Microsoft Patch Tuesday, October 2020 Edition

October 13, 2020
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It’s Cybersecurity Awareness Month! In keeping with that theme, if you (ab)use Microsoft Windows computers you should be aware the company shipped a bevy of software updates today to fix at least 87 security problems in Windows and programs that run on top of the operating system. That means it’s once again time to backup and patch up.

Eleven of the vulnerabilities earned Microsoft’s most-dire “critical” rating, which means bad guys or malware could use them to gain complete control over an unpatched system with little or no help from users.

Worst in terms of outright scariness is probably CVE-2020-16898, which is a nasty bug in Windows 10 and Windows Server 2019 that could be abused to install malware just by sending a malformed packet of data at a vulnerable system. CVE-2020-16898 earned a CVSS Score of 9.8 (10 is the most awful).

Security vendor McAfee has dubbed the flaw “Bad Neighbor,” and in a blog post about it said a proof-of-concept exploit shared by Microsoft with its partners appears to be “both extremely simple and perfectly reliable,” noting that this sucker is imminently “wormable” — i.e. capable of being weaponized into a threat that spreads very quickly within networks.

“It results in an immediate BSOD (Blue Screen of Death), but more so, indicates the likelihood of exploitation for those who can manage to bypass Windows 10 and Windows Server 2019 mitigations,” McAfee’s Steve Povolny wrote. “The effects of an exploit that would grant remote code execution would be widespread and highly impactful, as this type of bug could be made wormable.”

Trend Micro’s Zero Day Initiative (ZDI) calls special attention to another critical bug quashed in this month’s patch batch: CVE-2020-16947, which is a problem with Microsoft Outlook that could result in malware being loaded onto a system just by previewing a malicious email in Outlook.

“The Preview Pane is an attack vector here, so you don’t even need to open the mail to be impacted,” said ZDI’s Dustin Childs.

While there don’t appear to be any zero-day flaws in October’s release from Microsoft, Todd Schell from Ivanti points out that a half-dozen of these flaws were publicly disclosed prior to today, meaning bad guys have had a jump start on being able to research and engineer working exploits. Continue reading →

Microsoft Uses Trademark Law to Disrupt Trickbot Botnet

October 12, 2020
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Microsoft Corp. has executed a coordinated legal sneak attack in a bid to disrupt the malware-as-a-service botnet Trickbot, a global menace that has infected millions of computers and is used to spread ransomware. A court in Virginia granted Microsoft control over many Internet servers Trickbot uses to plunder infected systems, based on novel claims that the crime machine abused the software giant’s trademarks. However, it appears the operation has not completely disabled the botnet.

A spam email containing a Trickbot-infected attachment that was sent earlier this year. Image: Microsoft.

“We disrupted Trickbot through a court order we obtained as well as technical action we executed in partnership with telecommunications providers around the world,” wrote Tom Burt, corporate vice president of customer security and trust at Microsoft, in a blog post this morning about the legal maneuver. “We have now cut off key infrastructure so those operating Trickbot will no longer be able to initiate new infections or activate ransomware already dropped into computer systems.”

Microsoft’s action comes just days after the U.S. military’s Cyber Command carried out its own attack that sent all infected Trickbot systems a command telling them to disconnect themselves from the Internet servers the Trickbot overlords used to control them. The roughly 10-day operation by Cyber Command also stuffed millions of bogus records about new victims into the Trickbot database in a bid to confuse the botnet’s operators.

In legal filings, Microsoft argued that Trickbot irreparably harms the company “by damaging its reputation, brands, and customer goodwill. Defendants physically alter and corrupt Microsoft products such as the Microsoft Windows products. Once infected, altered and controlled by Trickbot, the Windows operating system ceases to operate normally and becomes tools for Defendants to conduct their theft.”

From the civil complaint Microsoft filed on October 6 with the U.S. District Court for the Eastern District of Virginia:

“However, they still bear the Microsoft and Windows trademarks. This is obviously meant to and does mislead Microsoft’s customers, and it causes extreme damage to Microsoft’s brands and trademarks.”

“Users subject to the negative effects of these malicious applications incorrectly believe that Microsoft and Windows are the source of their computing device problems. There is great risk that users may attribute this problem to Microsoft and associate these problems with Microsoft’s Windows products, thereby diluting and tarnishing the value of the Microsoft and Windows trademarks and brands.”

Microsoft said it will leverage the seized Trickbot servers to identify and assist Windows users impacted by the Trickbot malware in cleaning the malware off of their systems.

Trickbot has been used to steal passwords from millions of infected computers, and reportedly to hijack access to well more than 250 million email accounts from which new copies of the malware are sent to the victim’s contacts.

Trickbot’s malware-as-a-service feature has made it a reliable vehicle for deploying various strains of ransomware, locking up infected systems on a corporate network unless and until the company agrees to make an extortion payment.

A particularly destructive ransomware strain that is closely associated with Trickbot — known as “Ryuk” or “Conti” — has been responsible for costly attacks on countless organizations over the past year, including healthcare providers, medical research centers and hospitals.

One recent Ryuk victim is Universal Health Services (UHS), a Fortune 500 hospital and healthcare services provider that operates more than 400 facilities in the U.S. and U.K. Continue reading →

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Report: U.S. Cyber Command Behind Trickbot Tricks

October 10, 2020
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A week ago, KrebsOnSecurity broke the news that someone was attempting to disrupt the Trickbot botnet, a malware crime machine that has infected millions of computers and is often used to spread ransomware. A new report Friday says the coordinated attack was part of an operation carried out by the U.S. military’s Cyber Command.

Image: Shutterstock.

On October 2, KrebsOnSecurity reported that twice in the preceding ten days, an unknown entity that had inside access to the Trickbot botnet sent all infected systems a command telling them to disconnect themselves from the Internet servers the Trickbot overlords used to control compromised Microsoft Windows computers.

On top of that, someone had stuffed millions of bogus records about new victims into the Trickbot database — apparently to confuse or stymie the botnet’s operators.

In a story published Oct. 9, The Washington Post reported that four U.S. officials who spoke on condition of anonymity said the Trickbot disruption was the work of U.S. Cyber Command, a branch of the Department of Defense headed by the director of the National Security Agency (NSA).

The Post report suggested the action was a bid to prevent Trickbot from being used to somehow interfere with the upcoming presidential election, noting that Cyber Command was instrumental in disrupting the Internet access of Russian online troll farms during the 2018 midterm elections.

The Post said U.S. officials recognized their operation would not permanently dismantle Trickbot, describing it rather as “one way to distract them for at least a while as they seek to restore their operations.” Continue reading →

Amid an Embarrassment of Riches, Ransom Gangs Increasingly Outsource Their Work

October 8, 2020
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There’s an old adage in information security: “Every company gets penetration tested, whether or not they pay someone for the pleasure.” Many organizations that do hire professionals to test their network security posture unfortunately tend to focus on fixing vulnerabilities hackers could use to break in. But judging from the proliferation of help-wanted ads for offensive pentesters in the cybercrime underground, today’s attackers have exactly zero trouble gaining that initial intrusion: The real challenge seems to be hiring enough people to help everyone profit from the access already gained.

One of the most common ways such access is monetized these days is through ransomware, which holds a victim’s data and/or computers hostage unless and until an extortion payment is made. But in most cases, there is a yawning gap of days, weeks or months between the initial intrusion and the deployment of ransomware within a victim organization.

That’s because it usually takes time and a good deal of effort for intruders to get from a single infected PC to seizing control over enough resources within the victim organization where it makes sense to launch the ransomware.

This includes pivoting from or converting a single compromised Microsoft Windows user account to an administrator account with greater privileges on the target network; the ability to sidestep and/or disable any security software; and gaining the access needed to disrupt or corrupt any data backup systems the victim firm may have.

Each day, millions of malware-laced emails are blasted out containing booby-trapped attachments. If the attachment is opened, the malicious document proceeds to quietly download additional malware and hacking tools to the victim machine (here’s one video example of a malicious Microsoft Office attachment from the malware sandbox service any.run). From there, the infected system will report home to a malware control server operated by the spammers who sent the missive.

At that point, control over the victim machine may be transferred or sold multiple times between different cybercriminals who specialize in exploiting such access. These folks are very often contractors who work with established ransomware groups, and who are paid a set percentage of any eventual ransom payments made by a victim company.

THE DOCTOR IS IN

Enter subcontractors like “Dr. Samuil,” a cybercriminal who has maintained a presence on more than a dozen top Russian-language cybercrime forums over the past 15 years. In a series of recent advertisements, Dr. Samuil says he’s eagerly hiring experienced people who are familiar with tools used by legitimate pentesters for exploiting access once inside of a target company — specifically, post-exploit frameworks like the closely-guarded Cobalt Strike.

“You will be regularly provided select accesses which were audited (these are about 10-15 accesses out of 100) and are worth a try,” Dr. Samuil wrote in one such help-wanted ad. “This helps everyone involved to save time. We also have private software that bypasses protection and provides for smooth performance.”

From other classified ads he posted in August and September 2020, it seems clear Dr. Samuil’s team has some kind of privileged access to financial data on targeted companies that gives them a better idea of how much cash the victim firm may have on hand to pay a ransom demand. To wit:

“There is huge insider information on the companies which we target, including information if there are tape drives and clouds (for example, Datto that is built to last, etc.), which significantly affects the scale of the conversion rate.

Requirements:
– experience with cloud storage, ESXi.
– experience with Active Directory.
– privilege escalation on accounts with limited rights.

* Serious level of insider information on the companies with which we work. There are proofs of large payments, but only for verified LEADs.
* There is also a private MEGA INSIDE , which I will not write about here in public, and it is only for experienced LEADs with their teams.
* We do not look at REVENUE / NET INCOME / Accountant reports, this is our MEGA INSIDE, in which we know exactly how much to confidently squeeze to the maximum in total.

According to cybersecurity firm Intel 471, Dr. Samuil’s ad is hardly unique, and there are several other seasoned cybercriminals who are customers of popular ransomware-as-a-service offerings that are hiring sub-contractors to farm out some of the grunt work.

“Within the cybercriminal underground, compromised accesses to organizations are readily bought, sold and traded,” Intel 471 CEO Mark Arena said. “A number of security professionals have previously sought to downplay the business impact cybercriminals can have to their organizations.”

“But because of the rapidly growing market for compromised accesses and the fact that these could be sold to anyone, organizations need to focus more on efforts to understand, detect and quickly respond to network compromises,” Arena continued. “That covers faster patching of the vulnerabilities that matter, ongoing detection and monitoring for criminal malware, and understanding the malware you are seeing in your environment, how it got there, and what it has or could have dropped subsequently.” Continue reading →

Promising Infusions of Cash, Fake Investor John Bernard Walked Away With $30M

October 7, 2020
40 Comments

September featured two stories on a phony tech investor named John Bernard, a pseudonym used by a convicted thief named John Clifton Davies who’s fleeced dozens of technology companies out of an estimated $30 million with the promise of lucrative investments. Those stories prompted a flood of tips from Davies’ victims that paints a much clearer picture of this serial con man and his cohorts, including allegations of hacking, smuggling, bank fraud and murder.

KrebsOnSecurity interviewed more than a dozen of Davies’ victims over the past five years, none of whom wished to be quoted here out of fear of reprisals from a man they say runs with mercenaries and has connections to organized crime.

As described in Part II of this series, John Bernard is in fact John Clifton Davies, a 59-year-old U.K. citizen 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 third wife on their honeymoon in India.

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 a be billionaire Swiss investor who made his fortunes in the dot-com boom 20 years ago and who was seeking investment opportunities.

In case after case, Bernard would promise to invest millions in tech startups, and then 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. When it came time for companies to sign legal documents, Bernard’s victims interacted with a 40-something Inside Knowledge employee named “Katherine Miller,” who claimed to be his lawyer.

It turns out that Katherine Miller is a onetime Moldovan attorney who was previously known as Ecaterina “Katya” Dudorenko. She is listed as a Romanian lawyer in the U.K. Companies House records for several companies tied to John Bernard, including Inside Knowledge Solutions Ltd., Docklands Enterprise Ltd., and Secure Swiss Data Ltd (more on Secure Swiss data in a moment).

Another of Bernard’s associates listed as a director at Docklands Enterprise Ltd. is Sergey Valentinov Pankov. This is notable because in 2018, Pankov and Dudorenko were convicted of cigarette smuggling in the United Kingdom.

Sergey Pankov and Ecaterina Dudorenco, in undated photos. Source: Mynewsdesk.com

According to the Organized Crime and Corruption Reporting Project, “illicit trafficking of tobacco is a multibillion-dollar business today, fueling organized crime and corruption [and] robbing governments of needed tax money. So profitable is the trade that tobacco is the world’s most widely smuggled legal substance. This booming business now stretches from counterfeiters in China and renegade factories in Russia to Indian reservations in New York and warlords in Pakistan and North Africa.”

Like their erstwhile boss Mr. Davies, both Pankov and Dudorenko disappeared before their convictions in the U.K. They were sentenced in absentia to two and a half years in prison.

Incidentally, Davies was detained by Ukrainian authorities in 2018, although he is not mentioned by name in this story from the Ukrainian daily Pravda. The story notes that the suspect moved to Kiev in 2014 and lived in a rented apartment with his Ukrainian wife. Continue reading →

Attacks Aimed at Disrupting the Trickbot Botnet

October 2, 2020
31 Comments

Over the past 10 days, someone has been launching a series of coordinated attacks designed to disrupt Trickbot, an enormous collection of more than two million malware-infected Windows PCs that are constantly being harvested for financial data and are often used as the entry point for deploying ransomware within compromised organizations.

A text snippet from one of the bogus Trickbot configuration updates. Source: Intel 471

On Sept. 22, someone pushed out a new configuration file to Windows computers currently infected with Trickbot. The crooks running the Trickbot botnet typically use these config files to pass new instructions to their fleet of infected PCs, such as the Internet address where hacked systems should download new updates to the malware.

But the new configuration file pushed on Sept. 22 told all systems infected with Trickbot that their new malware control server had the address 127.0.0.1, which is a “localhost” address that is not reachable over the public Internet, according to an analysis by cyber intelligence firm Intel 471.

It’s not known how many Trickbot-infected systems received the phony update, but it seems clear this wasn’t just a mistake by Trickbot’s overlords. Intel 471 found that it happened yet again on Oct. 1, suggesting someone with access to the inner workings of the botnet was trying to disrupt its operations.

“Shortly after the bogus configs were pushed out, all Trickbot controllers stopped responding correctly to bot requests,” Intel 471 wrote in a note to its customers. “This possibly means central Trickbot controller infrastructure was disrupted. The close timing of both events suggested an intentional disruption of Trickbot botnet operations.”

Intel 471 CEO Mark Arena said it’s anyone’s guess at this point who is responsible.

“Obviously, someone is trying to attack Trickbot,” Arena said. “It could be someone in the security research community, a government, a disgruntled insider, or a rival cybercrime group. We just don’t know at this point.”

Arena said it’s unclear how successful these bogus configuration file updates will be given that the Trickbot authors built a fail-safe recovery system into their malware. Specifically, Trickbot has a backup control mechanism: A domain name registered on EmerDNS, a decentralized domain name system.

“This domain should still be in control of the Trickbot operators and could potentially be used to recover bots,” Intel 471 wrote.

But whoever is screwing with the Trickbot purveyors appears to have adopted a multi-pronged approach: Around the same time as the second bogus configuration file update was pushed on Oct. 1, someone stuffed the control networks that the Trickbot operators use to keep track of data on infected systems with millions of new records.

Alex Holden is chief technology officer and founder of Hold Security, a Milwaukee-based cyber intelligence firm that helps recover stolen data. Holden said at the end of September Trickbot held passwords and financial data stolen from more than 2.7 million Windows PCs.

By October 1, Holden said, that number had magically grown to more than seven million.

“Someone is flooding the Trickbot system with fake data,” Holden said. “Whoever is doing this is generating records that include machine names indicating these are infected systems in a broad range of organizations, including the Department of Defense, U.S. Bank, JP Morgan Chase, PNC and Citigroup, to name a few.” Continue reading →

Ransomware Victims That Pay Up Could Incur Steep Fines from Uncle Sam

October 1, 2020
58 Comments

Companies victimized by ransomware and firms that facilitate negotiations with ransomware extortionists could face steep fines from the U.S. federal government if the crooks who profit from the attack are already under economic sanctions, the Treasury Department warned today.

Image: Shutterstock

In its advisory (PDF), the Treasury’s Office of Foreign Assets Control (OFAC) said “companies that facilitate ransomware payments to cyber actors on behalf of victims, including financial institutions, cyber insurance firms, and companies involved in digital forensics and incident response, not only encourage future ransomware payment demands but also may risk violating OFAC regulations.”

As financial losses from cybercrime activity and ransomware attacks in particular have skyrocketed in recent years, the Treasury Department has imposed economic sanctions on several cybercriminals and cybercrime groups, effectively freezing all property and interests of these persons (subject to U.S. jurisdiction) and making it a crime to transact with them.

A number of those sanctioned have been closely tied with ransomware and malware attacks, including the North Korean Lazarus Group; two Iranians thought to be tied to the SamSam ransomware attacks; Evgeniy Bogachev, the developer of Cryptolocker; and Evil Corp, a Russian cybercriminal syndicate that has used malware to extract more than $100 million from victim businesses.

Those that run afoul of OFAC sanctions without a special dispensation or “license” from Treasury can face several legal repercussions, including fines of up to $20 million. Continue reading →

Who’s Behind Monday’s 14-State 911 Outage?

September 29, 2020
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Emergency 911 systems were down for more than an hour on Monday in towns and cities across 14 U.S. states. The outages led many news outlets to speculate the problem was related to Microsoft‘s Azure web services platform, which also was struggling with a widespread outage at the time. However, multiple sources tell KrebsOnSecurity the 911 issues stemmed from some kind of technical snafu involving Intrado and Lumen, two companies that together handle 911 calls for a broad swath of the United States.

Image: West.com

On the afternoon of Monday, Sept. 28, several states including Arizona, California, Colorado, Delaware, Florida, Illinois, Indiana, Minnesota, Nevada, North Carolina, North Dakota, Ohio, Pennsylvania and Washington reported 911 outages in various cities and localities.

Multiple news reports suggested the outages might have been related to an ongoing service disruption at Microsoft. But a spokesperson for the software giant told KrebsOnSecurity, “we’ve seen no indication that the multi-state 911 outage was a result of yesterday’s Azure service disruption.”

Inquiries made with emergency dispatch centers at several of the towns and cities hit by the 911 outage pointed to a different source: Omaha, Neb.-based Intrado — until last year known as West Safety Communications — a provider of 911 and emergency communications infrastructure, systems and services to telecommunications companies and public safety agencies throughout the country.

Intrado did not respond to multiple requests for comment. But according to officials in Henderson County, NC, which experienced its own 911 failures yesterday, Intrado said the outage was the result of a problem with an unspecified service provider.

“On September 28, 2020, at 4:30pm MT, our 911 Service Provider observed conditions internal to their network that resulted in impacts to 911 call delivery,” reads a statement Intrado provided to county officials. “The impact was mitigated, and service was restored and confirmed to be functional by 5:47PM MT.  Our service provider is currently working to determine root cause.”

The service provider referenced in Intrado’s statement appears to be Lumen, a communications firm and 911 provider that until very recently was known as CenturyLink Inc. A look at the company’s status page indicates multiple Lumen systems experienced total or partial service disruptions on Monday, including its private and internal cloud networks and its control systems network.

Lumen’s status page indicates the company’s private and internal cloud and control system networks had outages or service disruptions on Monday.

In a statement provided to KrebsOnSecurity, Lumen blamed the issue on Intrado.

“At approximately 4:30 p.m. MT, some Lumen customers were affected by a vendor partner event that impacted 911 services in AZ, CO, NC, ND, MN, SD, and UT,” the statement reads. “Service was restored in less than an hour and all 911 traffic is routing properly at this time. The vendor partner is in the process of investigating the event.”

It may be no accident that both of these companies are now operating under new names, as this would hardly be the first time a problem between the two of them has disrupted 911 access for a large number of Americans. Continue reading →

Who is Tech Investor John Bernard?

September 25, 2020
32 Comments

John Bernard, the subject of a story here last week about a self-proclaimed millionaire investor who has bilked countless tech startups, appears to be a pseudonym for John Clifton Davies, 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.

The Private Office of John Bernard, which advertises itself as a capital investment firm based in Switzerland, has for years been listed on multiple investment sites as the home of a millionaire who made his fortunes in the dot-com boom 20 years ago and who has oodles of cash to invest in tech startups.

But as last week’s story noted, Bernard’s investment company is a bit like a bad slot machine that never pays out. KrebsOnSecurity interviewed multiple investment brokers who all told the same story: After promising to invest millions after one or two phone calls and with little or no pushback, Bernard would 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.

Neither Mr. Bernard nor anyone from his various companies responded to multiple requests for comment over the past few weeks. What’s more, virtually all of the employee profiles tied to Bernard’s office have since last week removed those firms from their work experience as listed on their LinkedIn resumes — or else deleted their profiles altogether.

Sometime on Thursday John Bernard’s main website — the-private-office.ch — replaced the content on its homepage with a note saying it was closing up shop.

“We are pleased to announce that we are currently closing The Private Office fund as we have reached our intended investment level and that we now plan to focus on helping those companies we have invested into to grow and succeed,” the message reads.

As noted in last week’s story, the beauty of a scam like the one multiple investment brokers said was being run by Mr. Bernard is that companies bilked by small-time investment schemes rarely pursue legal action, mainly because the legal fees involved can quickly surpass the losses. What’s more, most victims will likely be too ashamed to come forward.

Also, John Bernard’s office typically did not reach out to investment brokers directly. Rather, he had his firm included on a list of angel investors focused on technology companies, so those seeking investments usually came to him.

Finally, multiple sources interviewed for this story said Bernard’s office offered a finders fee for any investment leads that brokers brought his way. While such commissions are not unusual, the amount promised — five percent of the total investment in a given firm that signed an agreement — is extremely generous. However, none of the investment brokers who spoke to KrebsOnSecurity were able to collect those fees, because Bernard’s office never actually consummated any of the deals they referred to him. Continue reading →

Microsoft: Attackers Exploiting ‘ZeroLogon’ Windows Flaw

September 24, 2020
19 Comments

Microsoft warned on Wednesday that malicious hackers are exploiting a particularly dangerous flaw in Windows Server systems that could be used to give attackers the keys to the kingdom inside a vulnerable corporate network. Microsoft’s warning comes just days after the U.S. Department of Homeland Security issued an emergency directive instructing all federal agencies to patch the vulnerability by Sept. 21 at the latest.

DHS’s Cybersecurity and Infrastructure Agency (CISA) said in the directive that it expected imminent exploitation of the flaw — CVE-2020-1472 and dubbed “ZeroLogon” — because exploit code which can be used to take advantage of it was circulating online.

Last night, Microsoft’s Security Intelligence unit tweeted that the company is “tracking threat actor activity using exploits for the CVE-2020-1472 Netlogon vulnerability.”

“We have observed attacks where public exploits have been incorporated into attacker playbooks,” Microsoft said. “We strongly recommend customers to immediately apply security updates.”

Microsoft released a patch for the vulnerability in August, but it is not uncommon for businesses to delay deploying updates for days or weeks while testing to ensure the fixes do not interfere with or disrupt specific applications and software.

CVE-2020-1472 earned Microsoft’s most-dire “critical” severity rating, meaning attackers can exploit it with little or no help from users. The flaw is present in most supported versions of Windows Server, from Server 2008 through Server 2019. Continue reading →