Krebs on Security

Road Warriors: Beware of ‘Video Jacking’

August 11, 2016

A little-known feature of many modern smartphones is their ability to duplicate video on the device’s screen so that it also shows up on a much larger display — like a TV. However, new research shows that this feature may quietly expose users to a simple and cheap new form of digital eavesdropping.

Dubbed “video jacking” by its masterminds, the attack uses custom electronics hidden inside what appears to be a USB charging station. As soon as you connect a vulnerable phone to the appropriate USB charging cord, the spy machine splits the phone’s video display and records a video of everything you tap, type or view on it as long as it’s plugged in — including PINs, passwords, account numbers, emails, texts, pictures and videos.

Some of the equipment used in the “video jacking” demonstration at the DEF CON security conference last week in Las Vegas. Source: Brian Markus.

[Click here if you’re the TL;DR type and just want to know if your phone is at risk from this attack.]

Demonstrations of this simple but effective mobile spying technique were on full display at the DEF CON security conference in Las Vegas last week. I was busy chasing a story at DEF CON unrelated to the conference this year, so I missed many people and talks that I wanted to see. But I’m glad I caught up with the team behind DEF CON’s annual and infamous “Wall of Sheep,” a public shaming exercise aimed at educating people about the dangers of sending email and other plain text online communications over open wireless networks.

Brian Markus, co-founder and chief executive officer for Aries Security, said he and fellow researchers Joseph Mlodzianowski and Robert Rowley came up with the idea for video jacking when they were brainstorming about ways to expand on their “juice jacking” experiments at DEF CON in 2011.

“Juice jacking” refers to the ability to hijack stored data when the user unwittingly plugs his phone into a custom USB charging station filled with computers that are ready to suck down and record said data (both Android and iOS phones now ask users whether they trust the computer before allowing data transfers).

In contrast, video jacking lets the attacker record every key and finger stroke the user makes on the phone, so that the owner of the evil charging station can later replay the videos and see any numbers or keys pressed on the smart phone.

That’s because those numbers or keys will be raised briefly on the victim’s screen with each key press. Here’s an example: While the user may have enabled a special PIN that needs to be entered before the phone unlocks to the home screen, this method captures even that PIN as long as the device is vulnerable and plugged in before the phone is unlocked.

GREAT. IS MY PHONE VULNERABLE?

Most of the phones vulnerable to video jacking are Android or other HDMI-ready smartphones from Asus, Blackberry, HTC, LG, Samsung, and ZTE. This page of HDMI enabled smartphones at phonerated.com should not be considered all-inclusive. Here’s another list. When in doubt, search online for your phone’s make and model to find out if it is HDMI or MHL ready.

Video jacking is a problem for users of HDMI-ready phones mainly because it’s very difficult to tell a USB cord that merely charges the phone versus one that also taps the phone’s video-out capability. Also, there’s generally no warning on the phone to alert the user that the device’s video is being piped to another source, Markus said.

“All of those phones have an HDMI access feature that is turned on by default,” he said. “A few HDMI-ready phones will briefly flash something like ‘HDMI Connected’ whenever they’re plugged into a power connection that is also drawing on the HDMI feature, but most will display no warning at all. This worked on all the phones we tested with no prompting.”

Both Markus and Rowley said they did not test the attack against Apple iPhones prior to DEF CON, but today Markus said he tested it at an Apple store and the video of the iPhone 6’s home screen popped up on the display in the store without any prompt. Getting it to work on the display required a special lightning digital AV adapter from Apple, which could easily be hidden inside an evil charging station and fed an extension adapter and then a regular lightning cable in front of that.

Continue reading →

Got Microsoft? Time to Patch Your Windows

August 9, 2016

57 Comments

Microsoft churned out a bunch of software updates today fix some serious security problems with Windows and other Microsoft products like Internet Explorer (IE), Edge and Office. If you use Microsoft, here are some details about what needs fixing.

brokenwindows As usual, patches for IE and for Edge address the largest number of “critical” vulnerabilities. Critical bugs refer to flaws Microsoft deems serious enough that crooks can exploit them to remotely compromise a vulnerable computer without any help from the user, save for the user visiting some hacked but otherwise legitimate site.

Another bundle of critical bugs targets at least three issues with the way Windows, Office and Skype handle certain types of fonts. Microsoft said attackers could exploit this flaw to take over computers just by getting the victim to view files with specially crafted fonts — either in an Office file like Word or Excel (including via the preview pane), or visiting a hacked/malicious Web site. Continue reading →

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

August 8, 2016

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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.

Asked 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.

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 →

The Reincarnation of a Bulletproof Hoster

August 3, 2016

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In April 2016, security firm Trend Micro published a damning report about a Web hosting provider referred to only as a “cyber-attack facilitator in the Netherlands.” If the Trend analysis lacked any real punch that might have been because — shortly after the report was published — names were redacted so that it was no longer immediately clear who the bad hosting provider was. This post aims to shine a bit more light on the individuals apparently behind this mysterious rogue hosting firm — a company called HostSailor[dot]com.

The Trend report observes that the unnamed, Netherlands-based virtual private sever (VPS) hosting provider appears to have few legitimate customers, and that the amount of abuse emanating from it “is so staggering that this company will remain on our watchlist in the next few months.”

What exactly is the awfulness spewing from the company that Trend takes great pains not to name as HostSailor.com? For starters, according to Trend’s data (PDF) HostSailor has long been a home for attacks tied to a Russian cyber espionage campaign dubbed “Pawn Storm.” From the report:

“Pawn Storm seems to feel quite at home. They used the VPS hosting company for at least 80 attacks since May 2015. Their attacks utilized C&C servers, exploit sites, spear-phishing campaigns, free Webmail phishing sites targeting high profile users, and very specific credential phishing sites against Government agencies of countries like Bulgaria, Greece, Malaysia, Montenegro, Poland, Qatar, Romania, Saudi Arabia, Turkey, Ukraine, and United Arab Emirates. Pawn Storm also uses the VPS provider in the Netherlands for domestic espionage in Russia regularly.”

“Apart from Pawn Storm, a less sophisticated group of threat actors called DustySky (PDF link added) is using the VPS provider. These actors target Israel, companies who do business in Israel, Egypt and some other Middle Eastern governments.”

WHO IS HOSTSAILOR?

Trend’s report on HostSailor points to a LinkedIn profile for an Alexander Freeman at HostSailor who lists his location as Dubai. HostSailor’s Web site says the company has servers in The Netherlands and in Romania, and that it is based in Dubai. The company first came online in early 2013.

Ron Guilmette, an anti-spam researcher who tipped me off to the Trend report and whose research has been featured several times on this blog, reached out to Freeman via email. Guilmette later posted at the Ripe.net mailing list the vitriolic and threatening response he said he received in reply.

A snippet from the response that Guilmette said he received from a HostSailor employee named Alexander Freeman.

Perhaps Mr. Freeman’s ire was previously leveled at Trend Micro, which could explain their redaction of the name “HostSailor” from its report. A spokesperson for Trend Micro declined to explain why the company redacted its own report post-publication, saying only that “at the time of publication, we were following our standard disclosure protocol.”

In any case, I began to suspect that “Alexander Freeman” was just a pseudonym (Trend noted this suspicion in its report as well). In combing through the historic WHOIS registration records for the domain hostsailor.com, I noticed that the domain name changed hands sometime in late 2012. Sure enough, a simple Google search popped up this thread at Webhostingtalk.com back in Dec. 2012, which was started by a Jordan Peterson who says he’s looking to sell hostsailor.com.

Contacted by KrebsOnSecurity, Mr. Peterson said the person who responded about purchasing the domain was named Ali Al-Attiyah, and that this individual used the following email addresses:

ali.alattiyah@yahoo.com
ali.alattiyah@mail.com
hostsailor@hush.com

“I remember Ali telling me he didn’t have a paypal so a friend sent me the money for the domain, I looked up the paypal info for you and [Ali’s friend’s] name is Khalid Cook, masrawyz@yahoo.com,” Peterson told me. “The legal information for the domain transfer was given as:

152-160 City Road
London ec1v 2nx
UK”

That street address corresponds to a business named “yourvirtualofficelondon.co.uk,” which offers call answering services for companies that wish to list a prestigious London address without actually having a physical presence there.

Ali Al-Attiyah is listed as the official registrant of hostsailor.com and several other very similar domains. More interesting, however, is that email address given for Mr. Khalid Cook: masrawyz@yahoo.com. According to a “reverse WHOIS” search ordered from DomainTools.com, that Yahoo email address was used in the original registration records for exactly one domain: santrex.net.

Santrex (better known on Webhostingtalk.com as “Scamtrex“) was an extremely dodgy “bulletproof hosting” company — essentially a mini-ISP that specializes in offering services that are largely immune from takedown requests and pressure from Western law enforcement agencies. At the time, Google’s Safebrowsing database warned that almost 90 percent of the sites on Santrex’s network were attempting to foist malicious software on visitors or were hosting malware used in online attacks.

Santrex was forced out of business in early 2013, after the company’s core servers were massively hacked and the PayPal and credit card accounts it used to accept payments from customers were reportedly seized by unknown parties. In its final days as a hosting provider, Santrex’s main voice on Webhostingtalk.com — a user named “khalouda” — posted many rants that eerily echo the invective leveled at Guilmette by HostSailor’s Mr. Freeman.

Google’s take on the world’s most densely malicious networks over the past 12 months.

WHO IS KHALID COOK?

Continue reading →

Social Security Administration Now Requires Two-Factor Authentication

August 1, 2016

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The U.S. Social Security Administration announced last week that it will now require a cell phone number from all Americans who wish to manage their retirement benefits at ssa.gov. Unfortunately, the new security measure does little to prevent identity thieves from fraudulently creating online accounts to siphon benefits from Americans who haven’t yet created accounts for themselves.

The SSA said all new and existing ‘my Social Security’ account holders will need to provide a cell phone number. The agency said it will use the mobile numbers to send users an 8-digit code via text message that needs to be entered along with a username and password to log in to the site.

The SSA noted it was making the change to comply with an executive order for federal agencies to provide more secure authentication for their online services.

“People will not be able to access their personal my Social Security account if they do not have a cell phone or do not wish to provide the cell phone number,” the agency said. “The purpose of providing your cell phone number is that, each time you log in to your account with your username and password, we will send you a one-time security code you must also enter to log in successfully to your account. We expect to provide additional options in the future, dependent upon requirements of national guidelines currently being revised.”

Although the SSA’s policy change provides additional proof that the person signing in is the same individual who established multi-factor authentication in the the first place, it does not appear to provide any additional proof that the person creating an account at ssa.gov is who they say they are.

The SSA does offer other “extra security” options, such as the sending users a special code via the U.S. Mail that has to be entered on the agency’s site to complete the signup process. If you choose to enable extra security, the SSA will then ask you for:

The last eight digits of your Visa, MasterCard, or Discover credit card;
Information from your W2 tax form;
Information from a 1040 Schedule SE (self-employment) tax form; or
Your direct deposit amount, if you receive Social Security benefits.

Sadly, it is still relatively easy for thieves to create an account in the name of Americans who have not already created one for themselves. All one would need is the target’s name, date of birth, Social Security number, residential address, and phone number. This personal data can be bought for roughly $3-$4 from a variety of cybercrime shops online.

After that, the SSA relays four multiple-guess, so-called “knowledge-based authentication” or KBA questions from credit bureau Equifax. In practice, many of these KBA questions — such as previous address, loan amounts and dates — can be successfully enumerated with random guessing. What’s more, very often the answers to these questions can be found by consulting free online services, such as Zillow and Facebook.

In September 2013, I warned that SSA and financial institutions were tracking a rise in cases wherein identity thieves register an account at the SSA’s portal using a retiree’s personal information and have the victim’s benefits diverted to prepaid debit cards that the crooks control. Unfortunately, because the SSA’s new security features are optional, they do little to block crooks from hijacking SSA benefit payments from retirees. Continue reading →

Would You Use This ATM?

July 28, 2016

117 Comments

One basic tenet of computer security is this: If you can’t vouch for a networked thing’s physical security, you cannot also vouch for its cybersecurity. That’s because in most cases, networked things really aren’t designed to foil a skilled and determined attacker who can physically connect his own devices. So you can imagine my shock and horror seeing a Cisco switch and wireless antenna sitting exposed atop of an ATM out in front of a bustling grocery store in my hometown of Northern Virginia.

I’ve long warned readers to avoid stand-alone ATMs in favor of wall-mounted and/or bank-operated ATMs. In many cases, thieves who can access the networking cables of an ATM are hooking up their own sniffing devices to grab cash machine card data flowing across the ATM network in plain text.

But I’ve never before seen a setup quite this braindead. Take a look:

A not-very-secure ATM in front of a grocery store in Northern Virginia.

An ATM in front of a grocery store in Northern Virginia.

Now let’s have a closer look at the back of this machine to see what we’re dealing with:

Need to get online in a jiffy? No problem, this ATM has plenty of network jacks for you to plug into. What could go wrong?

Daniel Battisto, the longtime KrebsOnSecurity reader who alerted me to this disaster waiting to happen, summed up my thoughts on it pretty well in an email.

“I’d like to assume, for the sake of sanity, that the admin who created this setup knows that Cisco security is broken relatively simple once physical access is gained,” said Battisto, a physical and IT security professional. “I’d also like to assume that all unused interfaces are shutdown, and port-security has been configured on the interfaces in use. I’d also like to assume that the admin established a good console login.” Continue reading →

Kimpton Hotels Probes Card Breach Claims

July 26, 2016

33 Comments

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.

kimpton On 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 →

Trump, DNC, RNC Flunk Email Security Test

July 25, 2016

86 Comments

Donald J. Trump has repeatedly bashed Sen. Hillary Clinton for handling classified documents on her private email server, suggesting that anyone who is so lax with email security isn’t fit to become president. But a closer look at the Web sites for each candidate shows that in contrast to hillaryclinton.com, donaldjtrump.com has failed to take full advantage of a free and open email security technology designed to stymie email spoofing and phishing attacks.

atball At issue is a fairly technical proposed standard called DMARC. Short for “domain-based messaging authentication reporting and conformance,” DMARC tries to solve a problem that has plagued email since its inception: It’s surprisingly difficult for email providers and end users alike to tell whether a given email is real – i.e. that it really was sent by the person or organization identified in the “from:” portion of the missive.

DMARC may not yet be widely deployed beyond the major email providers, but that’s about to change. Google announced late last year that it will soon move gmail.com to a policy of rejecting any messages that don’t pass the authentication checks spelled out in the DMARC specification. And others are already moving in the same direction.

Probably the easiest way to understand DMARC is to walk through a single site’s records. According to the DMARC compliance lookup tool at dmarcian.com — a DMARC awareness, training and support site — hillaryclinton.com has fully implemented DMARC. This means that the campaign has posted a public policy that enables email providers like Google, Microsoft and Yahoo to quickly determine whether a message claiming to have been sent from hillaryclinton.com was actually sent from that domain.

Specifically, (and this is where things can quickly descend into a Geek Factor 5 realm of nerdiness) DMARC sits on top of two existing technologies that try to make email easy to identify: Sender Policy Framework (SPF), and DomainKeys Identified Mail (DKIM).

SPF is basically a list of Internet addresses and domains which are authorized to send email on behalf of hillaryclinton.com (in case anyone’s interested, here’s a copy of the SPF record for hillaryclinton.com). DKIM allows email receivers to verify that a piece of email originated from an Internet domain through the use of public key cryptography. Deploying both technologies gives email receivers two ways to figure out if a piece of email is legitimate.

The DMARC record for Clinton’s site includes the text string “p=quarantine.” The “p” bit stands for policy, and “quarantine” means the Web site’s administrators have instructed email providers to quarantine all messages sent from addresses or domains not on that list and not signed with DKIM – effectively consigning them to the intended recipient’s “spam” or “junk” folder. Another blocking option available is “p=reject,” which tells email providers to outright drop or reject any mail sent from domains or addresses not specified in the organization’s SPF records and lacking any appropriate DKIM signatures.

Turning Dmarcian.com’s tool against donaldjtrump.com, we can see that although the site is thinking about turning on DMARC, it hasn’t actually done so yet. The site’s DMARC records are set to the third option — “p=none” — which means the site administrators haven’t yet asked email providers to block or quarantine any messages that fail to match the site’s SPF records. Rather, the site merely asks email providers to report to “postmaster@donaldjtrump.com” about the source of any email messages claiming to have been sent by that domain. Continue reading →

Canadian Man Behind Popular ‘Orcus RAT’

July 21, 2016

98 Comments

Far too many otherwise intelligent and talented software developers these days apparently think they can get away with writing, selling and supporting malicious software and then couching their commerce as a purely legitimate enterprise. Here’s the story of how I learned the real-life identity of Canadian man who’s laboring under that same illusion as proprietor of one of the most popular and affordable tools for hacking into someone else’s computer.

Earlier this week I heard from Daniel Gallagher, a security professional who occasionally enjoys analyzing new malicious software samples found in the wild. Gallagher said he and members of @malwrhunterteam and @MalwareTechBlog recently got into a Twitter fight with the author of Orcus RAT, a tool they say was explicitly designed to help users remotely compromise and control computers that don’t belong to them.

A still frame from a Youtube video demonstrating Orcus RAT’s keylogging ability to steal passwords from Facebook and other sites.

The author of Orcus — a person going by the nickname “Ciriis Mcgraw” a.k.a. “Armada” on Twitter and other social networks — claimed that his RAT was in fact a benign “remote administration tool” designed for use by network administrators and not a “remote access Trojan” as critics charged. Gallagher and others took issue with that claim, pointing out that they were increasingly encountering computers that had been infected with Orcus unbeknownst to the legitimate owners of those machines.

The malware researchers noted another reason that Mcgraw couldn’t so easily distance himself from how his clients used the software: He and his team are providing ongoing technical support and help to customers who have purchased Orcus and are having trouble figuring out how to infect new machines or hide their activities online.

What’s more, the range of features and plugins supported by Armada, they argued, go well beyond what a system administrator would look for in a legitimate remote administration client like Teamviewer, including the ability to launch a keylogger that records the victim’s every computer keystroke, as well as a feature that lets the user peek through a victim’s Web cam and disable the light on the camera that alerts users when the camera is switched on.

A new feature of Orcus announced July 7 lets users configure the RAT so that it evades digital forensics tools used by malware researchers, including an anti-debugger and an option that prevents the RAT from running inside of a virtual machine.

Other plugins offered directly from Orcus’s tech support page (PDF) and authored by the RAT’s support team include a “survey bot” designed to “make all of your clients do surveys for cash;” a “USB/.zip/.doc spreader,” intended to help users “spread a file of your choice to all clients via USB/.zip/.doc macros;” a “Virustotal.com checker” made to “check a file of your choice to see if it had been scanned on VirusTotal;” and an “Adsense Injector,” which will “hijack ads on pages and replace them with your Adsense ads and disable adblocker on Chrome.”

WHO IS ARMADA?

Gallagher said he was so struck by the guy’s “smugness” and sheer chutzpah that he decided to look closer at any clues that Ciriis Mcgraw might have left behind as to his real-world identity and location. Sure enough, he found that Ciriis Mcgraw also has a Youtube account under the same name, and that a video Mcgraw posted in July 2013 pointed to a 33-year-old security guard from Toronto, Canada.

Gallagher noticed that the video — a bystander recording on the scene of a police shooting of a Toronto man — included a link to the domain policereview[dot]info. A search of the registration records attached to that Web site name show that the domain was registered to a John Revesz in Toronto and to the email address john.revesz@gmail.com.

A reverse WHOIS lookup ordered from Domaintools.com shows the same john.revesz@gmail.com address was used to register at least 20 other domains, including “thereveszfamily.com,” “johnrevesz.com, revesztechnologies[dot]com,” and — perhaps most tellingly — “lordarmada.info“.

Johnrevesz[dot]com is no longer online, but this cached copy of the site from the indispensable archive.org includes his personal résumé, which states that John Revesz is a network security administrator whose most recent job in that capacity was as an IT systems administrator for TD Bank. Revesz’s LinkedIn profile indicates that for the past year at least he has served as a security guard for GardaWorld International Protective Services, a private security firm based in Montreal.

Revesz’s CV also says he’s the owner of the aforementioned Revesz Technologies, but it’s unclear whether that business actually exists; the company’s Web site currently redirects visitors to a series of sites promoting spammy and scammy surveys, come-ons and giveaways. Continue reading →

Cici’s Pizza: Card Breach at 130+ Locations

July 19, 2016

26 Comments

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.

cicis In 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 →

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