A few years back, when I was a reporter at The Washington Post, I put together a chart listing the various ways that miscreants can monetize hacked PCs. The project was designed to explain simply and visually to the sort of computer user who can’t begin to fathom why miscreants would want to hack into his PC. “I don’t bank online, I don’t store sensitive information on my machine! I only use it to check email. What could hackers possibly want with this hunk of junk?,” are all common refrains from this type of user.
I recently updated the graphic (below) to include some of the increasingly prevalent malicious uses for hacked PCs, including hostage attacks — such as ransomware — and reputation hijacking on social networking forums.
Next time someone asks why miscreants might want to hack his PC, show him this diagram.
One of the ideas I tried to get across with this image is that nearly every aspect of a hacked computer and a user’s online life can be and has been commoditized. If it has value and can be resold, you can be sure there is a service or product offered in the cybercriminal underground to monetize it. I haven’t yet found an exception to this rule.
Microsoft today pushed out seven updates to fix a variety of security issues in Windows, Microsoft Office and other software. If you’re using Windows, take a moment to check with Windows Update or Automatic Update to see if new security patches are available.
Most of the vulnerabilities addressed in this month’s patch batch apply to business applications, such as Microsoft Sharepoint, Microsoft SQLServer and Fast Search Server. The lone “critical” update (MS12-064) plugs two security holes in Microsoft Word, and applies to all versions of Microsoft Office. Another patch (MS12-069) fixes a denial-of-service vulnerability in Windows 7 and Windows 2008.
In addition, Microsoft also has shipped an update (KB2758994) for the version of Adobe‘s Flash Player plugin that comes bundled with Windows 8 and Windows 2012 Server.
Adobe has issued an update for its Flash Player software that fixes at least 25 separate security vulnerabilities in the widely-installed program. The company also pushed out a security patch for its Adobe AIR software.
The chart below shows the newest patch version numbers released today. Updates are available for Windows, Mac, Linux and Android systems. Windows and Mac users can grab the latest updates from the Flash Player Download Center, but be on the lookout for bloatware toolbar add-ons that come pre-checked (like McAfee VirusScan). Other OS users should consult the Adobe security bulletin. Internet Explorer 10 users on Windows 8 can grab the update via Windows Update or from Microsoft’s site.
Note that Windows users who browse the Web with Internet Explorer and another browser will need to apply the Flash update twice, once using IE and again with the other browser.
Last week, security firm RSA detailed a new cybecriminal project aimed at recruiting 100 botmasters to help launch a series of lucrative online heists targeting 30 U.S. banks. RSA’s advisory focused primarily on helping financial institutions prepare for an onslaught of more sophisticated e-banking attacks, and has already received plenty of media attention. I’m weighing in on the topic because their analysis seemed to merely scratch the surface of a larger enterprise that speaks volumes about why online attacks are becoming bolder and more brash toward Western targets.
RSA wasn’t specific about where it got its intelligence, but the report’s finding appear tied to a series of communications posted to exclusive Underweb forums by a Russian hacker who uses the nickname “vorVzakone,” which translates to “thief in law.” This is an expression in Russia and Eastern Europe that refers to an entire subculture of elite criminal gangs that operate beyond the reach of traditional law enforcement. The term is sometimes also used to refer to a single criminal kingpin.
A screen shot posted by vorVzakone, showing his Project Blitzkrieg malware server listing the number of online victims by bank.
In early September, vorVzakone posted a lengthy message announcing the beginning stages of a campaign he dubbed “Project Blitzkrieg.” This was envisioned as a collaborative effort designed to exploit the U.S. banking industry’s lack of anti-fraud mechanisms relative to European financial institutions, which generally require two-factor authentication for all wire transfers.
The campaign, purportedly to be rolled out between now and the Spring of 2013, proposes organizing hacker cells throughout the cybercriminal community to collaborate in exploiting these authentication weaknesses before U.S. banks erect more stringent controls. “The goal – together, en-masse and simultaneously process large amount of the given material before anti-fraud measures are increased,” vorVzakon wrote. A professionally translated version of his entire post is available here.
RSA said the project is being powered by a version of the Gozi Trojan called “Gozi Prinimalka.” The company believes this Trojan is part of family of malware used by a tight-knit crime gang that has stolen at least $5 million from banks already. From its analysis:
“In a boot camp-style process, accomplice botmasters will be individually selected and trained, thereby becoming entitled to a percentage of the funds they will siphon from victims’ accounts into mule accounts controlled by the gang. To make sure everyone is working hard, each botmaster will select their own ‘investor,’ who will put down the money required to purchase equipment for the operation (servers, laptops) with the incentive of sharing in the illicit profits. The gang and a long list of other accomplices will also reap their share of the spoils, including the money-mule herder and malware developers.
While the campaign is not revolutionary in technical terms, it will supposedly sport several noteworthy features. A novel virtual-machine-synching module announced by the gang, installed on the botmaster’s machine, will purportedly duplicate the victim’s PC settings, including the victim’s time zone, screen resolution, cookies, browser type and version, and software product IDs. Impersonated victims’ accounts will thus be accessed via a SOCKS proxy connection installed on their infected PCs, enabling the cloned virtual system to take on the genuine IP address when accessing the bank’s website.”
vorVzakone also says the operation will flood cyberheist victim phone lines while the victims are being robbed, in a bid to prevent account holders from receiving confirmation calls or text messages from their banks (I’ve covered this diversionary tactic in at least a couple ofstories). Interestingly, this hacker started discussion threads on different forums in which he posts a video of this service in action. The video shows racks of centrally-managed notebook computers that are each running an installation of Skype. While there are simpler, cheaper and less resource-intensive ways of tying up a target’s phone line, causing all of these systems to call a single number simultaneously would probably achieve the same result. If you don’t see English subtitles when you play the video below, click the “cc” icon in the player to enable them:
THE FIRST RULE OF PROJECT BLITZKRIEG…
vorVzakone’s post has been met with a flurry of curiosity, enthusiasm and skepticism from members of the underground. The skepticism appears to stem from some related postings in which he brags about and calls attention to his credentials/criminal connections, an activity which tends to raise red flags in a community that generally prefers to keep a low profile.
In the following introductory snippet from a homemade movie he posted to youtube.com, vorVzakone introduces himself as “Sergey,” the stocky bald guy in the sunglasses. He also introduces a hacker who needs little introduction in the Russian underground — a well-known individual who used the nickname “NSD” [an abbreviation for the Russian term несанкционированный доступ, or “unauthorized access”] in the mid-2000s, when he claims to have exited the hacking scene.
“Good day to everybody, evening or night, depends on when you are watching me,” the hacker begins, standing in front of a Toyota Land Cruiser. “My name is Serega, you all know me by my nickname “vor v zakone” on the forum. This is my brother, my offline representative – Oleg ‘NSD’. So, what? I decided to meet you, let’s say ‘remotely.’ Without really meeting, right? Now you will see how I live. Let’s go, I will show you something.”
A still shot from a video posted by hacker “vorVzakone”, foreground.
And he proceeds to show viewers around what he claims is his home. But many in the underground community found it difficult to take seriously someone who would be so cavalier about his personal safety, anonymity and security. “This guy’s language and demeanor is that of street corner drug dealer or a night club bouncer, and not of someone who can comprehend what ‘backconnect socks’ or GeoIP is,” remarked one Russian expert who helped translate some of the documentation included in this blog post.
But soon enough, hackers on the forums in which vorVzakone had posted his videos began checking the story, digging up records from Russian motor vehicle agencies indicating that the license plates on the Toyota and other cars in video were registered to a 27-year-old Oleg Vsevolodovich Tolstykh from Moscow. Further, they pointed out, the videos were posted by a youtube user named 01NSD, who also had previously posted Finnish and Russian television interviews with NSD describing various facets of the hacker underground. Indeed, if you pause this 2007 video 22 seconds in, you can see on NSD’s screen that he’s in the midst of a chat conversation with a hacker named vorVzakone.
In response to taunts and ridicule from some in the underground, vorVzakone posted this message on Oct. 6 to a prominent crime forum explaining why he doesn’t worry about going public with his business. Continue reading →
The recent zero-day vulnerability in Internet Explorer caused many (present company included) to urge Internet users to consider surfing the Web with a different browser until Microsoft issued a patch. Microsoft did so last month, but not before experts who ought to have known better began downplaying such advice, pointing out that other browser makers have more vulnerabilities and just as much exposure to zero-day flaws.
This post examines hard data that shows why such reasoning is more emotional than factual. Unlike Google Chrome and Mozilla Firefox users, IE users were exposed to active attacks against unpatched, critical vulnerabilities for months at a time over the past year and a half.
Attackers exploited zero-day holes in Internet Explorer for at least 89 days over the past 19 months.
The all-browsers-are-equally-exposed argument was most recently waged by Trend Micro‘s Rik Ferguson. Ferguson charges that it’s unfair and unrealistic to expect IE users to switch — however briefly — to experiencing the Web with an alternative browser. After all, he says, the data show that other browsers are similarly dogged by flaws, and switching offers no additional security benefits. To quote Ferguson:
“According to this blog post, in 2011 Google’s Chrome had an all time high of 275 new vulnerabilities reported, the current peak of an upward trend since its day of release. Mozilla Firefox, while currently trending down from its 2009 high, still had a reported 97 vulnerabilities. Microsoft’s Internet Explorer has been trending gradually down for the past five years and 2011 saw only 45 new vulnerabilities, less than any other browser except Apple’s Safari, which also had 45. Of course raw numbers of vulnerabilities are almost meaningless unless we consider the respective severity, but there again, of the ‘big three’ the statistics favour Internet Explorer. If zero-day vulnerabilities have to be taken into consideration too, they don’t really do much to change the balance, Google Chrome 6, Microsoft Internet Explorer 6 and Mozilla Firefox 4. Of course different sources offer completely different statistics, and simple vulnerability counts are no measure of relative (in)security of browsers, particularly in isolation. However, it cannot be ignored that vulnerabilities exist in every browser.”
Looking closer, we find that this assessment does not hold water. For one thing, while Ferguson acknowledges that attempting to rate the relative security of similar software products by merely comparing vulnerabilities is not very useful, he doesn’t offer much more perspective. He focuses on unpatched, publicly-highlighted vulnerabilities, but he forgets to ask and answer a crucial question: How do browser makers rate in terms of unpatched vulnerabilities that are actively being exploited?
Part of the problem here is that many security pundits rank vulnerabilities as “zero-day” as long as they are both publicly identified and unfixed. Whether there is evidence that anyone is actually attacking these vulnerabilities seems beside the point for this camp. But I would argue active exploitation is the most important qualifier of a true zero-day, and that the software flaws most worthy of worry and action by users are those that are plainly being exploited by attackers.
To that end, I looked back at the vulnerabilities fixed since January 2011 by Google, Microsoft and Mozilla, with an eye toward identifying true zero-day flaws that were identified publicly as being exploited before the vendor issued a software patch. I also queried both Mozilla and Google to find out if I had missed anything in my research.
As Ferguson mentioned, all browser makers had examples over the past 19 months of working or proof-of-concept exploit code available for unpatched flaws in their products. However, both my own investigation and the public record show that of the three browsers, Internet Explorer was the only one that had critical, unpatched vulnerabilities that were demonstrably exploited by attackers before patches were made available. According to Microsoft’s own account, there were at least six zero-days actively exploited in the past 18 months in IE. All but one of them earned Microsoft’s most dire “critical” rating, leaving IE users under zero-day attack for at least 152 days since the beginning of 2011.
If we count just the critical zero-days, there were at least 89 non-overlapping days (about three months) between the beginning of 2011 and Sept. 2012 in which IE zero-day vulnerabilities were actively being exploited. That number is almost certainly conservative, because I could find no data on the window of vulnerability for CVE-2011-0094, a critical zero-day flaw fixed in MS11-018 that Microsoft said was being attacked prior to releasing a patch for it. This analysis also does not include CVE-2011-1345, a vulnerability demonstrated at the Pwn2Pwn contest in 2011.
A company whose software and services are used to remotely administer and monitor large sections of the energy industry began warning customers last week that it is investigating a sophisticated hacker attack spanning its operations in the United States, Canada and Spain. Experts say digital fingerprints left behind by attackers point to a Chinese hacking group tied to repeated cyber-espionage campaigns against key Western interests.
The attack comes as U.S. policymakers remain gridlocked over legislation designed to beef up the cybersecurity posture of energy companies and other industries that maintain some of the world’s most vital information networks.
In letters sent to customers last week, Telvent Canada Ltd. said that on Sept. 10, 2012 it learned of a breach of its internal firewall and security systems. Telvent said the attacker(s) installed malicious software and stole project files related to one of its core offerings — OASyS SCADA — a product that helps energy firms mesh older IT assets with more advanced “smart grid” technologies.
The firm said it was still investigating the incident, but that as a precautionary measure, it had disconnected the usual data links between clients and affected portions of its internal networks.
“In order to be able to continue to provide remote support services to our customers in a secure manner, we have established new procedures to be followed until such time as we are sure that there are not further intrusions into the Telvent network and that all virus or malware files have been eliminated,” the company said in a letter mailed to customers this week, a copy of which was obtained by KrebsOnSecurity.com. “Although we do not have any reason to believe that the intruder(s) acquired any information that would enable them to gain access to a customer system or that any of the compromised computers have been connected to a customer system, as a further precautionary measure, we indefinitely terminated any customer system access by Telvent.”
The incident is the latest reminder of problems that can occur when corporate computer systems at critical networks are connected to sensitive control systems that were never designed with security in mind. Security experts have long worried about vulnerabilities being introduced into the systems that regulate the electrical grid as power companies transferred control of generation and distribution equipment from internal networks to so-called “supervisory control and data acquisition,” or SCADA, systems that can be accessed through the Internet or by phone lines. The move to SCADA systems boosts efficiency at utilities because it allows workers to operate equipment remotely, but experts say it also exposes these once-closed systems to cyber attacks.
Telvent did not respond to several requests for comment. But in a series of written communications to clients, the company detailed ongoing efforts to ascertain the scope and duration of the breach. In those communications, Telvent said it was working with law enforcement and a task force of representatives from its parent firm, Schneider Electric, a French energy conglomerate that employs 130,000 and has operations across the Americas, Western Europe and Asia. Telvent reportedly employs about 6,000 people in at least 19 countries around the world.
The disclosure comes just days after Telvent announced it was partnering with Foxborough, Mass. based Industrial Defender to expand its cybersecurity capabilities within Telvent’s key utility and critical infrastructure solutions. A spokesperson for Industrial Defender said the company does not comment about existing customers. Continue reading →
Security experts are accustomed to direct attacks, but some of today’s more insidious incursions succeed in a roundabout way — by planting malware at sites deemed most likely to be visited by the targets of interest. New research suggests these so-called “watering hole” tactics recently have been used as stepping stones to conduct espionage attacks against a host of targets across a variety of industries, including the defense, government, academia, financial services, healthcare and utilities sectors.
Espionage attackers increasingly are setting traps at “watering hole” sites, those frequented by individuals and organizations being targeted.
Some of the earliest details of this trend came in late July 2012 from RSA FirstWatch, which warned of an increasingly common attack technique involving the compromise of legitimate websites specific to a geographic area which the attacker believes will be visited by end users who belong to the organization they wish to penetrate.
At the time, RSA declined to individually name the Web sites used in the attack. But the company shifted course somewhat after researchers from Symantec this month published their own report on the trend (see The Elderwood Project). Taken together, the body of evidence supports multiple, strong connections between these recent watering hole attacks and the Aurora intrusions perpetrated in late 2009 against Google and a number of other high-profile targets.
In a report released today, RSA’s experts hint at — but don’t explicitly name — some of the watering hole sites. Rather, the report redacts the full URLs of the hacked sites that were redirecting to exploit sites in this campaign. However, through Google and its propensity to cache content, we can see firsthand the names of the sites that were compromised in this campaign.
According to RSA, one of the key watering hole sites was “a website of enthusiasts of a lesser known sport,” hxxp://xxxxxxxcurling.com. Later in the paper, RSA lists some of the individual pages at this mystery sporting domain that were involved in the attack (e..g, http://www.xxxxxxxcurling.com/Results/cx/magma/iframe.js). As it happens, running a search on any of these pages turns up a number recent visitor logs for this site — torontocurling.com. Google cached several of the accesslogs from this site during the time of the compromise cited in RSA’s paper, and those logs help to fill in the blanks intentionally left by RSA’s research team, or more likely, the lawyers at RSA parent EMC Corp. (those access logs also contain interesting clues about potential victims of this attack as well).
http://www.rferl.org (Radio Free Europe / Radio Liberty)
According to RSA, the sites in question were hacked between June and July 2012 and were silently redirecting visitors to exploit pages on torontocurling.com. Among the exploits served by the latter include a then-unpatched zero-day vulnerability in Microsoft Windows (XML Core Services/CVE-2012-1889). In that attack, the hacked sites foisted a Trojan horse program named “VPTray.exe” (made to disguise itself as an update from Symantec, which uses the same name for one of its program components). Continue reading →
Microsoft has released an emergency update for Internet Explorer that fixes at least five vulnerabilities in the default Web browser on Windows, including a zero-day flaw that miscreants have been using to break into vulnerable systems.
The patch, MS12-063, is available through Windows Update or via Automatic Update. If you installed the stopgap “fix it” tool that Microsoft released earlier this week to blunt the threat from the zero-day bug, you need not reverse or remove that fix it before applying this update. The vulnerability resides in IE 7, 8, and 9, on nearly all supported versions of Windows, apart from certain installations of Windows Server 2008 and Windows Server 2012.
Separately, Microsoft issued an update for vulnerabilities in Adobe Flash Player in Internet Explorer 10 on all supported versions of Windows 8 and Windows Server 2012. The update addresses the vulnerabilities in Adobe Flash Player by updating the affected Adobe Flash libraries contained within Internet Explorer 10. Adobe addressed these in twoseparate Flash updates last month, including a fix for Flash zero-day that has been under active attack.
Microsoft today released a stopgap fix for a critical security flaw in most versions of Internet Explorer that hackers have been exploiting to break into Windows systems. The company said it expects to issue an official patch (MS12-063) for the vulnerability on Friday, Sept. 21.
The company released a “fix it” tool, available from this link, designed to blunt the threat of attack on this flaw for users of IE 7, 8 and 9. In a blog post, Microsoft’s Yunsun Wee said the one-click solution should not affect users’ ability to browse the Web, and it does not require the reboot of your computer. Users should not need to uninstall the fix to apply the full security patch when Microsoft releases it.
I’m glad to see Microsoft take this step. The company keeps downplaying the threat, stating that “there have been an extremely limited number of attacks,” against that this flaw and that “the vast majority of Internet Explorer users have not been impacted.” Nevertheless, as I noted in previous stories this week, a reliable exploit for this vulnerability has already been rolled into free, easy-to-use attack tools, so IE users should not delay in applying this fix-it tool.
Last week, Microsoft Corp. made headlines when it scored an unconventional if not unprecedented legal victory: Convincing a U.S. court to let it seize control of a Chinese Internet service provider’s network as part of a crackdown on piracy.
I caught up with Microsoft’s chief legal strategist shortly after that order was executed, in a bid to better understand what they were seeing after seizing control over more than 70,000 domains that were closely associated with distributing hundreds of strains of malware. Microsoft said that within hours of the takeover order being granted, it saw more than 35 million unique Internet addresses phoning home to those 70,000 malicious domains.
First, the short version of how we got here: Microsoft investigators found that computer stores in China were selling PCs equipped with Windows operating system versions that were pre-loaded with the “Nitol” malware, and that these systems were phoning home to subdomains at 3322.org. The software giant subsequently identified thousands of sites at 3322.org that were serving Nitol and hundreds of other malware strains, and convinced a federal court in Virginia to grant it temporary control over portions of the dynamic DNS provider.
Microsoft was able to do that because – while 3322.org is owned by a firm in China — the dot-org registry is run by a company based in Virginia. Yet, as we can see from the graphic above provided by Microsoft, Nitol infections were actually the least of the problems hosted at 3322.org (more on this later).
To learn more about the outcome of the seizure, I spoke with Richard Boscovich, a senior attorney with the company’s digital crimes unit (DCU) who helped to coordinate this action and previous legal sneak attacks against malware havens. Our interview came just hours after Microsoft had been cleared to seize control over the 70,000+ subdomains at 3322.org. I asked Boscovich to describe what the company was seeing.
“The numbers are quite large,” he said. “Just a quick view of what we’ve been seeing so far is upwards of 35 million unique IP [addresses] trying to connect with the 70,000 subdomains.”
Certainly IP addresses can be very dynamic — a single computer can have multiple IP addresses over a period of a few days, for example. But even if there were half as many infected PCs than unique IPs that Microsoft observed reporting to those 70,000 domains, we’d still be talking about an amalgamation of compromised PCs that is far larger than any known botnet on the planet today. So how certain was Microsoft that these 35 million unique IPs were in fact infected computers?
“We started identifying what our AV company blocks,” Boscovich explained. “We saw a lot of different types of malware, from keyloggers to DDoS tools and botnets going back there. Our position would be if you’re reaching out to these 70,000 subdomains, that the purpose would be you’re directed there to be infected or you are already infected with something. And that something was up to 560 or so malware strains we identified [tracing back] to 3322.org.”
COLLATERAL DAMAGE?
Microsoft’s past unilateral actions against malware purveyors and botnets have engendered their share of harshreactions from members of the security community, and I fully expected this one also would be controversial. I wasn’t disappointed: Writing for Internet policy news site CircleID, longtime antispam activist Suresh Ramasubramanian warned that Microsoft’s action would cause “extremely high collateral damage,” both to innocent sites and to ongoing investigations.
“So, in the medium to long term run …all that Microsoft DCU and Mr. Boscovich have achieved are laudatory quotes in various newspapers and a public image as fearless and indefatigable fighters waging a lone battle against cybercrime,” Ramasubramanian wrote. “That manifestly is not the case. There are several other organizations (corporations, independent security researchers, law enforcement across several countries) that are involved in studying and mitigating botnets, and a lot of their work just gets abruptly disrupted (jeopardizing ongoing investigations, destroying evidence and carefully planted monitoring).”
