Krebs on Security

Congressional Report Slams OPM on Data Breach

September 7, 2016

The massive data breach at the U.S. Office of Personnel Management (OPM) that exposed background investigations and fingerprint data on millions of Americans was the result of a cascading series of cybersecurity blunders from the agency’s senior leadership on down to the outdated technology used to secure the sensitive data, according to a lengthy report released today by a key government oversight panel.

OPM offices in Washington, DC. Image: Flickr.

The 241-page analysis, commissioned by the U.S. House Oversight & Government Reform Committee, blames OPM for jeopardizing U.S. national security for more than a generation.

The report offers perhaps the most exhaustive accounting and timeline of the breach since it was first publicly disclosed in mid-2015. According to the document, the lax state of OPM’s information security left the agency’s information systems exposed for any experienced hacker to infiltrate and compromise.

“The agency’s senior leadership failed to fully comprehend the extent of the compromise, allowing the hackers to remove manuals and other sensitive materials that essentially provided a roadmap to the OPM IT environment and key users for potential compromise,” the report charges.

Probably the most incisive portion of the assessment is the timeline of major events in the breach, which details a series of miscalculations on the part of the OPM leadership. The analysis paints the picture of a chronic — almost willful — underestimation by senior leadership at OPM about the seriousness of the threat facing the agency, until it was too late.

According to the report, the OPM first learned something was amiss on March 20, 2014, when the US-CERT notified the agency of data being exfiltrated from its network. In the ensuing weeks, OPM worked with US-CERT to implement a strategy to monitor the attackers’ movements to gather counterintelligence.

The only problem with this plan, according to the panel, was that the agency erroneously believed it had cornered the intruder. However, the hacker that OPM and US-CERT had eyes on wasn’t alone. While OPM monitored the first hacker [referred to in the report only as Hacker X1] on May 7, 2014 another hacker posed as an employee of an OPM contractor (Keypoint) performing background investigations. That intruder, referred to as Hacker X2, used the contractor’s OPM credentials to log into the OPM system, install malware and create a backdoor to the network.

As the agency monitored Hacker X1’s movements through the network, the committee found, it noticed hacker X1 was getting dangerously close to the security clearance background information. OPM, in conjunction with DHS, quickly developed a plan to kick Hacker X1 out of its system. It termed this remediation “the Big Bang.” At the time, the agency was confident the planned remediation effort on May 27, 2014 eliminated Hacker X1’s foothold on their systems.

The decision to execute the Big Bang plan was made after OPM observed the attacker load keystroke logging malware onto the workstations of several database administrators, the panel found.

“But Hacker X2, who had successfully established a foothold on OPM’s systems and had not been detected due to gaps in OPM’s security posture, remained in OPM’s systems post-Big Bang,” the report notes.

On June 5, malware was successfully installed on a KeyPoint Web server. After that, X2 moved around OPM’s system until July 29, 2014, when the intruders registered opmlearning.org — a domain the attackers used as a command-and-control center to manage their malware operations.

Beginning in July through August 2014, the Hacker X2 exfiltrated the security clearance background investigation files. Then in December 2014, 4.2 million personnel records were exfiltrated.

On March 3, 2015, wdc-news-post[dot]com was registered by the attackers, who used it as a command-and-control network. On March 26, 2015, the intruders begin stealing fingerprint data. Continue reading →

Location Privacy: The Purview of the Rich and Indigent

September 5, 2016

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I’d just finished parking my car in the covered garage at Reagan National Airport just across the river from Washington, D.C. when I noticed a dark green minivan slowly creeping through the row behind me. The vehicle caught my attention because its driver didn’t appear to be looking for an open spot. What’s more, the van had what looked like two cameras perched atop its roof — one of each side, both pointed down and slightly off to the side.

I had a few hours before my flight boarded, so I delayed my walk to the terminal and cut through several rows of cars to snag a video of the guy moving haltingly through another line of cars. I approached the driver and asked what he was doing. He smiled and tilted the lid on his bolted-down laptop so that I could see the pictures he was taking with the mounted cameras: He was photographing every license plate in the garage (for the record, his plate was a Virginia tag number 36-646L).

A van at Reagan National Airport equipped with automated license plate readers fixed to the roof.

The man said he was hired by the airport to keep track of the precise location of every car in the lot, explaining that the data is most often used by the airport when passengers returning from a trip forget where they parked their vehicles. I checked with the Metropolitan Washington Airports Authority (MWAA), which manages the garage, and they confirmed the license plate imaging service was handled by a third-party firm called HUB Parking.

I’m accustomed to having my license plate photographed when entering a parking area (Dulles International Airport in Virginia does this), but until that encounter at Reagan National I never considered that this was done manually.

“Reagan National uses this service to assist customers in finding their lost vehicles,” said MWAA spokesperson Kimberly Gibbs. “If the customer remembers their license plate it can be entered into the system to determine what garages and on what aisle their vehicle is parked.”

What does HUB Parking do with the information its clients collect? Ilaria Riva, marketing manager for HUB Parking, says the company does not sell or share the data it collects, and that it is up to the client to decide how that information is stored or shared.

“It is true the solution that HUB provides to our clients may collect data, but HUB does not own the data nor do we have any control over what the customer does with it,” Riva said.

Gibbs said MWAA does not share parking information with outside organizations. But make no mistake: the technology used at Reagan National Airport, known as automated license plate reader or ALPR systems, is already widely deployed by municipalities, police forces and private companies — particularly those in the business of repossessing vehicles from deadbeat owners who don’t pay their bills.

It’s true that people have zero expectation of privacy in public places — and roads and parking garages certainly are public places for the most part. But according to the Electronic Frontier Foundation (EFF), the data collected by ALPR systems can be very revealing, and in many cities ALPR technology is rapidly outpacing the law.

“By matching your car to a particular time, date and location, and then building a database of that information over time, law enforcement can learn where you work and live, what doctor you go to, which religious services you attend, and who your friends are,” the EFF warns. Continue reading →

‘Flash Hijacks’ Add New Twist to Muggings

September 3, 2016

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A frequent crime in Brazil is a scheme in which thieves kidnap people as they’re leaving a bank, and free them only after visiting a number of ATMs to withdraw cash. Now the crooks have introduced a new time-saving wrinkle into this scam: In these so-called “flash hijacks” the thieves pull out a wireless card reader, swipe a few debit transactions with the victim’s card, and then release the individual.

A story in the Brazilian newspaper Liberal documents one such recent flash hijacking, involving two musicians in their 20s who were accosted by a pair of robbers — one of whom was carrying a gun. The thieves forced the victims to divulge their debit card personal identification numbers (PINs), and then proceeded to swipe the victim’s cards on a handheld, wireless card machine.

First spotted in 2015, flash hijackings are becoming more common in Brazil, said Paulo Brito, a cybersecurity expert living in the Campinas area of Brazil. Brito said even his friend’s son was similarly victimized recently.

“Of course transactions can be traced as far as they are done with Brazilian banks, but these bad guys can evolve and transact with foreign banks,” Brito said.
Continue reading →

Kimpton Hotels Acknowledges Data Breach

September 1, 2016

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Kimpton Hotels on Wednesday formally acknowledged that malware found on payment terminals in many of its hotels and restaurants may have compromised credit/debit cards of guests who patronized the properties in the first half of this year. The disclosure comes more than a month after KrebsOnSecurity first contacted to the company about a possible credit card breach across most of its locations.

kimpton According to a notice added to the Kimpton Web site, the incident involved cards used at certain restaurants and hotel front desks from February 16, 2016 to July 7, 2016. Kimpton has posted a list of more than 60 restaurants and hotels where the company found and removed card-stealing malicious software from payment terminals.

Kimpton joins a long list of hotel brands that have acknowledged card breaches over the last year after prompting by KrebsOnSecurity, including Trump Hotels (twice), Hilton, Mandarin Oriental, and White Lodging (twice). Breaches also have hit hospitality chains Starwood Hotels and Hyatt. Continue reading →

HostSailor Threatens to Sue KrebsOnSecurity

August 28, 2016

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Earlier this month, KrebsOnSecurity published The Reincarnation of a Bulletproof Hoster, which examined evidence suggesting that a Web hosting company called HostSailor was created out of the ashes of another, now-defunct hosting firm notorious for harboring spammers, scammers and other online ne’er-do-wells. Today, HostSailor’s lawyers threatened to sue this author unless the story is removed from the Web.

Obviously, I stand by my reporting and have no intention of unpublishing stories. But I’m writing about HostSailor again here because I promised to post an update if they ever responded to my requests for comment.

The letter, signed by Abdullah Alzarooni Advocates in Dubai — where HostSailor says it is based — carries the subject line, “Warning from Acts of Extortion and Abuse of the Privacy of Third Parties.” It lists a number of links to content the company apparently finds objectionable.

Could this same kind of legal pressure be why security industry giant Trend Micro removed all reference to HostSailor from the report that started all this? Trend hasn’t responded to direct questions about that.

Astute readers will notice in the letter (pasted below) a link to a Twitter message from this author among the many things HostSailor’s lawyers will like me to disappear from the Internet. That tweet to HostSailor’s Twitter account read:

“Potential downside of reporting ISIS sites: The hosting firm (ahem @HostSailor) may share your info/name/report with ISIS. Opsec, people!”

I sent that tweet after hearing from a source with whom I’ve been working to report sites affiliated with the jihadist militant group ISIS. The source had reported to HostSailor several of its Internet addresses that were being used by a propaganda site promoting videos of beheadings and other atrocities by ISIS, and he shared emails indicating that HostSailor had simply forwarded his abuse email on to its customer — complete with my source’s name and contact information. Thankfully, he was using a pseudonym and throwaway email address.

HostSailor’s twitter account responded by saying that the company doesn’t share information about its customers. But of course my tweet was regarding information shared about someone who is not a HostSailor customer. Continue reading →

Inside ‘The Attack That Almost Broke the Internet’

August 26, 2016

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In March 2013, a coalition of spammers and spam-friendly hosting firms pooled their resources to launch what would become the largest distributed denial-of-service (DDoS) attack the Internet had ever witnessed. The assault briefly knocked offline the world’s largest anti-spam organization, and caused a great deal of collateral damage to innocent bystanders in the process. Here’s a never-before-seen look at how that attack unfolded, and a rare glimpse into the shadowy cybercrime forces that orchestrated it.

The following are excerpts taken verbatim from a series of Skype and IRC chat room logs generated by a group of “bullet-proof cybercrime hosts” — so called because they specialized in providing online hosting to a variety of clientele involved in spammy and scammy activities.

Facebook profile picture of Sven Olaf Kamphuis

Gathered under the banner ‘STOPhaus,’ the group included a ragtag collection of hackers who got together on the 17th of March 2013 to launch what would quickly grow to a 300+Gigabits per second (Gbps) attack on Spamhaus.org, an anti-spam organization that they perceived as a clear and present danger to their spamming operations.

The attack –a stream of some 300 billion bits of data per second — was so large that it briefly knocked offline Cloudflare, a company that specializes in helping organizations stay online in the face of such assaults. Cloudflare dubbed it “The Attack that Almost Broke the Internet.”

The campaign was allegedly organized by a Dutchman named Sven Olaf Kamphuis (pictured above). Kamphuis ran a company called CB3ROB, which in turn provided services for a Dutch company called “Cyberbunker,” so named because the organization was housed in a five-story NATO bunker and because it had advertised its services as a bulletproof hosting provider.

Kamphuis seemed to honestly believe his Cyberbunker was sovereign territory, even signing his emails “Prince of Cyberbunker Republic.” Arrested in Spain in April 2013 in connection with the attack on Spamhaus, Kamphuis was later extradited to The Netherlands to stand trial. He has publicly denied being part of the attacks and his trial is ongoing.

According to investigators, Kamphuis began coordinating the attack on Spamhaus after the anti-spam outfit added to its blacklist several of Cyberbunker’s Internet address ranges. The following logs, obtained by one of the parties to the week-long offensive, showcases the planning and executing of the DDoS attack, including digital assaults on a number of major Internet exchanges. The record also exposes the identities and roles of each of the participants in the attack.

The logs below are excerpts from a much longer conversation. The entire, unedited chat logs are available here. The logs are periodically broken up by text in italics, which includes additional context about each snippet of conversation. Also please note that the logs below may contain speech that some find offensive. Continue reading →

United Airlines Sets Minimum Bar on Security

August 24, 2016

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United Airlines has rolled out a series of updates to its Web site that the company claims will help beef up the security of customer accounts. But at first glance, the core changes — moving from a 4-digit PINs to password and requiring customers to pick five different security questions and answers — may seem like a security playbook copied from Yahoo.com, circa 2009. Here’s a closer look at what’s changed in how United authenticates customers, and hopefully a bit of insight into what the nation’s fourth-largest airline is trying to accomplish with its new system.

United, like many other carriers, has long relied on a frequent flyer account number and a 4-digit personal identification number (PIN) for authenticating customers at its Web site. This has left customer accounts ripe for takeover by crooks who specialize in hacking and draining loyalty accounts for cash.

Earlier this year, however, United began debuting new authentication systems wherein customers are asked to pick a strong password and to choose from five sets of security questions and pre-selected answers. Customers may be asked to provide the answers to two of these questions if they are logging in from a device United has never seen associated with that account, trying to reset a password, or interacting with United via phone.

Some of the questions and answers United come up with.

Yes, you read that right: The answers are pre-selected as well as the questions. For example, to the question “During what month did you first meet your spouse or significant other,” users may select only from one of…you guessed it — 12 answers (January through December).

The list of answers to another security question, “What’s your favorite pizza topping,” had me momentarily thinking I using a pull down menu at Dominos.com — waffling between “pepperoni” and “mashed potato.” (Fun fact: If you were previously unaware that mashed potatoes qualify as an actual pizza topping, United has you covered with an answer to this bit of trivia in its Frequently Asked Questions page on the security changes.)

I recorded a short video of some of these rather unique questions and answers.

United said it opted for pre-defined questions and answers because the company has found “the majority of security issues our customers face can be traced to computer viruses that record typing, and using predefined answers protects against this type of intrusion.”

This struck me as a dramatic oversimplification of the threat. I asked United why they stated this, given that any halfway decent piece of malware that is capable of keylogging is likely also doing what’s known as “form grabbing” — essentially snatching data submitted in forms — regardless of whether the victim types in this information or selects it from a pull-down menu.

Benjamin Vaughn, director of IT security intelligence at United, said the company was randomizing the questions to confound bot programs that seek to automate the submission of answers, and that security questions answered wrongly would be “locked” and not asked again. He added that multiple unsuccessful attempts at answering these questions could result in an account being locked, necessitating a call to customer service.

United said it plans to use these same questions and answers — no longer passwords or PINs — to authenticate those who call in to the company’s customer service hotline. When I went to step through United’s new security system, I discovered my account was locked for some reason. A call to United customer service unlocked it in less than two minutes. All the agent asked me for was my frequent flyer number and my name.

(Incidentally, United still somewhat relies on “security through obscurity” to protect the secrecy of customer usernames by very seldom communicating the full frequent flyer number in written and digital communications with customers. I first pointed this out in my story about the data that can be gleaned from a United boarding pass barcode, because while the full frequent flyer number is masked with “x’s” on the boarding pass, the full number is stored on the pass’s barcode).

Conventional wisdom dictates that what little additional value security questions add to the equation is nullified when the user is required to choose from a set of pre-selected answers. After all, the only sane and secure way to use secret questions if one must is to pick answers that are not only incorrect and/or irrelevant to the question, but that also can’t be guessed or gleaned by collecting facts about you from background checking sites or from your various social media presences online.

Google published some fascinating research last year that spoke to the efficacy and challenges of secret questions and answers, concluding that they are “neither secure nor reliable enough to be used as a standalone account recovery mechanism.” Continue reading →

A Life or Death Case of Identity Theft?

August 23, 2016

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Identity thieves have perfected a scam in which they impersonate existing customers at retail mobile phone stores, pay a small cash deposit on pricey new phones, and then charge the rest to the victim’s account. In most cases, switching on the new phones causes the victim account owner’s phone(s) to go dead. This is the story of a Pennsylvania man who allegedly died of a heart attack because his wife’s phone was switched off by ID thieves and she was temporarily unable to call for help.

On Feb. 20, 2016, James William Schwartz, 84, was going about his daily routine, which mainly consisted of caring for his wife, MaryLou. Mrs. Schwartz was suffering from the end stages of endometrial cancer and wasn’t physically mobile without assistance. When Mr. Schwartz began having a heart attack that day, MaryLou went to use her phone to call for help and discovered it was completely shut off.

Little did MaryLou know, but identity thieves had the day before entered a “premium authorized Verizon dealer” store in Florida and impersonated the Schwartzes. The thieves paid a $150 cash deposit to “upgrade” the elderly couple’s simple mobiles to new iPhone 6s devices, with the balance to be placed on the Schwartz’s account.

“Despite her severely disabled and elderly condition, MaryLou Schwartz was finally able to retrieve her husband’s cellular telephone using a mechanical arm,” reads a lawsuit (PDF) filed in Beaver County, Penn. on behalf of the Schwartz’s two daughters, alleging negligence by the Florida mobile phone store. “This monumental, determined and desperate endeavor to reach her husband’s working telephone took Mrs. Schwartz approximately forty minutes to achieve due to her condition. This vital delay in reaching emergency help proved to be fatal.”

By the time paramedics arrived, Mr. Schwartz was pronounced dead. MaryLou Schwartz died seventeen days later, on March 8, 2016. Incredibly, identity thieves would continue robbing the Schwartzes even after they were both deceased: According to the lawsuit, on April 14, 2016 the account of MaryLou Schwartz was again compromised and a tablet device was also fraudulently acquired in MaryLou’s name.

The Schwartz’s daughters say they didn’t learn about the fraud until after both parents passed away. According to them, they heard about it from the guy at a local Verizon reseller that noticed his longtime customers’ phones had been deactivated. That’s when they discovered that while their mother’s phone was inactive at the time of her father’s death, their father’s mobile had inexplicably been able to make but not receive phone calls. Continue reading →

Malware Infected All Eddie Bauer Stores in U.S., Canada

August 18, 2016

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Clothing store chain Eddie Bauer said today it has detected and removed malicious software from point-of-sale systems at all of its 350+ stores in North America, and that credit and debit cards used at those stores during the first six months of 2016 may have been compromised in the breach. The acknowledgement comes nearly six weeks after KrebsOnSecurity first notified the clothier about a possible intrusion at stores nationwide.

ebstore On July 5, 2016, KrebsOnSecurity reached out to Bellevue, Wash., based Eddie Bauer after hearing from several sources who work in fighting fraud at U.S. financial institutions. All of those sources said they’d identified a pattern of fraud on customer cards that had just one thing in common: They were all recently used at some of Eddie Bauer’s 350+ locations in the U.S. The sources said the fraud appeared to stretch back to at least January 2016.

A spokesperson for Eddie Bauer at the time said the company was grateful for the outreach but that it hadn’t heard any fraud complaints from banks or from the credit card associations.

Earlier today, however, an outside public relations firm circled back on behalf of Eddie Bauer. That person told me Eddie Bauer — working with the FBI and an outside computer forensics firm — had detected and removed card-stealing malware from cash registers at all of its locations in the United States and Canada.

The retailer says it believes the malware was capable of capturing credit and debit card numbers from customer transactions made at all 350 Eddie Bauer stores in the United States and Canada between January 2, 2016 to July 17, 2016. The company emphasized that this breach did not impact purchases made at the company’s online store eddiebauer.com. Continue reading →

Massive Email Bombs Target .Gov Addresses

August 18, 2016

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Over the weekend, unknown assailants launched a massive cyber attack aimed at flooding targeted dot-gov (.gov) email inboxes with subscription requests to thousands of email lists. According to experts, the attack — designed to render the targeted inboxes useless for a period of time — was successful largely thanks to the staggering number of email newsletters that don’t take the basic step of validating new signup requests.

These attacks apparently have been going on at a low level for weeks, but they intensified tremendously over this past weekend. This most recent assault reportedly involved more than 100 government email addresses belonging to various countries that were subscribed to large numbers of lists in a short space of time by the attacker(s). That’s according to Spamhaus, an entity that keeps a running list of known spamming operations to which many of the world’s largest Internet service providers (ISPs) subscribe.

What my inbox looked like on Saturday, Aug. 13. Yours Truly and apparently at least 100 .gov email addresses got hit with an email bombing attack.

When Spamhaus lists a swath of Internet address space as a source of junk email, ISPs usually stop routing email for organizations within those chunks of addresses. On Sunday, Spamhaus started telling ISPs to block email coming from some of the largest email service providers (ESPs) — companies that help some of the world’s biggest brands reach customers via email. On Monday, those ESPs soon began hearing from their clients who were having trouble getting their marketing emails delivered.

In two different posts published at wordtothewise.com, Spamhaus explained its reasoning for the listings, noting that a great many of the organizations operating the lists that were spammed in the attack did not bother to validate new signups by asking recipients to click a confirmation link in an email. In effect, Spamhaus reasoned, their lack of email validation caused them to behave in a spammy fashion.

“The issue is the badly-run ‘open’ lists which happily subscribed every address without any consent verification and which now continue as participants in the list-bombing of government addresses,” wrote Spamhaus CEO Steve Linford. It remains unclear whether hacked accounts at ESPs also played a role.

Also writing for wordtothewise.com, Laura Atkins likened email subscription bombs like this to “distributed denial of service” (DDoS) attacks on individuals.

“They get so much mail from different places they are unable to use their mailbox for real mail,” she wrote. “The hostile traffic can’t be blocked because the mail is coming from so many different sources.”

Atkins said over 100 addresses were added to mailing lists, many from Internet addresses outside the United States.

“The volumes I’m hearing here are significantly high that people cannot use their mailboxes. One sender identified fewer than 10 addresses each signed up to almost 10,000 of their customer lists during a 2 week period,” Atkins wrote. “Other senders have identified addresses that look to be part of the harassment campaign and are working to block mail to those addresses and get them off their lists.” Continue reading →

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