Mir Islam – the Guy the Govt Says Swatted My Home – to be Sentenced June 22

June 1, 2016

On March 14, 2013 our humble home in Annandale, Va. was “swatted” — that is to say, surrounded by a heavily-armed police force that was responding to fraudulent reports of a hostage situation at our residence. Later this month the government will sentence 21-year-old hacker named Mir Islam for that stunt and for leading a criminal conspiracy allegedly engaged in a pattern of swatting, identity theft and wire fraud.

Mir Isam

Mir Islam

Mir Islam briefly rose to Internet infamy as one of the core members of UGNazi, an online mischief-making group that claimed credit for hacking and attacking a number of high-profile Web sites.

On June 25, 2012, Islam and nearly two-dozen others were caught up in an FBI dragnet dubbed Operation Card Shop. The government accused Islam of being a founding member of carders[dot]org — a credit card fraud forum — trafficking in stolen credit card information, and possessing information for more than 50,000 credit cards.

Most importantly for the government, however, Islam was active on CarderProfit, a carding forum created and run by FBI agents.

Islam ultimately pleaded guilty to aggravated identity theft and conspiracy to commit computer hacking, among other offenses tied to his activities on CarderProfit. In March 2016 a judge for the Southern District of New York sentenced (PDF) Islam to just one day in jail, a $500 fine, and three years of probation.

Not long after Islam’s plea in New York, I heard from the U.S. Justice Department. The DOJ told me that I was one of several swatting victims of Mir Islam, who was awaiting sentencing after pleading guilty of leading a cybercrime conspiracy. Although that case remains sealed — i.e. there are no documents available to the press or the public about the case — the government granted a waiver that allows the Justice Department to contact victims of the accused and to provide them with an opportunity to attend Islam’s sentencing hearing — and even to address the court.

Corbin Weiss, an assistant US attorney and a cybercrime coordinator with the Department of Justice, said Islam pleaded guilty to one count of conspiracy, and that the objects of that conspiracy were seven:

-identity theft;
-misuse of access devices;
-misuse of Social Security numbers;
-computer fraud;
-wire fraud;
-attempts to interfere with federal officials;
-interstate transmission of threats.

Weiss said my 2013 blog post about my swatting incident — The World Has No Room for Cowards — was part of the government’s “statement of offense” or argument before the court as to why a given suspect should be arrested and charged with a violation of law.

“Your swatting is definitely one of the incidents specifically brought to the attention of the court in this case,” Weiss said. “In part because we didn’t have that many swat victims who were able to describe to us the entire process of their victimization. Your particular swat doesn’t fit neatly within any of those charges, but it was part of the conspiracy to engage in swats and some of the swats are covered by those charges.” Continue reading

Got $90,000? A Windows 0-Day Could Be Yours

May 31, 2016

How much would a cybercriminal, nation state or organized crime group pay for blueprints on how to exploit a serious, currently undocumented, unpatched vulnerability in all versions of Microsoft Windows? That price probably depends on the power of the exploit and what the market will bear at the time, but here’s a look at one convincing recent exploit sales thread from the cybercrime underworld where the current asking price for a Windows-wide bug that allegedly defeats all of Microsoft’s current security defenses is USD $90,000.

So-called “zero-day” vulnerabilities are flaws in software and hardware that even the makers of the product in question do not know about. Zero-days can be used by attackers to remotely and completely compromise a target — such as with a zero-day vulnerability in a browser plugin component like Adobe Flash or Oracle’s Java. These flaws are coveted, prized, and in some cases stockpiled by cybercriminals and nation states alike because they enable very stealthy and targeted attacks.

The $90,000 Windows bug that went on sale at the semi-exclusive Russian language cybercrime forum exploit[dot]in earlier this month is in a slightly less serious class of software vulnerability called a “local privilege escalation” (LPE) bug. This type of flaw is always going to be used in tandem with another vulnerability to successfully deliver and run the attacker’s malicious code.

LPE bugs can help amplify the impact of other exploits. One core tenet of security is limiting the rights or privileges of certain programs so that they run with the rights of a normal user — and not under the all-powerful administrator or “system” user accounts that can delete, modify or read any file on the computer. That way, if a security hole is found in one of these programs, that hole can’t be exploited to worm into files and folders that belong only to the administrator of the system.

This is where a privilege escalation bug can come in handy. An attacker may already have a reliable exploit that works remotely — but the trouble is his exploit only succeeds if the current user is running Windows as an administrator. No problem: Chain that remote exploit with a local privilege escalation bug that can bump up the target’s account privileges to that of an admin, and your remote exploit can work its magic without hindrance.

The seller of this supposed zero-day — someone using the nickname “BuggiCorp” — claims his exploit works on every version of Windows from Windows 2000 on up to Microsoft’s flagship Windows 10 operating system. To support his claims, the seller includes two videos of the exploit in action on what appears to be a system that was patched all the way up through this month’s (May 2016) batch of patches from Microsoft (it’s probably no accident that the video was created on May 10, the same day as Patch Tuesday this month).

A second video (above) appears to show the exploit working even though the test machine in the video is running Microsoft’s Enhanced Mitigation Experience Toolkit (EMET), a free software framework designed to help block or blunt exploits against known and unknown Windows vulnerabilities and flaws in third-party applications that run on top of Windows.

The sales thread on exploit[dot]in.

The sales thread on exploit[dot]in.

Jeff Jones, a cybersecurity strategist with Microsoft, said the company was aware of the exploit sales thread, but stressed that the claims were still unverified. Asked whether Microsoft would ever consider paying for information about the zero-day vulnerability, Jones pointed to the company’s bug bounty program that rewards security researchers for reporting vulnerabilities. According to Microsoft, the program to date has paid out more than $500,000 in bounties.

Microsoft heavily restricts the types of vulnerabilities that qualify for bounty rewards, but a bug like the one on sale for $90,000 would in fact qualify for a substantial bounty reward. Last summer, Microsoft raised its reward for information about a vulnerability that can fully bypass EMET from $50,000 to $100,000. Incidentally, Microsoft said any researcher with a vulnerability or who has questions can reach out to the Microsoft Security Response Center to learn more about the program and process.

ANALYSIS

It’s interesting that this exploit’s seller could potentially make more money by peddling his find to Microsoft than to the cybercriminal community. Of course, the videos and the whole thing could be a sham, but that’s probably unlikely in this case. For one thing, a scammer seeking to scam other thieves would not insist on using the cybercrime forum’s escrow service to consummate the transaction, as this vendor has. Continue reading

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Did the Clinton Email Server Have an Internet-Based Printer?

May 26, 2016

The Associated Press today points to a remarkable footnote in a recent State Department inspector general report on the Hillary Clinton email scandal: The mail was managed from the vanity domain “clintonemail.com.” But here’s a potentially more explosive finding: A review of the historic domain registration records for that domain indicates that whoever built the private email server for the Clintons also had the not-so-bright idea of connecting it to an Internet-based printer.

According to historic Internet address maps stored by San Mateo, Calif. based Farsight Security, among the handful of Internet addresses historically assigned to the domain “clintonemail.com” was the numeric address 24.187.234.188. The subdomain attached to that Internet address was….wait for it…. “printer.clintonemail.com“.

Interestingly, that domain was first noticed by Farsight in March 2015, the same month the scandal broke that during her tenure as United States Secretary of State Mrs. Clinton exclusively used her family’s private email server for official communications.

Farsight's record for 24.187.234.188, the Internet address which once mapped to "printer.clintonemail.com".

Farsight’s record for 24.187.234.188, the Internet address which once mapped to “printer.clintonemail.com”.

I should emphasize here that it’s unclear whether an Internet-capable printer was ever connected to printer.clintonemail.com. Nevertheless, it appears someone set it up to work that way.

Ronald Guilmette, a private security researcher in California who prompted me to look up this information, said printing things to an Internet-based printer set up this way might have made the printer data vulnerable to eavesdropping.

“Whoever set up their home network like that was a security idiot, and it’s a dumb thing to do,” Guilmette said. “Not just because any idiot on the Internet can just waste all your toner. Some of these printers have simple vulnerabilities that leave them easy to be hacked into.”

More importantly, any emails or other documents that the Clintons decided to print would be sent out over the Internet — however briefly — before going back to the printer. And that data may have been sniffable by other customers of the same ISP, Guilmette said. Continue reading

Skimmers Found at Walmart: A Closer Look

May 25, 2016

Recent local news stories about credit card skimmers found in self-checkout lanes at some Walmart locations reminds me of a criminal sales pitch I saw recently for overlay skimmers made specifically for the very same card terminals.

Much like the skimmers found at some Safeway locations earlier this year, the skimming device pictured below was designed to be installed in the blink of an eye at self-checkout lanes — as in recent incidents at Walmart stores in Fredericksburg, Va. and Fort Wright, Ky. In these attacks, the skimmers were made to piggyback on card readers sold by payment solutions company Ingenico.

A skimmer made to be fitted to an Ingenico credit card terminal of the kind used at Walmart stores across the country. Image: Hold Security.

A skimmer made to be fitted to an Ingenico credit card terminal of the kind used at Walmart stores across the country. Image: Hold Security.

This Ingenico “overlay” skimmer has a PIN pad overlay to capture the user’s PIN, and a mechanism for recording the data stored on a card’s magnetic stripe when customers swipe their cards at self-checkout aisles. The wire pictured at the bottom is for offloading the data from the card skimmers once thieves have retrieved the devices from compromised checkout lanes.

This particular skimmer retails for between $200 to $300, but that price doesn’t include the electronics that power the device and store the stolen card data.

Here’s how this skimmer looks when it’s attached. Think you’d be able to spot it?

ingenico_inserted

Image credit: Hold Security.

Walmart last year began asking customers with more secure chip-enabled cards to dip the chip instead of swipe the stripe. Chip-based cards are more expensive and difficult for thieves to counterfeit, and they can help mitigate the threat from most modern card-skimming methods that read the cardholder data in plain text from the card’s magnetic stripe. Those include malicious software at the point-of-sale terminal, as well as physical skimmers placed over card readers at self-checkout lanes. Continue reading

Noodles & Company Probes Breach Claims

May 19, 2016

Noodles & Company [NASDAQ: NDLS]a fast-casual restaurant chain with more than 500 stores in 35 U.S. states, says it has hired outside investigators to probe reports of a credit card breach at some locations.

noodlesOver the past weekend, KrebsOnSecurity began hearing from sources at multiple financial institutions who said they’d detected a pattern of fraudulent charges on customer cards that were used at various Noodles & Company locations between January 2016 and the present.

Asked to comment on the reports, Broomfield, Colo.-based Noodles & Company issued the following statement:

“We are currently investigating some unusual activity reported to us Tuesday, May 16, 2016 by our credit card processor. Once we received this report, we alerted law enforcement officials and we are working with third party forensic experts. Our investigation is ongoing and we will continue to share information.”

The investigation comes amid a fairly constant drip of card breaches at main street retailers, restaurant chains and hospitality firms. Wendy’s reported last week that a credit card breach that began in the autumn of 2015 impacted 300 of its 5,500 locations. Continue reading

As Scope of 2012 Breach Expands, LinkedIn to Again Reset Passwords for Some Users

May 18, 2016

A 2012 data breach that was thought to have exposed 6.5 million hashed passwords for LinkedIn users instead likely impacted more than 117 million accounts, the company now says. In response, the business networking giant said today that it would once again force a password reset for individual users thought to be impacted in the expanded breach.

leakedinThe 2012 breach was first exposed when a hacker posted a list of some 6.5 million unique passwords to a popular forum where members volunteer or can be hired to hack complex passwords. Forum members managed to crack some the passwords, and eventually noticed that an inordinate number of the passwords they were able to crack contained some variation of “linkedin” in them.

LinkedIn responded by forcing a password reset on all 6.5 million of the impacted accounts, but it stopped there. But earlier today, reports surfaced about a sales thread on an online cybercrime bazaar in which the seller offered to sell 117 million records stolen in the 2012 breach. In addition, the paid hacked data search engine LeakedSource claims to have a searchable copy of the 117 million record database (this service said it found my LinkedIn email address in the data cache, but it asked me to pay $4.00 for a one-day trial membership in order to view the data; I declined).

Inexplicably, LinkedIn’s response to the most recent breach is to repeat the mistake it made with original breach, by once again forcing a password reset for only a subset of its users.

“Yesterday, we became aware of an additional set of data that had just been released that claims to be email and hashed password combinations of more than 100 million LinkedIn members from that same theft in 2012,” wrote Cory Scott, in a post on the company’s blog. “We are taking immediate steps to invalidate the passwords of the accounts impacted, and we will contact those members to reset their passwords. We have no indication that this is as a result of a new security breach.”

LinkedIn spokesman Hani Durzy said the company has obtained a copy of the 117 million record database, and that LinkedIn believes it to be real.

“We believe it is from the 2012 breach,” Durzy said in an email to KrebsOnSecurity. “How many of those 117m are active and current is still being investigated.”

Regarding the decision not to force a password reset across the board back in 2012, Durzy said “We did at the time what we thought was in the best interest of our member base as a whole, trying to balance security for those with passwords that were compromised while not disrupting the LinkedIn experience for those who didn’t appear impacted.”

The 117 million figure makes sense: LinkedIn says it has more than 400 million users, but reports suggest only about 25 percent of those accounts are used monthly. Continue reading

Microsoft Disables Wi-Fi Sense on Windows 10

May 18, 2016

Microsoft has disabled its controversial Wi-Fi Sense feature, a component embedded in Windows 10 devices that shares access to WiFi networks to which you connect with any contacts you may have listed in Outlook and Skype — and, with an opt-in — your Facebook friends.

msoptoutRedmond made the announcement almost as a footnote in its Windows 10 Experience blog, but the feature caused quite a stir when the company’s flagship operating system first debuted last summer.

Microsoft didn’t mention the privacy and security concerns raised by Wi-Fi Sense, saying only that the feature was being removed because it was expensive to maintain and that few Windows 10 users were taking advantage of it.

“We have removed the Wi-Fi Sense feature that allows you to share Wi-Fi networks with your contacts and to be automatically connected to networks shared by your contacts,” wrote Gabe Aul, corporate vice president of Microsoft’s engineering systems team. “The cost of updating the code to keep this feature working combined with low usage and low demand made this not worth further investment. Wi-Fi Sense, if enabled, will continue to get you connected to open Wi-Fi hotspots that it knows about through crowdsourcing.”

Wi-Fi Sense doesn’t share your WiFi network password per se — it shares an encrypted version of that password. But it does allow anyone in your Skype or Outlook or Hotmail contacts lists to waltz onto your Wi-Fi network — should they ever wander within range of it or visit your home (or hop onto it secretly from hundreds of yards away with a good ‘ole cantenna!). Continue reading

Carding Sites Turn to the ‘Dark Cloud’

May 12, 2016

Crooks who peddle stolen credit cards on the Internet face a constant challenge: Keeping their shops online and reachable in the face of meddling from law enforcement officials, security firms, researchers and vigilantes. In this post, we’ll examine a large collection of hacked computers around the world that currently serves as a criminal cloud hosting environment for a variety of cybercrime operations, from sending spam to hosting malicious software and stolen credit card shops.

I first became aware of this botnet, which I’ve been referring to as the “Dark Cloud” for want of a better term, after hearing from Noah Dunker, director of security labs at  Kansas City-based vendor RiskAnalytics. Dunker reached out after watching a Youtube video I posted that featured some existing and historic credit card fraud sites. He asked what I knew about one of the carding sites in the video: A fraud shop called “Uncle Sam,” whose home page pictures a pointing Uncle Sam saying “I want YOU to swipe.”

The "Uncle Sam" carding shop is one of a half-dozen that reside on a Dark Cloud criminal hosting environment.

The “Uncle Sam” carding shop is one of a half-dozen that reside on a Dark Cloud criminal hosting environment.

I confessed that I knew little of this shop other than its existence, and asked why he was so interested in this particular crime store. Dunker showed me how the Uncle Sam card shop and at least four others were hosted by the same Dark Cloud, and how the system changed the Internet address of each Web site roughly every three minutes. The entire robot network, or”botnet,” consisted of thousands of hacked home computers spread across virtually every time zone in the world, he said. 

Dunker urged me not to take his word for it, but to check for myself the domain name server (DNS) settings of the Uncle Sam shop every few minutes. DNS acts as a kind of Internet white pages, by translating Web site names to numeric addresses that are easier for computers to navigate. The way this so-called “fast-flux” botnet works is that it automatically updates the DNS records of each site hosted in the Dark Cloud every few minutes, randomly shuffling the Internet address of every site on the network from one compromised machine to another in a bid to frustrate those who might try to take the sites offline.

Sure enough, a simple script was all it took to find a few dozen Internet addresses assigned to the Uncle Sam shop over just 20 minutes of running the script. When I let the DNS lookup script run overnight, it came back with more than 1,000 unique addresses to which the site had been moved during the 12 or so hours I let it run. According to Dunker, the vast majority of those Internet addresses (> 80 percent) tie back to home Internet connections in Ukraine, with the rest in Russia and Romania.

'Mr. Bin,' another carding shop hosting on the dark cloud service. A 'bin' is the "bank identification number" or the first six digits on a card, and it's mainly how fraudsters search for stolen cards.

‘Mr. Bin,’ another carding shop hosting on the dark cloud service. A ‘bin’ is the “bank identification number” or the first six digits on a card, and it’s mainly how fraudsters search for stolen cards.

“Right now there’s probably over 2,000 infected endpoints that are mostly broadband subscribers in Eastern Europe,” enslaved as part of this botnet, Dunker said. “It’s a highly functional network, and it feels kind of like a black market version of Amazon Web Services. Some of the systems appear to be used for sending spam and some are for big dynamic scaled content delivery.”

Dunker said that historic DNS records indicate that this botnet has been in operation for at least the past year, but that there are signs it was up and running as early as Summer 2014.

Wayne Crowder, director of threat intelligence for RiskAnalytics, said the botnet appears to be a network structure set up to push different crimeware, including ransomware, click fraud tools, banking Trojans and spam. Continue reading

Wendy’s: Breach Affected 5% of Restaurants

May 11, 2016

Wendy’s said today that an investigation into a credit card breach at the nationwide fast-food chain uncovered malicious software on point-of-sale systems at fewer than 300 of the company’s 5,500 franchised stores. The company says the investigation into the breach is continuing, but that the malware has been removed from all affected locations.

wendysky“Based on the preliminary findings of the investigation and other information, the Company believes that malware, installed through the use of compromised third-party vendor credentials, affected one particular point of sale system at fewer than 300 of approximately 5,500 franchised North America Wendy’s restaurants, starting in the fall of 2015,” Wendy’s disclosed in their first quarter financial statement today. The statement continues:

“These findings also indicate that the Aloha point of sale system has not been impacted by this activity. The Aloha system is already installed at all Company-operated restaurants and in a majority of franchise-operated restaurants, with implementation throughout the North America system targeted by year-end 2016. The Company expects that it will receive a final report from its investigator in the near future.”

“The Company has worked aggressively with its investigator to identify the source of the malware and quantify the extent of the malicious cyber-attacks, and has disabled and eradicated the malware in affected restaurants. The Company continues to work through a defined process with the payment card brands, its investigator and federal law enforcement authorities to complete the investigation.”

“Based upon the investigation to date, approximately 50 franchise restaurants are suspected of experiencing, or have been found to have, unrelated cybersecurity issues. The Company and affected franchisees are working to verify and resolve these issues.”

The findings come as many banks and credit unions feeling card fraud pain because of the breach have been grumbling about the extent and duration of the breach. Sources at multiple financial institutions say their data indicates that some of the breached Wendy’s locations were still leaking customer card data as late as the end of March 2016 and into early April. The breach was first disclosed on this blog on January 27, 2016.

“Our ongoing investigation into unusual payment card activity at some Wendy’s restaurants is being led by a third party PFI and is proceeding as expeditiously as possible,” Wendy’s spokesman Bob Bertini said in response to questions about the duration of the breach at some stores. “As you are aware, our investigator is required to follow certain protocols in this type of comprehensive investigation and this takes time. Adding to the complexity is the fact that most Wendy’s restaurants are owned and operated by independent franchisees.”

Adobe, Microsoft Push Critical Updates

May 10, 2016

Adobe has issued security updates to fix weaknesses in its PDF Reader and Cold Fusion products, while pointing to an update to be released later this week for its ubiquitous Flash Player browser plugin. Microsoft meanwhile today released 16 update bundles to address dozens of security flaws in Windows, Internet Explorer and related software.

Microsoft’s patch batch includes updates for “zero-day” vulnbrokenwindowserabilities (flaws that attackers figure out how to exploit before before the software maker does) in Internet Explorer (IE) and in Windows. Half of the 16 patches that Redmond issued today earned its “critical” rating, meaning the vulnerabilities could be exploited remotely through no help from the user, save for perhaps clicking a link, opening a file or visiting a hacked or malicious Web site.

According to security firm Shavlik, two of the Microsoft patches tackle issues that were publicly disclosed prior to today’s updates, including bugs in IE and the Microsoft .NET Framework.

Anytime there’s a .NET Framework update available, I always uncheck those updates to install and then reboot and install the .NET updates; I’ve had too many .NET update failures muddy the process of figuring out which update borked a Windows machine after a batch of patches to do otherwise, but your mileage may vary.

On the Adobe side, the pending Flash update fixes a single vulnerability that apparently is already being exploited in active attacks online. However, Shavlik says there appears to be some confusion about how many bugs are fixed in the Flash update. Continue reading