AshleyMadison: $500K Bounty for Hackers

August 24, 2015

AshleyMadison.com, an online cheating service whose motto is “Life is Short, Have an Affair,” is offering a $500,000 reward for information leading to the arrest and prosecution of the individual or group of people responsible for leaking highly personal information on the company’s more than 30 million users.

A snippet of the message left behind by the Impact Team.

A snippet of the message left behind by the Impact Team.

The bounty offer came at a press conference today by the police in Toronto — where AshleyMadison is based. At the televised and Webcast news conference, Toronto Police Staff Superintendant Bryce Evans recounted the key events in “Project Unicorn,” the code name law enforcement officials have assigned to the investigation into the attack. In relaying news of the reward offer, Evans appealed to the public and “white hat” hackers for help in bringing the attackers to justice.

“The ripple effect of the impact team’s actions has and will continue to have a long term social and economic impacts, and they have already sparked spin-offs of crimes and further victimization,” Evans said. “As of this morning, we have two unconfirmed reports of suicides that are associated [with] the leak of AshleyMadison customer profiles.”

Evans did not elaborate on the suicides, saying only that his office is investigating those reports. The San Antonio Express-News reported Friday that a city worker whose information was found in the leaked AshleyMadison database took his life last Thursday, although the publication acknowledges that it’s unclear whether the worker’s death had anything to do with the leak.

Evans warned the public and concerned AshleyMadison users to be on guard against a raft of extortion scams that are already popping up and targeting the site’s customers. On Friday, KrebsOnSecurity featured an exclusive story about one such extortion scheme that threatened to alert the victim’s spouse unless the recipient paid the attacker a Bitcoin (worth slightly more than USD $250). The Toronto Police posted this image of a similar extortion attempt that they have seen making the rounds.

“Criminals have already engaged in online scams by claiming to provide access to the leaked web site,” he said. “The public needs to be aware that by clicking on these links, you are exposing your computer to adware and spyware and viruses. Also there are those offering to erase customer profiles from the list. Nobody is going to be able to erase that information.” Continue reading

Extortionists Target Ashley Madison Users

August 21, 2015

People who cheat on their partners are always open to extortion by the parties involved. But when the personal details of millions of cheaters get posted online for anyone to download — as is the case with the recent hack of infidelity hookup site AshleyMadison.com — random blackmailers are bound to pounce on the opportunity.

An extortion email sent to an AshleyMadison user.

An extortion email sent to an AshleyMadison user.

According to security firms and to a review of several emails shared with this author, extortionists already see easy pickings in the leaked AshleyMadison user database.

Earlier today I heard from Rick Romero, the information technology manager at VF IT Services, an email provider based in Milwaukee. Romero said he’s been building spam filters to block outgoing extortion attempts against others from rogue users of his email service. Here’s one that he blocked this morning (I added a link to the bitcoin address in the message, which shows nobody has paid into this particular wallet yet):

Hello,

Unfortunately, your data was leaked in the recent hacking of Ashley Madison and I now have your information.

If you would like to prevent me from finding and sharing this information with your significant other send exactly 1.0000001 Bitcoins (approx. value $225 USD) to the following address:

1B8eH7HR87vbVbMzX4gk9nYyus3KnXs4Ez [link added]

Sending the wrong amount means I won’t know it’s you who paid.

You have 7 days from receipt of this email to send the BTC [bitcoins]. If you need help locating a place to purchase BTC, you can start here…..

The individual who received that extortion attempt — an AshleyMadison user who agreed to speak about the attack on condition that only his first name be used — said he’s “loosely concerned” about future extortion attacks, but not especially this one in particular.

“If I put myself in [the extortionist’s] shoes, the likelihood of them disclosing stuff doesn’t increase their chance of getting money,” said Mac. “I just not going to respond.” Continue reading

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Street Gangs, Tax Fraud and ‘Drop Hoes’

August 20, 2015

Authorities across the United States this week arrested dozens of gang members who stand accused of making millions of dollars stealing consumer identities in order to file fraudulent tax refund requests with the Internal Revenue Service (IRS). The arrests highlight the dramatic shift in gang activity in recent years from high-risk drug dealing to identity fraud — a far less risky yet equally lucrative crime.

cashgrafAccording to a story last week at CBS in Los Angeles, some 32 members of the so-called Insane Crip gang and their associates were charged with 283 counts of criminal conspiracy, 299 counts of identity theft, 226 counts of grand theft and 58 counts of attempted theft. Together, they are accused of operating a $14.3 million identity theft and tax fraud scheme.

In Elizabeth, N.J., 14 members of a street gang were arrested in a 49-count indictment charging the defendants with a range of “white-collar crimes,” including filing false tax returns and manufacturing fake gift cards to collect thousands of dollars. According to NJ.com, the money from the scams was used to support members of the 111 Neighborhood Crips and to aid other gang members who were in jail or prison.

“All 14 defendants face charges under New Jersey’s Racketeer Influenced and Corrupt Organizations (RICO) statute,” NJ’s Tom Haydon writes. “Defendants allegedly bought stolen identities of real people for use in the preparation of fraudulent W-2 forms. Those forms were used for fraudulent income tax returns filed early in the tax season.”

Tax return fraud costs consumers and the U.S. Treasury more than $6 billion annually, according the U.S. Government Accountability Office. And that number is by all accounts conservative. It should not be a surprise that street gangs are fast becoming the foot soldiers of cybercrime, which very often requires small armies of highly mobile individuals who can fan out across cities to cash out stolen credit cards and cash in on hijacked identities.

Tax fraud has become such an ingrained part of the modern gang culture that there is a growing set list of anthems to the crime — a type of rap music that evokes the Narcocorrido ballads of the Mexican drug cartels in that it glorifies making money from identity theft, credit card fraud and tax return fraud.

DROP HOES

A key component of cashing out tax return fraud involves recruiting unwitting or willing accomplices to receive the fraudulent refunds. Earlier this year, I wrote about Isha Sesay, a Pennsylvania woman who was arrested for receiving phony IRS refunds on behalf of at least two tax fraud victims — including Mike Kasper, the guy who helped expose the IRS’s pervasive authentication weaknesses and later testified to Congress about his ordeal.

Turns out, the sorts of gang members arrested in the above-mentioned crime sweeps have a different nickname for people like Ms. Sesay: Instead of money mules, they’re derisively known as “drop hoes.” In cybercriminal parlance, a “drop” is a person who can be recruited to help forward stolen funds or merchandise on to the criminals, providing a pivotal buffer against the cops for the thieves.

In this Youtube video (not safe for work), a self-styled rapper calling himself “J-Creek” opines about not being able to find enough drop hoes to help him cash out $40,000 in phony tax refund deposits to prepaid debit cards. It’s been a while since I’ve listened to pop music (let alone rap) but I think this work speaks for itself (if rather lewdly).

The artists allegedly responsible for the tax fraud paean, "Drop Hoes."

The artists allegedly responsible for the tax fraud paean, “Drop Hoes.”

Here are a few choice quotes from the song (I cut out much of it, and someone please correct me if I somehow butchered the lyrics here). I think my all-time favorite line is the one about the role of Intuit’s TurboTax: “She got them stacks then went tax on the turbo.” Continue reading

Was the Ashley Madison Database Leaked?

August 18, 2015

Many news sites and blogs are reporting that the data stolen last month from 37 million users of AshleyMadison.com — a site that facilitates cheating and extramarital affairs — has finally been posted online for the world to see. In the past 48 hours, several huge dumps of data claiming to be the actual AshleyMadison database have turned up online. But there are precious few details in them that would allow one to verify these claims, and the company itself says it so far sees no indication that the files are legitimate.

Update, 11:52 p.m. ET: I’ve now spoken with three vouched sources who all have reported finding their information and last four digits of their credit card numbers in the leaked database. Also, it occurs to me that it’s been almost exactly 30 days since the original hack. Finally, all of the accounts created at Bugmenot.com for Ashleymadison.com prior to the original breach appear to be in the leaked data set as well. I’m sure there are millions of AshleyMadison users who wish it weren’t so, but there is every indication this dump is the real deal.

Original story:

A huge trove of data nearly 10 gigabytes in size was dumped onto the Deep Web and onto various Torrent file-sharing services over the past 48 hours.  According to a story at Wired.com, included in the files are names, addresses and phone numbers apparently attached to AshleyMadison member profiles, along with credit card data and transaction information. Links to the files were preceded by a text file message titled “Time’s Up” (see screenshot below).

The message left by the hackers claiming to leak the AshleyMadison.com database.

The message left by the latest group claiming to have leaked the hacked AshleyMadison.com database.

 

From taking in much of the media coverage of this leak so far — for example, from the aforementioned Wired piece or from the story at security blogger Graham Cluley’s site — readers would most likely conclude that this latest collection of leaked data is legitimate. But after an interview this evening with Raja Bhatia — AshleyMadison’s original founding chief technology officer — I came away with a different perspective.

Bhatia said he is working with an international team of roughly a dozen investigators who are toiling seven days a week, 24-hours a day just to keep up with all of the fake data dumps claiming to be the stolen AshleyMadison database that was referenced by the original hackers on July 19. Bhatia said his team sees no signs that this latest dump is legitimate.

“On a daily basis, we’re seeing 30 to 80 different claimed dumps come online, and most of these dumps are entirely fake and being used by other organizations to capture the attention that’s been built up through this release,” Bhatia said. “In total we’ve looked at over 100GB of data that’s been put out there. For example, I just now got a text message from our analysis team in Israel saying that the last dump they saw was 15 gigabytes. We’re still going through that, but for the most part it looks illegitimate and many of the files aren’t even readable.”

The former AshleyMadison CTO, who’s been consulting for the company ever since news of the hack broke last month, said many of the fake data dumps the company has examined to date include some or all of the files from the original July 19 release. But the rest of the information, he said, is always a mix of data taken from other hacked sources — not AshleyMadison.com.

“The overwhelming amount of data released in the last three weeks is fake data,” he said. “But we’re taking every release seriously and looking at each piece of data and trying to analyze the source and the veracity of the data.”

Bhatia said the format of the fake leaks has been changing constantly over the last few weeks.

“Originally, it was being posted through Imgur.com and Pastebin.com, and now we’re seeing files going out over torrents, the Dark Web, and TOR-based URLs,” he said.

To help locate new troves of data claiming to be the files stolen from AshleyMadison, the company’s forensics team has been using a tool that Netflix released last year called Scumblr, which scours high-profile sites for specific terms and data.

“For the most part, we can quickly verify that it’s not our data or it’s fake data, but we are taking each release seriously,” Bhatia said. “Scumbler helps accelerate the time it takes for us to detect new pieces of data that are being released.  For the most part, we’re finding the majority of it is fake. There are some things that have data from the original release, but other than that, what we’re seeing is other generic files that have been introduced, fake SQL files.” Continue reading

Microsoft Pushes Emergency Patch for IE

August 18, 2015

Microsoft today released an emergency software update to plug a critical security flaw in all supported versions of its Internet Explorer browser, from IE7 to IE 11 (this flaw does not appear to be present in Microsoft Edge, the new browser from Redmond and intended to replace IE).

IEwarning

According to the advisory that accompanies the patch, this a browse-and-get-owned vulnerability, meaning IE users can infect their systems merely by browsing to a hacked or malicious Web site. Windows users should install the patch whether or not they use IE as their main browser, as IE components can be invoked from a variety of applications, such as Microsoft Office. The emergency patch is available via Windows Update or from Microsoft’s Web site.

Microsoft’s advisory does not say whether this flaw is actively being exploited by attackers, but security experts at vulnerability management firm Qualys say it’s already happening.

“The vulnerability (CVE-2015-2502) is actively being exploited in the wild,” wrote Wolfgang Kandek, chief technology officer at Qualys, in a blog post about the update. “The attack code is hosted on a malicious webpage that you or your users would have to visit in order to get infected.” Continue reading

How Not to Start an Encryption Company

August 18, 2015

Probably the quickest way for a security company to prompt an overwhelmingly hostile response from the security research community is to claim that its products and services are “unbreakable” by hackers. The second-fastest way to achieve that outcome is to have that statement come from an encryption company CEO who served several years in federal prison for his role in running a $210 million Ponzi scheme. Here’s the story of a company that managed to accomplish both at the same time and is now trying to learn from (and survive) the experience.

unbreakabletothecoreThanks to some aggressive marketing, Irvine, Calif. based security firm Secure Channels Inc. (SCI) and its CEO Richard Blech have been in the news quite a bit lately — mainly Blech being quoted in major publications such as NBC NewsPolitico and USA Today  — talking about how his firm’s “unbreakable” encryption technology might have prevented some of the larger consumer data breaches that have come to light in recent months.

Blech’s company, founded in 2014 and with his money, has been challenging the security community to test its unbreakable claim in a cleverly unwinnable series of contests: At the Black Hat Security conference in Las Vegas last year, the company offered a new BMW to anyone who could unlock a digital file that was encrypted with its “patented” technology.

At the RSA Security Conference this year in San Francisco, SCI offered a $50,000 bounty to anyone who could prove the feat. When no one showed up to claim the prizes, SCI issued press releases crowing about a victory for its products.

Turns out, Blech knows a thing or two about complex, unwinnable games: He pleaded guilty in 2003 of civil and criminal fraud charges and sentenced to six years in U.S. federal prison for running an international Ponzi scheme.

Once upon a time, Blech was the CEO of Credit Bancorp. Ltd., an investment firm that induced its customers to deposit securities, cash, and other assets in trust by promising the impossible: a “custodial dividend” based on the profits of “risk-less” arbitrage. Little did the company’s investors know at the time, but CBL was running a classic Ponzi scheme: Taking cash and other assets from new investors to make payments to earlier ones, creating the impression of sizable returns, prosecutors said. Blech was sentenced to 72 months in prison and was released in 2007.

THE UNBREAKABLE COMPETITION

humblethehacker

In April 2015, Lance James, a security researcher who has responded to challenges like the BMW and $50,000 prizes touted by SCI, began receiving taunting Tweets from Blech and Ross Harris, a particularly aggressive member of SCI’s sales team. That twitter thread (PDF) had started with WhiteHat Security CTO Jeremiah Grossman posting a picture of a $10,000 check that James was awarded from Telesign, a company that had put up the money after claiming that its StrongWebmail product was unhackable. Turns out, it wasn’t so strong; James and two other researchers found a flaw in the service and hacked the CEO’s email account. StrongWebmail never recovered from that marketing stunt.

James replied to Grossman that, coincidentally, he’d just received an email from SCI offering a BMW to anyone who could break the company’s crypto.

“When the crypto defeats you, we’ll give you a t-shirt, ‘Can’t touch this,’ you’ll wear it for a Tweet,” Blech teased James via Twitter on April 7, 2015. “Challenge accepted,” said James, owner of the security consultancy Unit 221b.  “Proprietary patented crypto is embarrassing in 2015. You should know better.”

As it happens, encrypting a file with your closed, proprietary encryption technology and then daring the experts to break it is not exactly the way you prove its strength or gain the confidence of the security community in general. Experts in encryption tend to subscribe to an idea known as Kerckhoff’s principle when deciding the relative strength and merits of any single cryptosystem: Put simply, a core tenet of Kerckhoff’s principle holds that “one ought to design systems under the assumption that the enemy will gain full familiarity with them.”

Translation: If you want people to take you seriously, put your encryption technology on full view of the security community (minus your private encryption keys), and let them see if they can break the system.

James said he let it go when SCI refused to talk seriously about sharing its cryptography solution, only to hear again this past weekend from SCI’s director of marketing Deirdre “Dee” Murphy on Twitter that his dismissal of their challenge proved he was “obsolete.” Murphy later deleted the tweets, but some of them are saved here.

Nate Cardozo, a staff attorney at the nonprofit digital rights group Electronic Frontier Foundation (EFF), said companies that make claims of unbreakable technologies very often are effectively selling snake oil unless they put their products up for peer review.

“They don’t disclose their settings or what modes their ciphers are running in,” Cardozo said. “They have a patent which is laughably vague about what it’s actually doing, and yet their chief marketing officer insults security researchers on Twitter saying, ‘If our stuff is so insecure, just break it.'”

Cardozo was quick to add that although there is no indication whatsoever that Secure Channels Inc. is engaging in any kind of fraud, they are engaged in “wildly irresponsible marketing.”

“And that’s not good for anyone,” he said. “In the cryptography community, the way you prove your system is secure is you put it up to peer review, you get third party audits, you publish specifications, etc. Apple’s not open-source and they do all of that. You can download the security white paper and see everything that iMessage is doing. The same is true for WhatsApp and PGP. When we see companies like Secure Channel treating crypto like a black box, that raises red flags. Any company making such claims deserves scrutiny, but because we can’t scrutinize the actual cryptography they’re using, we have to scrutinize the company itself.”

THE INTERVIEW

I couldn’t believe that any security company — let alone a firm that was trying to break into the encryption industry (a business that requires precision perhaps beyond any other, no less) — could make so many basic errors and miscalculations, so I started digging deeper into SCI and its origins. At the same time I requested and was granted an interview with Blech and his team. Continue reading

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

August 17, 2015

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

Screenshot 2015-03-29 14.22.55In March 2015, I warned readers to Sign Up at IRS.gov Before Crooks Do It For You — which tracked the nightmarish story of Michael Kasper, one of millions of Americans victimized by tax refund fraud each year. When Kasper tried to get a transcript of the fraudulent return using the “Get Transcript” function on IRS.gov, he learned that someone had already registered through the IRS’s site using his Social Security number and an unknown email address.

Two months later, IRS Commissioner John Koskinen publicly acknowledged that crooks had used this feature to pull sensitive data on at least 110,000 taxpayers. Today, the Associated Press and other news outlets reported that the IRS is now revising those figures, estimating that an additional 220,000 potential victims had Social Security numbers and information from previous years’ tax filings stolen via the IRS Web site.

“In all, the thieves used personal information from about 610,000 taxpayers in an effort to access old tax returns,” the AP story notes. “They were successful in getting information from about 334,000 taxpayers.”

A BROKEN PROCESS

The IRS’s experience should tell consumers something about the effectiveness of the technology that the IRS, banks and countless other organizations use to screen requests for sensitive information.

As I reported in March, taxpayers who wished to obtain a copy of their most recent tax transcript had to provide the IRS with the following information: The applicant’s name, date of birth, Social Security number and filing status. After that data is successfully supplied, the IRS uses a service from credit bureau Equifax that asks four so-called “knowledge-based authentication” (KBA) questions. Anyone who succeeds in supplying the correct answers can see the applicant’s full tax transcript, including prior W2s, current W2s and more or less everything one would need to fraudulently file for a tax refund.

These KBA questions — which involve multiple choice, “out of wallet” questions such as previous address, loan amounts and dates — can be successfully enumerated with random guessing. But in practice it is far easier, as we can see from the fact that thieves were successfully able to navigate the multiple questions more than half of the times they tried.

If any readers here doubt how easy it is to buy personal data on just about anyone, check out the story I wrote in December 2014, wherein I was able to find the name, address, Social Security number, previous address and phone number on all current members of the U.S. Senate Commerce Committee. This information is no longer secret (nor are the answers to KBA-based questions), and we are all made vulnerable to identity theft as long as institutions continue to rely on static information as authenticators.

Unfortunately, the IRS is not the only government agency whose reliance on static identifiers actually makes them complicit in facilitating identity theft against Americans. The same process described to obtain a tax transcript at irs.gov works to obtain a free credit report from annualcreditreport.com, a Web site mandated by Congress. In addition, Americans who have not already created an account at the Social Security Administration under their Social Security number are vulnerable to crooks hijacking SSA benefits now or in the future. For more on how crooks are siphoning Social Security benefits via government sites, check out this story.

THE IRS IS STILL VULNERABLE

The IRS has responded to the problem of tax ID theft partly by offering Identity Protection PINs (IP PINs) to affected taxpayers that must be supplied on the following year’s tax application before the IRS will accept the return. However, according to Kasper — the tax ID theft victim whose story first prompted my reporting on the Get Transcript abuse problem back in March — the IRS.gov Web site allows consumers who have lost their IP PINs to recover them, and incredibly that feature is still using the same authentication method relied upon by  the IRS’s flawed Get Transcript function.

Continue reading

Stress-Testing the Booter Services, Financially

August 17, 2015

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

Image:

Image:

By offering a low-cost, shared distributed denial-of-service (DDoS) attack infrastructure, these so-called “booter” and “stresser” services have attracted thousands of malicious customers and are responsible for hundreds of thousands of attacks per year. Indeed, KrebsOnSecurity has repeatedly been targeted in fairly high-volume attacks from booter services — most notably a service run by the Lizard Squad band of miscreants who took responsibility for sidelining the Microsoft xBox and Sony Playstation on Christmas Day 2014.

For more than two months in the summer 2014, researchers with George Mason University, UC Berkeley’s International Computer Science Institute, and the University of Maryland began following the money, posing as buyers of nearly two dozen booter services in a bid to discover the PayPal accounts that booter services were using to accept payments. In response to their investigations, PayPal began seizing booter service PayPal accounts and balances, effectively launching their own preemptive denial-of-service attacks against the payment infrastructure for these services.

PayPal will initially limit reported merchant accounts that are found to violate its terms of service (turns out, accepting payments for abusive services is a no-no). Once an account is limited, the merchant cannot withdraw or spend any of the funds in their account. This results in the loss of funds in these accounts at the time of freezing, and potentially additional losses due to opportunity costs the proprietors incur while establishing a new account. In addition, PayPal performed their own investigation to identify additional booter domains and limited accounts linked to these domains as well.

The efforts of the research team apparently brought some big-time disruption for nearly two-dozen of the top booter services. The researchers said that within a day or two following their interventions, they saw the percentage of active booters quickly dropping from 70 to 80 percent to around 50 percent, and continuing to decrease to a low of around 10 percent that were still active.

ppintervention

While some of the booter services went out of business shortly thereafter, more than a half-dozen shifted to accepting payments via Bitcoin (although the researchers found that this dramatically cut down on the services’ overall number of active customers). Once the target intervention began, they found the average lifespan of an account dropped to around 3.5 days, with many booters’ PayPal accounts only averaging around two days before they were no longer used again.

The researchers also corroborated the outages by monitoring hacker forums where the services were marketed, chronicling complaints from angry customers and booter service operators who were inconvenienced by the disruption (see screen shot galley below).

A booter service proprietor advertising his wares on the forum Hackforums complains about Paypal repeatedly limiting his account.

A booter service proprietor advertising his wares on the forum Hackforums complains about Paypal repeatedly limiting his account.

Another booter seller on Hackforums whinges about PayPal limiting the account he uses to accept attack payments from customers.

Another booter seller on Hackforums whinges about PayPal limiting the account he uses to accept attack payments from customers.

"It's a shame PayPal had to shut us down several times causing us to take money out of our own pocket to purchase servers, hosting and more," says this now-defunct booter service to its former customers.

“It’s a shame PayPal had to shut us down several times causing us to take money out of our own pocket to purchase servers, hosting and more,” says this now-defunct booter service to its former customers.

Deadlyboot went dead after the PayPal interventions. So sad.

Deadlyboot went dead after the PayPal interventions. So sad.

Daily attacks from Infected Stresser dropped off precipitously following the researchers' work.

Daily attacks from Infected Stresser dropped off precipitously following the researchers’ work.

As I’ve noted in past stories on booter service proprietors I’ve tracked down here in the United States, many of these service owners and operators are kids operating within easy reach of U.S. law enforcement. Based on the aggregated geo-location information provided by PayPal, the researchers found that over 44% of the customer and merchant PayPal accounts associated with booters are potentially owned by someone in the United States. Continue reading

Cyberheist Victim Trades Smokes for Cash

August 14, 2015

Earlier this month, KrebsOnSecurity featured the exclusive story of a Russian organized cybercrime gang that stole more than $100 million from small to mid-sized businesses with the help of phantom corporations on the border with China. Today, we’ll look at the stranger-than-fiction true tale of an American firm that lost $197,000 in a remarkably similar 2013 cyberheist, only to later recover most of the money after allegedly plying Chinese authorities with a carton of cigarettes and a hefty bounty for their trouble.

wirefraudThe victim company — an export/import firm based in the northeastern United States — first reached out to this author in 2014 via a U.S. based lawyer who has successfully extracted settlements from banks on the premise that they haven’t done enough to protect their customers from cyberheists. The victim company’s owner — we’ll call him John — agreed to speak about the incident on condition of anonymity, citing pending litigation with the bank.

On Christmas Eve 2013, the accountant at John’s company logged on to the bank’s portal to make a deposit. After submitting her username and password, she was redirected to a Web page that said the bank’s site was experiencing technical difficulties and that she need to provide a one-time token to validate her request.

Unbeknownst to the accountant at the time, cybercrooks had infected her machine with a powerful password-stealing Trojan horse program and had complete control over her Web browser. Shortly after she supplied the token, the crooks used her hijacked browser session to initiate a fraudulent $197,000 wire transfer to a company in Harbin, a city on the Chinese border with Russia.

The next business day when John’s company went to reverse the wire, the bank said the money was already gone.

“My account rep at the bank said we shouldn’t expect to get that money back, and that they weren’t responsible for this transaction,” John said. “I told them that I didn’t understand because the bank had branches in China, why couldn’t they do anything? The bank rep said that, technically, the crime wasn’t committed against us, it was committed against you.” Continue reading

Adobe, MS Push Patches, Oracle Drops Drama

August 11, 2015

Adobe today pushed another update to seal nearly three dozen security holes in its Flash Player software. Microsoft also released 14 patch bundles, including a large number of fixes for computers running its new Windows 10 operating system. Not to be left out of Patch Tuesday, Oracle‘s chief security officer lobbed something of a conversational hand grenade into the security research community, which responded in kind and prompted Oracle to back down.

brokenflash-aAdobe’s latest patch for Flash (it has issued more than a dozen this year alone) fixes at least 34 separate security vulnerabilities in Flash and Adobe AIR. Mercifully, Adobe said this time around it is not aware of malicious hackers actively exploiting any of the flaws addressed in this release.

Adobe recommends users of Adobe Flash Player on Windows and Macintosh update to Adobe Flash Player 18.0.0.232. Adobe Flash Player installed with Google Chrome will be automatically updated to the latest Google Chrome version, which will include Adobe Flash Player 18.0.0.232 on Windows and Macintosh, and version 18.0.0.233 for Linux and Chrome OS.

However, I would recommend that if you use Flash, you should strongly consider removing it, or at least hobbling it until and unless you need it. Disabling Flash in Chrome is simple enough, and can be easily reversed: On a Windows, Mac, Linux or Chrome OS installation of Chrome, type “chrome:plugins” into the address bar, and on the Plug-ins page look for the “Flash” listing: To disable Flash, click the disable link (to re-enable it, click “enable”). Windows users can remove Flash from the Add/Remove Programs panel, or use Adobe’s uninstaller for Flash Player. Continue reading