Java Update Plugs 42 Security Holes

April 16, 2013

Oracle Corp. today released an update for its Java SE software that fixes at least 42 security flaws in the widely-installed program and associated browser plugin. The Java update also introduces new features designed to alert users about the security risks of running certain Java content.

42bbJava 7 Update 21 contains 42 new security fixes for Oracle Java SE. A majority of these flaws are browse-to–a-hacked-site-and-get-infected vulnerabilities. According to Oracle, “39 of these vulnerabilities may be remotely exploitable without authentication, i.e., may be exploited over a network without the need for a username and password” [emphasis mine].

There does not appear to be any update for Java 6. Oracle was to stop shipping security fixes for Java 6 in February, but it broke from that schedule last month when it shipped an emergency update for Java 6 to fix a flaw that was being used in active attacks. When I updated a machine running the latest Java 6 version (Update 43) it prompted me to install Java 7 Update 21. Update, 5:42 p.m. ET: Twitter follower @DonaldOJDK notes that Java 6 Update 45 is indeed available here.

javawarningsJava 7 Update 21 also introduces some new security warnings and message prompts for users who keep the program plugged into a Web browser (on installation and updating, Java adds itself as an active browser plugin). Oracle said the messages that will be presented depend upon different risk factors, such as using old versions of Java or running applet code that is not signed from a trusted Certificate Authority.

Apps that present a lower risk display a simple informational message. This includes an option to prevent showing similar messages for apps from the same publisher in the future. Java applications considered to be higher risk — such as those that use an untrusted or expired certificate — will be accompanied by a prompt with a yellow exclamation point in a yellow warning triangle.

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Brute Force Attacks Build WordPress Botnet

April 12, 2013

Security experts are warning that an escalating series of online attacks designed to break into poorly-secured WordPress blogs is fueling the growth of an unusually powerful botnet currently made up of more than 90,000 Web servers.

Source: Cloudflare.com

Source: Cloudflare.com

Over the past week, analysts from a variety of security and networking firms have tracked an alarming uptick in so-called “brute force” password-guessing attacks against Web sites powered by WordPress, perhaps the most popular content management system in use today (this blog also runs WordPress).

According to Web site security firm Incapsula, those responsible for this crime campaign are scanning the Internet for WordPress installations, and then attempting to log in to the administrative console at these sites using a custom list of approximately 1,000 of the most commonly-used username and password combinations.

Incapsula co-founder Marc Gaffan told KrebsOnSecurity that infected sites will be seeded with a backdoor the lets the attackers control the site remotely (the backdoors persist regardless of whether the legitimate site owner subsequently changes his password). The infected sites then are conscripted into the attacking server botnet, and forced to launch password-guessing attacks against other sites running WordPress.

Gaffan said the traffic being generated by all this activity is wreaking havoc for some Web hosting firms.

“It’s hurting the service providers the most, not just with incoming traffic,” Gaffan said. “But as soon as those servers get hacked, they are now bombarding other servers with attack traffic. We’re talking about Web servers, not home PCs. PCs maybe connected to the Internet with a 10 megabit or 20 megabit line, but the best hosting providers have essentially unlimited Internet bandwidth. We think they’re building an army of zombies, big servers to bombard other targets for a bigger cause down the road.”

Indeed, this was the message driven home Thursday in a blog post from Houston, Texas based HostGator, one of the largest hosting providers in the United States. The company’s data suggests that the botnet of infected WordPress installations now includes more than 90,000 compromised sites.

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Microsoft: Hold Off Installing MS13-036

April 12, 2013

Microsoft is urging users to who haven’t installed it yet to hold off on MS13-036, a security update that the company released earlier this week to fix a dangerous security bug in its Windows operating system. The advice comes in response to a spike in complaints from Windows users who found their machines unbootable after applying the update.

crackedwinThe MS13-036 update, first released on Tuesday, fixes four vulnerabilities in the Windows kernel-mode driver. In an advisory released April 9, the company said it had removed the download links to the patch while it investigates the source of the problem:

“Microsoft is investigating behavior wherein systems may fail to recover from a reboot or applications fails to load after security update 2823324 is applied. Microsoft recommends that customers uninstall this update. As an added precaution, Microsoft has removed the download links to the 2823324 update while we investigate.”

The problems with the patch appear to be centered around Windows 7 and certain applications on Windows 7, such as Kaspersky Anti-Virus. Microsoft has issued instructions on how to uninstall this update in the “resolution” section of this advisory.

Update, Apr. 23: Microsoft has re-released the problematic security update to address the problems that some Windows users were experiencing with the MS13-036 patch. The new update, KB62840149, replaces the faulty one, which was KB2823324.

Hay Maker Seeks Cyberheist Bale Out

April 11, 2013

An Oregon agricultural products company is suing its bank to recover nearly a quarter-million dollars stolen in a 2010 cyberheist. The lawsuit is the latest in a series of legal challenges seeking to hold financial institutions more accountable for costly corporate account takeovers tied to cybercrime.

oregonhayOn Sept. 1, 2010, unidentified computer crooks began making unauthorized wire transfers out of the bank accounts belonging to Oregon Hay Products Inc., a hay compressing facility in Boardman, Oregon. In all, the thieves stole $223,500 in three wire transfers of just under $75,000 over a three day period.

According to a complaint filed in Umatilla County Circuit Court,  the transfers were sent from Oregon Hay’s checking account at Joseph, Ore. based Community Bank to JSC Astra Bank in Ukraine. Oregon Hay’s lawyers say the company had set a $75,000 daily limit on outgoing wires, so the thieves initiated transfers of $74,800, $74,500 and $74,200 on three consecutive days.

Unfortunately for both parties in this dispute, neither Oregon Hay nor Community Bank detected anything amiss until almost two weeks after the fraud began; on Sept. 14, the victim firm found it was unable to access its accounts online. But by that time, the money was long gone.

Both Oregon Hay and Community Bank declined to be interviewed for this story.

Businesses do not enjoy the same legal protections afforded to consumer banking customers hit by cyber thieves, and most organizations can be held responsible for any losses due to phishing or account takeovers. But as cyberheists have ramped up dramatically over the past several years, a number of victim companies have opted to sue their financial institutions in the hopes of recovering the losses.

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Critical Fixes for Windows, Flash & Shockwave

April 9, 2013

The second Tuesday of the month is upon us, and that means it’s once again time to get your patches on, people (at least for readers running Windows or Adobe products). Microsoft today pushed out nine patch bundles to plug security holes in Windows and its other products. Separately, Adobe issued updates for its Flash and Shockwave media players that address four distinct security holes in each program.

winiconMicrosoft called special attention to a cumulative update for Internet Explorer that fixes two critical vulnerabilities present in virtually every version of IE ever produced, including IE 9, 10 and IE on Windows RT, the operating system for mobile devices and tablets.

The other critical patch in the bunch addresses a dangerous vulnerability in the Windows Remote Desktop Client, which allows systems to be managed remotely. For a rundown of the other updates released today, check out the Qualys blog, the Microsoft Security Bulletin Summary for April 2013 and the Microsoft Security Response Blog.

Adobe’s update brings Adobe Flash Player to v. 11.7.700.169 on Windows and Mac devices (the latest version numbers for other operating systems are listed in the chart below). Internet Explorer 10 and Google Chrome should automatically update to the latest version. Google has already pushed out the Flash update with Chrome v. 26.0.1410.63 for Mac and Linux, and v. 26.0.1410.64 for Windows; if your Chrome version isn’t at the latest (you can check which version by clicking the customize tab to the right of the address bar and then “About Google Chrome’), try closing and restarting the browser. Continue reading

Phoenix Exploit Kit Author Arrested In Russia?

April 8, 2013

The creator of a popular crimeware package known as the Phoenix Exploit Kit was arrested in his native Russia for distributing malicious software and for illegally possessing multiple firearms, according to underground forum posts from the malware author himself.

The last version of the Phoenix Exploit Kit. Source: Xylibox.com

The last version of the Phoenix Exploit Kit. Source: Xylibox.com

The Phoenix Exploit Kit is a commercial crimeware tool that until fairly recently was sold by its maker in the underground for a base price of $2,200. It is designed to booby-trap hacked and malicious Web sites so that they foist drive-by downloads on visitors.

Like other exploit packs, Phoenix probes the visitor’s browser for the presence of outdated and insecure versions of browser plugins like Java, and Adobe Flash and Reader. If the visitor is unlucky enough to have fallen behind in applying updates, the exploit kit will silently install malware of the attacker’s choosing on the victim’s PC (Phoenix targets only Microsoft Windows computers).

The author of Phoenix — a hacker who uses the nickname AlexUdakov on several forums — does not appear to have been overly concerned about covering his tracks or hiding his identity. And as we’ll see in a moment, his online persona has been all-too-willing to discuss his current legal situation with former clients and fellow underground denizens.

Exploit.in forum member AlexUdakov selling his Phoenix Exploit Kit.

Exploit.in forum member AlexUdakov selling his Phoenix Exploit Kit.

For example, AlexUdakov was a member of Darkode.com, a fairly exclusive English-language cybercrime forum that I profiled last week. That post revealed that the administrator accounts for Darkode had been compromised in a recent break-in, and that the intruders were able to gain access to private communications of the administrators. That access included authority to view full profiles of Darkode members, as well as the private email addresses of Darkode members.

AlexUdakov registered at Darkode using the address “nrew89@gmail.com”. That email is tied to a profile at Vkontakte.ru (a Russian version of Facebook) for one Andrey Alexandrov, a 23-year-old male (born May 20, 1989) from Yoshkar-Ola, a historic city of about a quarter-million residents situated on the banks of the Malaya Kokshaga river in Russia, about 450 miles east of Moscow.

ASK-74u rifles. Source: Wikimedia Commons.

AKS-74u rifles. Source: Wikimedia Commons.

That nrew89@gmail.com address also is connected to accounts at several Russian-language forums and Web sites dedicated to discussing guns, including talk.guns.ru and popgun.ru. This is interesting because, as I was searching AlexUdakov’s Phoenix Exploit kit sales postings on various cybercrime forums, I came across him discussing guns on one of his sales threads at exploit.in, a semi-exclusive underground forum. There, a user with the nickname AlexUdakov had been selling Phoenix Exploit Kit for many months, until around July 2012, when customers on exploit.in began complaining that he was no longer responding to sales and support requests. Meanwhile, AlexUdakov account remained silent for many months.

Then, in February 2013, AlexUdakov began posting again, explaining his absence by detailing his arrest by the Federal Security Service (FSB), the Russian equivalent of the FBI. The Phoenix Exploit Kit author explained that he was arrested by FSB officers for distributing malware and the illegal possession of firearms, including two AKS-74U assault rifles, a Glock, a TT (Russian-made pistol), and a PM (also known as a Makarov).

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Who Wrote the Flashback OS X Worm?

April 3, 2013

A year ago today, Apple released a software update to halt the spread of the Flashback worm, a malware strain that infected more than 650,000 Mac OS X systems using a vulnerability in Apple’s version of Java. This somewhat dismal anniversary is probably as good a time as any to publish some clues I’ve gathered over the past year that point to the real-life identity of the Flashback worm’s creator.

mavookiconBefore I delve into the gritty details, a little background on this insidious contagion is in order. A keenly detailed research paper (PDF) published last year by Finnish security firm F-Secure puts the impact and threat from Flashback in perspective, noting that the malware boasted a series of “firsts” for its kind. For starters, Flashback was the first OS X malware to be “VMware aware” — or to know when it was being run in a virtual environment (a trick designed to frustrate security researchers). It also was the first to disable XProtect, OS X’s built-in malware protection program. These features, combined with its ability to spread through a then-unpatched vulnerability in Java made Flashback roughly as common for Macs as the Conficker Worm was for Windows PCs.

“This means Flashback is not only the most advanced, but also the most successful OS X malware we’ve ever seen,” wrote F-Secure’s Broderick Ian Aquilino.

The F-Secure writeup answers an important question not found in other analyses: Namely, what was the apparent intended purpose of Flashback? Put simply: to redirect Google results to third-party advertisers, all for the author’s profit. It’s name was derived from the fact that it spread using a social engineering trick of presenting the OS X user with a bogus Flash Player installation prompt. F-Secure notes that this same behavior — both the Flash social engineering trick and the redirection to fake Google sites that served search results for third-party advertisers that benefited the author — was also found in the QHost malware, suggesting that Flashback may have been the next evolution of the Mac QHost malware.

BLACK SEO

A year ago, I published a series that sought to identify the real-life hackers behind the top spam botnets. Using much the same methodology, I was able to identify and locate a young man in Russia who appears (and privately claims) to be the author of Flashback. As it happens, this individual hangs out on many of the same forums as the world’s top spammers (but more on that at another time).

Given Flashback’s focus on gaming Google’s ad networks, I suspected that the worm’s author probably was a key member of forums that focus on so-called “black hat SEO,” (search engine optimization), or learned in illicit ways to game search engines and manipulate ad revenues. Sure enough, this individual happens to be a very active and founding member of BlackSEO.com, a closely guarded Russian language forum dedicated to this topic.

Below is a screen shot taken from a private message between a “VIP” user named “Mavook” and a top forum member on BlackSEO.com. The conversation took place on July 14, 2012. A rough translation of their conversation is superimposed on the redacted screen grab, but basically it shows Mavook asking the senior member for help in gaining access to Darkode.com, a fairly exclusive English-language cybercrime forum (and one that I profiled in a story earlier this week).

BlackSEO.com VIP member "Mavook" claims responsibility for creating Flashback to a senior forum member.

BlackSEO.com member “Mavook” claims responsibility for creating Flashback to a senior forum member.

Mavook asks the other member to get him an invitation to Darkode, and Mavook is instructed to come up with a brief bio stating his accomplishments, and to select a nickname to use on the forum if he’s invited. Mavook replies that the Darkode nick should be not be easily tied back to his BlackSEO persona, and suggests the nickname “Macbook.” He also states that he is the “Creator of Flashback botnet for Macs,” and that he specializes in “finding exploits and creating bots.”

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Fool Me Once…

April 2, 2013

When you’re lurking in the computer crime underground, it pays to watch your back and to keep your BS meter set to  ‘maximum.’ But when you’ve gained access to an elite black market section of a closely guarded crime forum to which very few have access, it’s easy to let your guard down. That’s what I did earlier this year, and it caused me to chase a false story. This blog post aims to set the record straight on that front, and to offer a cautionary (and possibly entertaining) tale to other would-be cybersleuths.

baitOn Jan. 16, 2013, I published a post titled, “New Java Exploit Fetches $5,000 Per Buyer.” The details in that story came from a sales thread posted to an exclusive subforum of Darkode.com, a secretive underground community that has long served as a bazaar for all manner of cybercriminal wares, including exploit kitsspam services, ransomware programs, and stealthy botnets. I’ve maintained a presence on this forum off and on (mostly on) for the past three years, in large part because Darkode has been a reliable place to find information about zero-days, or highly valuable threats that exploit previously unknown vulnerabilities in software — threats that are shared or used by attackers before the developer of the target software knows about the vulnerability.

I had previously broken several other stories about zero-day exploits for sale on Darkode that later showed up “in-the-wild” and confirmed by the affected vendors, and this sales thread was posted by one of the forum’s most trusted members. The sales thread also was created during a time in which Java’s maker Oracle Corp. was struggling with multiple zero-days in Java.

What I didn’t know at the time was that this particular sales thread was little more than a carefully laid trap by the Darkode administrators to discover which accounts I was using to lurk on their forum. Ironically, I recently learned of this snare after white/grey hat hackers compromised virtually all of the administrator accounts and private messages on Darkode.

“Looks like Krebs swallowed the bait, and i got an idea how to catch him now for the next thread,” wrote Darkode administrator “Mafi” in a Jan. 16 private message to a co-admin who uses the nickname “sp3cial1st”.

Following this post, the administrators compared notes as to which users had viewed the fake Java zero-day sales thread during the brief, two-day period it was live on a restricted portion of Darkode. “I have taken a careful examination of the logs related to the java 0day thread,” sp3cial1st wrote to a Darkode administrator who used the nick “187”.

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DHS Warns of ‘TDos’ Extortion Attacks on Public Emergency Networks

April 1, 2013

As if emergency responders weren’t already overloaded: Increasingly, extortionists are launching debilitating attacks designed to overwhelm the telephone networks of emergency communications centers and personnel, according to a confidential alert jointly issued by the Department of Homeland Security and the FBI.

"TDos" warning

“TDos” warning

The alert, a copy of which was obtained by KrebsOnSecurity, warns public safety answering points (PSAPs) and emergency communications centers and personnel about a recent spike in so-called “telephony denial-of-service” (TDoS) attacks:

“Information received from multiple jurisdictions indicates the possibility of attacks targeting the telephone systems of public sector entities. Dozens of such attacks have targeted the administrative PSAP lines (not the 911 emergency line). The perpetrators of the attack have launched high volume of calls against the target network, tying up the system from receiving legitimate calls. This type of attack is referred to as a TDoS or Telephony Denial of Service attack. These attacks are ongoing. Many similar attacks have occurred targeting various businesses and public entities, including the financial sector and other public emergency operations interests, including air ambulance, ambulance and hospital communications.”

According to the alert, these recent TDoS attacks are part of a bizarre extortion scheme that apparently starts with a phone call to an organization from an individual claiming to represent a collections company for payday loans. The caller usually has a strong accent of some sort and asks to speak with a current or former employee concerning an outstanding debt. Failing to get payment from an individual or organization, the perpetrator launches a TDoS attack. The organization will be inundated with a continuous stream of calls for an unspecified, but lengthy period of time.

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Cash Claws, Fake Fascias & Tampered Tickets

March 28, 2013

Credit and debit card skimmers aren’t just for ATMs anymore. According to European anti-fraud experts, innovative skimming devices are turning up on everything from train ticket kiosks to parking meters and a host of other unattended payment terminals.

Recently, at least five countries reported skimming attacks against railway or transport ticket machines, according to the European ATM Security Team (EAST), a not-for-profit organization that collects data on skimming attacks.  Two countries reported skimming attacks at parking machines, and three countries had skimming incidents involving point-of-sale terminals. EAST notes that Bluetooth devices increasingly are being used to transit stolen card and PIN data wirelessly.

Skimming devices found at train ticket kiosks in Europe. Source: EAST

Skimming devices found at train ticket kiosks in Europe. Source: EAST

The organization also is tracking a skimming trend reported by three countries (mainly in Latin America) in which thieves are fabricating fake ATM fascias and placing them over genuine ATMs, like the one pictured below. After entering their PIN, cardholders see an ‘out-of-order’ message. EAST said the fake fascias include working screens so that this type of message can be displayed. The card details are compromised by a skimming device hidden inside the fake fascia, and the PINs are captured via the built-in keypad, which overlays the real keypad underneath.

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