How Coinbase Phishers Steal One-Time Passwords

October 13, 2021
30 Comments

A recent phishing campaign targeting Coinbase users shows thieves are getting smarter about phishing one-time passwords (OTPs) needed to complete the login process. It also shows that phishers are attempting to sign up for new Coinbase accounts by the millions as part of an effort to identify email addresses that are already associated with active accounts.

A Google-translated version of the now-defunct Coinbase phishing site, coinbase.com.password-reset[.]com

Coinbase is the world’s second-largest cryptocurrency exchange, with roughly 68 million users from over 100 countries. The now-defunct phishing domain at issue — coinbase.com.password-reset[.]com — was targeting Italian Coinbase users (the site’s default language was Italian). And it was fairly successful, according to Alex Holden, founder of Milwaukee-based cybersecurity firm Hold Security.

Holden’s team managed to peer inside some poorly hidden file directories associated with that phishing site, including its administration page. That panel, pictured in the redacted screenshot below, indicated the phishing attacks netted at least 870 sets of credentials before the site was taken offline.

The Coinbase phishing panel.

Holden said each time a new victim submitted credentials at the Coinbase phishing site, the administrative panel would make a loud “ding” — presumably to alert whoever was at the keyboard on the other end of this phishing scam that they had a live one on the hook.

In each case, the phishers manually would push a button that caused the phishing site to ask visitors for more information, such as the one-time password from their mobile app.

“These guys have real-time capabilities of soliciting any input from the victim they need to get into their Coinbase account,” Holden said.

Pressing the “Send Info” button prompted visitors to supply additional personal information, including their name, date of birth, and street address. Armed with the target’s mobile number, they could also click “Send verification SMS” with a text message prompting them to text back a one-time code.

SIFTING COINBASE FOR ACTIVE USERS

Holden said the phishing group appears to have identified Italian Coinbase users by attempting to sign up new accounts under the email addresses of more than 2.5 million Italians. His team also managed to recover the username and password data that victims submitted to the site, and virtually all of the submitted email addresses ended in “.it”.

But the phishers in this case likely weren’t interested in registering any accounts. Rather, the bad guys understood that any attempts to sign up using an email address tied to an existing Coinbase account would fail. After doing that several million times, the phishers would then take the email addresses that failed new account signups and target them with Coinbase-themed phishing emails.

Holden’s data shows this phishing gang conducted hundreds of thousands of halfhearted account signup attempts daily. For example, on Oct. 10 the scammers checked more than 216,000 email addresses against Coinbase’s systems. The following day, they attempted to register 174,000 new Coinbase accounts. Continue reading →

Patch Tuesday, October 2021 Edition

October 12, 2021
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Microsoft today issued updates to plug more than 70 security holes in its Windows operating systems and other software, including one vulnerability that is already being exploited. This month’s Patch Tuesday also includes security fixes for the newly released Windows 11 operating system. Separately, Apple has released updates for iOS and iPadOS to address a flaw that is being actively attacked.

Firstly, Apple has released iOS 15.0.2 and iPadOS 15.0.2 to fix a zero-day vulnerability (CVE-2021-30883) that is being leveraged in active attacks targeting iPhone and iPad users. Lawrence Abrams of Bleeping Computer writes that the flaw could be used to steal data or install malware, and that soon after Apple patched the bug security researcher Saar Amar published a technical writeup and proof-of-concept exploit derived from reverse engineering Apple’s patch.

Abrams said the list of impacted Apple devices is quite extensive, affecting older and newer models. If you own an iPad or iPhone — or any other Apple device — please make sure it’s up to date with the latest security patches.

Three of the weaknesses Microsoft addressed today tackle vulnerabilities rated “critical,” meaning that malware or miscreants could exploit them to gain complete, remote control over vulnerable systems — with little or no help from targets.

One of the critical bugs concerns Microsoft Word, and two others are remote code execution flaws in Windows Hyper-V, the virtualization component built into Windows. CVE-2021-38672 affects Windows 11 and Windows Server 2022; CVE-2021-40461 impacts both Windows 11 and Windows 10 systems, as well as Server versions.

But as usual, some of the more concerning security weaknesses addressed this month earned Microsoft’s slightly less dire “important” designation, which applies to a vulnerability “whose exploitation could result in compromise of the confidentiality, integrity, or availability of user data, or of the integrity or availability of processing resources.”

The flaw that’s under active assault — CVE-2021-40449 — is an important “elevation of privilege” vulnerability, meaning it can be leveraged in combination with another vulnerability to let attackers run code of their choice as administrator on a vulnerable system.

CVE-2021-36970 is an important spoofing vulnerability in Microsoft’s Windows Print Spooler. The flaw was discovered by the same researchers credited with the discovery of one of two vulnerabilities that became known as PrintNightmare — the widespread exploitation of a critical Print Spooler flaw that forced Microsoft to issue an emergency security update back in July. Microsoft assesses CVE-2021-36970 as “exploitation more likely.”

“While no details have been shared publicly about the flaw, this is definitely one to watch for, as we saw a constant stream of Print Spooler-related vulnerabilities patched over the summer while ransomware groups began incorporating PrintNightmare into their affiliate playbook,” said Satnam Narang, staff research engineer at Tenable. “We strongly encourage organizations to apply these patches as soon as possible.” Continue reading →

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What Happened to Facebook, Instagram, & WhatsApp?

October 4, 2021
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Facebook and its sister properties Instagram and WhatsApp are suffering from ongoing, global outages. We don’t yet know why this happened, but the how is clear: Earlier this morning, something inside Facebook caused the company to revoke key digital records that tell computers and other Internet-enabled devices how to find these destinations online.

Kentik’s view of the Facebook, Instagram and WhatsApp outage.

Doug Madory is director of internet analysis at Kentik, a San Francisco-based network monitoring company. Madory said at approximately 11:39 a.m. ET today (15:39 UTC), someone at Facebook caused an update to be made to the company’s Border Gateway Protocol (BGP) records. BGP is a mechanism by which Internet service providers of the world share information about which providers are responsible for routing Internet traffic to which specific groups of Internet addresses.

In simpler terms, sometime this morning Facebook took away the map telling the world’s computers how to find its various online properties. As a result, when one types Facebook.com into a web browser, the browser has no idea where to find Facebook.com, and so returns an error page.

In addition to stranding billions of users, the Facebook outage also has stranded its employees from communicating with one another using their internal Facebook tools. That’s because Facebook’s email and tools are all managed in house and via the same domains that are now stranded.

“Not only are Facebook’s services and apps down for the public, its internal tools and communications platforms, including Workplace, are out as well,” New York Times tech reporter Ryan Mac tweeted. “No one can do any work. Several people I’ve talked to said this is the equivalent of a ‘snow day’ at the company.”

The outages come just hours after CBS’s 60 Minutes aired a much-anticipated interview with Frances Haugen, the Facebook whistleblower who recently leaked a number of internal Facebook investigations showing the company knew its products were causing mass harm, and that it prioritized profits over taking bolder steps to curtail abuse on its platform — including disinformation and hate speech.

We don’t know how or why the outages persist at Facebook and its other properties, but the changes had to have come from inside the company, as Facebook manages those records internally. Whether the changes were made maliciously or by accident is anyone’s guess at this point.

Madory said it could be that someone at Facebook just screwed up.

“In the past year or so, we’ve seen a lot of these big outages where they had some sort of update to their global network configuration that went awry,” Madory said. “We obviously can’t rule out someone hacking them, but they also could have done this to themselves.”

Update, 4:37 p.m. ET: Sheera Frenkel with The New York Times tweeted that Facebook employees told her they were having trouble accessing Facebook buildings because their employee badges no longer worked. That could be one reason this outage has persisted so long: Facebook engineers may be having trouble physically accessing the computer servers needed to upload new BGP records to the global Internet.

Update, 6:16 p.m. ET: A trusted source who spoke with a person on the recovery effort at Facebook was told the outage was caused by a routine BGP update gone wrong. The source explained that the errant update blocked Facebook employees — the majority of whom are working remotely — from reverting the changes. Meanwhile, those with physical access to Facebook’s buildings couldn’t access Facebook’s internal tools because those were all tied to the company’s stranded domains.

Update, 7:46 p.m. ET: Facebook says its domains are slowly coming back online for most users. In a tweet, the company thanked users for their patience, but it still hasn’t offered any explanation for the outage.

Update, 8:05 p.m. ET: This fascinating thread on Hacker News delves into some of the not-so-obvious side effects of today’s outages: Many organizations saw network disruptions and slowness thanks to billions of devices constantly asking for the current coordinates of Facebook.com, Instagram.com and WhatsApp.com. Bill Woodcock, executive director of the Packet Clearing House, said his organization saw a 40 percent increase globally in wayward DNS traffic throughout the outage.

Update, 8:32 p.m. ET: Cloudflare has published a detailed and somewhat technical writeup on the BGP changes that caused today’s outage. Still no word from Facebook on what happened.

Update, 11:32 p.m. ET: Facebook published a blog post saying the outage was the result of a faulty configuration change:

“Our engineering teams have learned that configuration changes on the backbone routers that coordinate network traffic between our data centers caused issues that interrupted this communication,” Facebook’s Santosh Janardhan wrote. “This disruption to network traffic had a cascading effect on the way our data centers communicate, bringing our services to a halt.”

“We want to make clear at this time we believe the root cause of this outage was a faulty configuration change,” Janardhan continued. “We also have no evidence that user data was compromised as a result of this downtime.”

Several different domain registration companies today listed the domain Facebook.com as up for sale. This happened thanks to automated systems that look for registered domains which appear to be expired, abandoned or recently vacated. There was never any reason to believe Facebook.com would actually be sold as a result, but it’s fun to consider how many billions of dollars it could fetch on the open market.

This is a developing story and will likely be updated throughout the day.

FCC Proposal Targets SIM Swapping, Port-Out Fraud

October 1, 2021
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The U.S. Federal Communications Commission (FCC) is asking for feedback on new proposed rules to crack down on SIM swapping and number port-out fraud, increasingly prevalent scams in which identity thieves hijack a target’s mobile phone number and use that to wrest control over the victim’s online identity.

In a long-overdue notice issued Sept. 30, the FCC said it plans to move quickly on requiring the mobile companies to adopt more secure methods of authenticating customers before redirecting their phone number to a new device or carrier.

“We have received numerous complaints from consumers who have suffered significant distress, inconvenience, and financial harm as a result of SIM swapping and port-out fraud,” the FCC wrote. “Because of the serious harms associated with SIM swap fraud, we believe that a speedy implementation is appropriate.”

The FCC said the proposal was in response to a flood of complaints to the agency and the U.S. Federal Trade Commission (FTC) about fraudulent SIM swapping and number port-out fraud. SIM swapping happens when the fraudsters trick or bribe an employee at a mobile phone store into transferring control of a target’s phone number to a device they control.

From there, the attackers can reset the password for almost any online account tied to that mobile number, because most online services still allow people to reset their passwords simply by clicking a link sent via SMS to the phone number on file.

Scammers commit number port-out fraud by posing as the target and requesting that their number be transferred to a different mobile provider (and to a device the attackers control).

The FCC said the carriers have traditionally sought to address both forms of phone number fraud by requiring static data about the customer that is no longer secret and has been exposed in a variety of places already — such as date of birth and Social Security number. By way of example, the commission pointed to the recent breach at T-Mobile that exposed this data on 40 million current, past and prospective customers.

What’s more, victims of SIM swapping and number port-out fraud are often the last to know about their victimization. The FCC said it plans to prohibit wireless carriers from allowing a SIM swap unless the carrier uses a secure method of authenticating its customer. Specifically, the commission proposes that carriers be required to verify a “pre-established password” with customers before making any changes to their accounts.

According to the FCC, several examples of pre-established passwords include:

-a one-time passcode sent via text message to the account phone number or a pre-registered backup number
-a one-time passcode sent via email to the email address associated with the account
-a passcode sent using a voice call to the account phone number or pre-registered back-up telephone number.

The commission said it was also considering updating its rules to require wireless carriers to develop procedures for responding to failed authentication attempts and to notify customers immediately of any requests for SIM changes. Continue reading →

The Rise of One-Time Password Interception Bots

September 29, 2021
65 Comments

In February, KrebsOnSecurity wrote about a novel cybercrime service that helped attackers intercept the one-time passwords (OTPs) that many websites require as a second authentication factor in addition to passwords. That service quickly went offline, but new research reveals a number of competitors have since launched bot-based services that make it relatively easy for crooks to phish OTPs from targets.

An ad for the OTP interception service/bot “SMSRanger.”

Many websites now require users to supply both a password and a numeric code/OTP token sent via text message, or one generated by mobile apps like Authy and Google Authenticator. The idea is that even if the user’s password gets stolen, the attacker still can’t access the user’s account without that second factor — i.e. without access to the victim’s mobile device or phone number.

The OTP interception service featured earlier this year — Otp[.]agency — advertised a web-based bot designed to trick targets into giving up OTP tokens. This service (and all others mentioned in this story) assumes the customer already has the target’s login credentials through some means.

OTP Agency customers would enter a target’s phone number and name, and then the service would initiate an automated phone call that alerts that person about unauthorized activity on their account. The call would prompt the target to enter an OTP token generated by their phone’s mobile app (“for authentication purposes”), and that code would then get relayed back to the bad guy customers’ panel at the OTP Agency website.

OTP Agency took itself offline within hours of that story. But according to research from cyber intelligence firm Intel 471, multiple new OTP interception services have emerged to fill that void. And all of them operate via Telegram, a cloud-based instant messaging system.

“Intel 471 has seen an uptick in services on the cybercrime underground that allow attackers to intercept one-time password (OTP) tokens,” the company wrote in a blog post today. “Over the past few months, we’ve seen actors provide access to services that call victims, appear as a legitimate call from a specific bank and deceive victims into typing an OTP or other verification code into a mobile phone in order to capture and deliver the codes to the operator. Some services also target other popular social media platforms or financial services, providing email phishing and SIM swapping capabilities.”

Intel471 says one new Telegram OTP bot called “SMSRanger” is popular because it’s remarkably easy to use, and probably because of the many testimonials posted by customers who seem happy with its frequent rate of success in extracting OTP tokens when the attacker already has the target’s “fullz,” personal information such as Social Security number and date of birth. From their analysis:

“Those who pay for access can use the bot by entering commands similar to how bots are used on popular workforce collaboration tool Slack. A simple slash command allows a user to enable various ‘modes’ — scripts aimed as various services — that can target specific banks, as well as PayPal, Apple Pay, Google Pay, or a wireless carrier.

Once a target’s phone number has been entered, the bot does the rest of the work, ultimately granting access to whatever account has been targeted. Users claim that SMSRanger has an efficacy rate of about 80% if the victim answered the call and the full information (fullz) the user provided was accurate and updated.”

Another OTP interception service called SMS Buster requires a tad more effort from a customer, Intel 471 explains:

“The bot provides options to disguise a call to make it appear as a legitimate contact from a specific bank while letting the attackers choose to dial from any phone number. From there, an attacker could follow a script to trick a victim into providing sensitive details such as an ATM personal identification number (PIN), card verification value (CVV) and OTP, which could then be sent to an individual’s Telegram account. The bot, which was used by attackers targeting Canadian victims, gives users the chance to launch attacks in French and English.” 

These services are springing up because they work and they’re profitable. And they’re profitable because far too many websites and services funnel users toward multi-factor authentication methods that can be intercepted, spoofed, or misdirected — like SMS-based one-time codes, or even app-generated OTP tokens. Continue reading →

Apple AirTag Bug Enables ‘Good Samaritan’ Attack

September 28, 2021
29 Comments

The new $30 AirTag tracking device from Apple has a feature that allows anyone who finds one of these tiny location beacons to scan it with a mobile phone and discover its owner’s phone number if the AirTag has been set to lost mode. But according to new research, this same feature can be abused to redirect the Good Samaritan to an iCloud phishing page — or to any other malicious website.

The AirTag’s “Lost Mode” lets users alert Apple when an AirTag is missing. Setting it to Lost Mode generates a unique URL at https://found.apple.com, and allows the user to enter a personal message and contact phone number. Anyone who finds the AirTag and scans it with an Apple or Android phone will immediately see that unique Apple URL with the owner’s message.

When scanned, an AirTag in Lost Mode will present a short message asking the finder to call the owner at at their specified phone number. This information pops up without asking the finder to log in or provide any personal information. But your average Good Samaritan might not know this.

That’s important because Apple’s Lost Mode doesn’t currently stop users from injecting arbitrary computer code into its phone number field — such as code that causes the Good Samaritan’s device to visit a phony Apple iCloud login page.

A sample “Lost Mode” message. Image: Medium @bobbyrsec

The vulnerability was discovered and reported to Apple by Bobby Rauch, a security consultant and penetration tester based in Boston. Rauch told KrebsOnSecurity the AirTag weakness makes the devices cheap and possibly very effective physical trojan horses.

“I can’t remember another instance where these sort of small consumer-grade tracking devices at a low cost like this could be weaponized,” Rauch said.

Consider the scenario where an attacker drops a malware-laden USB flash drive in the parking lot of a company he wants to hack into. Odds are that sooner or later some employee is going to pick that sucker up and plug it into a computer — just to see what’s on it (the drive might even be labeled something tantalizing, like “Employee Salaries”).

If this sounds like a script from a James Bond movie, you’re not far off the mark. A USB stick with malware is very likely how U.S. and Israeli cyber hackers got the infamous Stuxnet worm into the internal, air-gapped network that powered Iran’s nuclear enrichment facilities a decade ago. In 2008, a cyber attack described at the time as “the worst breach of U.S. military computers in history” was traced back to a USB flash drive left in the parking lot of a U.S. Department of Defense facility.

In the modern telling of this caper, a weaponized AirTag tracking device could be used to redirect the Good Samaritan to a phishing page, or to a website that tries to foist malicious software onto her device.

Rauch contacted Apple about the bug on June 20, but for three months when he inquired about it the company would say only that it was still investigating. Last Thursday, the company sent Rauch a follow-up email stating they planned to address the weakness in an upcoming update, and in the meantime would he mind not talking about it publicly?

Rauch said Apple never acknowledged basic questions he asked about the bug, such as if they had a timeline for fixing it, and if so whether they planned to credit him in the accompanying security advisory. Or whether his submission would qualify for Apple’s “bug bounty” program, which promises financial rewards of up to $1 million for security researchers who report security bugs in Apple products.

Rauch said he’s reported many software vulnerabilities to other vendors over the years, and that Apple’s lack of communication prompted him to go public with his findings — even though Apple says staying quiet about a bug until it is fixed is how researchers qualify for recognition in security advisories.

“I told them, ‘I’m willing to work with you if you can provide some details of when you plan on remediating this, and whether there would be any recognition or bug bounty payout’,” Rauch said, noting that he told Apple he planned to publish his findings within 90 days of notifying them. “Their response was basically, ‘We’d appreciate it if you didn’t leak this.'”

Rauch’s experience echoes that of other researchers interviewed in a recent Washington Post article about how not fun it can be to report security vulnerabilities to Apple, a notoriously secretive company. The common complaints were that Apple is slow to fix bugs and doesn’t always pay or publicly recognize hackers for their reports, and that researchers often receive little or no feedback from the company. Continue reading →

Indictment, Lawsuits Revive Trump-Alfa Bank Story

September 23, 2021
139 Comments

In October 2016, media outlets reported that data collected by some of the world’s most renowned cybersecurity experts had identified frequent and unexplained communications between an email server used by the Trump Organization and Alfa Bank, one of Russia’s largest financial institutions. Those publications set off speculation about a possible secret back-channel of communications, as well as a series of lawsuits and investigations that culminated last week with the indictment of the same former federal cybercrime prosecutor who brought the data to the attention of the FBI five years ago.

The first page of Alfa Bank’s 2020 complaint.

Since 2018, access to an exhaustive report commissioned by the U.S. Senate Armed Services Committee on data that prompted those experts to seek out the FBI has been limited to a handful of Senate committee leaders, Alfa Bank, and special prosecutors appointed to look into the origins of the FBI investigation on alleged ties between Trump and Russia.

That report is now public, ironically thanks to a pair of lawsuits filed by Alfa Bank, which doesn’t directly dispute the information collected by the researchers. Rather, it claims that the data they found was the result of a “highly sophisticated cyberattacks against it in 2016 and 2017” intended “to fabricate apparent communications” between Alfa Bank and the Trump Organization.

The data at issue refers to communications traversing the Domain Name System (DNS), a global database that maps computer-friendly coordinates like Internet addresses (e.g., 8.8.8.8) to more human-friendly domain names (example.com). Whenever an Internet user gets online to visit a website or send an email, the user’s device sends a query through the Domain Name System.

Many different entities capture and record this DNS data as it traverses the public Internet, allowing researchers to go back later and see which Internet addresses resolved to what domain names, when, and for how long. Sometimes the metadata generated by these lookups can be used to identify or infer persistent network connections between different Internet hosts.

The DNS strangeness was first identified in 2016 by a group of security experts who told reporters they were alarmed at the hacking of the Democratic National Committee, and grew concerned that the same attackers might also target Republican leaders and institutions.

Scrutinizing the Trump Organization’s online footprint, the researchers determined that for several months during the spring and summer of 2016, Internet servers at Alfa Bank in Russia, Spectrum Health in Michigan, and Heartland Payment Systems in New Jersey accounted for nearly all of the several thousand DNS lookups for a specific Trump Organization server (mail1.trump-email.com).

This chart from a court filing Sept. 14, 2021 shows the top sources of traffic to the Trump Organization email server over a four month period in the spring and summer of 2016. DNS lookups from Alfa Bank constituted the majority of those requests.

The researchers said they couldn’t be sure what kind of communications between those servers had caused the DNS lookups, but concluded that the data would be extremely difficult to fabricate.

As recounted in this 2018 New Yorker story, New York Times journalist Eric Lichtblau met with FBI officials in late September 2016 to discuss the researchers’ findings. The bureau asked him to hold the story because publishing might disrupt an ongoing investigation. On Sept. 21, 2016, Lichtblau reportedly shared the DNS data with B.G.R., a Washington lobbying firm that worked with Alfa Bank.

Lichtblau’s reporting on the DNS findings ended up buried in an October 31, 2016 story titled “Investigating Donald Trump, F.B.I. Sees No Clear Link to Russia,” which stated that the FBI “ultimately concluded that there could be an innocuous explanation, like marketing email or spam,” that might explain the unusual DNS connections.

But that same day, Slate’s Franklin Foer published a story based on his interactions with the researchers. Foer noted that roughly two days after Lichtblau shared the DNS data with B.G.R., the Trump Organization email server domain vanished from the Internet — its domain effectively decoupled from its Internet address.

Foer wrote that The Times hadn’t yet been in touch with the Trump campaign about the DNS data when the Trump email domain suddenly went offline.  Odder still, four days later the Trump Organization created a new host — trump1.contact-client.com — and the very first DNS lookup to that new domain came from servers at Alfa Bank.

The researchers concluded that the new domain enabled communication to the very same server via a different route.

“When a new host name is created, the first communication with it is never random,” Foer wrote. “To reach the server after the resetting of the host name, the sender of the first inbound mail has to first learn of the name somehow. It’s simply impossible to randomly reach a renamed server.”

“That party had to have some kind of outbound message through SMS, phone, or some noninternet channel they used to communicate [the new configuration],” DNS expert Paul Vixie told Foer. “The first attempt to look up the revised host name came from Alfa Bank. If this was a public server, we would have seen other traces. The only look-ups came from this particular source.” Continue reading →

Does Your Organization Have a Security.txt File?

September 20, 2021
63 Comments

It happens all the time: Organizations get hacked because there isn’t an obvious way for security researchers to let them know about security vulnerabilities or data leaks. Or maybe it isn’t entirely clear who should get the report when remote access to an organization’s internal network is being sold in the cybercrime underground.

In a bid to minimize these scenarios, a growing number of major companies are adopting “Security.txt,” a proposed new Internet standard that helps organizations describe their vulnerability disclosure practices and preferences.

An example of a security.txt file. Image: Securitytxt.org.

The idea behind Security.txt is straightforward: The organization places a file called security.txt in a predictable place — such as example.com/security.txt, or example.com/.well-known/security.txt. What’s in the security.txt file varies somewhat, but most include links to information about the entity’s vulnerability disclosure policies and a contact email address.

The security.txt file made available by USAA, for example, includes links to its bug bounty program; an email address for disclosing security related matters; its public encryption key and vulnerability disclosure policy; and even a link to a page where USAA thanks researchers who have reported important cybersecurity issues.

Other security.txt disclosures are less verbose, as in the case of HCA Healthcare, which lists a contact email address, and a link to HCA’s “responsible disclosure” policies. Like USAA and many other organizations that have published security.txt files, HCA Healthcare also includes a link to information about IT security job openings at the company.

Having a security.txt file can make it easier for organizations to respond to active security threats. For example, just this morning a trusted source forwarded me the VPN credentials for a major clothing retailer that were stolen by malware and made available to cybercriminals. Finding no security.txt file at the retailer’s site using gotsecuritytxt.com (which checks a domain for the presence of this contact file), KrebsonSecurity sent an alert to its “security@” email address for the retailer’s domain.

Many organizations have long unofficially used (if not advertised) the email address security@[companydomain] to accept reports about security incidents or vulnerabilities. Perhaps this particular retailer also did so at one point, however my message was returned with a note saying the email had been blocked. KrebsOnSecurity also sent a message to the retailer’s chief information officer (CIO) — the only person in a C-level position at the retailer who was in my immediate LinkedIn network. I still have no idea if anyone has read it.

Although security.txt is not yet an official Internet standard as approved by the Internet Engineering Task Force (IETF), its basic principles have so far been adopted by at least eight percent of the Fortune 100 companies. According to a review of the domain names for the latest Fortune 100 firms via gotsecuritytxt.com, those include Alphabet, Amazon, Facebook, HCA Healthcare, Kroger, Procter & Gamble, USAA and Walmart.

There may be another good reason for consolidating security contact and vulnerability reporting information in one, predictable place. Alex Holden, founder of the Milwaukee-based consulting firm Hold Security, said it’s not uncommon for malicious hackers to experience problems getting the attention of the proper people within the very same organization they have just hacked.

“In cases of ransom, the bad guys try to contact the company with their demands,” Holden said. “You have no idea how often their messages get caught in filters, get deleted, blocked or ignored.” Continue reading →

Trial Ends in Guilty Verdict for DDoS-for-Hire Boss

September 16, 2021
20 Comments

A jury in California today reached a guilty verdict in the trial of Matthew Gatrel, a St. Charles, Ill. man charged in 2018 with operating two online services that allowed paying customers to launch powerful distributed denial-of-service (DDoS) attacks against Internet users and websites. Gatrel’s conviction comes roughly two weeks after his co-conspirator pleaded guilty to criminal charges related to running the services.

The user interface for Downthem[.]org.

Prosecutors for the Central District of California charged Gatrel, 32, and his business partner Juan “Severon” Martinez of Pasadena, Calif. with operating two DDoS-for-hire or “booter” services — downthem[.]org and ampnode[.]com.

Despite admitting to FBI agents that he ran these booter services (and turning over plenty of incriminating evidence in the process), Gatrel opted to take his case to trial, defended the entire time by public defenders. Facing the prospect of a hefty sentence if found guilty at trial, Martinez pleaded guilty on Aug. 26 to one count of unauthorized impairment of a protected computer.

Gatrel was convicted on all three charges of violating the Computer Fraud and Abuse Act, including conspiracy to commit unauthorized impairment of a protected computer, conspiracy to commit wire fraud, and unauthorized impairment of a protected computer.

Investigators say Downthem helped some 2,000 customers launch debilitating digital assaults at more than 200,000 targets, including many government, banking, university and gaming Web sites.

Prosecutors alleged that in addition to running and marketing Downthem, the defendants sold huge, continuously updated lists of Internet addresses tied to devices that could be used by other booter services to make attacks far more powerful and effective. In addition, other booter services also drew firepower and other resources from Ampnode. Continue reading →

Customer Care Giant TTEC Hit By Ransomware

September 15, 2021
73 Comments

TTEC, [NASDAQ: TTEC], a company used by some of the world’s largest brands to help manage customer support and sales online and over the phone, is dealing with disruptions from a network security incident resulting from a ransomware attack, KrebsOnSecurity has learned.

While many companies have been laying off or furloughing workers in response to the Coronavirus pandemic, TTEC has been massively hiring. Formerly TeleTech Holdings Inc., Englewood, Co.-based TTEC now has nearly 60,000 employees, most of whom work from home and answer customer support calls on behalf of a large number of name-brand companies, like Bank of America, Best Buy, Credit Karma, Dish Network, Kaiser Permanente, USAA and Verizon.

On Sept. 14, KrebsOnSecurity heard from a reader who passed on an internal message apparently sent by TTEC to certain employees regarding the status of a widespread system outage that began on Sunday, Sept. 12.

“We’re continuing to address the system outage impacting access to the network, applications and customer support,” reads an internal message sent by TTEC to certain employees.

TTEC has not responded to requests for comment. A phone call placed to the media contact number listed on an August 2021 TTEC earnings release produced a message saying it was a non-working number.

[Update, 6:20 p.m. ET: TTEC confirmed a ransomware attack. See the update at the end of this piece for their statement]

TTEC’s own message to employees suggests the company’s network may have been hit by the ransomware group “Ragnar Locker,” (or else by a rival ransomware gang pretending to be Ragnar). The message urged employees to avoid clicking on a file that suddenly may have appeared in their Windows start menu called “!RA!G!N!A!R!”

“DO NOT click on this file,” the notice read. “It’s a nuisance message file and we’re working on removing it from our systems.”

Ragnar Locker is an aggressive ransomware group that typically demands millions of dollars worth of cryptocurrency in ransom payments. In an announcement published on the group’s darknet leak site this week, the group threatened to publish the full data of victims who seek help from law enforcement and investigative agencies following a ransomware attack.

One of the messages texted to TTEC employees included a link to a Zoom videoconference line at ttec.zoom.us. Clicking that link opened a Zoom session in which multiple TTEC employees who were sharing their screens took turns using the company’s Global Service Desk, an internal TTEC system for tracking customer support tickets.

The TTEC employees appear to be using the Zoom conference line to report the status of various customer support teams, most of which are reporting “unable to work” at the moment.

For example, TTEC’s Service Desk reports that hundreds of TTEC employees assigned to work with Bank of America’s prepaid services are unable to work because they can’t remotely connect to TTEC’s customer service tools. More than 1,000 TTEC employees are currently unable to do their normal customer support work for Verizon, according to the Service Desk data. Hundreds of employees assigned to handle calls for Kaiser Permanente also are unable to work.

“They’ve been radio silent all week except to notify employees to take another day off,” said the source who passed on the TTEC messages, who spoke to KrebsOnSecurity on condition of anonymity. “As far as I know, all low-level employees have another day off today.”

The extent and severity of the incident at TTEC remains unknown. It is common for companies to disconnect critical systems in the event of a network intrusion, as part of a larger effort to stop the badness from spreading elsewhere. Sometimes disconnecting everything actually does help, or at least helps to keep the attack from spreading to partner networks. But it is those same connections to partner companies that raises concern in the case of TTEC’s ongoing outage.

In the meantime, if you’re unlucky enough to need to make a customer service call today, there’s a better-than-even chance you will experience….wait for it…longer-than-usual hold times.

This is a developing story. Further details or updates will be noted here with a date and time stamp.

Update, 5:37 p.m. ET: TTEC responded with the following statement:

TTEC is committed to cyber security, and to protecting the integrity of our clients’ systems and data. We recently became aware of a cybersecurity incident that has affected certain TTEC systems.  Although as a result of the  incident, some of our data was encrypted and business activities at several facilities have been temporarily disrupted, the company continuous to serve its global clients. TTEC immediately activated its information security incident response business continuity protocols, isolated the systems involved, and took other appropriate measures to contain the incident. We are now in the process of  carefully and deliberately restoring the systems that have been involved.

We also launched an investigation, typical under the circumstances, to determine the potential impacts.  In serving our clients TTEC, generally, does not maintain our clients’ data, and the investigation to date has not identified compromise to clients’ data. That investigation is on-going and we will take additional action, as appropriate, based on the investigation’s results. This is all the information we have to share until our investigation is complete.