Spam Volumes Dip After Spamit.com Closure

October 4, 2010
11 Comments

Spam trackers are seeing a fairly dramatic drop in junk e-mail sent over the past few days, specifically spam relayed by one of the world’s largest spam botnets – although security experts disagree on exactly which botnet may be throttling back or experiencing problems.

According to M86 Security Labs, the volume of spam has dipped quite a bit, approximately 40 percent since the beginning of the month by the looks of the graphic the company publishes on its site (pictured at right).

M86 says the decrease in spam is due to a rapid drop in activity from the Rustock botnet (see graphic below left), a collection of spam-spewing zombie PCs that experts say is responsible for relaying about 40 percent of all junk e-mail on any given day.

The decline in spam volume comes at about the same time that the world’s largest spam affiliate program — spamit.com — said it would stop paying affiliates to promote its online pharmacy Web sites — on Oct. 1.

Bradley Anstis, vice president of technical strategy for M86, said the most likely explanation is that the person(s) operating Rustock rented the botnet to a number of spamit.com affiliates, and many of those affiliates have not yet switched over to another pharmacy affiliate program.

“To me, that’s the most logical explanation,” Anstis said. “The timing certainly hooks up well, because we started seeing this decline right around the first of October.”

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Comcast Pushes Bot Alert Program Nationwide

October 4, 2010
80 Comments

Comcast, the nation’s largest residential Internet service provider, announced last week that it is expanding an initiative to contact customers whose PCs appear to be infected with a malicious bot program.

The Philadelphia-based cable Internet company is expanding nationwide a pilot program that began in Denver last year, which automatically informs affected customers with an e-mail urging them to visit the company’s security page. The system also sends the customer’s browser a so-called “service notice,” a semi-transparent banner that overlays a portion of whatever page is being displayed in the user’s Web browser.

Customers can then either move or close the alert, or click Go to Anti-Virus Center, for recommended next-steps, which for Windows customers includes:

  • Downloading any missing Microsoft security updates.
  • Making sure the customer has some kind of up-to-date anti-virus software running.
  • Downloading and running Microsoft’s malicious software removal tool.
  • Downloading and installing Secunia‘s free Personal Software Inspector tool, a program that periodically scans the user’s computer for missing security updates for commonly used third party applications, such as Adobe Reader, Flash, and Java, and QuickTime.

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Hackers Steal $600,000 from Brigantine, NJ

October 4, 2010
29 Comments

Organized cyber thieves took roughly $600,000 from the coastal city of Brigantine, New Jersey this week after stealing the city’s online banking credentials.

The break-in marks the second time this year that hackers have robbed the coffers of an Atlantic County town: In March, a similar attack struck Egg Harbor Township, N.J., which lost $100,000 in a similar intrusion.

Like the Egg Harbor incident and dozens of others documented here, the loot from the Brigantine heist was sent to multiple “money mules,” willing or unwitting people hired through work-at-home job offers to help computer crooks launder stolen cash.

Brigantine City officials said the incident began sometime before 6 p.m. on September 28th, when TD Bank notified city finance officers that multiple wire transfers had been made from its accounts. Brigantine Police’s Lt. James Bennett said in a written statement:

“Unknown person(s) had apparently obtained a user name and password for the city’s main TD Bank account when our finance personnel attempted to login (through either a fake Web page or an undetectable virus). Then several wire transfers were started with amounts ranging from a few thousand to over $300,000, for a total of about $600,000. The last update from TD Bank was that they were able to recall approximately $400,000 in transfers and were working on recalling the remainder. The investigation is being handled by the FBI, New Jersey State Police with the Brigantine Police Department and TD Bank security.”

The attack occurred in the middle of a week in which federal officials announced dozens of arrests and charges against money mules and the organized criminals responsible for orchestrating these types of break-ins. While it’s unclear whether those responsible for the attack on Brigantine were apprehended or charged this week, the method by which the thieves made off with at least some of the loot bears the same fingerprint as past breaches, including the Egg Harbor attack.

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Ukraine Detains 5 Individuals Tied to $70 Million in U.S. eBanking Heists

October 2, 2010
19 Comments

Authorities in Ukraine this week detained five individuals believed to be the masterminds behind sophisticated cyber thefts that siphoned $70 million – out of an attempted $220 million — from hundreds of U.S.-based small to mid-sized businesses over the last 18 months, the FBI said Friday.

At a press briefing on “Operation Trident Breach,” FBI officials described the Ukrainian suspects as the “coders and exploiters” behind a series of online banking heists that have led to an increasing number of disputes and lawsuits between U.S. banks and the victim businesses that are usually left holding the bag.

The FBI said five individuals detained by the Security Service of Ukraine (SBU) on Sept. 30 were members of a gang responsible for creating specialized versions of the password-stealing ZeuS banking Trojan and deploying the malware in e-mails targeted at small to mid-sized businesses.

Investigators say the Ukrainian gang used the software to break into computers belonging to at least 390 U.S. companies, transferring victim funds to more than 3,500 so-called “money mules,” individuals in the United States willingly or unwittingly recruited to receive the cash and forward it overseas to the attackers. In connection with the investigation, some 50 SBU officials also executed eight search warrants in the eastern region of Ukraine this week.

Friday’s media briefing at the FBI Hoover building in Washington, D.C. was designed to give reporters a clearer view of the sophistication of an organized crime group whose handiwork had largely escaped broader national media attention until this week. On Wednesday, authorities in the United Kingdom charged 11 people there – all Eastern Europeans – with recruiting and managing money mules. Then on Thursday, officials in New York announced they had charged 92 and arrested 39 money mules, including dozens of Russians who allegedly acted as mules while visiting the United States on student visas.

According to sources familiar with the investigation, the arrests, charges and announcements were intended to be executed simultaneously, but U.K. authorities were forced to act early in response to intelligence that several key suspects under surveillance were planning to flee the country.

SBU officials could not be reached for comment. But FBI agents described the Ukrainian group as the brains behind the attacks. Gordon M. Snow, assistant director of the FBI’s Cyber Division, said the individuals detained by the SBU are thought to have worked with the developer of the ZeuS Trojan to order up custom-made components and versions of ZeuS.

For example, security researchers identified one ZeuS variant that was specific to the Ukrainians known as JabberZeuS because it alerted the gang via Jabber instant message whenever online banking credentials for customers of specific institutions were stolen.

Snow said this week’s law enforcement action was a particularly big deal because of the unprecedented level of cooperation from foreign governments, particularly Ukraine and the Netherlands.

“We worked with legal attachés in 75 countries, and we are very proud of the level of coordination that took place to get this done,” Snow said.

Pim Takkenberg, team leader for the Netherlands Police Agency’s High Tech Crime Unit, said his group played a “small but important role” in helping to identify the hackers by monitoring the miscreants’ use of Dutch infrastructure.

“We helped in connecting all the dots together,” Takkenberg said in a phone interview. “The Netherlands provide for a large portion of the critical internet infrastructure, of which we can monitor certain parts. When criminals are unaware of the fact that they use Dutch infrastructure, that gives us good investigative opportunities. In this particular case we had an interest of our own, since the ZeuS malware made a lot of Dutch victims as well.”

The FBI’s Snow said the investigation began in May 2009, when FBI agents in Omaha, Neb. were alerted to automated clearing house (ACH) batch payments to 46 separate bank accounts through the United States.

I will continue to follow this important story in the days ahead, particularly as more information about the Ukrainian suspects is made public. Stay tuned.

U.S. Charges 37 Alleged Money Mules

September 30, 2010
32 Comments

Troy Owen never thought he’d see the day when the cyber thieves who robbed his company of $800,000 would ever be charged with any crime. Owen said investigators had warned him early on that the perpetrators were mostly overseas in places like Ukraine and Moldova, and that it might be tough to pursue those responsible.

But earlier today, authorities in New York announced they had charged more than 60 individuals — and arrested 20 — in connection with international cyber heists perpetrated against dozens of companies in the United States, including Owen’s.

In November 2009, cyber crooks used a sophisticated password stealing Trojan horse program called “ZeuS” to hack into computers at Owen’s firm — Plano, Texas-based Hillary Machinery. The program swiped the company’s online banking passwords, allowing the attackers to initiate more than $800,000 in bogus transfers out of the company’s online account to dozens of people in the United States who helped launder the money and send it to the attackers in Eastern Europe.

Fraudulent wire transfers from Hillary Machinery.

More than $14,100 of Hillary’s money was wired to Stanislav Rastorgeuv, a 22-year-old Russian national who entered the United States in June 2009 on a “J1” student visa. According to charging documents, Rastorgeuv was the poster child for money launderers looking to recruit new mules to help retrieve the proceeds of ZeuS Trojan virus attacks.

Authorities say almost all of those arrested or charged in this case are young Eastern Europe men and women who were either planning to travel to, or were already present in, the United States on J1 student visas. Once the students  were in the United States, the organizers  of the mule organization gave  the recruits fake foreign passports to open accounts at local banks.

Then, days or weeks after those accounts were opened, other actors in the group would transfer money from cybercrime victims into the mule accounts, typically in amounts close to $10,000. Once the transfers were complete, the mules would quickly withdraw the money, keep a portion for themselves (usually 8 to 10 percent) and transfer the remaining amount to other participants in the fraud scheme, usually individuals overseas.

Some mules were asked to open a large number of bank accounts to help launder stolen funds. Charging documents say Rastogeuv opened up multiple bank accounts under his own name and using fake passports for fictitious individuals, including the names “Petr Rubsashkin” and “Alexey Iankov.” In addition to the unauthorized transfer sent to him by Hillary Machinery, Rastogeuv allegedly helped to launder nearly $30,000 from other victim companies over the next two months.

U.S. authorities say the ringleader of the New York-based money mule gang was Artem “Artur” Tsygankov, a Russian citizen living in New York who allegedly recruited Rastogeuv and other mules, supplied them with fake identity documents, and managed their daily activities. In all, the New York gang cleared more than $3 million from victim corporations using hundreds of accounts opened under false identities.

Others are charged with hacking into and siphoning funds from online brokerage accounts. Jamal Beyrouti, 53, Lorenzo Babbo, 20, and 29-year-old Vincenzo Vitello worked with hackers who infiltrated trading accounts at E-Trade and TD Ameritrade, executing fraudulent sales of securities and transferring the proceeds to accounts the mules controlled. At the same time, the attackers blasted victims’ phones with a barrage of calls to prevent the brokerage firms from contacting them to confirm the legitimacy of the transactions. The scam allowed mules to transfer roughly $1.2 million from hacked brokerage accounts.

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11 Charged In ZeuS & Money Mule Ring

September 30, 2010
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Authorities in the United Kingdom on Wednesday charged 11 individuals with running an international cybercrime syndicate that laundered millions of dollars stolen from consumers and businesses with the help of the help of the ultra-sophisticated ZeuS banking Trojan.

Yevhen Kulibaba

The gang is believed to be responsible for stealing more than $30 million from banks worldwide between October 2009 and September 28, 2010, and roughly £6 million (US$9.5 million) from financial institutions in the United Kingdom over a three-month period.

Karina Kostromina, in undated photo.

According to sources close to the case, members of the group also were heavily involved in online banking thefts perpetrated against dozens of small businesses and organizations based in the United States. Eight gang members were charged with money laundering, and 10 were charged with conspiracy to defraud. Police arrested 20 people in a pre-dawn raid on Tuesday; nine were bailed on Wednesday. The Metropolitan Police’s Central e-Crime Unit said those individuals may face charges at a later date. Those charged were due to appear in Westminster Magistrates’ Court court early this morning.

The individuals arrested in the U.K. are thought to be a subset of a global cybercrime operation. The Wall Street Journal now reports that the U.S. Attorney’s office in Manhattan is preparing to announce that 60 people have been charged in connection with a major ZeuS crime ring.

Sources say the ringleader of the U.K. gang, 32-year-old Ukrainian property developer Yevhen Kulibaba (pictured above right), shuttled some of the stolen funds from the U.K. to Ukraine and to Latvia, where he has been building a home with his wife. Information obtained by KrebsOnSecurity indicates that Kulibaba’s wife may be Karina Kostromina (pictured above left), a 33-year-old Latvian woman who was among those charged with money laundering and conspiracy in connection with this case. The U.K. Metropolitan Police declined to confirm or deny whether Kulibaba and Kostromina were married, although their public statement puts the two in the same neighborhood – Nevada Heights, Chingford, Essex.

Yuriy Konovalenko

Kulibaba’s right-hand man, 28-year-old Yuriy Konovalenko — also of Nevada Heights — is described by the e-Crime Unit as a self-employed Web designer from Ukraine. Sources say Konovalenko was chiefly responsible for managing a large number of “money mules,” people hired to withdraw, carry or transmit cash stolen by the gang. A review of Konovalenko’s social networking site identities suggests he is a blood relative of Kulibaba’s, but U.K. police declined to confirm or deny this information.

Also charged with conspiracy and stealing money from online bank accounts is Milka Valerij (pictured below), a 29-year-old Ukrainian whom U.K. police say was a building laborer.

Milka Valerij

The oldest alleged member of the group — 34 year-old Georgian Zurab Revazishvili — is facing violations of the U.K. Identity Cards Act of 2005, which makes it a crime to possess false identity documents. The Metropolitan Police statement on the crimes doesn’t specify what Revazishvili’s role was, but sources say he may have been responsible for creating false identity documents for the gang’s money mules.

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19 Arrested in Multi-Million Dollar ZeuS Heists

September 29, 2010
18 Comments

Authorities in the United Kingdom on Tuesday arrested 19 individuals alleged to be connected to a massive fraud ring that has stolen tens of millions of dollars from hundreds of consumers and small to mid-sized businesses in the U.K. and the United States.

Members of the group — described as 15 men and 4 women between the ages of 23 and 47 — are thought to be part of a sophisticated, multinational computer crime operation that stole almost $10 million over a three month period and may have netted more than $30 million, according to an article in today’s  Daily Mail.

Investigators say the gang plundered bank accounts with the help of the ZeuS Trojan, which steals online banking credentials, and allows the thieves to connect back through the victim’s PC and Internet connection to initiate unauthorized transfers.

The Daily Mail story has some nice photos of those arrested, but the piece is otherwise light on details. According to several of my sources who have helped with or participated in the investigation that led to this week’s arrests, the group used ZeuS to steal online banking credentials from tens of thousands of victims, but it focused on extracting money from high-dollar accounts belonging to businesses.

Sources say the UK gang is part of a larger organization that is directly responsible for most of the e-banking heists that I have been writing about for the past 14 months. These attacks targeted bank accounts belonging to schools, libraries, towns, cities, law firms, and a broad range of small to mid-sized companies and nonprofit organizations.

In nearly every case, the gang initiated large batches of bogus payroll payments from victim businesses, sending the money in sub-$10,000 chunks to money mules, unwitting or willing individuals recruited through job search sites. The mules would then withdraw the funds in cash from their banks, and wire the loot – minus a small “commission” — to additional Eastern European mules recruited by the gang.

More to come. Stay tuned.

Fake LinkedIn Invite Leads to ZeuS Trojan

September 28, 2010
13 Comments

A major new malware spam campaign mimicking invites sent via business networking site LinkedIn.com leverages user trust and a kitchen sink of browser exploits in a bid to install the password-stealing ZeuS Trojan.

The spam campaign began Monday morning, according to security experts at networking giant Cisco Systems, and for a while the fake LinkedIn invitations accounted for as much as 24 percent of all spam. Recipients who click links in the message are taken to a Web page that reads, “Please Waiting, 4 seconds,” and then sent on to Google.com.

On the way to Google, however, the victim’s browser is silently passed through a site equipped with what appears to be the SEO Exploit Pack, a commercial crimeware kit that tries to exploit more than a dozen browser vulnerabilities in an attempt to install ZeuS.

This attack will no doubt fool a large number of people. Dan Tynan, a reporter for IT World, said he was tricked into clicking the link and possibly infecting his system.

It’s a good idea to avoid clicking social networking site invites that arrive by e-mail, especially if you don’t recognize the name of the person who’s inviting you. Instead, consider just browsing to the social networking site and handling any invites there. Also, this attack is a good reminder that it pays to stay up-to-date on the latest security patches.

What interests me most about this scam is that it shows that criminals wielding ZeuS are now using employment-oriented online services both to infect new PCs and to “cash out” these same victims, thanks to money mules recruited at job search sites like Monster.com and Careerbuilder.com.

I asked Cisco to supply more information about the domains used in this attack. Some of that information is included at the summary listed here (please take care with the domains on this list — they all should be considered hostile).

Spam Affiliate Program Spamit.com to Close

September 27, 2010
22 Comments

Spamit, a closely guarded affiliate program that for years has paid some of the world’s top spammers to promote counterfeit pharmacy Web sites, now says that it will close up shop at the end of September.

Spamit administrators blamed the impending closure on increased public attention to its program, which interacted with affiliates via several sites bearing the spamit brand, including spamit.com, spamit.biz, and spamdot.biz.

The program’s homepage was replaced with the following message (pictured above) a few days ago:

Because of the numerous negative events happened last year and the risen attention to our affiliate program we’ve decided to stop accepting the traffic from 1.10.2010 [Oct. 1, 2010]. We find the decision the most appropriate in this situation. It provides avoiding the sudden work stop which leads to the program collapse and not paying your profit.

In our case the whole profit will be paid normally. All possible frauds are excluded. Please transfer your traffic to other affiliate programs till 1.10.2010.

Thank you for your cooperation! We appreciate your trust very much!

Dmitry Samosseiko, senior manager of SophosLabs Canada, wrote last year in his excellent Partnerka paper (PDF) that Spamit affiliates are thought to responsible for managing some of the world’s most disruptive, infectious and sophisticated collections of hacked PCs or “botnets,” including Storm, Waledec and potentially Conficker.

A Canadian Pharmacy site advertised by Glavmed/Spamit

Spamit affiliates are best known for promoting the ubiquitous ‘Canadian Pharmacy’ Web sites, such as the one pictured to the left (zithmed.com). While at any given time there are thousands of these fly-by-night Canadian Pharmacy sites online selling prescription drugs without requiring a prescription, these pharmacies are about as Canadian as caviar: Experts say most of the drugs sent to buyers are made in and shipped from India and/or China.

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I’ll Take 2 MasterCards and a Visa, Please

September 22, 2010
93 Comments

When you’re shopping for stolen credit and debit cards online, there are so many choices these days. A glut of stolen data — combined with innovation and cutthroat competition among vendors — is conspiring to keep prices for stolen account numbers exceptionally low. Even so, many readers probably have no idea that their credit card information is worth only about $1.50 on the black market.

Don’t you just hate it, though, when online stores nickel and dime you to death? I started to get that chintzy vibe when I opened an account at rock3d.cc, one of many sites where one can buy stolen Visa, MasterCard, Discover and Amex card information. The purloined card numbers — no doubt lifted from PCs infected with data-stealing malware like the ZeuS Trojan — fetch $1.50 for U.S. accounts, and $4 (USD) for accounts belonging to U.K. residents.

And for a premium, you can obtain “fullz,” or the card data plus other useful information about cardholders, such as their date of birth, mother’s maiden name, etc.

The trouble is, the minute you seek to narrow your search using the built-in tools, the site starts adding all these extra convenience fees (sound familiar?). For example, if I wanted to buy a card stolen from anyone around the Washington, D.C. area, it would probably be from a resident of McLean, Va., which is more or less a tony place where there are plenty of well-to-do folk. Anyway, the site found me a card (a MasterCard) belonging to a McLean resident alright, but then the service wanted to tack on an extra $.60 just because I isolated my search by city and state — raising the cost in my shopping cart to $2.10! No way, Jose. Not this bargain shopper.

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Have you seen:

Virus Scanners for Virus Authors…The very first entry I posted at Krebs on Security, Virus Scanners for Virus Authors, introduced readers to two services that let virus writers upload their creations to see how well they are detected by numerous commercial anti-virus scanners. In this follow-up post, I take you inside of a pair of similar services that allow customers to periodically scan a malware sample and receive alerts via instant message or e-mail when a new anti-virus product begins to detect the submission as malicious.
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