Data Breach at Health Insurer Anthem Could Impact Millions

February 4, 2015
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Anthem Inc., the nation’s second largest health insurer, disclosed Wednesday that hackers had broken into its servers and stolen Social Security numbers and other personal data from all of its business lines. Given the company’s size, this breach could end up impacting tens of millions of Americans.

anthemAnthem didn’t specify how many consumer records may have been breached, but it did say all of the company’s business units are affected. The figures from Anthem’s Web site offer a glimpse at just how big this breach could be: “With nearly 69 million people served by its affiliated companies including more than 37 million enrolled in its family of health plans, Anthem is one of the nation’s leading health benefits companies.”

The company said it is conducting an extensive IT forensic investigation to determine what members are impacted.

“We are working around the clock to determine how many people have been impacted and will notify all Anthem members who are impacted through a written communication,” Anthem said in question and answer page released about the breach.

Formerly known as Wellpoint Inc., Anthem said in a statement that the company was the target of a “very sophisticated external cyber attack” that exposed names, dates of birth, member ID/ Social Security numbers, addresses, phone numbers, email addresses and employment information. The company stressed that the exposed data did not include medical records or financial information. Continue reading →

Hacked Hotel Phones Fueled Bank Phishing Scams

February 4, 2015
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A recent phishing campaign targeting customers of several major U.S. banks was powered by text messages directing recipients to call hacked phone lines at Holiday Inn locations in the south. Such attacks are not new, but this one is a timely reminder that phishers increasingly are using lures blasted out via SMS as more banks turn to text messaging to communicate with customers about account activity.

smishThe above-mentioned phishing attacks were actually a mix of scams known as “SMiShing” — phishing lures sent via SMS text message — and voice phishing or “vishing,” where consumers are directed to call a number that answers with a voice prompt spoofing the bank and instructing the caller to enter his credit card number and expiration date.

Over the past two weeks, fraudsters have been blasting out SMS messages to hundreds of thousands of mobile users in the Houston, Texas area. The messages alerted recipients about supposed problems with their bank account, urging them to call a supplied number and follow the automated voice prompts to validate or verify their credit card account information.

On Saturday, Jan. 30, I called one of the numbers that was sent out in the smishing/vishing scam — 281-866-0500 – which is the main phone line for a Holiday Inn Express in Houston. At the time, calls to the number went straight to an automated voice prompt targeting Bank of America customers:

“Thank you for calling Bank of America. A text message has been sent to inform you that your debit card has been limited due to a security issue. To reactivate, please press one now.” After pressing one, the caller is prompted to enter the last four digits of their Social Security number, and then the full card number and expiration date.

My recording of the call was garbled, but here’s a copy of a very similar voice prompt targeting Key Bank customers earlier in January that also was run off the fax line tied to a different Holiday Inn a few miles away in Houston [number: 832-237-8999], according to Numbercop, a telephony threat intelligence firm.

Holiday Inn’s corporate office did not return calls seeking comment, but the company apparently got the message because the phone lines were answering normally on Monday. A front desk clerk who answered the line on Tuesday said the hotel received over 100 complaints from people who got text messages prompting them to call the hotel’s main number during the time it was hacked.

According to Jan Volzke, Numbercop’s chief executive, these scams typically start on a Saturday afternoon and run through the weekend when targeted banks are typically closed.

“Two separate Holiday Inns getting hijacked in such short time suggests there is a larger issue at work with their telephone system provider,” he said. “That phone line is probably sitting right next to the credit card machine of the Holiday Inn. In a way this is just another retail terminal, and if they can’t secure their phone lines, maybe you shouldn’t be giving them your credit card.” Continue reading →

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Banks: Card Thieves Hit White Lodging Again

February 3, 2015
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For the second time in a year, multiple financial institutions are complaining of fraud on customer credit and debit cards that were all recently used at a string of Marriott properties run by hotel franchise firm White Lodging Services Corporation. White Lodging says it is investigating, but that so far it has found no signs of a new breach.

whitelodgingIn January 31, 2014, this author first reported evidence of a breach at some White Lodging locations. The Merrillville, Ind. based company confirmed a breach three days later, saying hackers had installed malicious software on cash registers in food and beverage outlets at 14 locations nationwide, and that the intruders had been stealing customer card data from these outlets for approximately nine months.

Fast-forward to late January 2015, and KrebsOnSecurity again began hearing from several financial institutions who had traced a pattern of counterfeit card fraud back to accounts that were all used at Marriott properties across the country.

Banking sources say the cards that were compromised in this most recent incident look like they were stolen from many of the same White Lodging locations implicated in the 2014 breach, including hotels in Austin, Texas, Bedford Park, Ill., Denver, Indianapolis, and Louisville, Kentucky.  Those same sources said the compromises appear once again to be tied to hacked cash registers at food and beverage establishments within the White Lodging run hotels. The legitimate hotel transactions that predated fraudulent card charges elsewhere range from mid-September 2014 to January 2015.

Contacted about the findings, Marriott spokesman Jeff Flaherty said all of the properties cited by the banks as source of card fraud are run by White Lodging.

“We recently were made aware of the possibility of unusual credit card transactions at a number of hotels operated by one of our franchise management companies,” Flaherty said. “We understand the franchise company is looking into the matter. Because the suspected issue is related to systems that Marriott does not own or control, we do not have additional information to provide.”

I reached out to White Lodging on Jan. 31. In an emailed statement sent today, White Lodging spokesperson Kathleen Sebastian said the company engaged a security firm to investigate the reports, but so far that team has found no indication of a compromise.

“From your inquiry, we have engaged a full forensic audit of the properties in question,” Sebastian wrote. “We appreciate your concern, and we are taking this information very seriously. To this date, we have found no identifiable infection that would lead us to believe a breach has occurred. Our investigation is ongoing.”

Sebastian went on to say that in the past year, White Lodging has adopted a number of new security measures, including the installation of a third-party managed firewall system, dual-factor authentication for critical systems, and “various other systems as guided by our third-party cyber security service. While we have executed additional security protocols, we do not wish to specifically disclose full details of all security measure to the public.” Continue reading →

Target Hackers Hit Third Parking Service

February 2, 2015
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Book2Park.com, an online parking reservation service for airports across the United States, appears to be the latest victim of the hacker gang that stole more than a 100 million credit and debit cards from Target and Home Depot. Book2park.com is the third online parking service since December 2014 to fall victim to this cybercriminal group.

book2parkLast week, a new batch of credit card numbers [dubbed “Denarius“] went up for sale on Rescator[dot]cm, the cybercrime bazaar that earned infamy by selling tens of millions of cards stolen from Target and Home Depot. Multiple banks contacted by this author acquired a handful of cards from this new batch, and each of those financial institutions found the same pattern: All of the cards they bought had been issued to customers who recently made airport parking reservations at Book2Park.com.

Contacted about the apparent breach, Book2park.com owner Anna Infante said she was not aware that hundreds — if not thousands — of her customers cards were for sale online. But she said a technology firm the company contracts with did recently discover and remove malicious files that were somehow planted on Book2park’s Web server.

“We already took action on this, and we are totally on it,” Infante said. “We are taking all further steps in protecting our customers and reporting this to the proper authorities.”

In December, the same hacker gang began selling card accounts stolen from the Web sites of Park ‘N Fly and OneStopParking.com. The card accounts stolen from OneStopParking and Park ‘N Fly sold for prices between $6 and $13, but the cards taken from Book2Park’s site mostly fetch prices ranging from $12 to $18. This may be because most of the cards were issued by European banks, which tend to sell for more (at least on Rescator’s site). Continue reading →

The Internet of Dangerous Things

January 29, 2015
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Distributed denial-of-service (DDoS) attacks designed to silence end users and sideline Web sites grew with alarming frequency and size last year, according to new data released this week. Those findings dovetail quite closely with the attack patterns seen against this Web site over the past year.

Arbor Networks, a major provider of services to help block DDoS assaults, surveyed nearly 300 companies and found that 38% of respondents saw more than 21 DDoS attacks per month. That’s up from a quarter of all respondents reporting 21 or more DDoS attacks the year prior.

KrebsOnSecurity is squarely within that 38 percent camp: In the month of December 2014 alone, Prolexic (the Akamai-owned company that protects my site from DDoS attacks) logged 26 distinct attacks on my site. That’s almost one attack per day, but since many of the attacks spanned multiple days, the site was virtually under constant assault all month.

Source: Arbor Networks

Source: Arbor Networks

Arbor also found that attackers continue to use reflection/amplification techniques to create gigantic attacks. The largest reported attack was 400 Gbps, with other respondents reporting attacks of 300 Gbps, 200 Gbps and 170 Gbps. Another six respondents reported events that exceeded the 100 Gbps threshold. In February 2014, I wrote about the largest attack to hit this site to date — which clocked in at just shy of 200 Gbps.

According to Arbor,  the top three motivations behind attacks remain nihilism vandalism, online gaming and ideological hacktivism— all of which the company said have been in the top three for the past few years.

“Gaming has gained in percentage, which is no surprise given the number of high-profile, gaming-related attack campaigns this year,” the report concludes.

DDoS Attacks on KrebsOnSecurity.com, logged by Akamai/Prolexic between 10/17/14 - 1/26/15.

DDoS Attacks on KrebsOnSecurity.com, logged by Akamai/Prolexic between 10/17/14 – 1/26/15.

Longtime readers of this blog will probably recall that I’ve written plenty of stories in the past year about the dramatic increase in DDoS-for-hire services (a.k.a. “booters” or “stressers”). In fact, on Monday, I published Spreading the Disease and Selling the Cure, which profiled two young men who were running both multiple DDoS-for-hire services and selling services to help defend against such attacks. Continue reading →

FBI: Businesses Lost $215M to Email Scams

January 28, 2015
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It’s time once again to update my Value of a Hacked Email Account graphic: According to a recent alert from the FBI, cyber thieves stole nearly $215 million from businesses in the last 14 months using a scam that starts when business executives or employees have their email accounts hijacked.

Federal investigators say the so-called “business email compromise” (BEC) swindle is a sophisticated and increasingly common scam targeting businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments.

According to new data from the Internet Crime Complaint Center (IC3) — a partnership between the National White Collar Crime Center and the FBI — the victims of BEC scams range from small to large businesses that may purchase or supply a variety of goods, such as textiles, furniture, food, and pharmaceuticals.

Image: IC3

Image: IC3

One variation on the BEC scam, also known as “CEO fraud,” starts with the email account compromise for high-level business executives (CFO, CTO, etc). Posing as the executive, the fraudster sends a request for a wire transfer from the compromised account to a second employee within the company who is normally responsible for processing these requests.

“The requests for wire transfers are well-worded, specific to the business being victimized, and do not raise suspicions to the legitimacy of the request,” the agency warned. “In some instances a request for a wire transfer from the compromised account is sent directly to the financial institution with instructions to urgently send funds to bank ‘X’ for reason ‘Y.'”

The IC3 notes that the fraudsters perpetrating these scams do their homework before targeting a business and its employees, monitoring and studying their selected victims prior to initiating the fraud. Continue reading →

Yet Another Emergency Flash Player Patch

January 27, 2015
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For the second time in a week, Adobe has issued an emergency update to fix a critical security flaw that crooks are actively exploiting in its Flash Player software. Updates are available for Flash Player on Windows and Mac OS X.

brokenflash-aLast week, Adobe released an out-of-band Flash Patch to fix a dangerous bug that attackers were already exploiting. In that advisory, Adobe said it was aware of yet another zero-day flaw that also was being exploited, but that last week’s patch didn’t fix that flaw.

Earlier this week, Adobe began pushing out Flash v. 16.0.0.296 to address the outstanding zero-day flaw. Adobe said users who have enabled auto-update for Flash Player will be receiving the update automatically this week. Alternatively, users can manually update by downloading the latest version from this page.

Adobe said it is working with its distribution partners to make the update available in Google Chrome and Internet Explorer 10 and 11. Google Chrome version 40.0.2214.93 includes this update, and is available now. To check for updates in Chrome, click the stacked three bars to the right of the address bar in Chrome, and look for a listing near the bottom that says “Update Chrome.”

To see which version of Flash you have installed, check this link. Windows users who browse the Web with anything other than Internet Explorer may need to apply this patch twice, once with IE and again using the alternative browser (Firefox, Opera, e.g.).

Spreading the Disease and Selling the Cure

January 26, 2015
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When Karim Rattani isn’t manning the till at the local Subway franchise in his adopted hometown of Cartersville, Ga., he’s usually tinkering with code. The 21-year-old Pakistani native is the lead programmer for two very different yet complementary online services: One lets people launch powerful attacks that can knock Web sites, businesses and other targets offline for hours at a time; the other is a Web hosting service designed to help companies weather such assaults.

Grimbooter

Grimbooter

Rattani helps run two different “booter” or “stresser” services – grimbooter[dot]com, and restricted-stresser[dot]info. He also works on TheHosted[dot]me, a Web hosting firm marketed to Web sites looking for protection from the very attacks he helps to launch.

As part of an ongoing series on booter services, I reached out to Rattani via his Facebook account (which was replete with images linking to fake Youtube sites that foist malicious software disguised as Adobe’s Flash Player plugin). It turns out, the same Google Wallet is used to accept payment for all three services, and that wallet traced back to Rattani.

In a Facebook chat, Rattani claimed he doesn’t run the companies, but merely accepts Google Wallet payments for them and then wires the money (minus his cut) to a young man named Danial Rajput — his business partner back in Karachi. Rajput declined to be interviewed for this story.

The work that Rattani does for these booter services brings in roughly $2,500 a month — far more than he could ever hope to make in a month slinging sandwiches. Asked whether he sees a conflict of interest in his work, Rattani was ambivalent.

“It is kind of [a conflict], but if my friend won’t sell [the service], someone else will,” he said.

Rattani and his partner are among an increasing number of young men who sell legally murky DDoS-for-hire services. The proprietors of these services market them as purely for Web site administrators to “stress test” their sites to ensure they can handle high volumes of visitors.

But that argument is about as convincing as a prostitute trying to pass herself off as an escort. The owner of the attack services (the aforementioned Mr. Rajput) advertises them at hackforums[dot]net, an English language forum where tons of low-skilled hackers hang out and rent such attack services to prove their “skills” and toughness to others. Indeed, in his own first post on Hackforums in 2012, Rajput states that “my aim is to provide the best quality vps [virtual private server] for ddosing :P”. Continue reading →

Flash Patch Targets Zero-Day Exploit

January 22, 2015
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Adobe today released an important security update for its Flash Player software that fixes a vulnerability which is already being exploited in active attacks. Compounding the threat, the company said it is investigating reports that crooks may have developed a separate exploit that gets around the protections in this latest update.

brokenflash-aEarly indicators of a Flash zero-day vulnerability came this week in a blog post by Kafeine, a noted security researcher who keeps close tabs on new innovations in “exploit kits.” Often called exploit packs — exploit kits are automated software tools that help thieves booby-trap hacked sites to deploy malicious code.

Kafeine wrote that a popular crimeware package called the Angler Exploit Kit was targeting previously undocumented vulnerability in Flash that appears to work against many different combinations of the Internet Explorer browser on Microsoft Windows systems.

Attackers may be targeting Windows and IE users for now, but the vulnerability fixed by this update also exists in versions of Flash that run on Mac and Linux as well. The Flash update brings the media player to version 16.0.0.287 on Mac and Windows systems, and 11.2.202.438 on Linux.

While Flash users should definitely update as soon as possible, there are indications that this fix may not plug all of the holes in Flash for which attackers have developed exploits. In a statement released along with the Flash update today, Adobe said its patch addresses a newly discovered vulnerability that is being actively exploited, but that there appears to be another active attack this patch doesn’t address.

“Adobe is aware of reports that an exploit for CVE-2015-0310 exists in the wild, which is being used in attacks against older versions of Flash Player,” Adobe said. “Additionally, we are investigating reports that a separate exploit for Flash Player 16.0.0.287 and earlier also exists in the wild.”

To see which version of Flash you have installed, check this link. IE10/IE11 on Windows 8.x and Chrome should auto-update their versions of Flash, although as of this writing it seems that the latest version of Chrome (40.0.2214.91) is still running v. 16.0.0.257.  Continue reading →