Your Phone May Soon Replace Many of Your Passwords

May 7, 2022
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Apple, Google and Microsoft announced this week they will soon support an approach to authentication that avoids passwords altogether, and instead requires users to merely unlock their smartphones to sign in to websites or online services. Experts say the changes should help defeat many types of phishing attacks and ease the overall password burden on Internet users, but caution that a true passwordless future may still be years away for most websites.

Image: Blog.google

The tech giants are part of an industry-led effort to replace passwords, which are easily forgotten, frequently stolen by malware and phishing schemes, or leaked and sold online in the wake of corporate data breaches.

Apple, Google and Microsoft are some of the more active contributors to a passwordless sign-in standard crafted by the FIDO (“Fast Identity Online”) Alliance and the World Wide Web Consortium (W3C), groups that have been working with hundreds of tech companies over the past decade to develop a new login standard that works the same way across multiple browsers and operating systems.

According to the FIDO Alliance, users will be able to sign in to websites through the same action that they take multiple times each day to unlock their devices — including a device PIN, or a biometric such as a fingerprint or face scan.

“This new approach protects against phishing and sign-in will be radically more secure when compared to passwords and legacy multi-factor technologies such as one-time passcodes sent over SMS,” the alliance wrote on May 5.

Sampath Srinivas, director of security authentication at Google and president of the FIDO Alliance, said that under the new system your phone will store a FIDO credential called a “passkey” which is used to unlock your online account.

“The passkey makes signing in far more secure, as it’s based on public key cryptography and is only shown to your online account when you unlock your phone,” Srinivas wrote. “To sign into a website on your computer, you’ll just need your phone nearby and you’ll simply be prompted to unlock it for access. Once you’ve done this, you won’t need your phone again and you can sign in by just unlocking your computer.”

As ZDNet notes, Apple, Google and Microsoft already support these passwordless standards (e.g. “Sign in with Google”), but users need to sign in at every website to use the passwordless functionality. Under this new system, users will be able to automatically access their passkey on many of their devices — without having to re-enroll every account — and use their mobile device to sign into an app or website on a nearby device.

Johannes Ullrich, dean of research for the SANS Technology Institute, called the announcement “by far the most promising effort to solve the authentication challenge.”

“The most important part of this standard is that it will not require users to buy a new device, but instead they may use devices they already own and know how to use as authenticators,” Ullrich said.

Steve Bellovin, a computer science professor at Columbia University and an early internet researcher and pioneer, called the passwordless effort a “huge advance” in authentication, but said it will take a very long time for many websites to catch up.

Bellovin and others say one potentially tricky scenario in this new passwordless authentication scheme is what happens when someone loses their mobile device, or their phone breaks and they can’t recall their iCloud password.

“I worry about people who can’t afford an extra device, or can’t easily replace a broken or stolen device,” Bellovin said. “I worry about forgotten password recovery for cloud accounts.” Continue reading →

Russia to Rent Tech-Savvy Prisoners to Corporate IT?

May 2, 2022
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Image: Proxima Studios, via Shutterstock.

Faced with a brain drain of smart people fleeing the country following its invasion of Ukraine, the Russian Federation is floating a new strategy to address a worsening shortage of qualified information technology experts: Forcing tech-savvy people within the nation’s prison population to perform low-cost IT work for domestic companies.

Multiple Russian news outlets published stories on April 27 saying the Russian Federal Penitentiary Service had announced a plan to recruit IT specialists from Russian prisons to work remotely for domestic commercial companies.

Russians sentenced to forced labor will serve out their time at one of many correctional centers across dozens of Russian regions, usually at the center that is closest to their hometown. Alexander Khabarov, deputy head of Russia’s penitentiary service, said his agency had received proposals from businessmen in different regions to involve IT specialists serving sentences in correctional centers to work remotely for commercial companies.

Khabarov told Russian media outlets that under the proposal people with IT skills at these facilities would labor only in IT-related roles, but would not be limited to working with companies in their own region.

“We are approached with this initiative in a number of territories, in a number of subjects by entrepreneurs who work in this area,” Khabarov told Russian state media organization TASS. “We are only at the initial stage. If this is in demand, and this is most likely in demand, we think that we will not force specialists in this field to work in some other industries.”

According to Russian media site Lenta.ru, since March 21 nearly 95,000 vacancies in IT have remained unfilled in Russia. Lenta says the number unfilled job slots actually shrank 25 percent from the previous month, officially because “many Russian companies are currently reviewing their plans and budgets, and some projects have been postponed.” The story fails to even mention the recent economic sanctions that are currently affecting many Russian companies thanks to Russia’s invasion of Ukraine in late February. Continue reading →

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You Can Now Ask Google to Remove Your Phone Number, Email or Address from Search Results

April 29, 2022
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Google said this week it is expanding the types of data people can ask to have removed from search results, to include personal contact information like your phone number, email address or physical address. The move comes just months after Google rolled out a new policy enabling people under the age of 18 (or a parent/guardian) to request removal of their images from Google search results.

Google has for years accepted requests to remove certain sensitive data such as bank account or credit card numbers from search results. In a blog post on Wednesday, Google’s Michelle Chang wrote that the company’s expanded policy now allows for the removal of additional information that may pose a risk for identity theft, such as confidential log-in credentials, email addresses and phone numbers when it appears in Search results.

“When we receive removal requests, we will evaluate all content on the web page to ensure that we’re not limiting the availability of other information that is broadly useful, for instance in news articles,” Chang wrote. “We’ll also evaluate if the content appears as part of the public record on the sites of government or official sources. In such cases, we won’t make removals.”

While Google’s removal of a search result from its index will do nothing to remove the offending content from the site that is hosting it, getting a link decoupled from Google search results is going to make the content at that link far less visible. According to recent estimates, Google enjoys somewhere near 90 percent market share in search engine usage.

KrebsOnSecurity decided to test this expanded policy with what would appear to be a no-brainer request: I asked Google to remove search result for BriansClub, one of the largest (if not THE largest) cybercrime stores for selling stolen payment card data.

BriansClub has long abused my name and likeness to pimp its wares on the hacking forums. Its homepage includes a copy of my credit report, Social Security card, phone bill, and a fake but otherwise official looking government ID card. Continue reading →

Fighting Fake EDRs With ‘Credit Ratings’ for Police

April 27, 2022
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When KrebsOnSecurity recently explored how cybercriminals were using hacked email accounts at police departments worldwide to obtain warrantless Emergency Data Requests (EDRs) from social media firms and technology providers, many security experts called it a fundamentally unfixable problem. But don’t tell that to Matt Donahue, a former FBI agent who recently quit the agency to launch a startup that aims to help tech companies do a better job screening out phony law enforcement data requests — in part by assigning trustworthiness or “credit ratings” to law enforcement authorities worldwide.

A sample Kodex dashboard. Image: Kodex.us.

Donahue is co-founder of Kodex, a company formed in February 2021 that builds security portals designed to help tech companies “manage information requests from government agencies who contact them, and to securely transfer data & collaborate against abuses on their platform.”

The 30-year-old Donahue said he left the FBI in April 2020 to start Kodex because it was clear that social media and technology companies needed help validating the increasingly large number of law enforcement requests domestically and internationally.

“So much of this is such an antiquated, manual process,” Donahue said of his perspective gained at the FBI. “In a lot of cases we’re still sending faxes when more secure and expedient technologies exist.”

Donahue said when he brought the subject up with his superiors at the FBI, they would kind of shrug it off, as if to say, “This is how it’s done and there’s no changing it.”

“My bosses told me I was committing career suicide doing this, but I genuinely believe fixing this process will do more for national security than a 20-year career at the FBI,” he said. “This is such a bigger problem than people give it credit for, and that’s why I left the bureau to start this company.”

One of the stated goals of Kodex is to build a scoring or reputation system for law enforcement personnel who make these data requests. After all, there are tens of thousands of police jurisdictions around the world — including roughly 18,000 in the United States alone — and all it takes for hackers to abuse the EDR process is illicit access to a single police email account.

Kodex is trying to tackle the problem of fake EDRs by working directly with the data providers to pool information about police or government officials submitting these requests, and hopefully making it easier for all customers to spot an unauthorized EDR.

Kodex’s first big client was cryptocurrency giant Coinbase, which confirmed their partnership but otherwise declined to comment for this story. Twilio confirmed it uses Kodex’s technology for law enforcement requests destined for any of its business units, but likewise declined to comment further.

Within their own separate Kodex portals, Twilio can’t see requests submitted to Coinbase, or vice versa. But each can see if a law enforcement entity or individual tied to one of their own requests has ever submitted a request to a different Kodex client, and then drill down further into other data about the submitter, such as Internet address(es) used, and the age of the requestor’s email address.

Donahue said in Kodex’s system, each law enforcement entity is assigned a credit rating, wherein officials who have a long history of sending valid legal requests will have a higher rating than someone sending an EDR for the first time.

“In those cases, we warn the customer with a flash on the request when it pops up that we’re allowing this to come through because the email was verified [as being sent from a valid police or government domain name], but we’re trying to verify the emergency situation for you, and we will change that rating once we get new information about the emergency,” Donahue said.

“This way, even if one customer gets a fake request, we’re able to prevent it from happening to someone else,” he continued. “In a lot of cases with fake EDRs, you can see the same email [address] being used to message different companies for data. And that’s the problem: So many companies are operating in their own silos and are not able to share information about what they’re seeing, which is why we’re seeing scammers exploit this good faith process of EDRs.”

NEEDLES IN THE HAYSTACK

As social media and technology platforms have grown over the years, so have the volumes of requests from law enforcement agencies worldwide for user data. For example, in its latest transparency report mobile giant Verizon reported receiving 114,000 data requests of all types from U.S. law enforcement entities in the second half of 2021.

Verizon said approximately 35,000 of those requests (~30 percent) were EDRs, and that it provided data in roughly 91 percent of those cases. The company doesn’t disclose how many EDRs came from foreign law enforcement entities during that same time period. Verizon currently asks law enforcement officials to send these requests via fax.

Validating legal requests by domain name may be fine for data demands that include documents like subpoenas and search warrants, which can be validated with the courts. But not so for EDRs, which largely bypass any official review and do not require the requestor to submit any court-approved documents.

Police and government authorities can legitimately request EDRs to learn the whereabouts or identities of people who have posted online about plans to harm themselves or others, or in other exigent circumstances such as a child abduction or abuse, or a potential terrorist attack.

But as KrebsOnSecurity reported in March, it is now clear that crooks have figured out there is no quick and easy way for a company that receives one of these EDRs to know whether it is legitimate. Using illicit access to hacked police email accounts, the attackers will send a fake EDR along with an attestation that innocent people will likely suffer greatly or die unless the requested data is provided immediately.

In this scenario, the receiving company finds itself caught between two unsavory outcomes: Failing to immediately comply with an EDR — and potentially having someone’s blood on their hands — or possibly leaking a customer record to the wrong person. That might explain why the compliance rate for EDRs is usually quite high — often upwards of 90 percent.

Fake EDRs have become such a reliable method in the cybercrime underground for obtaining information about account holders that several cybercriminals have started offering services that will submit these fraudulent EDRs on behalf of paying clients to a number of top social media and technology firms. Continue reading →

Leaked Chats Show LAPSUS$ Stole T-Mobile Source Code

April 22, 2022
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KrebsOnSecurity recently reviewed a copy of the private chat messages between members of the LAPSUS$ cybercrime group in the week leading up to the arrest of its most active members last month. The logs show LAPSUS$ breached T-Mobile multiple times in March, stealing source code for a range of company projects. T-Mobile says no customer or government information was stolen in the intrusion.

LAPSUS$ is known for stealing data and then demanding a ransom not to publish or sell it. But the leaked chats indicate this mercenary activity was of little interest to the tyrannical teenage leader of LAPSUS$, whose obsession with stealing and leaking proprietary computer source code from the world’s largest tech companies ultimately led to the group’s undoing.

From its inception in December 2021 until its implosion late last month, LAPSUS$ operated openly on its Telegram chat channel, which quickly grew to more than 40,000 followers after the group started using it to leak huge volumes of sensitive data stolen from victim corporations.

But LAPSUS$ also used private Telegram channels that were restricted to the core seven members of the group. KrebsOnSecurity recently received a week’s worth of these private conversations between LAPSUS$ members as they plotted their final attacks late last month.

The candid conversations show LAPSUS$ frequently obtained the initial access to targeted organizations by purchasing it from sites like Russian Market, which sell access to remotely compromised systems, as well as any credentials stored on those systems.

The logs indicate LAPSUS$ had exactly zero problems buying, stealing or sweet-talking their way into employee accounts at companies they wanted to hack. The bigger challenge for LAPSUS$ was the subject mentioned by “Lapsus Jobs” in the screenshot above: Device enrollment. In most cases, this involved social engineering employees at the targeted firm into adding one of their computers or mobiles to the list of devices allowed to authenticate with the company’s virtual private network (VPN).

The messages show LAPSUS$ members continuously targeted T-Mobile employees, whose access to internal company tools could give them everything they needed to conduct hassle-free “SIM swaps” — reassigning a target’s mobile phone number to a device they controlled. These unauthorized sim swaps allow an attacker to intercept a target’s text messages and phone calls, including any links sent via SMS for password resets, or one-time codes sent for multi-factor authentication.

The LAPSUS$ group had a laugh at this screenshot posted by their leader, White, which shows him reading a T-Mobile news alert about their hack into Samsung. White is viewing the page via a T-Mobile employee’s virtual machine.

In one chat, the LAPSUS$ leader — a 17-year-old from the U.K. who goes by the nicknames “White,” “WhiteDoxbin” and “Oklaqq” — is sharing his screen with another LAPSUS$ member who used the handles “Amtrak” and “Asyntax.”

The two were exploring T-Mobile’s internal systems, and Amtrak asked White to obscure the T-Mobile logo on his screen. In these chats, the user “Lapsus Jobs” is White. Amtrak explains this odd request by saying their parents are aware Amtrak was previously involved in SIM swapping.

“Parents know I simswap,” Amtrak said. “So, if they see [that] they think I’m hacking.”

The messages reveal that each time LAPSUS$ was cut off from a T-Mobile employee’s account — either because the employee tried to log in or change their password — they would just find or buy another set of T-Mobile VPN credentials. T-Mobile currently has approximately 75,000 employees worldwide.

On March 19, 2022, the logs and accompanying screenshots show LAPSUS$ had gained access to Atlas, a powerful internal T-Mobile tool for managing customer accounts.

LAPSUS$ leader White/Lapsus Jobs looking up the Department of Defense in T-Mobile’s internal Atlas system.

After gaining access to Atlas, White proceeded to look up T-Mobile accounts associated with the FBI and Department of Defense (see image above). Fortunately, those accounts were listed as requiring additional verification procedures before any changes could be processed.

Faced with increasingly vocal pleadings from other LAPSUS$ members not to burn their access to Atlas and other tools by trying to SIM swap government accounts, White unilaterally decided to terminate the VPN connection permitting access to T-Mobile’s network.

The other LAPSUS$ members desperately wanted to SIM swap some wealthy targets for money. Amtrak throws a fit, saying “I worked really hard for this!” White calls the Atlas access trash and then kills the VPN connection anyway, saying he wanted to focus on using their illicit T-Mobile access to steal source code.

A screenshot taken by LAPSUS$ inside T-Mobile’s source code repository at Bitbucket.

Perhaps to mollify his furious teammates, White changed the subject and told them he’d gained access to T-Mobile’s Slack and Bitbucket accounts. He said he’d figured out how to upload files to the virtual machine he had access to at T-Mobile. Continue reading →

Conti’s Ransomware Toll on the Healthcare Industry

April 18, 2022
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Conti — one of the most ruthless and successful Russian ransomware groups — publicly declared during the height of the COVID-19 pandemic that it would refrain from targeting healthcare providers. But new information confirms this pledge was always a lie, and that Conti has launched more than 200 attacks against hospitals and other healthcare facilities since first surfacing in 2018 under its earlier name, “Ryuk.”

On April 13, Microsoft said it executed a legal sneak attack against Zloader, a remote access trojan and malware platform that multiple ransomware groups have used to deploy their malware inside victim networks. More specifically, Microsoft obtained a court order that allowed it to seize 65 domain names that were used to maintain the Zloader botnet.

Microsoft’s civil lawsuit against Zloader names seven “John Does,” essentially seeking information to identify cybercriminals who used Zloader to conduct ransomware attacks. As the company’s complaint notes, some of these John Does were associated with lesser ransomware collectives such as Egregor and Netfilim.

But according to Microsoft and an advisory from the U.S. Cybersecurity & Infrastructure Security Agency (CISA), Zloader had a special relationship with Ryuk/Conti, acting as a preferred distribution platform for deploying Ryuk/Conti ransomware.

Several parties backed Microsoft in its legal efforts against Zloader by filing supporting declarations, including Errol Weiss, a former penetration tester for the U.S. National Security Agency (NSA). Weiss now serves as the chief security officer of the Health Information Sharing & Analysis Center (H-ISAC), an industry group that shares information about cyberattacks against healthcare providers.

Weiss said ransomware attacks from Ryuk/Conti have impacted hundreds of healthcare facilities across the United States, including facilities located in 192 cities and 41 states and the District of Columbia.

“The attacks resulted in the temporary or permanent loss of IT systems that support many of the provider delivery functions in modern hospitals resulting in cancelled surgeries and delayed medical care,” Weiss said in a declaration (PDF) with the U.S. District Court for the Northern District of Georgia.

“Hospitals reported revenue losses due to Ryuk infections of nearly $100 million from data I obtained through interviews with hospital staff, public statements, and media articles,” Weiss wrote. “The Ryuk attacks also caused an estimated $500 million in costs to respond to the attacks – costs that include ransomware payments, digital forensic services, security improvements and upgrading impacted systems plus other expenses.” Continue reading →

Microsoft Patch Tuesday, April 2022 Edition

April 13, 2022
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Microsoft on Tuesday released updates to fix roughly 120 security vulnerabilities in its Windows operating systems and other software. Two of the flaws have been publicly detailed prior to this week, and one is already seeing active exploitation, according to a report from the U.S. National Security Agency (NSA).

Of particular concern this month is CVE-2022-24521, which is a “privilege escalation” vulnerability in the Windows common log file system driver. In its advisory, Microsoft said it received a report from the NSA that the flaw is under active attack.

“It’s not stated how widely the exploit is being used in the wild, but it’s likely still targeted at this point and not broadly available,” assessed Dustin Childs with Trend Micro’s Zero Day Initiative. “Go patch your systems before that situation changes.”

Nine of the updates pushed this week address problems Microsoft considers “critical,” meaning the flaws they fix could be abused by malware or malcontents to seize total, remote access to a Windows system without any help from the user.

Among the scariest critical bugs is CVE-2022-26809, a potentially “wormable” weakness in a core Windows component (RPC) that earned a CVSS score of 9.8 (10 being the worst). Microsoft said it believes exploitation of this flaw is more likely than not.

Other potentially wormable threats this month include CVE-2022-24491 and CVE-2022-24497, Windows Network File System (NFS) vulnerabilities that also clock in at 9.8 CVSS scores and are listed as “exploitation more likely by Microsoft.”

“These could be the kind of vulnerabilities which appeal to ransomware operators as they provide the potential to expose critical data,” said Kevin Breen, director of cyber threat research at Immersive Labs. “It is also important for security teams to note that NFS Role is not a default configuration for Windows devices.” Continue reading →

RaidForums Gets Raided, Alleged Admin Arrested

April 12, 2022
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The U.S. Department of Justice (DOJ) said today it seized the website and user database for RaidForums, an extremely popular English-language cybercrime forum that sold access to more than 10 billion consumer records stolen in some of the world’s largest data breaches since 2015. The DOJ also charged the alleged administrator of RaidForums — 21-year-old Diogo Santos Coelho, of Portugal — with six criminal counts, including conspiracy, access device fraud and aggravated identity theft.

The “raid” in RaidForums is a nod to the community’s humble beginnings in 2015, when it was primarily an online venue for organizing and supporting various forms of electronic harassment. According to the DOJ, that early activity included ‘raiding‘ — posting or sending an overwhelming volume of contact to a victim’s online communications medium — and ‘swatting,’ the practice of making false reports to public safety agencies of situations that would necessitate a significant, and immediate armed law enforcement response.”

But over the years as trading in hacked databases became big business, RaidForums emerged as the go-to place for English-speaking hackers to peddle their wares. Perhaps the most bustling marketplace within RaidForums was its “Leaks Market,” which described itself as a place to buy, sell, and trade hacked databases and leaks.

The government alleges Coelho and his forum administrator identity “Omnipotent” profited from the illicit activity on the platform by charging “escalating prices for membership tiers that offered greater access and features, including a top-tier ‘God’ membership status.”

“RaidForums also sold ‘credits’ that provided members access to privileged areas of the website and enabled members to ‘unlock’ and download stolen financial information, means of identification, and data from compromised databases, among other items,” the DOJ said in a written statement. “Members could also earn credits through other means, such as by posting instructions on how to commit certain illegal acts.”

Prosecutors say Coelho also personally sold stolen data on the platform, and that Omnipotent directly facilitated illicit transactions by operating a fee-based “Official Middleman” service, a kind of escrow or insurance service that denizens of RaidForums were encouraged to use when transacting with other criminals.

Investigators described multiple instances wherein undercover federal agents or confidential informants used Omnipotent’s escrow service to purchase huge tranches of data from one of Coelho’s alternate user  identities — meaning Coelho not only sold data he’d personally hacked but also further profited by insisting the transactions were handled through his own middleman service.

Not all of those undercover buys went as planned. One incident described in an affidavit by prosecutors (PDF) appears related to the sale of tens of millions of consumer records stolen last year from T-Mobile, although the government refers to the victim only as a major telecommunications company and wireless network operator in the United States.

On Aug. 11, 2021, an individual using the moniker “SubVirt” posted on RaidForums an offer to sell Social Security numbers, dates of birth and other records on more than 120 million people in the United States (SubVirt would later edit the sales thread to say 30 million records). Just days later, T-Mobile would acknowledge a data breach affecting 40 million current, former or prospective customers who applied for credit with the company.

The government says the victim firm hired a third-party to purchase the database and prevent it from being sold to cybercriminals. That third-party ultimately paid approximately $200,000 worth of bitcoin to the seller, with the agreement that the data would be destroyed after sale. “However, it appears the co-conspirators continued to attempt to sell the databases after the third-party’s purchase,” the affidavit alleges.

The FBI’s seizure of RaidForums was first reported by KrebsOnSecurity on Mar. 23, after a federal investigator confirmed rumors that the FBI had been secretly operating the RaidForums website for weeks. Continue reading →

Double-Your-Crypto Scams Share Crypto Scam Host

April 11, 2022
57 Comments

Online scams that try to separate the unwary from their cryptocurrency are a dime a dozen, but a great many seemingly disparate crypto scam websites tend to rely on the same dodgy infrastructure providers to remain online in the face of massive fraud and abuse complaints from their erstwhile customers. Here’s a closer look at hundreds of phony crypto investment schemes that are all connected through a hosting provider which caters to people running crypto scams.

A security researcher recently shared with KrebsOnSecurity an email he received from someone who said they foolishly invested an entire bitcoin (currently worth ~USD $43,000) at a website called ark-x2[.]org, which promised to double any cryptocurrency investment made with the site.

The ark-x2[.]org site pretended to be a crypto giveaway website run by Cathie Wood, the founder and CEO of ARKinvest, an established Florida company that manages several exchange-traded investment funds. This is hardly the first time scammers have impersonated Wood or ARKinvest; a tweet from Wood in 2020 warned that the company would never use YouTube, Twitter, Instagram or any social media to solicit money.

At the crux of these scams are well-orchestrated video productions published on YouTube and Facebook that claim to be a “live event” featuring famous billionaires. In reality, these videos just rehash older footage while peppering viewers with prompts to sign up at a scam investment site — one they claim has been endorsed by the celebrities.

“I was watching a live video at YouTube where Elon Musk, Cathy Wood, and Jack Dorsey were talking about Crypto,” the victim told my security researcher friend. “An overlay on the video pointed to subscribing to the event at their website. I’ve been following Cathy Wood in her analysis on financial markets, so I was in a comfortable and trusted environment. The three of them are bitcoin maximalists in a sense, so it made perfect sense they were organizing a giveaway.”

“Without any doubt (other than whether the transfer would go through), I sent them 1 BTC (~$42,800), and they were supposed to return 2 BTC back,” the victim continued. “In hindsight, this was an obvious scam. But the live video and the ARK Invest website is what produced the trusted environment to me. I realized a few minutes later, when the live video looped. It wasn’t actually live, but a replay of a video from 6 months ago.”

Ark-x2[.]org is no longer online. But a look at the Internet address historically tied to this domain (186.2.171.79) shows the same address is used to host or park hundreds of other newly-minted crypto scam domains, including coinbase-x2[.]net (pictured below).

The crypto scam site coinbase-x2[.]net, which snares unwary investors with promises of free money.

Typical of crypto scam sites, Coinbase-x2 promises a chance to win 50,000 ETH (Ethereum virtual currency), plus a “welcome bonus” wherein they promise to double any crypto investment made with the platform. But everyone who falls for this greed trap soon discovers they won’t be getting anything in return, and that their “investment” is gone forever.

There isn’t a lot of information about who bought these crypto scam domains, as most of them were registered in the past month at registrars that automatically redact the site’s WHOIS ownership records.

However, several dozen of the domains are in the .us domain space, which is technically supposed to be reserved for entities physically based in the United States. Those Dot-us domains all contain the registrant name Sergei Orlovets from Moscow, the email address ulaninkirill52@gmail.com, and the phone number +7.9914500893. Unfortunately, each of these clues lead to a dead end, meaning they were likely picked and used solely for these scam sites.

A dig into the Domain Name Server (DNS) records for Coinbase-x2[.]net shows it is hosted at a service called Cryptohost[.]to. Cryptohost also controls several other address ranges, including 194.31.98.X, which is currently home to even more crypto scam websites, many targeting lesser-known cryptocurrencies like Polkadot.

An ad posted to the Russian-language hacking forum BHF last month touted Cryptohost as a “bulletproof hosting provider for all your projects,” i.e., it can be relied upon to ignore abuse complaints about its customers.

“Why choose us? We don’t keep your logs!,” someone claiming to represent Cryptohost wrote to denizens of BHF.

Cryptohost says its service is backstopped by DDoS-Guard, a Russian company that has featured here recently for providing services to the sanctioned terrorist group Hamas and to the conspiracy theory groups QAnon/8chan.

A scam site at Cryptohost targeting Polkadot cryptocurrency holders.

Cryptohost did not respond to requests for comment. Continue reading →

Actions Target Russian Govt. Botnet, Hydra Dark Market

April 7, 2022
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The U.S. Federal Bureau of Investigation (FBI) says it has disrupted a giant botnet built and operated by a Russian government intelligence unit known for launching destructive cyberattacks against energy infrastructure in the United States and Ukraine. Separately, law enforcement agencies in the U.S. and Germany moved to decapitate “Hydra,” a billion-dollar Russian darknet drug bazaar that also helped to launder the profits of multiple Russian ransomware groups.

FBI officials said Wednesday they disrupted “Cyclops Blink,” a collection of compromised networking devices managed by hackers working with the Russian Federation’s Main Intelligence Directorate (GRU).

A statement from the U.S. Department of Justice (DOJ) says the GRU’s hackers built Cyclops Blink by exploiting previously undocumented security weaknesses in firewalls and routers made by both ASUS and WatchGuard Technologies. The DOJ said it did not seek to disinfect compromised devices; instead, it obtained court orders to remove the Cyclops Blink malware from its “command and control” servers — the hidden machines that allowed the attackers to orchestrate the activities of the botnet.

The FBI and other agencies warned in March that the Cyclops Blink malware was built to replace a threat called “VPNFilter,” an earlier malware platform that targeted vulnerabilities in a number of consumer-grade wireless and wired routers. In May 2018, the FBI executed a similar strategy to dismantle VPNFilter, which had spread to more than a half-million consumer devices.

On April 1, ASUS released updates to fix the security vulnerability in a range of its Wi-Fi routers. Meanwhile, WatchGuard appears to have silently fixed its vulnerability in an update shipped almost a year ago, according to Dan Goodin at Ars Technica. Continue reading →