Krebs on Security

Don’t Get Sucker Pumped

July 29, 2013

Gas pump skimmers are getting craftier. A new scam out of Oklahoma that netted thieves $400,000 before they were caught is a reminder of why it’s usually best to pay with credit versus debit cards when filling up the tank.

The U.S. Attorney’s office in Muskogee, Okla. says two men indicted this month for skimming would rent a vehicle, check into a local hotel and place skimming devices on gas pumps at Murphy’s filling stations located in the parking lots of Wal-Mart retail stores. The fraud devices included a card skimmer and a fake PIN pad overlay designed to capture PINs from customers who paid at the pump with a debit card.

A PIN pad overlay device for gas pumps. Photo; NewsOn6.com

According to their indictment (PDF), defedants Kevin Konstantinov and Elvin Alisuretove would leave the skimming devices in place for between one and two months. Then they’d collect the skimmers and use the stolen data to create counterfeit cards, visiting multiple ATMs throughout the region and withdrawing large amounts of cash. Investigators say some of the card data stolen in the scheme showed up in fraudulent transactions in Eastern Europe and Russia.

As the Oklahoma case shows, gas pump skimmers have moved from analog, clunky things to the level of workmanship and attention to detail that is normally only seen in ATM skimmers. Investigators in Oklahoma told a local news station that the skimmer technology used in this case was way more sophisticated than anything they’ve seen previously.

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Security Vendors: Do No Harm, Heal Thyself

July 26, 2013

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Security companies would do well to build their products around the physician’s code: “First, do no harm.” The corollary to that oath borrows from another medical mantra: “Security vendor, heal thyself. And don’t take forever to do it! ”

On Thursday, Symantec quietly released security updates to fix serious vulnerabilities in its Symantec Web Gateway, a popular line of security appliances designed to help “protect organizations against multiple types of Web-borne malware.” Symantec issued the updates more than five months after receiving notice of the flaws from Vienna, Austria based SEC Consult Vulnerability Lab, which said attackers could chain together several of the flaws to completely compromise the appliances.

“An attacker can get unauthorized access to the appliance and plant backdoors or access configuration files containing credentials for other systems (eg. Active Directory/LDAP credentials) which can be used in further attacks,” SEC Consult warned in an advisory published in coordination with the patches from Symantec. “Since all web traffic passes through the appliance, interception of HTTP as well as the plain text form of HTTPS traffic (if SSL Deep Inspection feature in use), including sensitive information like passwords and session cookies is possible.”

Big Yellow almost certainly dodged a bullet with this coordinated disclosure, and it should be glad that the bugs weren’t found by a researcher at NATO, for example; Earlier this month, security vendor McAfee disclosed multiple vulnerabilities in its ePolicy Orchestrator, a centralized security management product. The researcher in that case said he would disclose his findings within 30 days of notifying the company, and McAfee turned around an advisory in less than a week.

Interestingly, Google’s security team is backing a new seven-day security deadline that would allow researchers to make serious vulnerabilities public a week after notifying a company. Google says a week-long disclosure timeline is appropriate for critical vulnerabilities that are under active exploitation, and that its standing recommendation is that companies should fix critical vulnerabilities in 60 days, or, if a fix is not possible, they should notify the public about the risk and offer workarounds.

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Hacker Ring Stole 160 Million Credit Cards

July 25, 2013

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U.S. federal authorities have indicted five men — four Russians and a Ukrainian – for allegedly perpetrating many of the biggest cybercrimes of the past decade, including the theft of more than 160 million credit card numbers from major U.S. retailers, banks and card processors.

The gang is thought to be responsible for the 2007 breach at credit card processor Heartland Payment Systems that exposed some 130 million card numbers, as well as the 2011 breach at Global Payments that involved nearly a million accounts and cost the company almost $100 million.

Federal prosecutors in New Jersey today called the case the largest hacking scheme ever prosecuted in the U.S. Justice Department officials said the men were part of a gang run by Albert “Soupnazi” Gonzalez, a hacker arrested in 2008 who is currently serving a 20-year-prison sentence for his role in many of the breaches, including the theft of some 90 million credit cards from retailer TJX.

One of the accused, 27-year-0ld Dmitriy Smilianets, is in U.S. custody. Vladimir Drinkman, 32 of Syktyvkar, Russia, is awaiting extradition to the United States. Three others named in the indictments remain at large, including Aleksandr Kalinin, 26 of St. Petersburg; 32-year-old Roman Kotov from Moscow; and Mikhail Rytikov, 26, of Odessa, Ukraine.

According to the government’s indictment, other high-profile heists tied to this gang include compromises at:

Hannaford Brothers Co: 2007, 4.2 million card numbers

Carrefour S.A.: 2007, 2 million card numbers

Commidea Ltd.: 2008, 30 million card numbers

Euronet: 2010, 2 million card numbers

Visa, Inc.: 2011, 800,000 card numbers

Discover Financial Services: 500,000 Diners card numbers

In addition, the group is being blamed for breaking into and planting malware on the networks of NASDAQ, 7-Eleven, JetBlue, JCPenny, Wet Seal, Dexia, Dow Jones, and Ingenicard.

The hackers broke into their targets using SQL injection attacks, which take advantage of weak server configurations to inject malicious code into the database behind the public-facing Web server. Once inside, the attackers can upload software and siphon data.

The government’s indictment alleges that the thieves were at times overwhelmed by the sheer amount of data yielded by their SQL attacks. On Aug. 12, 2007, Kalinin allegedly sent Gonzalez an instant message that he’d just gained access to 30 SQL servers on NASDAQ’s network, but hadn’t yet cracked the administrator passwords that secured the data inside. “These [databases] are hell big and I think most of info is trading histories.” On Jan. 9, 2008, after Gonzalez offered to help attack the trading floor’s computer systems, Kalinin allegedly messaged back, “NASDAQ is owned.”

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Haunted by the Ghosts of ZeuS & DNSChanger

July 25, 2013

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One of the challenges in malware research is separating the truly novel innovations in malcoding from new nasties that merely include nominal or superficial tweaks. This dynamic holds true for both malware researchers and purveyors, albeit for different reasons. Researchers wish to avoid being labeled alarmist in calling special attention to what appears to be an emerging threat that turns out to be old news; the bad guys just want to avoid getting scammed into paying for an old malware kit dressed up as the new next big thing.

Source: RSA

On Tuesday, RSA Security somewhat breathlessly announced that it had spotted KINS, a ZeuS Trojan variant that looked like “a new professional-grade banking Trojan” that was likely to emerge as the “next Trojan epiphany” in the cybercrime underground. RSA said the emergence of KINS was notable because the reigning ZeuS Trojan derivative – the Citadel Trojan — had long ago been taken off the market, and that crooks were anxiously awaiting the development and sale of a new botnet creation kit based on the leaked ZeuS source code.

“Since December 2012, when the spokesperson of the Citadel team took the Trojan off the semi-open underground market, cyber criminals have been scrambling to find a replacement,” RSA’s Limor Kessem wrote. “In early February 2013, RSA fraud intelligence researchers began tracing hints about a new crimeware tool called ‘KINS’. At the time, the information about the Trojan just a rumor, but in sporadic comments, fraudsters were associating a Trojan named KINS with the Citadel source code, looking for its developer in order to reach out to him and purchase KINS. The rumors were soon hushed and ties to Citadel were denied, mostly in what appeared as a case of fearful fraudsters who did not want to be denied the possibility to buy the next Trojan.”

But according to Fox-IT, a security research and consulting group based in The Netherlands, KINS has been used in private since at least December 2011 to attack financial institutions in Europe, specifically Germany and The Netherlands. Fox-IT says KINS is short for “Kasper Internet Non-Security,” which is likely the malware author’s not-so-subtle dig at the security suite offered by Russian antivirus maker Kaspersky.

Source: Fox-IT

In its own analysis of the banking Trojan malware, Fox-IT said KINS is fully based on the leaked ZeuS source code, and includes only minor additions. What’s more, Fox-IT notes, many of the users of KINS have already migrated to yet another ZeuS variant, suggesting that perhaps they were unsatisfied with the product and that it didn’t deliver as advertised.

“While the technical additions are interesting, they are far from ground breaking,” wrote Michael Sandee, principal security expert at Fox-IT. “With an array of fairly standard features, and relatively simple additions to the standard ZeuS, such as reporting of installed security product information, the malware platform does not bring anything really new. There are however some features of this malware, not aimed at the functionality for the person using it, but aimed at complicating malware analysis.”

OLD MALWARE, NEW PAINTJOB?

From the bad-guy perspective, this infighting over malware innovation is on display in a new malware offering that surfaced today on a semi-private forum: The seller is pitching a resurrected and modified version of the DNSChanger Trojan, a global contagion that once infected millions of PCs. The DNSChanger botnet, which hooked into infected systems quite deeply and spread to both Windows and Mac computers, was eradicated only by a worldwide, concerted digital quarantine and vaccination effort — combined with the arrest of its creators.

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Toward A Greater Mobile Mal-Awareness

July 24, 2013

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Several recent developments in mobile malware are conspiring to raise the threat level for Android users, making it easier for attackers to convert legitimate applications into malicious apps and to undermine the technology that security experts use to tell the difference.

Source: Symantec

Last week, Symantec warned about a new malware toolkit or “binder” designed to Trojanize legitimate Android apps with a backdoor that lets miscreants access infected mobile devices remotely. Binders have been around in a variety of flavors for many years, but they typically are used to backdoor Microsoft Windows applications.

Symantec notes that the point-and-click Androrat APK Binder is being used in conjunction with an open-source remote access Trojan for Android devices called called AndroRAT. “Like other RATs, it allows a remote attacker to control the infected device using a user friendly control panel,” Symantec’s Andrea Lelli wrote. “For example, when running on a device, AndroRAT can monitor and make phone calls and SMS messages, get the device’s GPS coordinates, activate and use the camera and microphone and access files stored on the device.”

The company said while it has detected only a few hundred AndroRAT infections worldwide, but that it expects that number increase as more tools for AndroRAT like the APK binder emerge.

Perhaps more worryingly, Symantec said this week that it had discovered two malicious Android apps in the wild that take advantage of a newly discovered and potentially quite serious security hole in Android applications. As first outlined roughly two weeks ago by researchers at BlueBox Security, the so-called “Master Key” vulnerability could let attackers convert almost any Android application into a Trojan, all without altering its cryptographic digital signature. Android uses these signatures to determine if an app is legitimate and to verify that an app hasn’t been tampered with or modified.

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One-Stop Bot Chop-Shops

July 23, 2013

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New fraudster-friendly content management systems are making it more likely than ever that crooks who manage botnets and other large groupings of hacked PCs will extract and sell all credentials of value that can be harvested from the compromised machines.

Templates like this are helping to spread one-stop-fraud shops.

I’ve often observed that botmasters routinely fail to fully eat what they kill. That is, they tend to chronically undervalue the computers at their disposal, and instead focus on extracting specific resources from hacked PCs, such as using them as spam relays or harvesting online banking credentials. Meanwhile, other assets on the hacked PC that have street value go unused and “wasted” from the fraudster’s perspective.

More often, when miscreants do seek to extract and monetize all of the account credentials from their hacked PCs, they do so by selling access to their raw botnet “logs” — huge text files that document the notable daily activities of the botted systems. To borrow from another food metaphor, this is the digital equivalent of small farms selling their fruits and vegetables as “pick-your-own;” such commerce produces some added revenue without requiring much more work on the seller’s part.

Recently, I’ve been spotting more online fraud shops set up using what appear to be pre-set templates that can be used to sell all manner of credentials from hacked PCs. These shops all sell credit and debit card information, of course, but also lists of emails culled from victim computers, hacked VPN and RDP credentials, Cpanel installations, PHP mailers, FTP access, SSH logins, and online gambling accounts. Some of the panels are even reselling hacked credentials at popular porn sites. Goods can be purchased via virtual currencies such as Perfect Money and bitcoin.

The shop shown below — blackhatstore[dot]ru — borrows the trademarked image of the Black Hat security conference franchise. It’s sometimes said that there’s no such thing as bad press, but I’m pretty sure the folks at Black Hat don’t want their brand advertised or associated in this way (by the way, I’ll be speaking at this year’s Black Hat in Las Vegas next week). I alerted the Black Hat organizers to this fraudulent site, so I wouldn’t expect it to remain live much longer.

This bot chop shop trades on the good name and trademarks of the Black Hat security conference franchise owned by UBM Tech.

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Styx Crypt Makers Push DDoS, Anti-Antivirus Services

July 19, 2013

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I recently published a piece that examined the role of several Ukrainian men likely responsible for making and marketing the Styx Pack malware exploit kit. Today’s post will show how this same enterprise is linked to a DDoS protection scheme and a sprawling cybercrook-friendly malware scanning service that is bundled with Styx-Crypt.

Anonymous antivirus scanning service — captain-checker.com — bundled with Styx.

As I noted in a graphic accompanying a July 8 analysis of Styx, the $3,000 exploit pack includes a built-in antivirus scanning service that employs at least 17 antivirus products. The scanning service is “anonymous,” in that it alerts Styx customers whenever one of the antivirus tool detects their malware as such, but the service also prevents the antivirus products from reporting home about the new malware detections.

When Styx customers click on one of these malware scanning reports from within the Styx pack panel itself, the full scanning results are displayed in a new browser window at the domain captain-checker[dot]com (see screenshot above). The Styx panel that I examined earlier this month was based at the Internet address 5.199.167.196, and was reachable only by appending the port number 10665 to the numeric address. At first, I thought this might be a standard port used by Styx installations but that turns out not to be the case, according to interviews with other researchers. I didn’t realize it at the time, but now I’m thinking it’s likely that the panel I examined was actually one run by the Styx Pack curators themselves.

I discovered that although captain-checker[dot]com is hosted at another address (46.21.146.130), it also had this 10665 port open. I noticed then that captain-checker shares that server with 12 other Web sites. All of those sites also respond on port 10665, each revealing a captain-checker login page. Among the 12 is uptimer[dot]biz, one of two sites that led to the identity of Alexander “Nazar” Nazarenko — one of the main marketers and sellers of Styx pack.

Not only are all of these sites on the same server, an Nmap scan of these systems shows that they all are on the same Windows workgroup — “Reality7.” This dovetails nicely with the other domain that I noted in that July 10 story as tied to Nazarenko — reality7solutions[dot]com.

Many of the other domains on the server (see graphic to the left) use some variation of the word “wizard,” and share a Google Analytics code, UA-19307857. According to SameID.net, this code is embedded in the homepage for at least 38 different Web sites.

In my previous story on Nazarenko and his Styx Pack business partner — Max “Ikar” Gavryuk — I noted that both men were advertising “Reality Guard,” a service to help protect clients from distributed denial-of-service (DDoS) attacks designed to knock sites offline. I had a closer look at their site — reality-guard[dot]com — and learned several interesting things: For starters, the site also responds with a captain-checker[dot]com login page when you append “:10665” to the domain name. It also is on a Microsoft Windows workgroup called “Reality7”. Finally, the reality-guard[dot]com home page includes an icon for virtual currency Webmoney that when hovered over pops up Nazar’s Webmoney account (someone changed the name on this account from “Nazar” to “Lives” within hours after my July 10 story on the Styx Pack purveyors).

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Botcoin: Bitcoin Mining by Botnet

July 18, 2013

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An increasing number of malware samples in the wild are using host systems to secretly mine bitcoins. In this post, I’ll look at an affiliate program that pays people for the mass installation of programs that turns host machines into bitcoin mining bots.

The FeodalCash bitcoin mining affiliate program.

Bitcoin is a decentralized, virtual currency, and bitcoins are created by large numbers of CPU-intensive cryptographic calculations. As Wikipedia explains, the processing of Bitcoin transactions is secured by servers called bitcoin miners. These servers communicate over an internet-based network and confirm transactions by adding them to a ledger which is updated and archived periodically using peer-to-peer filesharing technology. In addition to archiving transactions, each new ledger update creates some newly minted bitcoins.

Earlier this week, I learned of a Russian-language affiliate program called FeodalCash which pays its members to distribute a bitcoin mining bot that forces host PCs to process bitcoin transactions (hat tip to security researcher Xylitol). FeodalCash opened its doors in May 2013, and has been recruiting new members who can demonstrate that they have control over enough Internet traffic to guarantee at least several hundred installs of the bitcoin mining malware each day.

The FeodalCash administrator claims his mining program isn’t malware, although he cautions all affiliates against submitting the installer program to multi-antivirus scanners such as Virustotal; sending the program that installs bitcoin mining bot to Virustotal “greatly complicates the work with antivirus” on host PCs. Translation: Because services like Virustotal share information about new malware samples with all participating antivirus vendors, scanning the installer will make it more likely that antivirus products on host PCs will flag the program as malicious. Rather, the administrator urged users who want to check the files for antivirus detection to use a criminal friendly service like scan4u[dot]net or chk4me[dot]com, which likewise scan submitted files with dozens of different antivirus tools but block those tools from reporting home about new and unidentified malware variants.

This Google-translated version of the site shows the builder for the installer.

I gained access to an affiliate account and was able to grab a copy of the mining program. I promptly submitted the file to Virustotal and found it was flagged as a trojan horse program by at least two antivirus products. This analysis at automated malware scanning site malwr.com shows that the mining program installer ads a Windows registry key so that the miner starts each time Windows boots up. It also indicates that the program beacons out to pastebin.com (perhaps to deposit a note about each new installation).

The FeodalCash administrator also claims that his affiliates are not permitted to distribute the installer file in any way that violates the law, but of course it’s unclear which national laws he might be talking about. At the same time, the affiliate program’s Web site includes a graphical tool that helps affiliates create a custom installer program that can install silently and be disguised with a variety of program icons that are similar to familiar Windows icons.

Also, the administrator demands that new users demonstrate the ability to garner hundreds to thousands of installs per day. This is a rather high install rate, and it appears many if not all affiliates are installing the mining program by bundling it with other executable programs distributed by so-called pay-per-install (PPI) programs. This was apparent because a source managed to gain administrative-level access to the back-end database for the FeodalCash program, which includes hundreds of messages between affiliates and the administrator; most of those messages are from new registrants sending the administrator screenshots of their traffic and installs statistics at various PPI affiliate programs.

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Getting Skimpy With ATM Skimmers

July 16, 2013

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Cybercrooks can be notoriously cheap, considering how much they typically get for nothing. I’m reminded of this when I occasionally stumble upon underground forum members trying to sell a used ATM skimmer: Very often, the sales thread devolves into a flame war over whether the fully-assembled ATM skimmer is really worth more than the sum of its parts.

Card skimmer device made for Wincor/Nixdorf ATMs

Such was the fate of an audio-based ATM skimmer put up for sale recently on a private crime forum. The seller, a Ukrainian, was trying to offload a relatively pro-grade skimmer powered by parts cannibalized from an MP3 player and a small spy camera. The seller set the price at $2,450, but made the mistake of describing the device’s various parts, all of which can be purchased inexpensively from a variety of online retailers.

For example, he told forum members that the main component in the card skimmer as an MSR-605, which is a handheld magnetic stripe reader of the sort that you might find attached to a cash register/point-of-sale machine at a retail clothing store, for example.

This ubiquitous device can be had for approximately $200 at a number of places online, including Newegg.com and Amazon.com. The seller went on to describe the inexpensive flash storage drive that was incorporated in his device, and the modified tiny video camera that was hidden on the underside of a fake fascia designed to be affixed to the top of the ATM and record victims entering their PINs.

This tiny spy camera powers the fake ATM fascia that records victims entering their PINs.

The image below shows the fake fascia as it appears from the side meant to be pointed toward the PIN pad.

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DEF CON To Feds: We Need Some Time Apart

July 10, 2013

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One of the more time-honored traditions at DEF CON — the massive hacker convention held each year in Las Vegas — is “Spot-the-Fed,” a playful and mostly harmless contest to out undercover government agents who attend the show.

But that game might be a bit tougher when the conference rolls around again next month: In an apparent reaction to recent revelations about far-reaching U.S. government surveillance programs, DEF CON organizers are asking feds to just stay away.

In a brief blog post published this evening at the DEF CON Web site titled, “Feds, We Need Some Time Apart,” DEF CON owner and hacker-in-chief Jeff Moss (a.k.a. “The Dark Tangent”) suggested it was probably in the best interests of the feds to make themselves scarce at this year’s con.

“For over two decades DEF CON has been an open nexus of hacker culture, a place where seasoned pros, hackers, academics, and feds can meet, share ideas and party on neutral territory. Our community operates in the spirit of openness, verified trust, and mutual respect.

When it comes to sharing and socializing with feds, recent revelations have made many in the community uncomfortable about this relationship. Therefore, I think it would be best for everyone involved if the feds call a ‘time-out’ and not attend DEF CON this year.

This will give everybody time to think about how we got here, and what comes next.”

It’s been a while since DEF CON was a place where feds really had to watch their backs. I didn’t have the privilege to attend the first DEF CON 21 years ago, but it’s safe to say that relations between the hacker community and the feds were for many years colored by a sense of mutual antagonism and mistrust.

Much of that attitude seemed to have changed in the wake of 9/11, and for the past decade the relationship between the two camps has thawed and even warmed quite a bit. Intelligence and law enforcement agencies have come to find the conference a reliably fertile and lucrative grounds for recruiting talent. Heck, things had improved so much by this time last year that the conference’s keynote was given by none other than Keith Alexander, the director of the National Security Agency.

Now with the NSA in the hot seat over allegations of broad and intrusive electronic eavesdropping programs directed at U.S. citizens and our allies abroad, it remains to be seen whether officials from the NSA, CIA or other three-letter agencies will make any strong or sustained showing at this year’s gathering. But in any case, this announcement from DEF CON should serve as a fair warning to feds who do decide to stick around past Black Hat, a more corporate and fed-heavy conference that directly precedes DefCon: Spot-the-Fed could well turn into a hack-the-fed competition.

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