Using Fake Reviews to Find Dangerous Extensions

May 29, 2021
39 Comments

Fake, positive reviews have infiltrated nearly every corner of life online these days, confusing consumers while offering an unwelcome advantage to fraudsters and sub-par products everywhere. Happily, identifying and tracking these fake reviewer accounts is often the easiest way to spot scams. Here’s the story of how bogus reviews on a counterfeit Microsoft Authenticator browser extension exposed dozens of other extensions that siphoned personal and financial data.

Comments on the fake Microsoft Authenticator browser extension show the reviews for these applications are either positive or very negative — basically calling it out as a scam. Image: chrome-stats.com.

After hearing from a reader about a phony Microsoft Authenticator extension that appeared on the Google Chrome Store, KrebsOnSecurity began looking at the profile of the account that created it. There were a total of five reviews on the extension before it was removed: Three Google users gave it one star, warning people to stay far away from it; but two of the reviewers awarded it between three and four stars.

“It’s great!,” the Google account Theresa Duncan enthused, improbably. “I’ve only had very occasional issues with it.”

“Very convenient and handing,” assessed Anna Jones, incomprehensibly.

Google’s Chrome Store said the email address tied to the account that published the knockoff Microsoft extension also was responsible for one called “iArtbook Digital Painting.” Before it was removed from the Chrome Store, iArtbook had garnered just 22 users and three reviews. As with the knockoff Microsoft extension, all three reviews were positive, and all were authored by accounts with first and last names, like Megan Vance, Olivia Knox, and Alison Graham.

Google’s Chrome Store doesn’t make it easy to search by reviewer. For that I turned to Hao Nguyen, the developer behind chrome-stats.com, which indexes and makes searchable a broad array of attributes about extensions available from Google.

Looking at the Google accounts that left positive reviews on both the now-defunct Microsoft Authenticator and iArtbook extensions, KrebsOnSecurity noticed that each left positive reviews on a handful of other extensions that have since been removed.

Reviews on the iArtbook extension were all from apparently fake Google accounts that each reviewed two other extensions, one of which was published by the same developer. This same pattern was observed across 45 now-defunct extensions.

Like an ever-expanding venn diagram, a review of the extensions commented on by each new fake reviewer found led to the discovery of even more phony reviewers and extensions. In total, roughly 24 hours worth of digging through chrome-stats.com unearthed more than 100 positive reviews on a network of patently fraudulent extensions.

Those reviews in turn lead to the relatively straightforward identification of:

-39 reviewers who were happy with extensions that spoofed major brands and requested financial data
-45 malicious extensions that collectively had close to 100,000 downloads
-25 developer accounts tied to multiple banned applications

The extensions spoofed a range of consumer brands, including Adobe, Amazon, Facebook, HBO, Microsoft, Roku and Verizon. Scouring the manifests for each of these other extensions in turn revealed that many of the same developers were tied to multiple apps being promoted by the same phony Google accounts.

Some of the fake extensions have only a handful of downloads, but most have hundreds or thousands. A fake Microsoft Teams extension attracted 16,200 downloads in the roughly two months it was available from the Google store. A counterfeit version of CapCut, a professional video editing software suite, claimed nearly 24,000 downloads over a similar time period.

More than 16,000 people downloaded a fake Microsoft Teams browser extension over the roughly two months it was available for download from the Google Chrome store.

Unlike malicious browser extensions that can turn your PC into a botnet or harvest your cookies, none of the extensions examined here request any special permissions from users. Once installed, however, they invariably prompt the user to provide personal and financial data — all the while pretending to be associated with major brand names. Continue reading →

Boss of ATM Skimming Syndicate Arrested in Mexico

May 28, 2021
22 Comments

Florian “The Shark” Tudor, the alleged ringleader of a prolific ATM skimming gang that siphoned hundreds of millions of dollars from bank accounts of tourists visiting Mexico over the last eight years, was arrested in Mexico City on Thursday in response to an extradition warrant from a Romanian court.

Florian Tudor, at a 2020 press conference in Mexico in which he asserted he was a legitimate businessman and not a mafia boss. Image: OCCRP.

Tudor, a native of Craiova, Romania, moved to Mexico to set up Top Life Servicios, an ATM servicing company which managed a fleet of relatively new ATMs based in Mexico branded as Intacash.

Intacash was the central focus of a three–part investigation KrebsOnSecurity published in September 2015. That series tracked the activities of a crime gang working with Intacash that was bribing and otherwise coercing ATM technicians to install sophisticated Bluetooth-based skimmers inside cash machines throughout popular tourist destinations in and around Mexico’s Yucatan Peninsula — including Cancun, Cozumel, Playa del Carmen and Tulum.

Follow-up reporting last year by the Organized Crime and Corruption Reporting Project (OCCRP) found Tudor and his associates compromised more than 100 ATMs across Mexico using skimmers that were able to remain in place undetected for years. The OCCRP, which dubbed Tudor’s group “The Riviera Maya Gang,” estimates the crime syndicate used cloned card data and stolen PINs to steal more than $1.2 billion from bank accounts of tourists visiting the region.

Last year, a Romanian court ordered Tudor’s capture following his conviction in absentia for attempted murder, blackmail and the creation of an organized crime network that specialized in human trafficking.

Mexican authorities have been examining bank accounts tied to Tudor and his companies, and investigators believe Tudor and his associates paid protection and hush money to various Mexican politicians and officials over the years. In February, the leader of Mexico’s Green Party stepped down after it emerged that he received funds from Tudor’s group.

This is the second time Mexican authorities have detained Tudor. In April 2019, Tudor and his deputy were arrested for illegal firearms possession. That arrest came just months after Tudor allegedly ordered the execution of a former bodyguard who was trying to help U.S. authorities bring down the group’s lucrative skimming operations.

Tudor’s arrest this week inside the premises of the Mexican Attorney General’s Office did not go smoothly, according to Mexican news outlets. El Universal reports that a brawl broke out between Tudor’s lawyers and officials at the Mexican AG’s office, and a video released by the news outlet on Twitter shows Tudor resisting arrest as he is being hauled out of the building hand and foot.

A Mexican judge will decide on Tudor’s extradition to Romania in the coming weeks.

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How to Tell a Job Offer from an ID Theft Trap

May 21, 2021
57 Comments

One of the oldest scams around — the fake job interview that seeks only to harvest your personal and financial data — is on the rise, the FBI warns. Here’s the story of a recent LinkedIn impersonation scam that led to more than 100 people getting duped, and one almost-victim who decided the job offer was too-good-to-be-true.

Last week, someone began posting classified notices on LinkedIn for different design consulting jobs at Geosyntec Consultants, an environmental engineering firm based in the Washington, D.C. area. Those who responded were told their application for employment was being reviewed and that they should email Troy Gwin — Geosyntec’s senior recruiter — immediately to arrange a screening interview.

Gwin contacted KrebsOnSecurity after hearing from job seekers trying to verify the ad, which urged respondents to email Gwin at a Gmail address that was not his. Gwin said LinkedIn told him roughly 100 people applied before the phony ads were removed for abusing the company’s terms of service.

“The endgame was to offer a job based on successful completion of background check which obviously requires entering personal information,” Gwin said. “Almost 100 people applied. I feel horrible about this. These people were really excited about this ‘opportunity’.”

Erica Siegel was particularly excited about the possibility of working in a creative director role she interviewed for at the fake Geosyntec. Siegel said her specialty —  “consulting with start ups and small businesses to create sustainable fashion, home and accessories brands” — has been in low demand throughout the pandemic, so she’s applied to dozens of jobs and freelance gigs over the past few months.

On Monday, someone claiming to work with Gwin contacted Siegel and asked her to set up an online interview with Geosyntec. Siegel said the “recruiter” sent her a list of screening questions that all seemed relevant to the position being advertised.

Siegel said that within about an hour of submitting her answers, she received a reply saying the company’s board had unanimously approved her as a new hire, with an incredibly generous salary considering she had to do next to no work to get a job she could do from home.

Worried that her potential new dream job might be too-good-to-be-true, she sent the recruiter a list of her own questions that she had about the role and its position within the company.

But the recruiter completely ignored Siegel’s follow-up questions, instead sending a reply that urged her to get in touch with a contact in human resources to immediately begin the process of formalizing her employment. Which of course involves handing over one’s personal (driver’s license info) and financial details for direct deposit.

Multiple things about this job offer didn’t smell right to Siegel.

“I usually have six or seven interviews before getting a job,” Siegel said. “Hardly ever in my lifetime have I seen a role that flexible, completely remote and paid the kind of money I would ask for. You never get all three of those things.”

So she called her dad, an environmental attorney who happens to know and have worked with people at the real Geosyntec Consultants. Then she got in touch with the real Troy Gwin, who confirmed her suspicions that the whole thing was a scam.

“Even after the real Troy said they’d gotten these [LinkedIn] ads shut down, this guy was still emailing me asking for my HR information,” Siegel said. “So my dad said, ‘Troll him back, and tell him you want a signing bonus via money order.’ I was like, okay, what’s the worst that could happen? I never heard from him again.” Continue reading →

Recycle Your Phone, Sure, But Maybe Not Your Number

May 19, 2021
37 Comments

Many online services allow users to reset their passwords by clicking a link sent via SMS, and this unfortunately widespread practice has turned mobile phone numbers into de facto identity documents. Which means losing control over one thanks to a divorce, job termination or financial crisis can be devastating.

Even so, plenty of people willingly abandon a mobile number without considering the potential fallout to their digital identities when those digits invariably get reassigned to someone else. New research shows how fraudsters can abuse wireless provider websites to identify available, recycled mobile numbers that allow password resets at a range of email providers and financial services online.

Researchers in the computer science department at Princeton University say they sampled 259 phone numbers at two major wireless carriers, and found 171 of them were tied to existing accounts at popular websites, potentially allowing those accounts to be hijacked.

The Princeton team further found 100 of those 259 numbers were linked to leaked login credentials on the web, which could enable account hijackings that defeat SMS-based multi-factor authentication.

“Our key finding is that attackers can feasibly leverage number recycling to target previous owners and their accounts,” the researchers wrote. “The moderate to high hit rates of our testing methods indicate that most recycled numbers are vulnerable to these attacks. Furthermore, by focusing on blocks of Likely recycled numbers, an attacker can easily discover available recycled numbers, each of which then becomes a potential target.”

The researchers located newly-recycled mobile numbers by browsing numbers made available to customers interested in signing up for a prepaid account at T-Mobile or Verizon (apparently AT&T doesn’t provide a similar interface). They said they were able to identify and ignore large blocks of new, unused numbers, as these blocks tend to be made available consecutively — much like newly printed money is consecutively numbered in stacks.

The Princeton team has a number of recommendations for T-Mobile and Verizon, noting that both carriers allow unlimited inquiries on their prepaid customer platforms online — meaning there is nothing to stop attackers from automating this type of number reconnaissance.

“On postpaid interfaces, Verizon already has safeguards and T-Mobile does not even support changing numbers online,” the researchers wrote. “However, the number pool is shared between postpaid and prepaid, rendering all subscribers vulnerable to attacks.” Continue reading →

Try This One Weird Trick Russian Hackers Hate

May 17, 2021
147 Comments

In a Twitter discussion last week on ransomware attacks, KrebsOnSecurity noted that virtually all ransomware strains have a built-in failsafe designed to cover the backsides of the malware purveyors: They simply will not install on a Microsoft Windows computer that already has one of many types of virtual keyboards installed — such as Russian or Ukrainian. So many readers had questions in response to the tweet that I thought it was worth a blog post exploring this one weird cyber defense trick.

The Commonwealth of Independent States (CIS) more or less matches the exclusion list on an awful lot of malware coming out of Eastern Europe.

The Twitter thread came up in a discussion on the ransomware attack against Colonial Pipeline, which earlier this month shut down 5,500 miles of fuel pipe for nearly a week, causing fuel station supply shortages throughout the country and driving up prices. The FBI said the attack was the work of DarkSide, a new-ish ransomware-as-a-service offering that says it targets only large corporations.

DarkSide and other Russian-language affiliate moneymaking programs have long barred their criminal associates from installing malicious software on computers in a host of Eastern European countries, including Ukraine and Russia. This prohibition dates back to the earliest days of organized cybercrime, and it is intended to minimize scrutiny and interference from local authorities.

In Russia, for example, authorities there generally will not initiate a cybercrime investigation against one of their own unless a company or individual within the country’s borders files an official complaint as a victim. Ensuring that no affiliates can produce victims in their own countries is the easiest way for these criminals to stay off the radar of domestic law enforcement agencies.

Possibly feeling the heat from being referenced in President Biden’s Executive Order on cybersecurity this past week, the DarkSide group sought to distance itself from their attack against Colonial Pipeline. In a message posted to its victim shaming blog, DarkSide tried to say it was “apolitical” and that it didn’t wish to participate in geopolitics.

“Our goal is to make money, and not creating problems for society,” the DarkSide criminals wrote last week. “From today we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”

But here’s the thing: Digital extortion gangs like DarkSide take great care to make their entire platforms geopolitical, because their malware is engineered to work only in certain parts of the world.

DarkSide, like a great many other malware strains, has a hard-coded do-not-install list of countries which are the principal members of the Commonwealth of Independent States (CIS) — former Soviet satellites that mostly have favorable relations with the Kremlin. The full exclusion list in DarkSide (published by Cybereason) is below:

Image: Cybereason.

Simply put, countless malware strains will check for the presence of one of these languages on the system, and if they’re detected the malware will exit and fail to install.

[Side note. Many security experts have pointed to connections between the DarkSide and REvil (a.k.a. “Sodinokibi”) ransomware groups. REvil was previously known as GandCrab, and one of the many things GandCrab had in common with REvil was that both programs barred affiliates from infecting victims in Syria. As we can see from the chart above, Syria is also exempted from infections by DarkSide ransomware. And DarkSide itself proved their connection to REvil this past week when it announced it was closing up shop after its servers and bitcoin funds were seized.] Continue reading →

DarkSide Ransomware Gang Quits After Servers, Bitcoin Stash Seized

May 14, 2021
210 Comments

The DarkSide ransomware affiliate program responsible for the six-day outage at Colonial Pipeline this week that led to fuel shortages and price spikes across the country is running for the hills. The crime gang announced it was closing up shop after its servers were seized and someone drained the cryptocurrency from an account the group uses to pay affiliates.

“Servers were seized (country not named), money of advertisers and founders was transferred to an unknown account,” reads a message from a cybercrime forum reposted to the Russian OSINT Telegram channel.

“A few hours ago, we lost access to the public part of our infrastructure,” the message continues, explaining the outage affected its victim shaming blog where stolen data is published from victims who refuse to pay a ransom.

“Hosting support, apart from information ‘at the request of law enforcement agencies,’ does not provide any other information,” the DarkSide admin says. “Also, a few hours after the withdrawal, funds from the payment server (ours and clients’) were withdrawn to an unknown address.”

DarkSide organizers also said they were releasing decryption tools for all of the companies that have been ransomed but which haven’t yet paid.

“After that, you will be free to communicate with them wherever you want in any way you want,” the instructions read. Continue reading →

Microsoft Patch Tuesday, May 2021 Edition

May 11, 2021
37 Comments

Microsoft today released fixes to plug at least 55 security holes in its Windows operating systems and other software. Four of these weaknesses can be exploited by malware and malcontents to seize complete, remote control over vulnerable systems without any help from users. On deck this month are patches to quash a wormable flaw, a creepy wireless bug, and yet another reason to call for the death of Microsoft’s Internet Explorer (IE) web browser.

While May brings about half the normal volume of updates from Microsoft, there are some notable weaknesses that deserve prompt attention, particularly from enterprises. By all accounts, the most pressing priority this month is CVE-2021-31166, a Windows 10 and Windows Server flaw which allows an unauthenticated attacker to remotely execute malicious code at the operating system level. With this weakness, an attacker could compromise a host simply by sending it a specially-crafted packet of data.

“That makes this bug wormable, with even Microsoft calling that out in their write-up,” said Dustin Childs, with Trend Micro’s ZDI program. “Before you pass this aside, Windows 10 can also be configured as a web server, so it is impacted as well. Definitely put this on the top of your test-and-deploy list.”

Kevin Breen from Immersive Labs said the fact that this one is just 0.2 points away from a perfect 10 CVSS score should be enough to identify just how important it is to patch.

“For ransomware operators, this kind of vulnerability is a prime target for exploitation,” Breen said. “Wormable exploits should always be a high priority, especially if they are for services that are designed to be public facing. As this specific exploit would not require any form of authentication, it’s even more appealing for attackers, and any organization using HTTP.sys protocol stack should prioritize this patch.”

Breen also called attention to CVE-2021-26419 — a vulnerability in Internet Explorer 11 — to make the case for why IE needs to stand for “Internet Exploder.” To trigger this vulnerability, a user would have to visit a site that is controlled by the attacker, although Microsoft also recognizes that it could be triggered by embedding ActiveX controls in Office Documents.

“IE needs to die – and I’m not the only one that thinks so,” Breen said. “If you are an organization that has to provide IE11 to support legacy applications, consider enforcing a policy on the users that restricts the domains that can be accessed by IE11 to only those legacy applications. All other web browsing should be performed with a supported browser.” Continue reading →

A Closer Look at the DarkSide Ransomware Gang

May 11, 2021
122 Comments

The FBI confirmed this week that a relatively new ransomware group known as DarkSide is responsible for an attack that caused Colonial Pipeline to shut down 5,550 miles of pipe, stranding countless barrels of gasoline, diesel and jet fuel on the Gulf Coast. Here’s a closer look at the DarkSide cybercrime gang, as seen through their negotiations with a recent U.S. victim that earns $15 billion in annual revenue.

Colonial Pipeline has shut down 5,500 miles of fuel pipe in response to a ransomware incident. Image: colpipe.com

New York City-based cyber intelligence firm Flashpoint said its analysts assess with a moderate-strong degree of confidence that the attack was not intended to damage national infrastructure and was simply associated with a target which had the finances to support a large payment.

“This would be consistent with DarkSide’s earlier activities, which included several ‘big game hunting’ attacks, whereby attackers target an organization that likely possesses the financial means to pay the ransom demanded by the attackers,” Flashpoint observed.

In response to public attention to the Colonial Pipeline attack, the DarkSide group sought to play down fears about widespread infrastructure attacks going forward.

“We are apolitical, we do not participate in geopolitics, do not need to tie us with a defined government and look for other our motives [sic],” reads an update to the DarkSide Leaks blog. “Our goal is to make money, and not creating problems for society. From today we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”

First surfacing on Russian language hacking forums in August 2020, DarkSide is a ransomware-as-a-service platform that vetted cybercriminals can use to infect companies with ransomware and carry out negotiations and payments with victims. DarkSide says it targets only big companies, and forbids affiliates from dropping ransomware on organizations in several industries, including healthcare, funeral services, education, public sector and non-profits.

Like other ransomware platforms, DarkSide adheres to the current badguy best practice of double extortion, which involves demanding separate sums for both a digital key needed to unlock any files and servers, and a separate ransom in exchange for a promise to destroy any data stolen from the victim.

At its launch, DarkSide sought to woo affiliates from competing ransomware programs by advertising a victim data leak site that gets “stable visits and media coverage,” as well as the ability to publish victim data by stages. Under the “Why choose us?” heading of the ransomware program thread, the admin answers:

An advertisement for the DarkSide ransomware group.

“High trust level of our targets. They pay us and know that they’re going to receive decryption tools. They also know that we download data. A lot of data. That’s why the percent of our victims who pay the ransom is so high and it takes so little time to negotiate.”

In late March, DarkSide introduced a “call service” innovation that was integrated into the affiliate’s management panel, which enabled the affiliates to arrange calls pressuring victims into paying ransoms directly from the management panel.

In mid-April the ransomware program announced new capability for affiliates to launch distributed denial-of-service (DDoS) attacks against targets whenever added pressure is needed during ransom negotiations.

DarkSide also has advertised a willingness to sell information about upcoming victims before their stolen information is published on the DarkSide victim shaming blog, so that enterprising investment scammers can short the company’s stock in advance of the news.

“Now our team and partners encrypt many companies that are trading on NASDAQ and other stock exchanges,” DarkSide explains. “If the company refuses to pay, we are ready to provide information before the publication, so that it would be possible to earn in the reduction price of shares. Write to us in ‘Contact Us’ and we will provide you with detailed information.”

DarkSide also started recruiting new affiliates again last month — mainly seeking network penetration testers who can help turn a single compromised computer into a full-on data breach and ransomware incident.

Portions of a DarkSide recruitment message, translated from Russian. Image: Intel 471.

“We have grown significantly in terms of the client base and in comparison to other projects (judging by the analysis of publicly available information), so we are ready to grow our team and a number of our affiliates in two fields,” DarkSide explained. The advertisement continued:

“Network penetration testing. We’re looking for one person or a team. We’ll adapt you to the work environment and provide work. High profit cuts, ability to target networks that you can’t handle on your own. New experience and stable income. When you use our product and the ransom is paid, we guarantee fair distribution of the funds. A panel for monitoring results for your target. We only accept networks where you intend to run our payload.”

DarkSide has shown itself to be fairly ruthless with victim companies that have deep pockets, but they can be reasoned with. Cybersecurity intelligence firm Intel 471 observed a negotiation between the DarkSide crew and a $15 billion U.S. victim company that was hit with a $30 million ransom demand in January 2021, and in this incident the victim’s efforts at negotiating a lower payment ultimately reduce the ransom demand by almost two-thirds.

The DarkSide ransomware note.

The first exchange between DarkSide and the victim involved the usual back-and-forth establishing of trust, wherein the victim asks for assurances that stolen data will be deleted after payment.

Image: Intel 471.

When the victim counter-offered to pay just $2.25 million, DarkSide responded with a lengthy, derisive reply, ultimately agreeing to lower the ransom demand to $28.7 million.

“The timer it [sic] ticking and in in next 8 hours your price tag will go up to $60 million,” the crooks replied. “So, you this are your options first take our generous offer and pay to us $28,750 million US or invest some monies in quantum computing to expedite a decryption process.” Continue reading →

Fintech Startup Offers $500 for Payroll Passwords

May 10, 2021
38 Comments

How much is your payroll data worth? Probably a lot more than you think. One financial startup that’s targeting the gig worker market is offering up to $500 to anyone willing to hand over the payroll account username and password given to them by their employer, plus a regular payment for each month afterwards in which those credentials still work.

This ad, from workplaceunited[.]com, promised up to $500 for people who provided their payroll passwords, plus $25 a month for each month those credentials kept working.

New York-based Argyle.com says it’s building a platform where people who work multiple jobs and/or side hustles can improve their credit and employment options by pooling all of their gig work data in one place.

“Consumers’ access to financial security and upward mobility is dependent on their access to and control over their own employment records and how easily they can share those records with financial institutions,” Argyle explained in a May 3 blog post. “We enable access to a dataset that, for too long, has gone unstandardized, unregulated, and controlled by corporations instead of consumers, contributing to system-wide inequalities.”

Argyle’s app flow. Image: Argyle.com.

In that sense, Argyle is making a play for a discrete chunk of a much larger employment data market dominated by the major credit bureaus, which have been hoovering up and selling access to employment data for years.

The 800-lb. gorilla there is Equifax, whose The Work Number product has for years purchased employment data flows from some of the world’s largest companies (employees consent to this sharing as part of their employment contract, and The Work Number makes it fairly easy for anyone to learn how much you earn).

The Work Number is designed to provide automated employment and income verification for prospective employers, and tens of thousands of companies report employee salary data to it. It also allows anyone whose employer uses the service to provide proof of their income when purchasing a home or applying for a loan.

On its blog, Argyle imagines a world in which companies choose to integrate its application platform interface (API) and share their employee payroll data. At the same time, the company appears to be part of an effort in which non-salaried workers are prompted to repay their erstwhile employers’ trust by selling payroll credentials.

If Argyle is worried these two goals might somehow conflict, that is not obvious by looking at some of its direct-to-consumer efforts.

The website pictured below prompts visitors to “connect payroll,” and those who proceed agree to have their payroll data shared with a company called Earnin, a mobile payday loan app that lets users get an advance on their upcoming paycheck.

Clicking “Connect Payroll” brings up a list of payroll login pages for brand name companies, including Walmart, Starbucks, Amazon, Uber, Chipotle, etc., with a search feature that reveals login pages for everyone from the Federal Bureau of Investigation (FBI) to the Federal Reserve and Federal Trade Commission (FTC).

The default Argyle list of payroll login pages for major companies.

Here’s what comes up when you search by “Department of” at this site:

Drilling down into individual companies listed here produces a username and password form that in some cases is modified to request an employee identifier other than a username, such as a employee ID, associate or partner number instead. Here’s the login page for Starbucks employees:

The site pictured above actively checks if any submitted credentials are working, by submitting them directly to the employer in question. This Argyle status page indicates the system’s “data connection status” to countless employers.

Some of you may be thinking, “How many of us actually know or have our payroll passwords?” According to Argyle, plenty of people do.

“At Argyle, we are intimately familiar with how likely someone is to know the password for their employment account or payroll system, because we’ve seen hundreds of thousands of users successfully (and unsuccessfully) provide their credentials,” Argyle’s Billy Mardsen wrote on Apr. 1. “We closely monitor their success rate—what we call conversion—because it drives the performance of the products and applications that our clients build on top of Argyle.”

Argyle’s “conversion” numbers by employer. Image: Argyle.com

Continue reading →

Investment Scammer John Davies Reinvents Himself?

May 7, 2021
16 Comments

John Bernard, a pseudonym used by a convicted thief and con artist named John Clifton Davies who’s fleeced dozens of technology startups out of an estimated $30 million, appears to have reinvented himself again after being exposed in a recent investigative series published here. Sources tell KrebsOnSecurity that Davies/Bernard is now posing as John Cavendish and head of a new “private office” called Hempton Business Management LLP.

John Davies is a U.K. man who absconded from justice before being convicted on multiple counts of fraud in 2015. Prior to his conviction, Davies served 16 months in jail before being cleared of murdering his wife on their honeymoon in India.

Davies’ fraud convictions stemmed from a series of U.K. companies he set up supposedly to help troubled companies reorganize their debt and turn things around. Davies ended up looting what little money his clients had left and spending it on lavish cars, home furnishings, vacations and luxury watches.

In a three-part series published last year, KrebsOnSecurity exposed how Davies — wanted by authorities in the U.K. — had fled the country, taken on the surname Bernard, remarried, and moved to his new (and fourth) wife’s hometown in Ukraine.

The scam artist John Bernard (left) in a recent Zoom call, and a photo of John Clifton Davies from 2015.

After eluding justice in the U.K., Davies reinvented himself as The Private Office of John Bernard, pretending to be a billionaire Swiss investor who made his fortunes in the dot-com boom 20 years ago and who was seeking private equity investment opportunities.

In case after case, Bernard would promise to invest millions in hi-tech startups, only to insist that companies pay tens of thousands of dollars worth of due diligence fees up front. However, the due diligence company he insisted on using — another Swiss firm called Inside Knowledge — also was secretly owned by Bernard, who would invariably pull out of the deal after receiving the due diligence money.

Bernard found a constant stream of new marks by offering extraordinarily generous finders fees to investment brokers who could introduce him to companies seeking an infusion of cash. Inside Knowledge and The Private Office both closed up shop not long after their exploits were detailed here late last year.

But it appears Davies has just assumed a new name. KrebsOnSecurity recently heard from an investment broker who previously represented multiple clients that got fleeced by Mr. Bernard/Davies over the years. That broker said he was blown away to hear Davies’ unique British accent on a recent call with a client that had been in investment talks with a Northern Ireland firm called Hempton Business Management.

This time, the source said, Davies was introduced by handlers on the call as John Cavendish.

“I just sat in on a call and John’s voice is unmistakable,” said the broker, who asked to remain anonymous. “He stumbled on the beginning of the call trying to remember which last name he was supposed to use. Immediately they go back to the standard script about the types of deals they are looking for. They want to be minority investors in private transactions and they are industry agnostic.  Their deal sizes are investments in the $5-20 million range, they prefer to not use big 4 firms for due diligence, and they have some smaller firms they use which are better suited for smaller investment deals.”

The source forwarded me some correspondence from Hempton Business Management, and I noticed it was sent from a Mariya Kulykova. This is interesting because Mr. Bernard’s personal assistant in Ukraine was a Mariya Kulikova (Ms. Kulikova deleted Bernard’s former companies from her LinkedIn profile shortly after last year’s series).

The company’s website says Hempton has been around since 2017, but the domain name was only registered in late November 2020. There is no information about who runs or owns the company on its site.

Hemptonllp[.]com was registered via Gandi, the same French registrar John Bernard/Davies has used over the years with his dozens of phantom companies.

Hempton Business Management’s only presence on LinkedIn appears to be a help wanted ad from a few weeks ago, for a marketing position at an office in Kyiv, Ukraine.

In response to an emailed request for comment on the apparent connections, Mr. Cavendish forwarded the message to a James Donohoe, who replied that he was the owner of Hempton. Donohoe said the domain was new because the company recently re-branded, although he declined to discuss the matter further.

“This sounds like an accusation of a big fraud?,” Donohoe wrote. “I have never had any dealings with a John Clifton Davies or John Bernard. You really are a cheeky little bugger aren’t you!”

Mr. Donohoe did not respond to further requests for comment. Continue reading →