‘Shellshock’ Bug Spells Trouble for Web Security

September 25, 2014

As if consumers weren’t already suffering from breach fatigue: Experts warn that attackers are exploiting a critical, newly-disclosed security vulnerability present in countless networks and Web sites that rely on Unix and Linux operating systems. Experts say the flaw, dubbed “Shellshock,” is so intertwined with the modern Internet that it could prove challenging to fix, and in the short run is likely to put millions of networks and countless consumer records at risk of compromise.

The bug is being compared to the recent Heartbleed vulnerability because of its ubiquity and sheer potential for causing havoc on Internet-connected systems — particularly Web sites. Worse yet, experts say the official patch for the security hole is incomplete and could still let attackers seize control over vulnerable systems.

The problem resides with a weakness in the GNU Bourne Again Shell (Bash), the text-based, command-line utility on multiple Linux and Unix operating systems. Researchers discovered that if Bash is set up to be the default command line utility on these systems, it opens those systems up to specially crafted remote attacks via a range of network tools that rely on it to execute scripts, from telnet and secure shell (SSH) sessions to Web requests.

According to several security firms, attackers are already probing systems for the weakness, and that at least two computer worms are actively exploiting the flaw to install malware. Jaime Blasco, labs director at AlienVault, has been running a honeypot on the vulnerability since yesterday to emulate a vulnerable system.

“With the honeypot, we found several machines trying to exploit the Bash vulnerability,” Blasco said. “The majority of them are only probing to check if systems are vulnerable. On the other hand, we found two worms that are actively exploiting the vulnerability and installing a piece of malware on the system. This malware turns the systems into bots that connect to a C&C server where the attackers can send commands, and we have seen the main purpose of the bots is to perform distributed denial of service attacks.”

The vulnerability does not impact Microsoft Windows users, but there are patches available for Linux and Unix systems. In addition, Mac users are likely vulnerable, although there is no official patch for this flaw from Apple yet. I’ll update this post if we see any patches from Apple.

Update, Sept. 29 9:06 p.m. ET: Apple has released an update for this bug, available for OS X Mavericks, Mountain Lion, and Lion.

The U.S.-CERT’s advisory includes a simple command line script that Mac users can run to test for the vulnerability. To check your system from a command line, type or cut and paste this text:

env x='() { :;}; echo vulnerable' bash -c "echo this is a test"

If the system is vulnerable, the output will be:

vulnerable
 this is a test

An unaffected (or patched) system will output:

 bash: warning: x: ignoring function definition attempt
 bash: error importing function definition for `x'
 this is a test

US-CERT has a list of operating systems that are vulnerable. Red Hat and several other Linux distributions have released fixes for the bug, but according to US-CERT the patch has an issue that prevents it from fully addressing the problem. Continue reading

$1.66M in Limbo After FBI Seizes Funds from Cyberheist

September 25, 2014

A Texas bank that’s suing a customer to recover $1.66 million spirited out of the country in a 2012 cyberheist says it now believes the missing funds are still here in the United States — in a bank account that’s been frozen by the federal government as part of an FBI cybercrime investigation.

robotrobkbIn late June 2012, unknown hackers broke into the computer systems of Luna & Luna, LLP, a real estate escrow firm based in Garland, Texas. Unbeknownst to Luna, hackers had stolen the username and password that the company used to managed its account at Texas Brand Bank (TBB), a financial institution also based in Garland.

Between June 21, 2012 and July 2, 2012, fraudsters stole approximately $1.75 million in three separate wire transfers. Two of those transfers went to an account at the Industrial and Commercial Bank of China. That account was tied to the Jixi City Tianfeng Trade Limited Company in China. The third wire, in the amount of $89,651, was sent to a company in the United States, and was recovered by the bank.

Jixi is in the Heilongjiang province of China on the border with Russia, a region apparently replete with companies willing to accept huge international wire transfers without asking too many questions. A year before this cyberheist took place, the FBI issued a warning that cyberthieves operating out of the region had been the recipients of approximately $20 million in the year prior — all funds stolen from small to mid-sized businesses through a series of fraudulent wire transfers sent to Chinese economic and trade companies (PDF) on the border with Russia.

Luna became aware of the fraudulent transfers on July 2, 2012, when the bank notified the company that it was about to overdraw its accounts. The theft put Luna & Luna in a tough spot: The money the thieves stole was being held in escrow for the U.S. Department of Housing and Urban Development (HUD). In essence, the crooks had robbed Uncle Sam, and this was exactly the argument that Luna used to talk its bank into replacing the missing funds as quickly as possible.

“Luna argued that unless TBB restored the funds, Luna and HUD would be severely damaged with consequences to TBB far greater than the sum of the swindled funds,” TBB wrote in its original complaint (PDF). TBB notes that it agreed to reimburse the stolen funds, but that it also reserved its right to legal claims against Luna to recover the money.

When TBB later demanded repayment, Luna refused. The bank filed suit on July 1, 2013, in state court, suing to recover the approximately $1.66 million that it could not claw back, plus interest and attorney’s fees. Continue reading

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Jimmy John’s Confirms Breach at 216 Stores

September 24, 2014

More than seven weeks after this publication broke the news of a possible credit card breach at nationwide sandwich chain Jimmy John’s, the company now confirms that a break-in at one of its payment vendors jeopardized customer credit and debit card information at 216 stores.

jjohns On July 31, KrebsOnSecurity reported that multiple banks were seeing a pattern of fraud on cards that were all recently used at Jimmy John’s locations around the country. That story noted that the company was working with authorities on an investigation, and that multiple Jimmy John’s stores contacted by this author said they ran point-of-sale systems made by Newtown, Pa.-based Signature Systems.

In a statement issued today, Champaign, Ill. based Jimmy John’s said customers’ credit and debit card data was compromised after an intruder stole login credentials from the company’s point-of-sale vendor and used these credentials to remotely access the point-of-sale systems at some corporate and franchised locations between June 16, 2014 and Sept. 5, 2014.

“Approximately 216 stores appear to have been affected by this event,” Jimmy John’s said in the statement. “Cards impacted by this event appear to be those swiped at the stores, and did not include those cards entered manually or online. The credit and debit card information at issue may include the card number and in some cases the cardholder’s name, verification code, and/or the card’s expiration date. Information entered online, such as customer address, email, and password, remains secure.”

The company has posted a listing on its Web site — jimmyjohns.com — of the restaurant locations affected by the intrusion. There are more than 1,900 franchised Jimmy John’s locations across the United States, meaning this breach impacted roughly 11 percent of all stores. Continue reading

Who’s Behind the Bogus $49.95 Charges?

September 22, 2014

Hardly a week goes by when I don’t hear from a reader wondering about the origins of a bogus credit card charge for $49.95 or some similar amount for a product they never ordered. As this post will explain, such charges appear to be the result of crooks trying to game various online affiliate programs by using stolen credit cards.

Bogus $49.95 charges for herbal weight loss products like these are showing up on countless consumer credit statements.

Bogus $49.95 charges for herbal weight loss products like these are showing up on countless consumer credit statements.

Most of these charges are associated with companies marketing products of dubious value and quality, typically by knitting a complex web of front companies, customer support centers and card processing networks. Whether we’re talking about a $49.95 payment for a bottle of overpriced vitamins, $12.96 for some no-name software title, or $9.84 for a dodgy Internet marketing program, the unauthorized charge usually is for a good or service that is intended to be marketed by an online affiliate program.

Affiliate programs are marketing machines built to sell a huge variety of products or services that are often of questionable quality and unknown provenance. Very often, affiliate programs are promoted using spam, and the stuff pimped by them includes generic prescription drugs, vitamins and “nutriceuticals,” and knockoff designer purses, watches, handbags, shoes and sports jerseys.

At the core of the affiliate program is a partnership of convenience: The affiliate managers handle the boring backoffice stuff, including the customer service, product procurement (suppliers) and order fulfillment (shipping). The sole job of the “affiliates” — the commission-based freelance marketers who sign up to promote whatever is being sold by the affiliate program — is to drive traffic and sales to the program.

THE NEW FACE OF SPAM

It is no surprise, then, that online affiliate programs like these often are overrun with scammers, spammers and others easily snagged by the lure of get-rich-quick schemes. In June, I began hearing from dozens of readers about unauthorized charges on their credit card statements for $49.95. The charges all showed up alongside various toll-free 888- numbers or names of customer support Web sites, such as supportacr[dot]com and acrsupport[dot]com. Readers who called these numbers or took advantage of the chat interfaces at these support sites were all told they’d ordered some kind of fat-burning pill or vitamin from some random site, such as greenteahealthdiet[dot]com or naturalfatburngarcinia[dot]com.

Those sites were among tens of thousands that are being promoted via spam, according to Gary Warner, chief technologist at Malcovery, an email security firm. The Web site names themselves are not included in the spam; rather, the spammers include a clickable URL for a hacked Web site that, when visited, redirects the user to the pill shop’s page. This redirection is done to avoid having the pill shop pages indexed by anti-spam filters and other types of blacklists used by security firms, Warner said. Continue reading

Home Depot: 56M Cards Impacted, Malware Contained

September 18, 2014

Home Depot said today that cyber criminals armed with custom-built malware stole an estimated 56 million debit and credit card numbers from its customers between April and September 2014. That disclosure officially makes the incident the largest retail card breach on record.

pwnddepotThe disclosure, the first real information about the damage from a data breach that was initially disclosed on this site Sept. 2, also sought to assure customers that the malware used in the breach has been eliminated from its U.S. and Canadian store networks.

“To protect customer data until the malware was eliminated, any terminals identified with malware were taken out of service, and the company quickly put in place other security enhancements,” the company said via press release (PDF). “The hackers’ method of entry has been closed off, the malware has been eliminated from the company’s systems, and the company has rolled out enhanced encryption of payment data to all U.S. stores.”

That “enhanced payment protection,” the company said, involves new payment security protection “that locks down payment data through enhanced encryption, which takes raw payment card information and scrambles it to make it unreadable and virtually useless to hackers.” Continue reading

In Home Depot Breach, Investigation Focuses on Self-Checkout Lanes

September 18, 2014

The malicious software that unknown thieves used to steal credit and debit card numbers in the data breach at Home Depot this year was installed mainly on payment systems in the self-checkout lanes at retail stores, according to sources close to the investigation. The finding could mean thieves stole far fewer cards during the almost five-month breach than they might have otherwise.

A self-checkout lane at a Home Depot in N. Virginia.

A self-checkout lane at a Home Depot in N. Virginia.

Since news of the Home Depot breach first broke on Sept. 2, this publication has been in constant contact with multiple financial institutions that are closely monitoring daily alerts from Visa and MasterCard for reports about new batches of accounts that the card associations believe were compromised in the break-in. Many banks have been bracing for a financial hit that is much bigger than the exposure caused by the breach at Target, which lasted only three weeks and exposed 40 million cards.

But so far, banking sources say Visa and MasterCard have been reporting far fewer compromised cards than expected given the length of the Home Depot exposure.

Sources now tell KrebsOnSecurity that in a conference call with financial institutions today, officials at MasterCard shared several updates from the ongoing forensic investigation into the breach at the nationwide home improvement store chain. The card brand reportedly told banks that at this time it is believed that only self-checkout terminals were impacted in the breach, but stressed that the investigation is far from complete. Continue reading

Medical Records For Sale in Underground Stolen From Texas Life Insurance Firm

September 18, 2014

How much are your medical records worth in the cybercrime underground? This week, KrebsOnSecurity discovered medical records being sold in bulk for as little as $6.40 apiece. The digital documents, several of which were obtained by sources working with this publication, were apparently stolen from a Texas-based life insurance company that now says it is working with federal authorities on an investigation into a possible data breach.

The "Fraud Related" section of the Evolution Market.

The “Fraud Related” section of the Evolution Market.

Purloined medical records are among the many illicit goods for sale on the Evolution Market, a black market bazaar that traffics mostly in narcotics and fraud-related goods — including plenty of stolen financial data. Evolution cannot be reached from the regular Internet. Rather, visitors can only browse the site using Tor, software that helps users disguise their identity by bouncing their traffic between different servers, and by encrypting that traffic at every hop along the way.

Last week, a reader alerted this author to a merchant on Evolution Market nicknamed “ImperialRussia” who was advertising medical records for sale. ImperialRussia was hawking his goods as “fullz” — street slang for a package of all the personal and financial records that thieves would need to fraudulently open up new lines of credit in a person’s name.

Each document for sale by this seller includes the would-be identity theft victim’s name, their medical history, address, phone and driver license number, Social Security number, date of birth, bank name, routing number and checking/savings account number. Customers can purchase the records using the digital currency Bitcoin.

A set of five fullz retails for $40 ($8 per record). Buy 20 fullz and the price drops to $7 per record. Purchase 50 or more fullz, and the per record cost falls to just $6.40 — roughly the price of a value meal at a fast food restaurant. Incidentally, even at $8 per record, that’s cheaper than the price most stolen credit cards fetch on the underground markets.

Imperial Russia's ad on Evolution pimping medical and financial records stolen from a Texas life insurance firm.

Imperial Russia’s ad pimping medical and financial records stolen from a Texas life insurance firm.

“Live and Exclusive database of US FULLZ from an insurance company, particularly from NorthWestern region of U.S.,” ImperialRussia’s ad on Evolution enthuses. The pitch continues:

“Most of the fullz come with EXTRA FREEBIES inside as additional policyholders. All of the information is accurate and confirmed. Clients are from an insurance company database with GOOD to EXCELLENT credit score! I, myself was able to apply for credit cards valued from $2,000 – $10,000 with my fullz. Info can be used to apply for loans, credit cards, lines of credit, bank withdrawal, assume identity, account takeover.”

Sure enough, the source who alerted me to this listing had obtained numerous fullz from this seller. All of them contained the personal and financial information on people in the Northwest United States (mostly in Washington state) who’d applied for life insurance through American Income Life, an insurance firm based in Waco, Texas.

Continue reading

Critical Update for Adobe Reader & Acrobat

September 17, 2014

Adobe has released a security update for its Acrobat and PDF Reader products that fixes at least eight critical vulnerabilities in Mac and Windows versions of the software. If you use either of these programs, please take a minute to update now.

adobeshatteredUsers can manually check for updates by choosing Help > Check for Updates. Adobe Reader users on Windows also can get the latest version here; Mac users, here.

Adobe said it is not aware of exploits or active attacks in the wild against any of the flaws addressed in this update. More information about the patch is available at this link.

For those seeking a lightweight, free alternative to Adobe Reader, check out Sumatra PDF. Foxit Reader is another popular alternative, although it seems to have become less lightweight in recent years.

Breach at Goodwill Vendor Lasted 18 Months

September 16, 2014

C&K Systems Inc., a third-party payment vendor blamed for a credit and debit card breach at more than 330 Goodwill locations nationwide, disclosed this week that the intrusion lasted more than 18 months and has impacted at least two other organizations.

cksystemsOn July 21, 2014, this site broke the news that multiple banks were reporting indications that Goodwill Industries had suffered an apparent breach that led to the theft of customer credit and debit card data. Goodwill later confirmed that the breach impacted a portion of its stores, but blamed the incident on an unnamed “third-party vendor.”

Last week, KrebsOnSecurity obtained some internal talking points apparently sent by Goodwill to prepare its member organizations to respond to any calls from the news media about the incident. Those talking points identified the breached third-party vendor as C&K Systems, a retail point-of-sale operator based in Murrells Inlet, S.C.

In response to inquiries from this reporter, C&K released a statement acknowledging that it was informed on July 30 by “an independent security analyst” that its “hosted managed services environment may have experienced unauthorized access.” The company says it then hired an independent cyber investigative team and alerted law enforcement about the incident.

C&K says the investigation determined malicious hackers had access to its systems “intermittently” between Feb. 10, 2013 and Aug. 14, 2014, and that the intrusion led to the the installation of “highly specialized point of sale (POS) infostealer.rawpos malware variant that was undetectable by our security software systems until Sept. 5, 2014,” [link added].

Their statement continues:

“This unauthorized access currently is known to have affected only three (3) customers of C&K, including Goodwill Industries International. While many payment cards may have been compromised, the number of these cards of which we are informed have been used fraudulently is currently less than 25.”

C&K System’s full statement is posted here. Continue reading

LinkedIn Feature Exposes Email Addresses

September 15, 2014

One of the risks of using social media networks is having information you intend to share with only a handful of friends be made available to everyone. Sometimes that over-sharing happens because friends betray your trust, but more worrisome are the cases in which a social media platform itself exposes your data in the name of marketing.

leakedinlogoLinkedIn has built much of its considerable worth on the age-old maxim that “it’s all about who you know.” As a LinkedIn user, you can directly connect with those you attest to knowing professionally or personally, but also you can ask to be introduced to someone you’d like to meet by sending a request through someone who bridges your separate social networks. Celebrities, executives or any other LinkedIn users who wish to avoid unsolicited contact requests may do so by selecting an option that forces the requesting party to supply the personal email address of the intended recipient.

LinkedIn’s entire social fabric begins to unravel if any user can directly connect to any other user, regardless of whether or how their social or professional circles overlap. Unfortunately for LinkedIn (and its users who wish to have their email addresses kept private), this is the exact risk introduced by the company’s built-in efforts to expand the social network’s user base.

According to researchers at the Seattle, Wash.-based firm Rhino Security Labs, at the crux of the issue is LinkedIn’s penchant for making sure you’re as connected as you possibly can be. When you sign up for a new account, for example, the service asks if you’d like to check your contacts lists at other online services (such as Gmail, Yahoo, Hotmail, etc.). The service does this so that you can connect with any email contacts that are already on LinkedIn, and so that LinkedIn can send invitations to your contacts who aren’t already users.

LinkedIn assumes that if an email address is in your contacts list, that you must already know this person. But what if your entire reason for signing up with LinkedIn is to discover the private email addresses of famous people? All you’d need to do is populate your email account’s contacts list with hundreds of permutations of famous peoples’ names — including combinations of last names, first names and initials — in front of @gmail.com, @yahoo.com, @hotmail.com, etc. With any luck and some imagination, you may well be on your way to an A-list LinkedIn friends list (or a fantastic set of addresses for spear-phishing, stalking, etc.).

LinkedIn lets you know which of your contacts aren't members.

LinkedIn lets you know which of your contacts aren’t members.

When you import your list of contacts from a third-party service or from a stand-alone file, LinkedIn will show you any profiles that match addresses in your contacts list. More significantly, LinkedIn helpfully tells you which email addresses in your contacts lists are not LinkedIn users.

It’s that last step that’s key to finding the email address of the targeted user to whom LinkedIn has just sent a connection request on your behalf. The service doesn’t explicitly tell you that person’s email address, but by comparing your email account’s contact list to the list of addresses that LinkedIn says don’t belong to any users, you can quickly figure out which address(es) on the contacts list correspond to the user(s) you’re trying to find.

Rhino Security founders Benjamin Caudill and Bryan Seely have a recent history of revealing how trust relationships between and among online services can be abused to expose or divert potentially sensitive information. Last month, the two researchers detailed how they were able to de-anonymize posts to Secret, an app-driven online service that allows people to share messages anonymously within their circle of friends, friends of friends, and publicly. In February, Seely more famously demonstrated how to use Google Maps to intercept FBI and Secret Service phone calls.

This time around, the researchers picked on Dallas Mavericks owner Mark Cuban to prove their point with LinkedIn. Using their low-tech hack, the duo was able to locate the Webmail address Cuban had used to sign up for LinkedIn. Seely said they found success in locating the email addresses of other celebrities using the same method about nine times out ten. Continue reading