Krebs on Security

Thousands of Sites Hacked Via vBulletin Hole

October 14, 2013

Attackers appear to have compromised tens of thousands of Web sites using a security weakness in sites powered by the forum software vBulletin, security experts warn.

Attack tool for exploiting vulnerable vBulletin forums.

In a blog post in late August, vBulletin maker ~~Jelsoft~~ Internet Brands Inc. warned users that failing to remove the “/install” and “/core/install” directories on sites running 4.x and 5.x versions of the forum software could render them easily hackable. But apparently many vBulletin-based sites didn’t get that memo: According to Web site security firm Imperva, more than 35,000 sites were recently hacked via this vulnerability.

The security weakness lets attackers quickly discover which forums are vulnerable, and then use automated, open-source exploit tools to add administrator accounts to vulnerable sites.

Imperva said the compromised sites appear to have been hacked by one of two sets of exploit tools that have been released publicly online. The first was apparently used in a mass Website defacement campaign. A Google search for forums with the the rather conspicuously-named administrator account added in that attack (“Th3H4ck”) shows that many of the hack sites also are hosting malware. Among the sites apparently compromised is a support forum for the National Runaway Safeline and a site selling vBulletin add-ons.

The second tool does effectively the same thing, except with a bit more stealth: The administrator account that gets added to hacked forums is more innocuously named “supportvb”. Here’s a Google search that offers a rough idea of the forums compromised with this exploit, which was apparently authored or at least publicly released by this guy.

Continue reading →

Nordstrom Finds Cash Register Skimmers

October 10, 2013

54 Comments

Scam artists who deploy credit and debit card skimmers most often target ATMs, yet thieves can also use inexpensive, store-bought skimming devices to compromise modern-day cash registers. Just this past weekend, for instance, department store chain Nordstrom said it found a half-dozen of these skimmers affixed to registers at a store in Florida.

The fraud devices in this case resemble small keyloggers that are sold by dozens of stores for approximately $30 to $40 apiece. These hardware keyloggers are essentially Ps/2 connectors that are about an inch in length. The tiny data storage devices are usually purple in color to match the color-coded standard for keyboards, and are made to be inserted between the male end of a PS/2 keyboard connector and the female receptor on a computer.

Skimming devices found on six registers at a Nordstrom department store in Florida last week.

According to an alert circulated by the police department in Aventura, Florida, on the afternoon of Saturday, Oct. 5, 2013, three male subjects were captured on closed-circuit cameras at Nordstrom tampering with registers in the store. Authorities there say the footage showed two of the men worked to distract sales staff, while the third took pictures of the register and removed the rear access panel to the register and took additional photographs.

Several hours later, three different males returned to the store and performed the same routine: Two of them again distracted sales staff while the third male removed the back panel to the register and installed the above pictured device. The Aventura Police Department said Nordstrom located a total of six devices attached to their registers.

Continue reading →

‘Bulletproof’ Hoster Santrex Calls It Quits

October 9, 2013

15 Comments

Santrex, a Web hosting provider that has courted cybercrime forums and created a haven for a nest of malicious Web sites, announced last week that it is shutting its doors for good, citing “internal network issues and recent downtime.”

Google’s take on the world’s most densely malicious networks over the past 12 months.

Couldn’t have happened to a nicer company. Rarely has a Web hosting firm so doggedly cornered the market on so-called “bulletproof hosting” services. These are essentially mini-ISPs that specialize in offering services that are largely immune from takedown requests and pressure from Western law enforcement agencies.

If there were a Hall of Infamy for hosting providers, Santrex would be near the top. That’s hardly an exaggeration: According to Google — which tracks top malicious hosts via its safebrowsing program — Santrex was among the Internet’s top three most malicious hosts over the past year. Google’s data indicates that nearly 90 percent of the sites on Santrex’s network tried to foist malicious software on visitors, or hosted malware that was used in attacks against other Web sites.

I first read about the news of Santrex’s demise in a thread at vpsboard.com titled “Ding! Dong! Santrex is Dead!” I followed up with Santrex via its Web site, and asked for confirmation that the closure was for real. I received a reply from Mikkel Thomsen, a sales rep at Santrex, who stated simply that, “Yes we are no longer offering any services.”

My guess is that after years of turning a blind eye to abuse complaints about malware and dodgy customers on its network, Santrex found that most — if not all — of its assigned Internet address space was listed on one blacklist or another. A search for “Santrex” on the forum webhostingtalk.com, for example, shows that more users know this ISP by different name: “Scamtrex.”

Prior to its demise, it appears that Santrex played one last scam on its customers and the rest of the world. Santrex was founded in the United Kingdom in 2009. According to documents obtained from Companies House, the entity which maintains records on U.K. firms, Santrex was declared insolvent by a U.K. court as far back as April 22 of this year.

Apparently, the hosting provider neglected to pay its bills to Bellcom UK Ltd., a London-based data center infrastructure provider. The court ordered Santrex’s assets to be liquidated. Perhaps that explains Santrex’s problems with the “internal network issues and recent downtime,” they cited in their emails to customers.

Santrex was declared insolvent on Apr. 22, 2013. Source: Companies House.

Rest in pieces, Santrex. You will not be missed.

Adobe, Microsoft Push Critical Security Fixes

October 8, 2013

37 Comments

Adobe and Microsoft today each issued software updates to fix critical security issues in their products. Microsoft released eight patch bundles to address 26 different vulnerabilities in Windows and other software – including not just one but two zero-day bugs in Internet Explorer. Adobe’s patches fix a single critical vulnerability present in both Adobe Acrobat and Reader.

Four of the eight patch bulletins from Microsoft earned its most dire “critical” rating, meaning the updates fix problems deemed so severe that miscreants or malware could use them to break into vulnerable systems without any help from users. The patches impact a broad range of Microsoft products, including Windows, IE, SharePoint, .NET Framework, Office and Silverlight.

Front and center in the Microsoft patch batch is MS13-080, which addresses the zero-day IE vulnerability (CVE-2013-3893) that Microsoft first warned about on Sept. 17, as well as nine other security flaws in the default Windows Web browser. Amping up the threat level on this flaw, exploit code allowing attackers to leverage the flaw was released publicly last week as a module for the Metasploit exploit framework, a penetration testing toolkit.

Microsoft late last month released a stopgap “Fix It” solution to block exploits against the zero-day flaw, and the good news is that if you already applied that solution, you don’t need to undo those changes before applying this update. The bad news is that this isn’t the only zero-day vulnerability fixed in the IE patch bundle: Researchers at Trustwave Spiderlabs say they’ve confirmed that attackers are already exploiting one of the other flaws fixed in this IE update (CVE-2013-3897).

Continue reading →

Feds Arrest Alleged Top Silk Road Drug Seller

October 7, 2013

99 Comments

Federal authorities last week arrested a Washington state man accused of being one of the most active and sought-after drug dealers on the online black market known as the “Silk Road.” Meanwhile, new details about the recent coordinated takedown of the Silk Road became public, as other former buyers and sellers on the fraud bazaar pondered who might be next and whether competing online drug markets will move in to fill the void.

NOD’s feedback from Silk Road buyers, according to the government.

A complaint unsealed Oct. 2 by the U.S. District Court for the Western District of Washington at Seattle alleges that Steven Lloyd Sadler, 40, of Bellevue, Wash., used the nickname “NOD” on the Silk Road, and was among the “top one percent of sellers” on the Silk Road, selling high-quality cocaine, heroin and methamphetamine in small, individual-use amounts to hundreds of buyers around the world.

Investigators with the FBI and U.S. Post Office inspectors say they tracked dozens of packages containing drugs allegedly shipped by Sadler and a woman who was living with him at the time of his arrest. Authorities tied Sadler to the Silk Road after intercepting a package of cocaine and heroin destined for an Alaskan resident. That resident agreed to cooperate with authorities in the hopes of reducing his own sentence, and said he’d purchased the drugs from NOD via the Silk Road.

Agents in Seattle sought and were granted permission to place GPS tracking devices on Sadler’s car and that of his roommate, Jenna White, also charged in this case. Investigators allege that the tracking showed the two traveled to at least 38 post offices in the Seattle area during the surveillance period.

Interestingly, the investigators used the feedback on NOD’s Silk Road seller profile to get a sense of the volume of drugs he sold. Much like eBay sellers, merchants on the Silk Road are evaluated by previous buyers, who are encouraged to leave feedback about the quality of the seller’s goods and services. According to the government, NOD had 1,400 reviews for individual sales/purchases of small amounts of drugs, including: 2,269.5 grams of cocaine, 593 grams of heroin and 105 grams of meth. The complaint notes that these amounts don’t count sales going back more than five months prior to the investigation, when NOD first created his Silk Road vendor account.

Cryptome has published a copy of the complaint (PDF) against Sadler. A copy of Sadler’s case docket is here. NOD’s reputation on the Silk Road also was discussed for several months on this Reddit thread.

Many readers of last week’s story on the Silk Road takedown have been asking what is known about the locations of the Silk Road servers that were copied by the FBI. It’s still unclear how agents gained access to those servers, but a civil forfeiture complaint released by the Justice Department shows that they were aware of five, geographically dispersed servers that were supporting the Silk Road, either by directly hosting the site and/or hosting the Bitcoin wallets that the Silk Road maintains for buyers and sellers.

Two of those servers were located in Iceland, one in Latvia, another in Romania, and apparently one in the United States. See the map above.

Continue reading →

Adobe To Announce Source Code, Customer Data Breach

October 3, 2013

140 Comments

Adobe Systems Inc. is expected to announce today that hackers broke into its network and stole source code for an as-yet undetermined number of software titles, including its ColdFusion Web application platform, and possibly its Acrobat family of products. The company said hackers also accessed nearly three million customer credit card records, and stole login data for an undetermined number of Adobe user accounts.

A screen shot of purloined source code stolen from Adobe, shared with the company by KrebsOnSec

KrebsOnSecurity first became aware of the source code leak roughly one week ago, when this author — working in conjunction with fellow researcher Alex Holden, CISO of Hold Security LLC — discovered a massive 40 GB source code trove stashed on a server used by the same cyber criminals believed to have hacked into major data aggregators earlier this year, including LexisNexis, Dun & Bradstreet and Kroll. The hacking team’s server contained huge repositories of uncompiled and compiled code that appeared to be source code for ColdFusion and Adobe Acrobat.

Shortly after that discovery, KrebsOnSecurity shared several screen shots of the code repositories with Adobe. Today, Adobe responded with confirmation that it has been working on an investigation into a potentially broad-ranging breach into its networks since Sept. 17, 2013.

In an interview with this publication earlier today, Adobe confirmed that the company believes that hackers accessed a source code repository sometime in mid-August 2013, after breaking into a portion of Adobe’s network that handled credit card transactions for customers. Adobe believes the attackers stole credit card and other data on approximately 2.9 million customers, and that the bad guys also accessed an as-yet-undetermined number of user names and passwords that customers use to access various parts of the Adobe customer network.

ColdFusion source code repository found on hacker’s server.

Adobe said the credit card numbers were encrypted and that the company does not believe decrypted credit card numbers left its network. Nevertheless, the company said that later today it will begin the process of notifying affected customers — which include many Revel and Creative Cloud account users — via email that they need to reset their passwords.

In an interview prior to sending out a news alert on the company’s findings, Adobe’s Chief Security Officer Brad Arkin said the information shared by this publication “helped steer our investigation in a new direction.” Arkin said the company has undertaken a rigorous review of the ColdFusion code shipped since the code archive was compromised, and that it is confident that the source code for ColdFusion code that shipped following the incident “maintained its integrity.”

“We are in the early days of what we expect will be an extremely long and thorough response to this incident,” Arkin said. The company is expected to publish an official statement this afternoon outlining the broad points of its investigation so far.

Arkin said Adobe is still in the process of determining what source code for other products may have been accessed by the attackers, and conceded that Adobe Acrobat may have been among the products the bad guys touched. Indeed, one of the screen shots this publication shared with Adobe indicates that the attackers also had access to Acrobat code, including what appears to be code for as-yet unreleased Acrobat components (see screen grab above).

“We’re still at the brainstorming phase to come up with ways to provide higher level of assurance for the integrity of our products, and that’s going to be a key part of our response,” Arkin said. He noted that the company was in the process of looking for anomalous check-in activity on its code repositories and for other things that might seem out of place.

“We are looking at malware analysis and exploring the different digital assets we have. Right now the investigation is really into the trail of breadcrumbs of where the bad guys touched.”

The revelations come just two days after KrebsOnSecurity published a story indicating that the same attackers apparently responsible for this breach were also involved in the intrusions into the networks of the National White Collar Crime Center (NW3C), a congressionally-funded non-profit organization that provides training, investigative support and research to agencies and entities involved in the prevention, investigation and prosecution of cybercrime. As noted in that story, the attackers appear to have initiated the intrusion into the NW3C using a set of attack tools that leveraged security vulnerabilities in Adobe’s ColdFusion Web application server.

While Adobe many months ago issued security updates to plug all of the ColdFusion vulnerabilities used by the attackers, many networks apparently run outdated versions of the software, leaving them vulnerable to compromise. This indeed may have also been the vector that attackers used to infiltrate Adobe’s own networks; Arkin said the company has not yet determined whether the servers that were breached were running ColdFusion, but acknowledged that the attackers appear to have gotten their foot in the door through “some type of out-of-date” software.

Stay tuned for further updates on this rapidly-moving story.

Update 4:38 p.m. ET: Adobe has released a statement about these incidents here and here. A separate customer security alert for users affected by this breach is here. Also, in a hopefully unrelated announcement, Adobe says it will be releasing critical security updates next Tuesday for Adobe Acrobat and Adobe Reader.

Update, Oct. 5, 4:35 p.m. ET: Rakshith Naresh, a product manager at Adobe, said in a Tweet yesterday that the breach did not involve ColdFusion vulnerabilities.

Update, Oct. 9, 12:50 p.m. ET: Naresh’s Tweet stating that the breach didn’t involve ColdFusion servers was deleted at some point. I followed up with Adobe via email: An Adobe spokesperson said the company’s investigation is still ongoing, and that “at this time we have not identified the initial attack vector to include or exclude a ColdFusion server.”

Feds Take Down Online Fraud Bazaar ‘Silk Road’, Arrest Alleged Mastermind

October 2, 2013

138 Comments

Defendant Charged With Drug Trafficking, Hacking, Money Laundering

Prosecutors in New York today said that federal agencies have taken over the Silk Road, a sprawling underground Web site that has earned infamy as the “eBay of drugs.” On Tuesday, federal agents in San Francisco arrested the Silk Road’s alleged mastermind. Prosecutors say 29-year-old Ross William Ulbricht, a.k.a “Dread Pirate Roberts” (DPR), will be charged with a range of criminal violations, including conspiracy to commit drug trafficking, and money laundering.

A screen shot of the Silk Road Web site, taken Oct. 2, 2013.

The Silk Road is an online black market that as late as last month was hosting nearly 13,000 sales listings for controlled substances, including marijuana, LSD, heroin, cocaine, methamphetamine and ecstasy. Much like eBay sellers, merchants on the Silk Road are evaluated by previous buyers, who are encouraged to leave feedback about the quality of the seller’s goods and services.

The Silk Road is not available via the regular Internet. Rather, it is only reachable via the Tor network, an anonymity network that bounces its users communications across a distributed network of relays run by volunteers all around the world.

That is, it was until this week, when FBI agents arrested its alleged proprietor and seized the Web servers running the site. The feds also replaced the Silk Road’s home page with a message saying that the site had been seized by the FBI, Homeland Security Department and the Drug Enforcement Administration.

According to a complaint unsealed this week, Ulbricht alone controlled the massive profits generated from the operation of the business. The government alleges that Ulbricht also controlled and oversaw all aspects of the Silk Road, including: the maintenance of the computer infrastructure and programming code underlying the Silk Road Web site; the determination of vendor and customer policies; decisions about what could be sold on the site; and managing a small staff of online administrators who assisted with the day-to-day operations.

The Silk Road didn’t just sell drugs. For example, the complaint identifies 801 for-sale listings under “digital goods,” which included banking Trojans, pirated content, and hacked accounts at Netflix and Amazon. The “forgeries” section of the Silk Road featured 169 ads from vendors of fake driver’s licenses, passports, Social Security cards, utility bills, credit card statements, car insurance records, and other forms of identity documents.

An ad for heroin on the Silk Road. Notice this seller has 97 feedback points.

Another popular section of the Silk Road included 159 listings for generic “Services,” mostly those listed by computer hackers offering such services as hijacking Twitter and Facebook accounts of the customer’s choosing. Other classified ads promised the sale of anonymous bank accounts, counterfeit bills, firearms and ammunition, and even hitmen for hire.

FBI investigators said that on or about March 29, 2013, Ulbricht contacted a Silk Road seller “Redandwhite” to see about hiring him to to take out another Silk Road user — someone going by the nickname “FriendlyChemist” — who was threatening to release the identities of thousands of users of the site.

From the government’s complaint: “Asked what sort of problem FriendlyChemist was causing him, DPR responded in a message dated March 30, 2013, ‘[H]e is threatening to expose the identities of thousands of my clients that he was able to acquire….[T]his kind of behavior is unforgivable to me. Especially here on Silk Road, anonymity is sacrosanct.'” As to the murder-for-hire job he was soliciting, DPR commented that “[i]t doesn’t have to be clean.”

Later that same day, redandwhite sent DPR a message quoting him a price of $150,000 to $300,000, “depending on how you want it done, ‘clean’ or ‘non-clean’.

On March 31, DPR began haggling over the price, responding: “Don’t want to be a pain here, but the price seems high. Not long ago, I had a clean hit done for $80k. Are the prices you quoted the best you can do? I would like this done asap as he is talking about releasing the info on Monday.”

DPR, allegedly using the nickname “altoid” seeks to hire a tech expert for the Silk Road via bitcointalk.org

According to investigators, the two ultimately settle on a price of $150,000, and that Ulbricht paid for the transaction using Bitcoins — an anonymous virtual currency — sending the would-be hit man 1,670 bitcoins for the arranged hit. Bitcoin currency rates fluctuate quite a bit from day to day, but historic sites that track Bitcoin rates show that one bitcoin around that date in late March 2013 was worth about USD $90, meaning investigators believe Ulbricht paid approximately $150,300 for the hit.

The government’s complaint states that the hit wasn’t carried out, but it also doesn’t seem that FriendlyChemist was the source of investigators’ break in this case. That would come on July 23, 2013, when investigators gained access to a Silk Road server and made a complete copy of the data on the machine.

Nicholas Weaver, a researcher at the International Computer Science Institute (ICSI) and at University of California San Diego, said the information contained on the server seized by investigators indicates that Ulbricht/Dread Pirate Roberts routinely failed to heed his own advice to fellow Silk Road users: Prominent on the Silk Road site were links to tutorials DPR penned which laid out the technologies and techniques that users should adopt if they want to keep off the radar of federal investigators.

“This shows me that the head of the Silk Road wasn’t using [encryption] for all his communications, because [the government] wouldn’t have all of this information otherwise, unless of course he stored his encryption key on the server that was seized,” Weaver said. “Either [the government] got his encryption key off of this server or another server that they were able to access, or he wasn’t using encryption at all.”

The complaint also suggests that in June 2013, Ulbricht accessed a server used to control the Silk Road site from an Internet cafe that was 500 feet from the hotel he was staying at in San Francisco.

Continue reading →

Data Broker Hackers Also Compromised NW3C

October 1, 2013

34 Comments

The same miscreants responsible for breaking into the networks of America’s top consumer and business data brokers appear to have also infiltrated and stolen huge amounts of data from the National White Collar Crime Center (NW3C), a congressionally-funded non-profit organization that provides training, investigative support and research to agencies and entities involved in the prevention, investigation and prosecution of cybercrime.

The bot that was resident for almost 3 months inside of NW3C.

Last week, KrebsOnSecurity reported that entrepreneurs behind the underground criminal identity theft service ssndob[dot]ms also were responsible for operating a small but powerful collection of hacked computers exclusively at top data brokers, including LexisNexis, Dun & Bradstreet and HireRight/Kroll. A closer analysis of the Web server used to control that collection of hacked PCs shows that the attackers also had at least one infected system for several months this summer inside of the NW3c.

Core to the NW3C’s mission is its Investigative Support division, which according to the organization’s site “provides timely, relevant and effective services to member agencies involved in the prevention, investigation and prosecution of economic and high-tech crimes. The section has no investigative authority but can provide analytical assistance and perform public database searches.”

The NW3C said its analysts are frequently called upon to assist in establishing financial transaction patterns, developing possible links between criminal targets and associated criminal activity and providing link charts, timelines and graphs for court presentations. “Information obtained through public database searches can assist investigations by locating suspects, establishing property ownership and finding hidden assets, just to name a few of the benefits,” the organization’s Web site explains.

The NW3C also works with the Federal Bureau of Investigation (FBI) to run the Internet Crime Complaint Center (IC3), which accepts online Internet crime complaints from victims of cybercrime.

Neither the NW3C nor the IC3 responded to requests for comment on this story. FBI Spokeswoman Lindsay Godwin would say only that the FBI was “looking into it,” but declined to elaborate further, citing the ongoing nature of the investigation.

THE CRIME MACHINE

A number of indicators suggest that the attackers first gained access to the NW3C’s internal network on or around May 28, 2013. According to records in the online communications panel that the miscreants used to control their network of hacked systems, the affected NW3C server was taken offline on or around Aug. 17, 2013, indicating that the organization’s networks were compromised for approximately 11 weeks this summer. It’s not clear at this point why the miscreants marked this organization’s listing with a “(hacker)” designation, as shown in the snapshot of their botnet control panel below.

The attackers appear to have compromised a public-facing server at NW3C that was designed to handle incoming virtual private network (VPN) communications. Organizations frequently set up VPNs so that their remote employees can create an encrypted communications tunnel back to an otherwise closed network, and these setups are an integral component of most modern business applications.

A page from the ColdFusion exploit server used by the attackers.

Alarmingly, the machine name of the compromised NW3C system was “data.” On May 28, 2013, the attackers uploaded a file — nbc.exe — designed to open up an encrypted tunnel of communications from the hacked VPN server to their botnet controller on the public Internet. This appears to be the same nbc.exe file that was found on the two hacked servers at LexisNexis.

Abundant evidence left behind by the attackers suggests that they broke into the NW3C using a Web-based attack tool that focuses on exploiting recently-patched weaknesses in servers powered by ColdFusion, a Web application platform owned by Adobe Systems. I managed to get hold of the multiple exploits used in the attack server, and shared them with Adobe and with Rob Brooks-Bilson, a ColdFusion expert and author of the O’Reilly books Programming ColdFusion MX and Programming ColdFusion.

Although some of the exploits were listed as “0day” in the attack tool — suggesting they were zero-day, unpatched vulnerabilities in Adobe ColdFusion — Bilson said all of the exploits appear to attack vulnerabilities that are fixed in the most recent versions of ColdFusion. For example, three of the four exploits seems to have involved CVE-2013-0632, a vulnerability that Adobe first patched in January 2013, not long after the flaw was first spotted in actual zero-day online attacks. The remaining exploit in the attack kit targets a bug that Adobe fixed in 2010.

“The big issue with ColdFusion is that so many people install and set it up without following any of Adobe’s hardening guidelines,” Brooks-Bilson said in an email to KrebsOnSecurity. “Most of the exploits that have come out in the recent past have all worked via a similar mechanism that is easily mitigated by following Adobe’s guide. Of course, so many people disregard that advice and end up with servers that are easily compromised.”

STEALING DATA ON VICTIMS AND FELLOW CROOKS ALIKE

The ColdFusion exploit server contains plenty of records indicating that the attackers in this case plundered many of the databases that they were able to access while inside of NW3C. Part of the reason for the persistence of this evidence has to do with the way that the attackers queried local databases and offloaded stolen data. It appears that once inside the NW3C’s network, the bad guys quickly scanned all of the organization’s systems for security vulnerabilities and database servers. They also uploaded a Web-based “shell” which let them gain remote access to the hacked server via a Web browser.

The attack server and shell also let the attackers execute system commands on the compromised hosts, which appear to be Microsoft IIS servers. Their method also left a detailed (if not complete) log of many of their activities inside the network. One of the first things the attackers did upon compromising the “Data” server on the network was run a query that forced the local database to dump a copy of itself to a file — including a list of the authorized users and passwords — that the attackers could download.

A snippet of redacted complaint data stolen from IC3.

The bad guys in this case also appear to have used their access to the NW3C to steal 10 years’ worth of consumer complaint information from the Internet Crime Complaint Center (IC3), the aforementioned partnership between the NW3C and the FBI that tracks complaints about cybercrime.

Present on the attacker’s server are some 2.659 million records apparently lifted from the IC3. The records range in date from about the time of the IC3’s inception — May 8, 2000 — to Jan. 22, 2013.

It’s not clear if the stolen IC3 data set includes all of the consumer complaints ever filed, but it seems likely that the archive is lacking just the past few months of records. In a report released earlier this year, the IC3 said it was receiving about 24,000 complaints per month, and that consumers had filed 289,874 complaints last year. The IC3’s site doesn’t maintain annual complaint numbers prior to 2003, but according to the site some 2.35 million have been filed with the system since then. To put the year-over-year growth in complaints in perspective, the IC3 said it wasn’t until 2007 — nearly seven years after its birth — that the organization received its millionth complaint.

Continue reading →

Data Broker Giants Hacked by ID Theft Service

September 25, 2013

102 Comments

An identity theft service that sells Social Security numbers, birth records, credit and background reports on millions of Americans has infiltrated computers at some of America’s largest consumer and business data aggregators, according to a seven-month investigation by KrebsOnSecurity.

The Web site ssndob[dot]ms (hereafter referred to simply as SSNDOB) has for the past two years marketed itself on underground cybercrime forums as a reliable and affordable service that customers can use to look up SSNs, birthdays and other personal data on any U.S. resident. Prices range from 50 cents to $2.50 per record, and from $5 to $15 for credit and background checks. Customers pay for their subscriptions using largely unregulated and anonymous virtual currencies, such as Bitcoin and WebMoney.

Until very recently, the source of the data sold by SSNDOB has remained a mystery. That mystery began to unravel in March 2013, when teenage hackers allegedly associated with the hacktivist group UGNazi showed just how deeply the service’s access went. The young hackers used SSNDOB to collect data for exposed.su, a Web site that listed the SSNs, birthdays, phone numbers, current and previous addresses for dozens of top celebrities — such as performers Beyonce, Kanye West and Jay Z — as well as prominent public figures, including First Lady Michelle Obama, CIA Director John Brennan, and then-FBI Director Robert Mueller.

Earlier this summer, SSNDOB was compromised by multiple attackers, its own database plundered. A copy of the SSNDOB database was exhaustively reviewed by KrebsOnSecurity.com. The database shows that the site’s 1,300 customers have spent hundreds of thousands of dollars looking up SSNs, birthdays, drivers license records, and obtaining unauthorized credit and background reports on more than four million Americans.

Frustratingly, the SSNDOB database did not list the sources of that stolen information; it merely indicated that the data was being drawn from a number of different places designated only as “DB1,” “DB2,” and so on.

But late last month, an analysis of the networks, network activity and credentials used by SSNDOB administrators indicate that these individuals also were responsible for operating a small but very potent botnet — a collection of hacked computers that are controlled remotely by attackers. This botnet appears to have been in direct communications with internal systems at several large data brokers in the United States. The botnet’s Web-based interface (portions of which are shown below) indicated that the miscreants behind this ID theft service controlled at least five infected systems at different U.S.-based consumer and business data aggregators.

The botnet interface used by the miscreants who own and operate ssndob[dot]ms

DATA-BROKER BOTNET

Two of the hacked servers were inside the networks of Atlanta, Ga.-based LexisNexis Inc., a company that according to Wikipedia maintains the world’s largest electronic database for legal and public-records related information. Contacted about the findings, LexisNexis confirmed that the two systems listed in the botnet interface were public-facing LexisNexis Web servers that had been compromised.

One of two bots connected to SSNDOB that was inside of LexisNexis.

The botnet’s online dashboard for the LexisNexis systems shows that a tiny unauthorized program called “nbc.exe” was placed on the servers as far back as April 10, 2013, suggesting the intruders have had access to the company’s internal networks for at least the past five months. The program was designed to open an encrypted channel of communications from within LexisNexis’s internal systems to the botnet controller on the public Internet.

Two other compromised systems were located inside the networks of Dun & Bradstreet, a Short Hills, New Jersey data aggregator that licenses information on businesses and corporations for use in credit decisions, business-to-business marketing and supply chain management. According to the date on the files listed in the botnet administration panel, those machines were compromised at least as far back as March 27, 2013.

The fifth server compromised as part of this botnet was located at Internet addresses assigned to Kroll Background America, Inc., a company that provides employment background, drug and health screening. Kroll Background America is now part of HireRight, a background-checking firm managed by the Falls Church, Va.-based holding company Altegrity, which owns both the Kroll and HireRight properties. Files left behind by intruders into the company’s internal network suggest the HireRight breach extends back to at least June 2013.

An initial analysis of the malicious bot program installed on the hacked servers reveals that it was carefully engineered to avoid detection by antivirus tools. A review of the bot malware in early September using Virustotal.com — which scrutinizes submitted files for signs of malicious behavior by scanning them with antivirus software from nearly four dozen security firms simultaneously — gave it a clean bill of health: none of the 46 top anti-malware tools on the market today detected it as malicious (as of publication, the malware is currently detected by 6 out of 46 anti-malware tools at Virustotal).

Continue reading →

Crooks Hijack Retirement Funds Via SSA Portal

September 18, 2013

34 Comments

If you receive direct deposits from the Social Security Administration but haven’t yet registered at the agency’s new online account management portal, now would be a good time take care of that: The SSA and financial institutions say they are tracking a rise in cases wherein identity thieves register an account at the SSA’s portal using a retiree’s personal information and have that retiree’s benefits diverted to prepaid debit cards that the crooks control.

The SSA’s “my Social Security” portal.

Traditional SSA fraud involves identity thieves tricking the beneficiary’s bank into diverting the payments to another account, either through Social Security’s 800 number or through a financial institution, or through Treasury’s Direct Express program. The newer version of this fraud involves the abuse of the SSA’s my Social Security Web portal, which opened last year and allows individuals to create online accounts with the SSA to check their earnings and otherwise interact with the agency relative to their accounts.

Jonathan Lasher, assistant inspector general for external relations at the SSA’s Office of Inspector General, said that for several years the agency was receiving about 50 such allegations a day, though those numbers have begun to decline. But thieves didn’t go away: They just changed tactics. The trouble really began earlier this year, when the Treasury started requiring that almost all beneficiaries receive payments through direct deposit (though the SSA says paper checks are still available to some beneficiaries under limited circumstances).

At the same time, the SSA added the ability to change direct deposit information via their my Social Security Web portal. Shortly thereafter, the agency began receiving complaints that identity thieves were using the portal to hijack the benefits of individuals who had not yet created an account at the site. According to Lasher, as of August 23, 2013, the SSA has received 18,417 allegations of possibly fraudulent mySocialSecurity account activity. Lasher said while some of the complaints are the result of unsuccessful attempts to open an account fraudulently, some are indeed fraud.

“Social Security has already improved security over this online feature, and we continue to work with them to make additional improvements, while also investigating allegations we receive,” Lasher said. “While it’s an issue we’re taking very seriously, it’s important to keep in mind that about 62 million people receive some type of payment from SSA every month, so the likelihood of becoming a victim is very small, particularly if you’re careful about protecting your personal information.”

Because it’s possible to create just one my Social Security account per Social Security number, registering an account on the portal is one basic way that consumers can avoid becoming victims of this scam. Lasher said in the SSA’s systems, every record is tied to the SSN rather than a person’s name, since there are so many duplicate names.

“Of course, the one way to ensure that no one opens an account in your name is to open one yourself,” Lasher said. “Given the nature of other articles on your site, I think it’s important that I point out that there is no suggestion that SSA’s systems have been compromised; this is an identity theft scheme aimed at redirecting existing benefits, often to prepaid debit cards.”

Continue reading →

Last »