Microsoft Patches 40 Security Holes

December 14, 2010
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Microsoft today issued 17 software updates to plug a total of 40 security holes in computers running its Windows operating system and other software. December’s bounty of patches means Microsoft fixed a record number of security vulnerabilities this year.

According to Microsoft, the most urgent of the patches is a critical update that fixes at least seven vulnerabilities in Internet Explorer versions 6, 7 and 8, including three that were publicly disclosed prior to today’s update. Microsoft said that at least one of the public flaws is already being actively exploited.

Microsoft also called special attention to the only other critical bulletin in the batch – a vulnerability in the OpenType Font Driver in Windows.  Redmond warns that an attacker could compromise a machine on a network simply by getting a user to open a shared folder containing a malicious OpenType font file.

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Why GSM-Based ATM Skimmers Rule

December 13, 2010
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Earlier this year, KrebsOnSecurity featured a post highlighting the most dangerous aspects of GSM-based ATM skimmers, fraud devices that let thieves steal card data from ATM users and have the purloined digits sent wirelessly via text message to the attacker’s cell phone. In that post, I explained that these mobile skimmers help fraudsters steal card data without having to return to the scene of the crime. But I thought it might be nice to hear the selling points directly from the makers of these GSM-based skimmers.

A GSM-based ATM card skimmer.

So, after locating an apparently reliable skimmer seller on an exclusive hacker forum, I chatted him up on instant message and asked for the sales pitch. This GSM skimmer vendor offered a first-hand account of why these cell-phone equipped fraud devices are safer and more efficient than less sophisticated models — that is, for the buyer at least (I have edited his sales pitch only slightly for readability and flow).

Throughout this post readers also will find several images this seller sent me of his two-part skimmer device, as well as snippets from an instructional video he ships with all sales, showing in painstaking detail how to set up and use his product. The videos are not complete. The video he sent me is about 15 minutes long. I just picked a few of the more interesting parts.

One final note: In the instruction manual below, “tracks” refer to the data stored on the magnetic stripe on the backs of all ATM (and credit/debit) cards. Our seller’s pitch begins:

“Let say we have a situation in which the equipment is established, works — for example from 9:00 a.m., and after 6 hours of work, usually it has about 25-35 tracks already on hand (on the average machine). And at cashout if the hacked ATM is in Europe, that’s approximately 20-25k Euros.

The back of a GSM-based PIN pad skimmer

So we potentially have already about 20k dollars. Also imagine that if was not GSM sending SMS and to receive tracks it would be necessary to take the equipment from ATM, and during this moment, at 15:00 there comes police and takes off the equipment.

And what now? All operation and your money f#@!&$ up? It would be shame!! Yes? And with GSM the equipment we have the following: Even if there comes police and takes off the equipment, tracks are already on your computer. That means they are already yours, and also mean this potential 20k can be cash out asap. In that case you lose only the equipment, but the earned tracks already sent. Otherwise without dumps transfer – you lose equipment, and tracks, and money.

That’s not all: There is one more important part. We had few times that the police has seen the device, and does not take it off, black jeeps stays and observe, and being replaced by each hour. But the equipment still not removed. They believe that our man will come for it. And our observers see this circus, and together with it holders go as usual, and tracks come with PINs as usual.

However have worked all the day and all the evening, and only by night the police has removed the equipment. As a result they thought to catch malicious guys, but it has turned out, that we have lost the equipment, but results have received in full. That day we got about 120 tracks with PINs. But if there was equipment that needs to be removed to receive tracks? We would earn nothing.”

Front view of a GSM-based PIN skimmer

And what about ATM skimmers that send stolen data wirelessly via Bluetooth, a communications technology that allows the thieves to hoover up the skimmer data from a few hundred meters away?

“Then after 15 minutes police would calculate auto in which people with base station and TV would sit,” says our skimmer salesman. “More shortly, in my opinion, for today it is safely possible to work only with GSM equipment.

Aside from personal safety issues, skimmer scammers also must be wary of employees or co-workers who might seek to siphon off skimmed data for themselves. Our man explains:

“Consider this scenario: You have employed people who will install the equipment. For you it is important that they do not steal tracks. In the case of skimmer equipment that does not transfer dumps, the worker has full control over receiving of tracks.

Well, you have the right to be doing work in another country. 🙂 And so, people will always swear fidelity and honesty. This normal behavior of the person, but do not forget with whom you work. And in our situation people have no tracks in hands and have no PINs in hands. They can count quantity of holders which has passed during work and that’s all. And it means that your workers cannot steal any track.

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Apple QuickTime Patch Fixes 15 Flaws

December 9, 2010
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Apple this week issued an update that plugs at least 15 security holes in its QuickTime media player.

The patch – which brings QuickTime to version 7.6.9 — quashes several critical bugs that could be exploited to install malicious software were a user to load a poisoned media file. Updates are available for both Mac and Windows versions of the program.

Windows users can grab the update from the bundled Apple Software Update application; Mac users of course can use Software Update. Both OS versions also are available through Apple Downloads.

Reintroducing Scanlab (a.k.a Scamlab)

December 7, 2010
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Many sites and services require customers to present “proof” of their identity online by producing scanned copies of important documents, such as passports, utility bills, or diplomas. But these requests don’t really prove much, as there are a number of online services that will happily forge these documents quite convincingly for a small fee.

Services like scanlab.name, for example, advertise the ability to create a variety of forged documents made to look like scanned copies of things like credit cards, passports, drivers licenses, utility bills, birth/death/marriage certificates and diplomas. In fact, Scanlab boasts that it has a large database of templates — 17 gb worth from more than 120 countries — which it can draw upon to forge scanned copies of just about any document you might need.

When Scanlab site first surfaced in 2008, it was a fairly bustling place and had a decent number of clients. That is, until not long after I wrote about them in August 2008, when the site just vanished for some reason. The service reappeared this summer, but it’s tough to tell whether Scanlab 2.0 attracts much business.

Scanlab-created Missouri drivers license.

Scanlab created this scan of a fake Missouri drivers license — shown here with the picture and made-up personal details of Wikileaks founder Julian Assange — using a photo from Google images, so the quality could certainly be better. But it’s probably enough to pass for a scan of a real ID for most online services that might ask for one as proof of identity.

And, like most online services that cater to carders, this one does not accept credit cards: Payments are made through WebMoney, a virtual currency popular in Eastern Europe and Russia.

Rap Sheets on Top Software Vendors

December 7, 2010
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A new online resource aims to make it easier to gauge the relative security risk of using different types of popular software, such as Web browsers and media players.

Last month, I railed against the perennial practice of merely counting vulnerabilities in a software product as a reliable measure of its security: Understanding the comparative danger of using different software titles, I argued, requires collecting much more information about each, such as how long known flaws existed without patches. Now, vulnerability management firm Secunia says its new software fact sheets try to address that information gap, going beyond mere vulnerability counts and addressing the dearth of standardized and scheduled reporting of important security parameters for top software titles.

Secunia "fact sheet" on Adobe Reader security flaws.

“In the finance industry, for example, key performance parameters are reported yearly or quarterly to consistently provide interested parties, and the public, with relevant information for decision-making and risk assessment,” the company said.

In addition to listing the number of vulnerabilities reported and fixed by different software vendors, the fact sheets show the impact of a successful attack on the flaw; whether the security hole was patched or unpatched on the day it was disclosed; and information about the window of exploit opportunity between disclosure and the date a patch was issued.

The fact sheets allow some useful comparisons — such as between Chrome, Firefox, Internet Explorer and Opera. But I’m concerned they will mainly serve to fan the flame wars over which browser is more secure. The reality, as shown by the focus of exploit kits like Eleonore, Crimepack and SEO Sploit Pack, is that computer crooks don’t care which browser you’re using: They rely on users browsing the Web with outdated software, especially browser plugins like Java, Adobe Flash and Reader (all links lead to PDF files).

What You Should Know About History Sniffing

December 6, 2010
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Researchers have discovered that dozens of Web sites are using simple Javascript tricks to snoop into visitors’ Web browsing history. While these tricks are nothing new, they are in the news again, so it’s a good time to remind readers about ways to combat this sneaky behavior.

The news is based on a study released by University of California, San Diego researchers who found that a number of sites were “sniffing” the browsing history of visitors to record where they’d been.

This reconnaissance works because browsers display links to sites you’ve visited differently than ones you haven’t: By default, visited links are purple and unvisited links are blue. History-sniffing code running on a Web page simply checks to see if your browser displays links to specific URLs as purple or blue.

These are not new discoveries, but the fact that sites are using this technique to gather information from visitors seems to have caught many by surprise: A lawyer for two California residents said they filed suit against one of the sites named in the report — YouPorn — alleging that it violated consumer-protection laws by using the method.

As has been broadly reported for months, Web analytics companies are starting to market products that directly take advantage of this hack.  Eric Peterson reported on an Israeli firm named Beencounter that openly sells a tool to Web  site developers to query whether site visitors had previously visited up to 50 specific URLs.

The Center for Democracy & Technology noted in March that another company called Tealium has been marketing a product taking advantage of this exploit for nearly two years.  “Tealium’s “Social Media” service runs daily searches of a customer’s name for news and blog postings mentioning the customers, and then runs a JavaScript application on the customer’s site to determine whether visitors had previously read any of those stories,” CDT wrote. “The service allows Tealium customers a unique insight into what sites visitors had previously read about the company that may have driven them to the company’s Web site.”

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Cable: No Cyber Attack in Brazilian ’09 Blackout

December 3, 2010
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The Nov. 2009 blackout that plunged millions of Brazilians into darkness for up to six hours was not the result of cyber saboteurs, but instead an unusual confluence of independent factors that conspired to cause a cascading power failure, according to a classified cable from the U.S. embassy in Brazil.

The communication, one of roughly 250,000 to be published by Wikileaks.org, provides perhaps the most detailed explanation yet of what may have caused the widespread outage, which severed power to 18 of Brazil’s 27 states, cutting electricity for up to 60 million Brazilians for periods ranging from 20 minutes to six hours. The Nov. 2009 outage was notable because it came just three days after a CBS news magazine 60 Minutes report about a much more severe two-day outage in 2007 that cited unnamed sources claiming that the blackout was triggered by hackers targeting electric control systems.

Reports from Wired.com and other news publications quickly challenged that 60 Minutes segment, pointing to previous investigations that suggested a variety of factors contributed to the 2007 incident, including poorly-maintained electrical insulators. But when another outage hit Brazil three days after the CBS report, the coincidence led to more speculation about whether hackers were once again involved.

The cable relates information shared by executives and engineers from Brazil’s National Operator of the Interconnected Power System (ONS), which “further ruled out the possibility of hackers because, following some acknowledged interferences in past years, [the Government of Brazil] has closed the system to only a small group of authorized operators, separated the transmission control system from other systems, and installed filters.” From the cable:

“Coimbra confirmed that the ONS system is a CLAN network [classified local area network] using its own wires carried above the electricity wires. Oliveira pointed out that even if someone had managed to gain access to the system, a voice command is required to disrupt transmission. Coimbra said that while sabotage could have caused the outages, this type of disruption would have been deadly, and investigators would have found physical evidence, including the body of the perpetrator. He also noted that any internal attempts by system employees to disrupt the system would have been easily BRASILIA 00001383 003 OF 005 traceable, a fact known to anyone with access to the system.”

So what did cause the blackout? The cable suggests there were a range of contributing factors and some very bad timing:

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FBI Identifies Russian ‘Mega-D’ Spam Kingpin

December 1, 2010
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Federal investigators have identified a 23-year-old Russian man as the mastermind behind the notorious “Mega-D” botnet, a network of spam-spewing PCs that once accounted for roughly a third of all spam sent worldwide.

According to public court documents related to an ongoing investigation, a grand jury probe has indicted Moscow resident Oleg Nikolaenko as the author and operator of the Mega-D botnet.

Federal agents settled on Nikolaenko thanks to information provided by Lance Atkinson, an Australian man named as a co-conspirator in the “Affking” e-mail marketing and counterfeiting operation that was shuttered in 2008 after investigations by the FBI, the Federal Trade Commission and international law enforcement authorities. The Affking program generated revenues of $500,000 a month using spam to promote counterfeit Rolexes, herbal “male enhancement” pills and generic prescription drugs.

As part of his guilty plea to spam violations, Atkinson provided investigators information on the top spammers who helped to promote the Affking products. Among them was an affiliate who used the online nickname “Docent,” who earned nearly $467,000 in commissions over a six month period in 2007.

Atkinson told investigators that Docent’s commissions were sent to an ePassporte account, under the name “Genbucks_dcent,” that was tied to the e-mail address “4docent@gmail.com.” Records subpoenaed by the grand jury found that the ePassporte account was registered in Nikolaenko’s name to an address in Moscow.

According to court documents, investigators found numerous executable files in Docent’s Gmail inbox. Those files were analyzed by researchers at SecureWorks, an Atlanta based security firm, which found them to be samples of the Mega-D malware.

Update: [Nikolaenko was reportedly arrested in the United States recently. See update at the end, after the jump.]

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Cybercrime Untouchables?

November 30, 2010
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“YOU’VE probably never met Sergey Kozerev, a former student at the State University of Technology and Design in St. Petersburg, Russia, but it’s possible that he’s mugged you.

In the online world, he operates under the pseudonym Zo0mer, according to American investigators, and he smugly hawks all manner of stolen consumer information alongside dozens of other peddlers at a Web site he helps manage.”

The text above was the lead for a story published April 3, 2006 in The New York Times. It described Zo0mer as a “kingpin” of the criminal underworld market for stolen identities and credit cards.

What’s remarkable is that — almost four years later — Zo0mer’s business appears stronger than ever.

Today, Zo0mer/Kozerev runs perhaps the most bustling marketplace for purloined financial data in the UnderWeb. His Flash advertisements, like the one pictured below, adorn several prominent “carding” forums.

The ads promote a pair of his services: One sells “dumps” — account data stolen (by malware or skimmers) from the magnetic stripes on the back of all credit and debit cards that can be used to create counterfeit cards; the other peddles stolen credit card data and sensitive personal information that can be used to hijack identities and change the mailing address records on bank accounts.

Two of Zo0mer's threads on a carding forum.

Below are screen shots of Zo0mer’s two fraud shops, which show the prices associated with each of these services. According to Zo0mer’s posting on one carding forum, one credit card + its corresponding card security code costs about $1, and the price goes down for high volume purchases. If you want the absolutely freshest stolen card numbers, the price doubles to $2 per card, and redoubles to $4 per card if you care which bank issued the card. Hacked eBay and Paypal accounts also are for sale.

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Shopping Online? Know Thy Seller

November 29, 2010
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This time of year, it seems like everyone has a guide to shopping safely online. Most tip sheets focus on ways to spot insecure Web sites and harden your computer against data-stealing malware, but it’s equally important to understand whom you’re buying from before it’s too late.

It’s always a good idea to shop for the best price online, but you may be sorry if you let the site with the lowest price be your only guide. If you aren’t familiar with an online merchant, take a few minutes to do some basic consumer research on the vendor. Otherwise, you could end up like the hapless consumers profiled in David Segal‘s readable and entertaining story in The New York Times last week.

The Times piece highlights what appears to be a serious weakness in the major search engines, a shortcoming that favors dodgy merchants: While an abundance of complaints against an online merchant may show up prominently in a Web search for that seller, searches for brand name items may take the consumer straight to the merchant’s site and bypass those negative comments. Furthermore, complaints and bad publicity may even increase an online shop’s standing in the search rankings, the story notes.

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