bin/xbin information and summary information from phones and messages,” and that it has done so “in response to user demand to screen out junk texts and calls from advertisers.”

ADUPS further claims that the functionality was added in June 2016 to some Blu Product Inc. devices, and that it has since shipped an update through its firmware updating software to disable the spying functionality on Blu phones.

But Azzedine Benameur, director of research at Kryptowire, said ADUPS’s software — deeply embedded alongside the operating system on these mobile devices — gives it full ability to re-enable the spyware capabilities at any time. He says ADUPS’s public response to their research raises more questions than it answers.

“They do not provide how many devices were affected and how the data were used,” Benameur said. “Also, they don’t mention who had access to that data, including third parties and the Chinese government. Also, there might be other [manufacturers] and device models affected that ADUPS does not mention.”

ADUPS claims on its Web site to have worldwide presence with more than 700 million active users, and that its firmware is integrated into “more than 400 leading mobile operators, semiconductor vendors and device manufacturers spanning from wearable and mobile devices to cars and televisions.”

“This is just one random device of theirs that we looked at,” Benameur said. “For a company that claims to provide over-the-air updates for 700 million devices, including cars and millions of IoT devices…this is really scary and unacceptable behavior.”

ADUPS's offer to business partners, January 2015.

ADUPS’s offer to business partners, circa January 2015.

ADUPS’s current site promises the company’s partners “big data analytics” and higher profit for partners. Earlier versions of the same page from 2015 and cached at the Internet Archive promise partners a slightly less euphemistic menu of services, from an “app push service,” and “device data mining” to “unique package checking” and “mobile advertising.” Interestingly, this story from January 2015 documents how ADUPS’s software has been used to install unwanted apps on customer mobile devices.

As for the Blu R1 HD phone? Benameur said it would be nice if it came with a disclosure that owners can expect zero privacy or control while using it. Aside from that? “At $59, it’s a steal,” Benameur said. “Minus the spyware, it’s a great phone.” Continue reading

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Russian ‘Dukes’ of Hackers Pounce on Trump Win

November 10, 2016

Less than six hours after Donald Trump became the presumptive president-elect of the United States, a Russian hacker gang perhaps best known for breaking into computer networks at the Democratic National Committee launched a volley of targeted phishing campaigns against American political think-tanks and non-government organizations (NGOs).

One of the phishing emails in the latest political espionage attack launched by The Dukes. Source: Volexity.

One of the phishing emails in the latest political espionage attack launched by The Dukes. Source: Volexity.

That’s according to a new report from Washington, D.C.-based cyber incident response firm Volexity. The firm’s researchers say they’ve been closely monitoring the activities of an well-established Russian malware development gang known variously as Cozy Bear, APT29, and The Dukes.

Hacking attacks launched by The Dukes were thought to be connected to intrusions at the Democratic National Committee (DNC), as well as cyber break-ins at multiple high-profile United States Government organizations, Volexity reports in a blog post published Thursday morning.

Last month, the Obama administration publicly acknowledged for the first time that it believed that the Russian government was responsible for stealing and disclosing emails from the DNC and a range of other institutions and prominent individuals, most recently Hillary Clinton’s campaign chairman, John D. Podesta. The emails were posted on WikiLeaks and other sites.

Volexity CEO Steven Adair said The Dukes have launched at least five sorties of email-based malware phishing attacks since Trump’s acceptance speech, and that the malware campaigns are ongoing.

“Two of the attacks purported to be messages forwarded on from the Clinton Foundation giving insight and perhaps a postmortem analysis into the elections,” Adair wrote.”Two of the other attacks purported to be eFax links or documents pertaining to the election’s outcome being revised or rigged. The last attack claimed to be a link to a PDF download on “Why American Elections Are Flawed.

According to Volexity, in July 2015 the Dukes started heavily targeting think tanks and NGOs.

“This represented a fairly significant shift in the group’s previous operations and one that continued in the lead up to and immediately after the 2016 United States Presidential election,” Adair wrote.

Prior to the election, The Dukes were active on August 10, 2016 and on August 25, 2016, launching several waves of highly targeted spear phishing attacks against several U.S.-based think tanks and NGOs.

“These spear phishing messages were spoofed and made to appear to have been sent from real individuals at well-known think tanks in the United States and Europe,” Adair wrote. “These August waves of attacks purported to be from individuals at Transparency International, the Center for a New American Security (CNAS),  the International Institute for Strategic Studies (IISS), Eurasia Group, and the Council on Foreign Relations (CFR).”

Adair said the more typical attacks from The Dukes come in the form of slightly less-targeted email blasts — often to just a few dozen recipients at a time — that include booby-trapped Microsoft Office documents.

When launched, the tainted Excel or Word document opens an actual file with real content, but it also prompts the target to enable “macros” — a powerful functionality built into Office documents that hackers can use to automatically download and run malicious code on a Windows system.

The Dukes prefer to launch the attacks using hacked servers and email inboxes belonging to unsuspecting, trusted workers at NGOs and U.S. government systems, Adair explained. Most often, he said, the intruders will repurpose a legitimate document found in one of these hacked inboxes and inject a sophisticated backdoor “trojan horse program.”

If the phishing target opens the document and has macros enabled in Microsoft Office — or allows macros to be run after the decoy document is shown — a malicious script embedded in the macro installs on the target’s system a powerful foothold for the attacker. Continue reading

Patch Tuesday, 2016 U.S. Election Edition

November 9, 2016

Let’s get this out of the way up front: Having “2016 election” in the headline above is probably the only reason anyone might read this story today. It remains unclear whether Republicans and Democrats can patch things up after a bruising and divisive election, but thanks to a special Election Day Patch Tuesday hundreds of millions of Adobe and Microsoft users have some more immediate patching to do.

As the eyes of the world stayed glued to screens following the U.S. presidential election through the night, Microsoft and Adobe were busy churning out a large number of new security updates for Windows, MS Office, Flash Player and other software. If you use Flash Player or Microsoft products, please take a deep breath and read on.

brokenwindows

Regularly scheduled on the second Tuesday of each month, this month’s “Patch Tuesday” fell squarely on Election Day in the United States and included 14 patch bundles. Those patches fixed a total of 68 unique security flaws in Windows and related software.

Six of the 14 patches carry Microsoft’s most’s-dire “critical” label, meaning they fix bugs that malware or miscreants could use to remotely compromise vulnerable PCs without any help from users apart from maybe visiting a hacked or malicious Web site.

Microsoft says two of the software flaws addressed this week are already being exploited in active attacks. It also warned that three of the software vulnerabilities were publicly detailed prior to the release of these fixes – potentially giving attackers a head start in figuring out how to exploit the bugs.

MS16-129 is our usual dogs breakfast of remote code execution vulnerabilities in the Microsoft Edge browser, impacting both HTML rendering and scripting,” said Bobby Kuzma, systems engineer at Core Security. “MS16-130 contains  a privilege escalation in the onscreen keyboard function from Vista forward. That’s great news for anyone running touchscreen kiosks that are supposedly locked down.” Continue reading

Did the Mirai Botnet Really Take Liberia Offline?

November 4, 2016

KrebsOnSecurity received many a missive over the past 24 hours from readers who wanted to know why I’d not written about widespread media reports that Mirai — a malware strain made from hacked “Internet of Things” (IoT) devices such as poorly secured routers and IP cameras — was used to knock the entire country of Liberia offline. The trouble is, as far as I can tell no such nationwide outage actually occurred.

First, a quick recap on Mirai: This blog was taken offline in September following a record 620 Gpbs attack launched by a Mirai botnet. The source code for Mirai was leaked online at the end of September. Since then, the code has been forked several times, resulting in the emergence of several large Mirai-based botnets. In late October, many of the Internet’s top destinations went offline for the better part of a day when Mirai was used to attack Internet infrastructure firm Dyn.

Enter Kevin Beaumont, a security architect from Liverpool, England who on Thursday published a piece on Medium.com about an attack by Mirai against Liberia. Beaumont had been researching the output of an automated Twitter account set up by security researchers to monitor attacks from these various Mirai botnets. That Twitter account, @MiraiAttacks, burps out a tweet with each new Mirai attack, listing the targeted Internet address, the attack type, and the observed duration of the attack.

Beamont’s story noted that a botnet based on Mirai was seen attacking the telecommunications infrastructure in the West African nation of Liberia. Citing anonymous sources, Beaumont said transit providers confirmed an attack of more than 500 Gpbs targeting Liberia’s lone underseas large-transit Internet cable, which Beaumont said “provides a single point of failure for internet access.”

“From monitoring we can see websites hosted in country going offline during the attacks,” Beaumont wrote. “Additionally, a source in country at a Telco has confirmed to a journalist they are seeing intermittent internet connectivity, at times which directly match the attack. The attacks are extremely worrying because they suggest a Mirai operator who has enough capacity to seriously impact systems in a nation state.”

Not long after Beamont’s story went live, a piece at The Hacker News breathlessly announced that hackers using Mirai had succeeded in knocking Liberia off the Internet. The Hacker News piece includes nifty graphics and images of Liberia’s underseas Internet cables. Soon after, ZDNet picked up the outage angle, as did the BBC and The Guardian and a host of other news outlets.

A graphic The Hacker News used to explain Liberia's susceptibility to a DDoS attack.

A graphic The Hacker News used to explain Liberia’s susceptibility to a DDoS attack.

The only problem that I can see with these stories is that there does not appear to have been anything close to a country-wide outage as a result of this Mirai attack.

Daniel Brewer, general manager for the Cable Consortium of Liberia, confirmed that his organization has fielded inquiries from news outlets and other interest groups following multiple media reports of a nationwide outage. But he could not point to the reason.

“Both our ACE submarine cable monitoring systems and servers hosted (locally) in LIXP (Liberia Internet Exchange Point) show no downtime in the last 3 weeks,” Brewer said. “While it is likely that a local operator might have experienced a brief outage, we have no knowledge of a national Internet outage and there are no data to [substantiate] that.” Continue reading

Ne’er-Do-Well News and Cyber Justice

November 4, 2016

Way back in the last millennium when I was a lowly copy aide at The Washington Post, I pitched the Metro Section editor on an idea for new column: “And the Good News Is…” The editor laughed me out of her office. But I still think it’s a decent idea — particularly in the context of cybersecurity — to periodically highlight the good news when people allegedly responsible for spewing so much badness online are made to face justice.

NCA officials lead away a suspect arrested in this week's raids. Image: NCA.

NCA officials lead away a suspect arrested in this week’s raids. Image: NCA.

In the United Kingdom this week, 14 people were arrested on suspicion of laundering at least £11 million (~USD $13.7M) on behalf of thieves who stole the money using sophisticated banking Trojans like Dridex and Dyre. A statement issued by the U.K.’s National Crime Agency (NCA) said 13 men and a woman, aged between 23 and 52, were arrested in the roundup, including a number of foreign nationals.

The NCA warned in a report released this year that cybercrime had overtaken traditional crime in the United Kingdom. According to the U.K.’s Office of National Statistics, there were 2.46 million cyber incidents and 2.11 million victims of cybercrime in the U.K. in 2015.

Also in the U.K., 19-year-old Adam Mudd pleaded guilty to operating and profiting from Titanium Stresser, an attack-for-hire or “booter” service that could be hired to knock Web sites offline. When U.K. authorities arrested Mudd at his home last year, they found detailed records of the attack service’s customers and victims, which included evidence of more than 1.7 million attacks. Prosecutors say Mudd launched the service when he was 15 years old.

TitaniumStresser[dot]net, as it appeared in 2014.

TitaniumStresser[dot]net, as it appeared in 2014.

As I noted in this 2014 story, the source code for Titanium Stresser was later used by miscreants with the Lizard Squad hacking group to power their Lizard Stresser attack service. Happily, two other 19-year-olds were arrested earlier this month and accused of operating the Lizard Stresser attack service. It’s nice to see authorities here and abroad sending a message that operating booter service can land you in jail, full stop. Continue reading

Computer Virus Cripples UK Hospital System

November 2, 2016

Citing a computer virus outbreak, a hospital system in the United Kingdom has canceled all planned operations and diverted major trauma cases to neighboring facilities. The incident came as U.K. leaders detailed a national cyber security strategy that promises billions in cybersecurity spending, new special police units to pursue organized online gangs, and the possibility of retaliation for major attacks.

In a “major incident” alert posted to its Web site, the National Health Service’s Lincolnshire and Goole trust said it made the decision to cancel surgeries and divert trauma patients after a virus infected its electronic systems on Sunday, October 30.

A portion of an alert posted to the NHS's home page.

A portion of the alert posted to the NHS’s home page.

“We have taken the decision, following expert advise, to shut down the majority of our systems so we can isolate and destroy it,” the NHS said, of the unspecified malware infection. “All planned operations, outpatient appointments and diagnostic procedures have been cancelled for Wednesday, Nov. 2 with a small number of exceptions.”

The advisory continued:

“Inpatients will continue to be cared for and discharged as soon as they are medically fit. Major trauma cases will continue to be diverted to neighboring hospitals as will high risk women in labour.”

Although the NHS didn’t say what kind of virus infected its systems, it is likely an infestation of ransomware — a malware scourge whose purveyors have taken to targeting hospitals and healthcare facilities.

Ransomware scours an infected computer for documents, audio files, pictures and other things likely to be of value to the system’s owner, and then encrypts that data with very powerful encryption software. Most ransomware variants also scour the local network for other systems or network shares to infect. Victims usually can only get their files back after paying a specified ransom demand using a virtual currency, such as Bitcoin. Continue reading

Hackforums Shutters Booter Service Bazaar

October 31, 2016

Perhaps the most bustling marketplace on the Internet where people can compare and purchase so-called “booter” and “stresser” subscriptions — attack-for-hire services designed to knock Web sites offline — announced last week that it has permanently banned the sale and advertising of these services.

On Friday, Oct. 28, Jesse LaBrocca — the administrator of the popular English-language hacking forum Hackforums[dot]net — said he was shutting down the “server stress testing” (SST) section of the forum. The move comes amid heightened public scrutiny of the SST industry, which has been linked to several unusually powerful recent attacks and is responsible for the vast majority of denial-of-service (DOS) attacks on the Internet today.

The administrator of Hackforums bans the sale and advertising of server stress testing (SST) services, also known as "booter" or "stresser" online attack-for-hire services.

The administrator of Hackforums bans the sale and advertising of server stress testing (SST) services, also known as “booter” or “stresser” online attack-for-hire services.

“Unfortunately once again the few ruin it for the many,” LaBrocca wrote under his Hackforums alias “Omniscient.” “I’m personally disappointed that this is the path I have to take in order to protect the community. I loathe having to censor material that could be beneficial to members. But I need to make sure that we continue to exist and given the recent events I think it’s more important that the section be permanently shut down.”

Last month, a record-sized DDoS hit KrebsOnSecurity.com. The attack was launched with the help of Mirai, a malware strain that enslaves poorly secured Internet-of-Things (IoT) devices like CCTV cameras and digital video recorders and uses them to launch crippling attacks.

At the end of September, a Hackforums user named “Anna_Senpai” used the forum to announce the release the source code for Mirai. A week ago, someone used Mirai to launch a massive attack on Internet infrastructure firm Dyn, which for the better part of a day lead to sporadic outages for some of the Web’s top destinations, including Twitter, PayPal, Reddit and Netflix.

The Hackforums post that includes links to the Mirai source code.

The Hackforums post that includes links to the Mirai source code.

As I noted in last week’s story Are the Days of Booter Services Numbered?, many booter service owners have been operating under the delusion or rationalization that their services are intended solely for Web site owners to test the ability of their sites to withstand data deluges.

Whatever illusions booter service operators or users may have harbored about their activities should have been dispelled following a talk delivered at the Black Hat security conference in Las Vegas this year. In that speech, FBI Agent Elliott Peterson issued an unambiguous warning that the agency was prepared to investigate and help prosecute people engaged in selling and buying from booter services.

But it wasn’t until this month’s attack on Dyn that LaBrocca warned the Hackforums community he may have to shut down the SST section.

“I can’t image this attention is going to be a good thing,” Omni said in an October 26, 2016 thread titled “Bad things.” “Already a Senator is calling for a hearing on the Internet of Things [link added]. In the end there could be new laws which effect [sic] us all. So for those responsible for the attacks and creating this mess….you dun goofed. I expect a lot of backlash to come out of this.”

If LaBrocca appears steamed from this turn of events, it’s probably with good reason: He stands to lose a fair amount of regular income by banning some of the most lucrative businesses on his forum. Vendors on Hackforums pay fees as high as $25 apiece to achieve a status that allows them to post new sales threads, and banner ads on the forum can run up to $200 per week.

"Stickies" advertising various "booter" or "stresser" DDoS-for-hire services.

“Stickies” advertising various “booter” or “stresser” DDoS-for-hire services.

Vendors who wish to “sticky” their ads — that is, pay to keep the ads displayed prominently near or at the top of a given discussion subforum — pay LaBrocca up to $60 per week for the prime sticky spots. And there were dozens of booter services advertised on Hackforums.

Allison Nixon, director of security research at Flashpoint and an expert on booter services, said the move could put many booter services out of business.

Nixon said the average booter service customer uses the attack services to settle grudges with opponents in online games, and that the closure of the SST subforum may make these services less attractive to those individuals.

“There is probably a lesser likelihood that the average gamer will see these services and think that it’s an okay idea to purchase them,” Nixon said. “The ease of access to these booters services makes people think it’s okay to use them. In gaming circles, for example, people will often use them to DDoS one another and not realize they might be shutting down an innocent person’s network. Recognizing that this is criminal activity on the same level of criminal hacking and fraud may discourage people from using these services, meaning the casual actor may be less likely to buy a booter subscription and launch DDoS attacks.”

While a welcome development, the closure of the SST subforum almost seems somewhat arbitrary given the sheer amount of other illegal hacking activity that is blatantly advertised on Hackforums, Nixon said.

“It’s interesting the norms that are on this forum because they’re so different from how you or I would recognize acceptable behavior,” she said. “For example, most people would think it’s not acceptable to see booter services advertised alongside remote access Trojans, malware crypting services and botnets.”

Other questionable services and subsections advertised on Hackforums include those intended for the sale of hacked social media and e-commerce accounts. More shocking are the dozens of threads wherein Hackforums members advertise the sale of “girl slaves,” essentially access to hacked computers belonging to teenage girls who can be extorted and exploited for payment or naked pictures. It’s worth noting that the youth who was arrested for snapping nude pictures of Miss Teen USA Cassidy Wolf through her webcam was a regular user of Hackforums.

Hackforums users advertising the sale and procurement of "girl slaves."

Hackforums users advertising the sale and procurement of “girl slaves.”

Continue reading

Are the Days of “Booter” Services Numbered?

October 27, 2016

It may soon become easier for Internet service providers to anticipate and block certain types of online assaults launched by Web-based attack-for-hire services known as “booter” or “stresser” services, new research released today suggests.

The findings come from researchers in Germany who’ve been studying patterns that emerge when miscreants attempt to mass-scan the entire Internet looking for systems useful for launching these digital sieges — known as “distributed denial-of-service” or DDoS attacks.

ddosbomb

To understand the significance of their research, it may help to briefly examine how DDoS attacks have evolved. Not long ago, if one wanted to take down large Web site, one had to build and maintain a large robot network, or “botnet,” of hacked computers — which is a fairly time intensive, risky and technical endeavor.

These days, however, even the least sophisticated Internet user can launch relatively large DDoS attacks just by paying a few bucks for a subscription to one of dozens of booter or stresser services, some of which even accept credit cards and PayPal payments.

These Web-based DDoS-for-hire services don’t run on botnets: They generally employ a handful of powerful servers that are rented from some dodgy “bulletproof” hosting provider. The booter service accepts payment and attack instructions via a front end Web site that is hidden behind Cloudflare (a free DDoS protection service).

But the back end of the booter service is where the really interesting stuff happens. Virtually all of the most powerful and effective attack types used by booter services rely on a technique called traffic amplification and reflection, in which the attacker can reflect or “spoof” his traffic from one or more third-party machines toward the intended target.

In this type of assault, the attacker sends a message to a third party, while spoofing the Internet address of the victim. When the third party replies to the message, the reply is sent to the victim — and the reply is much larger than the original message, thereby amplifying the size of the attack.

To find vulnerable systems that can be leveraged this way, booters employ large-scale Internet scanning services that constantly seek to refresh the list of systems that can be used for amplification and reflection attacks. They do this because, as research has shown (PDF), anywhere from 40-50 percent of the amplifiers vanish or are reassigned new Internet addresses after one week.

Enter researchers from Saarland University in Germany, as well as the Yokohama National University and National Institute of Information and Communications Technology — both in Japan. In a years-long project first detailed in 2015, the researchers looked for scanning that appeared to be kicked off by ne’er-do-wells running booter services.

To accomplish this, the research team built a kind of distributed “honeypot” system — which they dubbed “AmpPot” — designed to mimic services known to be vulnerable to amplification attacks, such as DNS and NTP floods.

“To make them attractive to attackers, our honeypots send back legitimate responses,” the researchers wrote in a 2015 paper (PDF). “Attackers, in turn, will abuse these honeypots as amplifiers, which allows us to observe ongoing attacks, their victims, and the DDoS techniques. To prevent damage caused by our honeypots, we limit the response rate. This way, while attackers can still find these ratelimited honeypots, the honeypots stop replying in the face of attacks.”

In that 2015 paper, the researchers said they deployed 21 globally-distributed AmpPot instances, which observed more than 1.5 million attacks between February and May 2015. Analyzing the attacks more closely, they found that more than 96% of the attacks stem from single sources, such as booter services.

“When focusing on amplification DDoS attacks, we find that almost all of them (>96%) are caused by single sources (e.g. booters), and not botnets,” the team concluded. “However, we sadly do not have the numbers to compare this [to] DoS attacks in general.”

Many large-scale Internet scans like the ones the researchers sought to measure are launched by security firms and other researchers, so the team needed a way to differentiate between scans launched by booter services and those conducted for research or other benign purposes.

“To distinguish between scans performed by researchers and scans performed with malicious intent we relied on a simple assumption: That no attack would be based on the results of a scan performed by (ethical) researchers,” said Johannes Krupp, one of the main authors of the report. “In fact, thanks to our methodology, we do not have to make this distinction upfront, but we can rather look at the results and say: ‘We found attacks linked to this scanner, therefore this scanner must have been malicious.’ If a scan was truly performed by benign parties, we will not find attacks linked to it.”

SECRET IDENTIFIERS

What’s new in the paper being released today by students at Saarland University’s Center for IT-Security, Privacy and Accountability (CISPA) is the method by which the researchers were able to link these mass-scans to the very amplification attacks that follow soon after.

The researchers worked out a way to encode a secret identifier into the set of AmpPot honeypots that any subsequent attack will use, which varies per scan source. They then tested to see if the scan infrastructure was also used to actually launch (and not just to prepare) the attacks. Continue reading

Senator Prods Federal Agencies on IoT Mess

October 25, 2016

The co-founder of the newly launched Senate Cybersecurity Caucus is pushing federal agencies for possible solutions and responses to the security threat from insecure “Internet of Things” (IoT) devices, such as the network of hacked security cameras and digital video recorders that were reportedly used to help bring about last Friday’s major Internet outages.

In letters to the Federal Communications Commission (FCC), the Federal Trade Commission (FTC) and the Department of Homeland Security (DHS), Virginia Senator Mark Warner (D) called the proliferation of insecure IoT devices a threat to resiliency of the Internet.

“Manufacturers today are flooding the market with cheap, insecure devices, with few market incentives to design the products with security in mind, or to provide ongoing support,” Warner wrote to the agencies. “And buyers seem unable to make informed decisions between products based on their competing security features, in part because there are no clear metrics.”

The letter continues:

“Because the producers of these insecure IoT devices currently are insulated from any standards requirements, market feedback, or liability concerns, I am deeply concerned that we are witnessing a ‘tragedy of the commons’ threat to the continued functioning of the internet, as the security so vital to all internet users remains the responsibility of none. Further, buyers have little recourse when, despite their best efforts, security failures occur” [link added].

As Warner’s letter notes, last week’s attack on online infrastructure provider Dyn was launched at least in part by Mirai, a now open-source malware strain that scans the Internet for routers, cameras, digital video recorders and other Internet of Things “IoT” devices protected only by the factory-default passwords. Continue reading