KrebsOnSecurity.com Wins Award

February 18, 2011
53 Comments

KrebsOnSecurity.com was honored at the annual Social Security Blogger Awards at the RSA security conference in San Francisco this week. Judges and voters picked this blog as the one they thought best represents the security industry today.

Among the four other finalists in this category were some fairly big names (in no particular order):

* Threat Post
* CSO Online Blog
* Threat Level (Wired)
* Schneier On Security

This is the second year in a row KrebsOnSecurity.com was recognized at the blogger awards gathering: Last year, it was named the “Best Non-Technical Security Blog“. Thanks to the judges, voters and to all you readers who make the discussion here so much more interesting, informative and worthwhile!

Sophos’s Naked Security blog won for “Most Educational”; Veracode’s Zero Day Labs won for “Best Corporate Security blog”; “Best Podcast” went to Pauldotcom; the Securosis blog earned the “Most Entertaining” award.

Below is a great video from Chris Eng who won the “The single best security blog post of the year” award, with the following text-to-movie clip on what it takes to be an authentic “thought leader” in the information security space:

Java 6 Update 24 Plugs 21 Security Holes

February 17, 2011
31 Comments

A new version of Java fixes at least 21 security flaws in the widely-distributed software bundle. Updates are available for Windows, Linux and Solaris users.

If you’re curious about the security updates included in Java 6 Update 24, see the release notes from Oracle. As I have shown in many stories on this blog, outdated Java installations can give bad guys and malware a foothold on your system, so if you use Java, please keep it updated. If you have Java installed but can’t remember why, you might consider simply uninstalling it altogether (you can always reinstall it later). I only keep Java installed on one system of mine, and I disable the Java plugin from within Mozilla Firefox (Tools, Add-ons, Plugins).

Updates are available from within Java (click the Update tab from the Java entry in the Windows control panel), or from Java.com. Mac users will need to wait until Apple releases a separate update to fix these flaws on OS X because the company maintains its own version of Java (for now, anyway).

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Having a Ball with ATM Skimmers

February 16, 2011
21 Comments

On February 8, 2009, a customer at an ATM at a Bank of America branch in Sun Valley, Calif., spotted something that didn’t look quite right about the machine: A silver, plexiglass device had been attached to the ATM’s card acceptance slot, in a bid to steal card data from unsuspecting ATM users.

But the customer and the bank’s employees initially overlooked a secondary fraud device that the unknown thief had left at the scene: A sophisticated, battery operated and motion activated camera designed to record victims entering their personal identification numbers at the ATM.

The camera was discovered more than a day later by a maintenance worker who was servicing the ATM. The device, pictured below with the boxy housing in which it was discovered, was designed to fit into the corner of the ATM framework and painted to match.

The self-contained camera and box attached to the Bank of America ATM

The ATM pictured on the right below is shown with the card skimmer and video camera attached (click the image for a slightly larger look).

California police say the video camera and skimmer were installed by the person pictured below. The entire scam ran only for about three hours, and was reported about 11 AM. Police recovered both the skimmer and video camera, so no customer or bank losses ensued as a result of the attack. Meanwhile, the crook responsible remains at large.

The image below shows some of the manufacturer’s specs on the “Camball-2” camera that was used in this attack, which retails for around $200 and runs for about 48 hours on motion detection mode.

Here’s a closer look at the relatively crude device attached to the mouth of the card insert slot, designed to steal data recorded on the magnetic stripe on the back of all bank cards. Criminals can then encode the information onto counterfeit cards, and — armed with the victim’s PIN — withdraw money from the victim’s account from ATMs around the world.

The authorities I’ve been interviewing about skimmer scams say the devices are most commonly installed on weekends, when many banks are closed or have limited hours. It’s difficult — once you know about the existence of these fraud devices — not to pull on parts of ATMs to make sure they aren’t compromised. If something comes off of the machine when you yank on it, and the bank is closed or the ATM isn’t attached to a financial institution, it’s probably best just to leave the device at the scene and not try to make off with it. Otherwise, consider the difficulty in explaining your actions should you be confronted by police after walking away. What’s more, in many skimmer cases, the fraudster who placed it there is monitoring the scene from somewhere within viewing distance of the compromised ATM.

It’s easy to be frightened by ATM skimmers, but try not to let these fraud devices spook you away entirely: Stick to machines in well-lit areas, places where you feel relatively safe physically. On top of that, cover your hand when entering your PIN, as many skimmers rely on hidden cameras and can’t steal your account credentials without recording those digits. Also, remember that any losses you may incur from skimmers should be fully reimbursable by your bank (at least in the United States). While the temporary loss of funds may not cover the cost of any checks that bounce because of the incident, these also are losses that your financial institution should cover if they were incurred because of a skimmer incident.

[EPSB]

Have you seen:

Green Skimmers Skimming Green…To combat an increase in ATM fraud from skimmer devices, cash machine makers have been outfitting ATMs with a variety of anti-skimming technologies. In many cases, these anti-skimming tools take the shape of green or blue semi-transparent plastic casings that protrude from the card acceptance slot to prevent would-be thieves from easily attaching skimmers. But in a surprising number of incidents, skimmer scammers have simply crafted their creations to look exactly like the anti-skimming devices.

[/EPSB]

Imageshack Swaps Spam Pages for Scam Alerts

February 12, 2011
23 Comments

Late this week, I heard from several anti-spam activists who alerted me to a nice reminder that spammers don’t always win: Spammers have been promoting their rogue pharmacy sites via images uploaded to free image hosting service imageshack.us. In response, the company appears to have simply replaced those images with the following subtle warning:

The spammers' images were replaced with scam warnings like this one.

Imageshack did not respond to a request for comment sent Thursday.

Update, Feb. 13, 3:20 a.m. ET: I heard from Imageshack co-founder Alexander Levin, who said the image swaps aren’t automated. “We need a source to provide us with image links to replace. Thankfully, we found one using a honey pot,” Levin wrote in an e-mail. “With some rudimentary analysis we were able to find over 300 images uploaded to our services in this way, and were able to replace them with this image within an hour of them being reported.”

eHarmony Hacked

February 10, 2011
27 Comments

Online dating giant eHarmony has begun urging many users to change their passwords, after being alerted by KrebsOnSecurity.com to a potential security breach of customer information. The individual responsible for all the ruckus is an Argentinian hacker who recently claimed responsibility for a similar breach at competing e-dating site PlentyOfFish.com.

Late last year, Chris “Ch” Russo, a self-styled “security researcher” from Buenos Aires, told me he’d discovered vulnerabilities in eHarmony’s network that allowed him to view passwords and other information on tens of thousands of eHarmony users.

Russo first alerted me to his findings in late December, right after he said he first began contacting site administrators about the flaw. At the time, I sent messages to several of the administrative eHarmony e-mail addresses whose passwords Russo said he was able to discover, although I received no response. Russo told me shortly thereafter that he’d hit a brick wall in his research, and I let the matter drop after that.

Then, about a week ago, I heard from a source in the hacker underground who remarked, “You know eHarmony got hacked, too, right?” I quickly checked several fraud forums that I monitor, and soon found a curious solicitation from a user at Carder.biz, an online forum that enables cyber crooks to engage in a variety of shady transactions, from buying and selling hacked data and accounts to the purchase and/or renting of criminal services, such as botnet hosting, exploit packs, purloined credit card and consumer identity data. The seller, using the nickname “Provider” and pictured in the screen shot below, purported to have access to “different parts of the [eHarmony] infrastructure,” including a compromised database and e-mail channels. Provider was offering this information for prices ranging from $2,000 to $3,000.

A hacker named "Provider" is shown selling access to parts of eHarmony.com

When I contacted Russo about this development, he initially said that he never did anything with his findings, although later in the conversation he conceded it was possible that an associate of his who also was privy to details of the discovery may have acted on his own. At that point, I contacted eHarmony’s corporate offices and shared a copy of the screen shot and information I’d obtained from Russo.

Joseph Essas, chief technology officer at eHarmony, said Russo found a SQL injection vulnerability in one of the third party libraries that eHarmony has  been using for content management on the company’s advice site – advice.eharmony.com. Essas said there were no signs that accounts at its main user site — eharmony.com — were affected.

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Google Adds 1-Time Passwords to Gmail, Apps

February 10, 2011
13 Comments

Stolen or easily-guessed passwords have long been the weakest link in security, leaving many Webmail accounts subject to hijacking by identity thieves, spammers and extortionists. To combat this threat on its platform, Google is announcing that starting today, users of Google’s Gmail service and other applications will have the option to beef up the security around these accounts by adding one-time pass codes sent to their mobile or land line phones.

For several months, Google has been offering this option to business customers and to “hundreds of thousands” of regular users who lost control over their accounts due to password theft, said Nishit Shah, product Manager for Google Security. Today, Google will begin rolling this feature out to all users, although it may be available to all users immediately, Shah said.

“It’s an extra step, but it’s one that significantly improves the security of your Google Account because it requires the powerful combination of both something you know—your username and password—and something that only you should have—your phone,” Shah wrote in a blog post published today. “A hacker would need access to both of these factors to gain access to your account. If you like, you can always choose a ‘Remember verification for this computer for 30 days’ option, and you won’t need to re-enter a code for another 30 days. You can also set up one-time application-specific passwords to sign in to your account from non-browser based applications that are designed to only ask for a password, and cannot prompt for the code.”

I set up the 2-step verification process for my Gmail account, and found the process to be quick and painless, if a little involved. I choose to set it up to call my Skype line and read the code aloud, and the call came in three seconds after I hit the submit button. The setup wizard then gave me 10 backup codes to use in cases when for whatever reason I don’t have access to my Skype account. Another setup page offered the ability to add a secondary backup phone to send the code via SMS/text message, or automated voice message.

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Adobe, Microsoft, WordPress Issue Security Fixes

February 9, 2011
32 Comments

Talk about Patch Tuesday on steroids! Adobe, Microsoft and WordPress all issued security updates for their products yesterday. In addition, security vendor Tipping Point released advisories detailing 21 unpatched vulnerabilities in products made by CA, EMC, HP, Novell and SCO.

Microsoft’s bundle includes a dozen updates addressing at least 22 security flaws in its Windows operating system and other software. Five of the vulnerabilities earned a “critical” rating, Redmond’s most serious. Six of the Windows flaws fixed in today’s release have been public for some time, although security experts at Symantec say they’re only aware of one of the flaws being actively exploited in the wild — a bug in the way Internet Explorer handles cascading style sheets. Updates are available through Windows Update or Automatic Update.

Microsoft also issued an update that changes the default behavior in Windows when users insert a removable storage device, such as a USB or thumb drive. This update effectively disables “autorun,” a feature of Windows that has been a major vector for malware over the years. Microsoft released this same update in February 2009, but it offered it as an optional patch. The only thing different about the update this time is that it is being offered automatically to users who patch through Windows Update or Automatic Update.

Update, Feb. 18, 11:56 a.m. ET: As F-Secure notes in a useful blog post, Microsoft has once again failed to disable auto-run, because this update is not offered by default, as Microsoft previously indicated.

Original story:

Adobe released an update for its Acrobat and free PDF Reader software that that fixes at least 29 security problems with these products. Adobe is urging users of Adobe Reader X (10.0) and earlier versions for Windows and Macintosh to update to Adobe Reader X (10.0.1), available now. Adobe says that an update to fix these flaws in UNIX installations of its products is expected to be available by the week of February 28, 2011.

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HBGary Federal Hacked by Anonymous

February 7, 2011
164 Comments

A company that is helping the federal government track down cyberactivists who have been attacking business which refused to support Wikileaks has itself been hacked by the very same activists.

At the center of the storm is a leaderless and anarchic Internet group called Anonymous, which more recently has been coordinating attacks against Egyptian government Web sites. Late last month, authorities in the U.K. and the U.S. moved against at least 45 suspected Anonymous activists. Then, on Saturday, the Financial Times ran a story quoting Aaron Barr, the head of security services firm HBGary Federal, saying he had uncovered the identities of Anonymous’ leaders using social networking sites. Barr said he planned to release his findings at a security conference in San Francisco next week.

Anonymous responded by hacking into HBGary’s networks and posting archives of company executive emails on file-trading networks. The group also hacked the firm’s Web site and replaced it with a message saying it was releasing Barr’s findings on its own because the group was confident Barr’s conclusions were wrong.

“We’ve seen your internal documents, all of them, and do you know what we did? We laughed. Most of the information you’ve ‘extracted’ is publicly available via our IRC networks,” the statement reads. “The personal details of Anonymous ‘members’ you think you’ve acquired are, quite simply, nonsense. So why can’t you sell this information to the FBI like you intended? Because we’re going to give it to them for free.”

I tuned into this conflict late Sunday evening, after HBGary President Penny Leavy had waded into Anonymous’ public chat channel in an attempt to reason with the group. Earlier in the evening, Anonymous sympathizers hijacked several Twitter accounts belonging to HBGary employees, and used them to post offensive comments and personal information about the account holders.

The topic of the IRC channel Leavy joined said it all: “Mission: Aaron Bratt FIRED. His salary donated to Bradley Manning Defense Fund. Simple.” Leavy said the group was planning to publish online the entire email archive belonging to Greg Hoglund, the security researcher in California who co-founded HBGary, which is part owner of HBGary Federal.

A snippet from that conversation:

“[20:06:12] <+Penny> Guys, I can’t fire someone that owns a portion of the company  What i can promise is we will have a meeting to discuss next steps”

In a phone interview late Sunday evening, Hoglund said that unlike the more traditional Web-site attacking activities of Anonymous, the hackers who infiltrated HBGary’s system showed real skills, even social engineering a network administrator into giving them complete control over rootkit.com, a security research site Hoglund has long maintained.

“They broke into one of HBGary’s servers that was used for tech support, and they got emails through compromising an insecure Web server at HBGary Federal,” Hoglund said. “They used that to get the credentials for Aaron, who happened to be an administrator on our email system, which is how they got into everything else. So it’s a case where the hackers break in on a non-important system, which is very common in hacking situations, and leveraged lateral movement to get onto systems of interest over time.”

Hoglund said Anonymous had crossed a line, and that posting the company’s email online would expose internal, proprietary data that would likely cost HBGary millions of dollars. He added that Anonymous activists should be able to see — if they read the email they’ve stolen — that HBGary ultimately decided not to publicly name any of the members it had identified.

“Before this, what these guys were doing was technically illegal, but it was in direct support of a government whistle blower. But now, we have a situation where they’re committing a federal crime, stealing private data and posting it on a torrent,” Hoglund said. “They didn’t just pick on any company, but we try to protect the US government from hackers. They couldn’t have chosen a worse company to pick on.”

ZeuS Source Code for Sale. Got $100,000?

February 4, 2011
46 Comments

Late last year, online crime forums were abuzz with talk that development of the world’s most notorious banking Trojan — ZeuS — was being retired, after its maker handed the malware’s secret blueprints to a rival developer. The recipient of those plans — the author of the SpyEye Trojan— has been hard at work on a malware strain that blends the two malware families. But new evidence suggests that the source code for the latest ZeuS version may have also been given or sold to a third party who is now reselling it to the highest bidder in the criminal underground, a development that could soon guarantee the production of a whole new ZeuS lineage.

Sources say the ZeuS author — known variously as “Slavik” and “Monstr” on criminal forums — gave the SpyEye author Gribodemon stewardship over the ZeuS code base, on the condition that Gribodemon agreed to provide ongoing support for existing ZeuS clients, a sizable user base that demands considerable care and attention. Sources also believe Slavik may have separately sold the code itself, ostensibly to the same individual shown in the screen shot below.

Established crime forums are built upon reputation, which is earned over a period of time by points awarded from other members for positive or negative transactions — much like eBay’s buyer and seller feedback system. The solicitation in the above screen shot is unlikely to be a fake: It indicates that the seller has been a member of this particular vetted crime forum since June 13, 2009, and has 18 positive reputation points and zero negative.

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Revisiting the SpyEye/ZeuS Merger

February 3, 2011
28 Comments

In October 2010, I discovered that the authors of the SpyEye and ZeuS banking Trojans — once competitors in the market for botnet creation and management kits — were planning to kill further development of ZeuS and fuse the two malware families into one supertrojan. Initially, I heard some skepticism from folks in the security community about this. But three months later, security experts are starting to catch glimpses of this new hybrid Trojan in the wild, with the author(s) shipping a series of beta releases that include updated features on a nearly-daily basis.

It probably didn’t help that the first report of a blended version of SpyEye/ZeuS (referred to as SpyZeuS for the remainder of this post) — detailed in a McAfee blog post — turned out to be a scam. But a little more a week ago, Trend Micro spotted snapshots and details of SpyZeuS components, noting that the author appears to have received help from other criminals in polishing this latest release; in particular, an add-on that grabs credit card numbers from hacked PCs, and a plugin designed to attack the anti-Trojan tool Rapport from Trusteer. (Trusteer’s Amit Klein addresses this component in a blog post here).

Seculert, a new threat alert service started by former RSA fraud expert Aviv Raff, includes some screen shots of the administrative panel of SpyZeuS that show the author trying to appeal to users of both Trojans, by allowing customers to control and update their botnets using either the traditional ZeuS or SpyEye Web interface.

The hybrid SpyZeuS Trojan lets users interact with bots via the ZeuS control panel (left) or the SpyEye interface.

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