Krebs on Security

Bebe Stores Confirms Credit Card Breach

December 5, 2014

In a statement released this morning, women’s clothier chain bebe stores inc. confirmed news first reported on this blog Thursday: That hackers had stolen customer card data from stores across the country in a breach that persisted for several weeks last month.

Image: Wikipedia.

Bebe stores said its investigation indicates that the breach impacted payment cards swiped in its U.S., Puerto Rico and U.S. Virgin Islands stores between Nov. 8, 2014 and Nov. 26, 2014. The data may have included cardholder name, account number, expiration date, and verification code.

The company emphasized that purchases made though its web site, mobile site/application, or in Canada or other international stores were not affected, and that customers should feel confident in continuing to use their payment cards in bebe stores.

“Our relationship with our customers is of the highest importance,” said bebe CEO Jim Wiggett, in a statement. “We moved quickly to block this attack and have taken steps to further enhance our security measures.”

Predictably, bebe stores is offering free credit monitoring services for one year to customers impacted by this incident, even though credit monitoring services do nothing to help consumers block fraud on existing accounts — such as credit and debit card accounts that may have been stolen in this breach.
Consumers still need to keep a close eye on monthly statements, and report any unauthorized charges as quickly as possible. Continue reading →

Banks: Credit Card Breach at Bebe Stores

December 4, 2014

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Data gathered from several financial institutions and at least one underground cybercrime shop suggest that thieves have stolen credit and debit card data from Bebe Stores Inc., a nationwide chain of some 200 women’s clothing stores.

Image: Wikipedia.

Earlier this week, KrebsOnSecurity began hearing from different banks about a pattern of fraudulent charges on customer credit cards that all had one thing in common: the cards were recently used at Bebe (pronounced “bee bee”) locations across the country.

This author reached out to Bebe via email and phone early Wednesday. Officials from Bebe Stores have not yet responded to requests for comment.

On Wednesday, this author heard from an East Coast bank which had purchased several of its customers cards that were being sold on a relatively new cybercrime shop called (goodshop[dot]bz]). The bank acquired cards from a batch that Goodshop released on Dec. 1, called “Happy Winter Update.” The prices from that Happy Winter batch range from $10 to $27 per card.

The bank found that all of the cards had been used at Bebe Stores in the United States between Nov. 18 and Nov. 28. It is not clear if the breach at Bebe stores is ongoing, or if it extends prior to mid-November 2014.

The card fraud shop “goodshop[dot]bz” is selling thousands of cards in its “Happy Winter Update.”

Continue reading →

Be Wary of ‘Order Confirmation’ Emails

December 3, 2014

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If you receive an email this holiday season asking you to “confirm” an online e-commerce order or package shipment, please resist the urge to click the included link or attachment: Malware purveyors and spammers are blasting these missives by the millions each day in a bid to trick people into giving up control over their computers and identities.

An “order confirmation” malware email blasted out by the Asprox spam botnet recently.

Seasonal scams like these are a perennial scourge of the holidays, mainly because the methods they employ are reliably successful. Crooks understand that it’s easier to catch would-be victims off-guard during the holidays. This goes even for people who generally know better than to click on links and attachments in emails that spoof trusted brands and retailers, because this is a time of year when many people are intensely focused on making sure their online orders arrive before Dec. 25.

This Asprox malware email poses as a notice about a wayward package from a WalMart order.

According to Malcovery, a company that closely tracks email-based malware attacks, these phony “order confirmation” spam campaigns began around Thanksgiving, and use both booby-trapped links and attached files in a bid to infect recipients’ Windows PCs with the malware that powers the Asprox spam botnet. Continue reading →

Sony Breach May Have Exposed Employee Healthcare, Salary Data

December 2, 2014

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The recent hacker break-in at Sony Pictures Entertainment appears to have involved the theft of far more than unreleased motion pictures: According to multiple sources, the intruders also stole more than 25 gigabytes of sensitive data on tens of thousands of Sony employees, including Social Security numbers, medical and salary information. What’s more, it’s beginning to look like the attackers may have destroyed data on an unknown number of internal Sony systems.

Screen shot from an internal audit report allegedly stolen from Sony and circulating on file-trading networks.

Several files being traded on torrent networks seen by this author include a global Sony employee list, a Microsoft Excel file that includes the name, location, employee ID, network username, base salary and date of birth for more than 6,800 individuals.

Sony officials could not be immediately reached for comment; a press hotline for the company rang for several minutes without answer, and email requests to the company went unanswered. But a comprehensive search on LinkedIn for dozens of the names in the list indicate virtually all correspond to current or former Sony employees.

Another file being traded online appears to be a status report from April 2014 listing the names, dates of birth, SSNs and health savings account data on more than 700 Sony employees. Yet another apparently purloined file’s name suggests it was the product of an internal audit from accounting firm Pricewaterhouse Coopers, and includes screen shots of dozens of employee federal tax records and other compensation data.

The latest revelations come more than a week after a cyberattack on Sony Pictures Entertainment brought down the company’s corporate email systems. A Sony spokesperson told Reuters that the company has since “restored a number of important services” and was “working closely with law enforcement officials to investigate the matter.”

Some of the files apparently taken from Sony that are now being traded on file-sharing networks.

Several media outlets reported at the time that Sony employees had been warned not to connect to the company’s corporate network or to check email, and noted that Sony’s IT departments had instructed employees to turn off their computers as well as disable Wi-Fi on all mobile devices.” Other reports cited unnamed investigators pointing to North Korean hackers as the source of the attack, although those reports could not be independently confirmed.

Such extreme precautions would make sense if the company’s network was faced with a cyber threat designed to methodically destroy files on corporate computers. Indeed, the FBI this week released a restricted “Flash Alert” warning of just such a threat, about an unnamed attack group that has been using malware designed to wipe computer hard drives — and the underlying “master boot record” (MBR) on the affected systems — of all data.

KrebsOnSecurity obtained a copy of the alert, which includes several file names and hashes (long strings of letters and numbers that uniquely identify files) corresponding to the file-wiping malware. The FBI does not specify where the malware was found or against whom it might have been used, noting only that “the FBI has high confidence that these indicators are being used by CNE [computer network exploitation] operators for further network exploitation.” The report also says the language pack referenced by the malicious files is Korean.

Continue reading →

KrebsOnSecurity on CBS’s ’60 Minutes’

December 1, 2014

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In case any of you loyal readers missed it, KrebsOnSecurity.com and its author were featured in a 60 Minutes interview last night on the credit and debit card breaches that have hit countless retailers and consumers over the past year.

I spent more than a dozen hours with 60 Minutes producers, film crews and the host of this segment — CBS’s Bill Whitaker, so I’m glad they were able to use as much footage as they did. Leading up to the filming, the producer of the show asked some very incisive questions — some of which I didn’t know the answers to myself — and I was hoping the segment would address some of the less discussed issues that contribute to this epidemic of card breaches. But, alas, I hope to explore some of those questions in future posts.

A link to a video and transcript of the program is here. Continue reading →

Black Friday, Cyber Monday for Crooks, Too!

November 29, 2014

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Underground cybercrime shops that sell credit and debit card accounts stolen from retailers are slashing prices and promoting their own Black Friday and Cyber Monday sales as fraudsters gear up for the busy holiday shopping season.

Card data stolen from main street retailers, a.k.a. “dumps,” is sold to crooks who encode the numbers onto new plastic and go shopping for high-priced electronics and gift cards at big box stores. Other shops sell mainly stolen card numbers, expiration dates and card security codes that can only be used to shop at online retailers.

Have a look at the slide show below, which features multiple advertisements pushed out by some of the most bustling crime shops competing for buyers with discounts and promotions. You might have to scroll down a bit to see the slideshow. Advance the slides by hovering over the right edge of the image and clicking the arrow that appears.

It’s nearly impossible for consumers to tell how secure a main street or online merchant is, so it’s best just to shop as if they’re all compromised. That is, if you have the choice between using a credit or debit card, shop with your credit card. Continue reading →

Skimmer Innovation: ‘Wiretapping’ ATMs

November 26, 2014

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Banks in Europe are warning about the emergence of a rare, virtually invisible form of ATM skimmer involving a so-called “wiretapping” device that is inserted through a tiny hole cut in the cash machine’s front. The hole is covered up by a fake decal, and the thieves then use custom-made equipment to attach the device to ATM’s internal card reader.

According to the European ATM Security Team (EAST), a nonprofit that represents banks in 29 countries, financial institutions in two countries recently reported ATM attacks in which the card data was compromised internally by “wire-tapping” or “eavesdropping” on the customer transaction. The image below shows some criminal equipment used to perpetrate these eavesdropping attacks.

Equipment used by crooks to conduct “eavesdropping” or “wiretapping” attacks on ATMs. Source: EAST.

“The criminals cut a hole in the fascia around the card reader where the decal is situated,” EAST described in a recent, non-public report. “A device is then inserted and connected internally onto the card reader, and the hole covered with a fake decal”
[pictured, bottom right].

Pictured above are what appear to be wires that are fed into the machine with some custom-made rods. It looks like the data is collected by removing the decal, fishing out the wire attached to the ATM’s card reader, and connecting it to a handheld data storage device.

I sought clarification from EAST about how the device works. Most skimmers are card slot overlay devices that work by using a built-in component which reads the account data off of the magnetic stripe when the customer inserts the card. But Lachlan Gunn, EAST’s executive director, suggested that this device intercepts the card data from the legitimate card reader on the inside of the ATM. He described the wiretapping device this way:

“It’s where a tap is attached to the pre-read head or read head of the card reader,” Lachlan said. “The card data is then read through the tap. We still classify it as skimming, but technically the magnetic stripe [on the customer/victim’s card] is not directly skimmed as the data is intercepted.”

The last report in my ATM skimming series showcased some major innovations in so-called “insert skimmers,” card-skimming devices made to fix snugly and invisibly inside the throat of the card acceptance slot. EAST’s new report includes another, slightly more advanced, insert skimmer that’s being called an “insert transmitter skimmer.”

Like the one pictured below, an insert transmitter skimmer is made up of two steel plates and an internal battery that lasts approximately one to two weeks. “They do not store data, but transmit it directly to a receiving device — probably placed less than 1 meter from the ATM. Continue reading →

Adobe Pushes Critical Flash Patch

November 25, 2014

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For the second time this month, Adobe has issued a security update for its Flash Player software. New versions are available for Windows, Mac and Linux versions of Flash. The patch provides additional protection on a vulnerability that Adobe fixed earlier this year for which attackers appear to have devised unique and active exploits.

Adobe recommends users of the Adobe Flash Player desktop runtime for Windows and Macintosh update to v. 15.0.0.239 by visiting the Adobe Flash Player Download Center, or via the update mechanism within the product when prompted. Adobe Flash Player for Linux has been updated to v. 11.2.202.424.

According to Adobe, these updates provide additional hardening against CVE-2014-8439, which was fixed in a Flash patch that the company released in October 2014. The bulletin for this update is here. Finnish security firm F-Secure says it reported the flaw to Adobe after receiving information from independent researcher Kafeine that indicated the vulnerability was being exploited in-the-wild by an exploit kit (malicious software designed to be stitched into hacked Web sites and foist malware on visitors via browser flaws like this one). Continue reading →

Spam Nation Book Tour Highlights

November 24, 2014

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Greetings from sunny Austin, Texas, where I’m getting ready to wrap up a week-long book tour that began in New York City, then blazed through Chicago, San Francisco, and Seattle. I’ve been trying to tweet links to various media interviews about Spam Nation over the past week, but wanted to offer a more comprehensive account and to share some highlights of the tour.

For three days starting last Sunday, I was in New York City — doing a series of back-to-back television and radio interviews. Prior to leaving for New York, I taped television interviews with Jeffrey Brown at the PBS NewsHour; the first segment delves into some of the points touched on in the book, and the second piece is titled “Why it’s harder than you think to go ‘off the grid’.”

On Monday, I was fortunate to once again be a guest on Terri Gross‘s show Fresh Air, which you can hear at this link. Tuesday morning began with a five-minute appearance on CBS This Morning, which included a sit-down with Charlie Rose, Gayle King and Norah O’Donnell. Later in the day, I was interviewed by the MarketPlace Tech Report, MSNBC’s The Cycle, as well as the Tavis Smiley show. Wednesday was a mercifully light day, with just two interviews: KGO-AM and the Jim Bohannon Radio Show. Continue reading →

Convicted ID Thief, Tax Fraudster Now Fugitive

November 21, 2014

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In April 2014, this blog featured a story about Lance Ealy, an Ohio man arrested last year for buying Social Security numbers and banking information from an underground identity theft service that relied in part on data obtained through a company owned by big-three credit bureau Experian. Earlier this week, Ealy was convicted of using the data to fraudulently claim tax refunds with the IRS in the names of more than 175 U.S. citizens, but not before he snipped his monitoring anklet and skipped town.

Lance Ealy, in self-portrait he uploaded to twitter before absconding.

Lance Ealy, in selfie he uploaded to Twitter before absconding.

On Nov. 18, a jury in Ohio convicted Ealy, 28, on all 46 charges, including aggravated identity theft, and wire and mail fraud. Government prosecutors presented evidence that Ealy had purchased Social Security numbers and financial data on hundreds of consumers, using an identity theft service called Superget.info (later renamed Findget.me). The jury found that Ealy used that information to fraudulently file at least 179 tax refund requests with the Internal Revenue Service, and to open up bank accounts in other victims’ names — accounts he set up to receive and withdraw tens of thousand of dollars in refund payments from the IRS.

The identity theft service that Ealy used was dismantled in 2013, after investigators with the U.S. Secret Service arrested its proprietor and began tracking and finding many of his customers. Investigators later discovered that the service’s owner had obtained much of the consumer data from data brokers by posing as a private investigator based in the United States.

In reality, the owner of Superget.info was a Vietnamese man paying for his accounts at data brokers using cash wire transfers from a bank in Singapore. Among the companies that Ngo signed up with was Court Ventures, a California company that was bought by credit bureau Experian nine months before the government shut down Superget.info.

Court records show that Ealy went to great lengths to delay his trial, and even reached out to this reporter hoping that I would write about his allegations that everyone from his lawyer to the judge in the case was somehow biased against him or unfit to participate in his trial. Early on, Ealy fired his attorney, and opted to represent himself. When the court appointed him a public defender, Ealy again choose to represent himself.

“Mr. Ealy’s motions were in a lot of respects common delay tactics that defendants use to try to avoid the inevitability of a trial,” said Alex Sistla, an assistant U.S. attorney in Ohio who helped prosecute the case.

Ealy also continued to steal peoples’ identities while he was on trial (although no longer buying from Superget.info), according to the government. His bail was revoked for several months, but in October the judge in the case ordered him released on a surety bond. Continue reading →

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