Romanian Skimmer Gang in Mexico Outed by KrebsOnSecurity Stole $1.2 Billion

June 3, 2020
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An exhaustive inquiry published today by a consortium of investigative journalists says a three-part series KrebsOnSecurity published in 2015 on a Romanian ATM skimming gang operating in Mexico’s top tourist destinations disrupted their highly profitable business, which raked in an estimated $1.2 billion and enjoyed the protection of top Mexican authorities.

The multimedia investigation by the Organized Crime and Corruption Reporting Project (OCCRP) and several international journalism partners detailed the activities of the so-called Riviera Maya crime gang, allegedly a mafia-like group of Romanians who until very recently ran their own ATM company in Mexico called “Intacash” and installed sophisticated electronic card skimming devices inside at least 100 cash machines throughout Mexico.

According to the OCCRP, Riviera Maya’s skimming devices allowed thieves to clone the cards, which were used to withdraw funds from ATMs in other countries — often halfway around the world in places like India, Indonesia, and Taiwan.

Investigators say each skimmer captured on average 1,000 cards per month, siphoning about $200 from individual victim accounts. This allowed the crime gang to steal approximately $20 million monthly.

“The gang had little tricks,” OCCRP reporters recounted in their video documentary (above). “They would use the cards in different cities all over the globe and wait three months so banks would struggle to trace where the card had originally been cloned.”

In September 2015, I traveled to Mexico’s Yucatan Peninsula to find and document almost two dozen ATMs in the region that were compromised with Bluetooth-based skimming devices. Unlike most skimmers — which can be detected by looking for out-of-place components attached to the exterior of a compromised cash machine — these skimmers were hooked to the internal electronics of ATMs operated by Intacash’s competitors by authorized personnel who’d reportedly been bribed or coerced by the gang.

But because the skimmers were Bluetooth-based, allowing thieves periodically to collect stolen data just by strolling up to a compromised machine with a mobile device, I was able to detect which ATMs had been hacked using nothing more than a cheap smart phone.

One of the Bluetooth-enabled PIN pads pulled from a compromised ATM in Mexico. The two components on the left are legitimate parts of the machine. The fake PIN pad made to be slipped under the legit PIN pad on the machine, is the orange bit, top right. The Bluetooth and data storage chips are in the middle.

Several days of wandering around Mexico’s top tourist areas uncovered these sophisticated skimmers inside ATMs in Cancun, Cozumel, Playa del Carmen and Tulum, including a compromised ATM in the lobby of my hotel in Cancun. OCCRP investigators said the gang also had installed the same skimmers in ATMs at tourist hotspots on the western coast of Mexico, in Puerto Vallarta, Sayulita and Tijuana.

Part III of my 2015 investigation concluded that Intacash was likely behind the scheme. An ATM industry source told KrebsOnSecurity at the time that his technicians had been approached by ATM installers affiliated with Intacash, offering those technicians many times their monthly salaries if they would provide periodic access to the machines they maintained.

The alleged leader of the Riviera Maya organization and principal owner of Intacash, 43-year-old Florian “The Shark” Tudor, is a Romanian with permanent residence in Mexico. Tudor claims he’s an innocent, legitimate businessman who’s been harassed and robbed by Mexican authorities.

Last year, police in Mexico arrested Tudor for illegal weapons possession, and raided his various properties there in connection with an investigation into the 2018 murder of his former bodyguard, Constantin Sorinel Marcu.

According to prosecution documents, Marcu and The Shark spotted my reporting shortly after it was published in 2015, and discussed what to do next on a messaging app:

The Shark: Krebsonsecurity.com See this. See the video and everything. There are two episodes. They made a telenovela.

Marcu: I see. It’s bad.

The Shark: They destroyed us. That’s it. Fuck his mother. Close everything.

The intercepted communications indicate The Shark also wanted revenge on whoever was responsible for leaking information about their operations.

The Shark: Tell them that I am going to kill them.

Marcu: Okay, I can kill them. Any time, any hour.

The Shark: They are checking all the machines. Even at banks. They found over 20.

Marcu: Whaaaat?!? They found? Already??

Continue reading →

REvil Ransomware Gang Starts Auctioning Victim Data

June 2, 2020
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The criminal group behind the REvil ransomware enterprise has begun auctioning off sensitive data stolen from companies hit by its malicious software. The move marks an escalation in tactics aimed at coercing victims to pay up — and publicly shaming those who don’t. But it may also signal that ransomware purveyors are searching for new ways to profit from their crimes as victim businesses struggle just to keep the lights on during the unprecedented economic slowdown caused by the COVID-19 pandemic.

Over the past 24 hours, the crooks responsible for spreading the ransom malware “REvil” (a.k.a. “Sodin” and “Sodinokibi“) used their Dark Web “Happy Blog” to announce its first ever stolen data auction, allegedly selling files taken from a Canadian agricultural production company that REvil says has so far declined its extortion demands.

A partial screenshot from the REvil ransomware group’s Dark Web blog.

The victim firm’s auction page says a successful bidder will get three databases and more than 22,000 files stolen from the agricultural company. It sets the minimum deposit at $5,000 in virtual currency, with the starting price of $50,000.

Prior to this auction, REvil — like many other ransomware gangs — has sought to pressure victim companies into paying up mainly by publishing a handful of sensitive files stolen from their extortion targets, and threatening to release more data unless and until the ransom demand is met.

Experts say the auction is a sign that ransomware groups may be feeling the financial pinch from the current economic crisis, and are looking for new ways to extract value from victims who are now less likely or able to pay a ransom demand.

Lawrence Abrams, editor of the computer help and news Web site BleepingComputer, said while some ransomware groups have a history of selling victim data on cybercrime forums, this latest move by REvil may be just another tactic used by criminals to force victims to negotiate a ransom payment.

“The problem is a lot of victim companies just don’t have the money [to pay ransom demands] right now,” Abrams said. “Others have gotten the message about the need for good backups, and probably don’t need to pay. But maybe if the victim is seeing their data being actively bid on, they may be more inclined to pay the ransom.” Continue reading →

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Career Choice Tip: Cybercrime is Mostly Boring

May 29, 2020
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When law enforcement agencies tout their latest cybercriminal arrest, the defendant is often cast as a bravado outlaw engaged in sophisticated, lucrative, even exciting activity. But new research suggests that as cybercrime has become dominated by pay-for-service offerings, the vast majority of day-to-day activity needed to support these enterprises is in fact mind-numbingly boring and tedious, and that highlighting this reality may be a far more effective way to combat cybercrime and steer offenders toward a better path.

Yes, I realize hooded hacker stock photos have become a meme, but that’s the point.

The findings come in a new paper released by researchers at Cambridge University’s Cybercrime Centre, which examined the quality and types of work needed to build, maintain and defend illicit enterprises that make up a large portion of the cybercrime-as-a-service market. In particular, the academics focused on botnets and DDoS-for-hire or “booter” services, the maintenance of underground forums, and malware-as-a-service offerings.

In examining these businesses, the academics stress that the romantic notions of those involved in cybercrime ignore the often mundane, rote aspects of the work that needs to be done to support online illicit economies. The researchers concluded that for many people involved, cybercrime amounts to little more than a boring office job sustaining the infrastructure on which these global markets rely, work that is little different in character from the activity of legitimate system administrators.

Richard Clayton, a co-author of the report and director of Cambridge’s Cybercrime Centre, said the findings suggest policymakers and law enforcement agencies may be doing nobody a favor when they issue aggrandizing press releases that couch their cybercrime investigations as targeting sophisticated actors.

“The way in which everyone looks at cybercrime is they’re all interested in the rockstars and all the exciting stuff,” Clayton told KrebsOnSecurity. “The message put out there is that cybercrime is lucrative and exciting, when for most of the people involved it’s absolutely not the case.”

From the paper:

“We find that as cybercrime has developed into industrialized illicit economies, so too have a range of tedious supportive forms of labor proliferated, much as in mainstream industrialized economies. We argue that cybercrime economies in advanced states of growth have begun to create their own tedious, low-fulfillment jobs, becoming less about charismatic transgression and deviant identity, and more about stability and the management and diffusion of risk. Those who take part in them, the research literature suggests, may well be initially attracted by exciting media portrayals of hackers and technological deviance.”

“However, the kinds of work and practices in which they actually become involved are not reflective of the excitement and exploration which characterized early ‘hacker’ communities, but are more similar to low-level work in drug dealing gangs, involving making petty amounts of money for tedious work in the service of aspirations that they may one day be one of the major players. This creates the same conditions of boredom…which are found in mainstream jobs when the reality emerges that these status and financial goals are as blocked in the illicit economy as they are in the regular job market.”

The researchers drew on interviews with people engaged in such enterprises, case studies on ex- or reformed criminal hackers, and from scraping posts by denizens of underground forums and chat channels. They focused on the activity needed to keep various crime services operating efficiently and free from disruption from interlopers, internecine conflict, law enforcement or competitors.

BOOTER BLUES

For example, running an effective booter service requires a substantial amount of administrative work and maintenance, much of which involves constantly scanning for, commandeering and managing large collections of remote systems that can be used to amplify online attacks.

Booter services (a.k.a. “stressers”) — like many other cybercrime-as-a-service offerings — tend to live or die by their reputation for uptime, effectiveness, treating customers fairly, and for quickly responding to inquiries or concerns from users. As a result, these services typically require substantial investment in staff needed for customer support work (through a ticketing system or a realtime chat service) when issues arise with payments or with clueless customers failing to understand how to use the service.

In one interview with a former administrator of a booter service, the proprietor told researchers he quit and went on with a normal life after getting tired of dealing with customers who took for granted all the grunt work needed to keep the service running. From the interview:

“And after doing [it] for almost a year, I lost all motivation, and really didn’t care anymore. So I just left and went on with life. It wasn’t challenging enough at all. Creating a stresser is easy. Providing the power to run it is the tricky part. And when you have to put all your effort, all your attention. When you have to sit in front of a computer screen and scan, filter, then filter again over 30 amps per 4 hours it gets annoying.”

The researchers note that this burnout is an important feature of customer support work, “which is characterized less by a progressive disengagement with a once-interesting activity, and more by the gradual build-up of boredom and disenchantment, once the low ceiling of social and financial capital which can be gained from this work is reached.” Continue reading →

UK Ad Campaign Seeks to Deter Cybercrime

May 28, 2020
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The United Kingdom’s anti-cybercrime agency is running online ads aimed at young people who search the Web for services that enable computer crimes, specifically trojan horse programs and DDoS-for-hire services. The ad campaign follows a similar initiative launched in late 2017 that academics say measurably dampened demand for such services by explaining that their use to harm others is illegal and can land potential customers in jail.

For example, search in Google for the terms “booter” or “stresser” from a U.K. Internet address, and there’s a good chance you’ll see a paid ad show up on the first page of results warning that using such services to attack others online is illegal. The ads are being paid for by the U.K.’s National Crime Agency, which saw success with a related campaign for six months starting in December 2017.

A Google ad campaign paid for by the U.K.’s National Crime Agency.

NCA Senior Manager David Cox said the agency is targeting its ads to U.K. males age 13 to 22 who are searching for booter services or different types of remote access trojans (RATs), as part of an ongoing effort to help steer young men away from cybercrime and toward using their curiosity and skills for good. The ads link to advertorials and to the U.K.’s Cybersecurity Challenge, which tries gamify computer security concepts and highlight potential careers in cybersecurity roles.

“The fact is, those standing in front of a classroom teaching children have less information about cybercrime than those they’re trying to teach,” Cox said, noting that the campaign is designed to support so-called “knock-and-talk” visits, where investigators visit the homes of young people who’ve downloaded malware or purchased DDoS-for-hire services to warn them away from such activity. “This is all about showing people there are other paths they can take.”

While it may seem obvious to the casual reader that deploying some malware-as-a-service or using a booter to knock someone or something offline can land one in legal hot water, the typical profile of those who frequent these services is young, male, impressionable and participating in online communities of like-minded people in which everyone else is already doing it.

In 2017, the NCA published “Pathways into Cyber Crime,” a report that drew upon interviews conducted with a number of young men who were visited by U.K. law enforcement agents in connection with various cybercrime investigations.

Those findings, which the NCA said came about through knock-and-talk interviews with a number of suspected offenders, found that 61 percent of suspects began engaging in criminal hacking before the age of 16, and that the average age of suspects and arrests of those involved in hacking cases was 17 years old.

The majority of those engaged in, or on the periphery of, cyber crime, told the NCA they became involved via an interest in computer gaming.

A large proportion of offenders began to participate in gaming cheat websites and “modding” forums, and later progressed to criminal hacking forums.

The NCA learned the individuals visited had just a handful of primary motivations in mind, including curiosity, overcoming a challenge, or proving oneself to a larger group of peers. According to the report, a typical offender faces a perfect storm of ill-boding circumstances, including a perceived low risk of getting caught, and a perception that their offenses in general amounted to victimless crimes.

“Law enforcement activity does not act as a deterrent, as individuals consider cyber crime to be low risk,” the NCA report found. “Debrief subjects have stated that they did not consider law enforcement until someone they knew or had heard of was arrested. For deterrence to work, there must be a closing of the gap between offender (or potential offender) with law enforcement agencies functioning as a visible presence for these individuals.”

Cox said the NCA will continue to run the ads indefinitely, and that it is seeking funding from outside sources — including major companies in online gaming industry, whose platforms are perhaps the most targeted by DDoS-for-hire services. He called the program a “great success,” noting that in the past 30 days (13 of which the ads weren’t running for funding reasons), the ads generated some 5.32 million impressions, and more than 57,000 clicks.

FLATTENING THE CURVE

Richard Clayton is director of the University of Cambridge Cybercrime Centre, which has been monitoring DDoS attacks for several years using a variety of sensors across the Internet that pretend to be the types of systems which are typically commandeered and abused to help launch such assaults.

Last year, Clayton and fellow Cambridge researchers published a paper showing that law enforcement interventions — including the NCA’s anti-DDoS ad campaign between 2017 and 2018 — demonstrably slowed the growth in demand for DDoS-for-hire services.

“Our data shows that by running that ad campaign, the NCA managed to flatten out demand for booter services over that period,” Clayton said. “In other words, the demand for these services didn’t grow over the period as we would normally see, and we didn’t see more people doing it at the end of the period than at the beginning. When we showed this to the NCA, they were ever so pleased, because that campaign cost them less than ten thousand [pounds sterling] and it stopped this type of cybercrime from growing for six months.”

The Cambridge study found various interventions by law enforcement officials had measurable effects on the demand for and damage caused by booter and stresser services. Source: Booting the Booters, 2019.

Clayton said part of the problem is that many booter/stresser providers claim they’re offering lawful services, and many of their would-be customers are all too eager to believe this is true. Also, the price point is affordable: A typical booter service will allow customers to launch fairly high-powered DDoS attacks for just a few dollars per month.

“There are legitimate companies that provide these types of services in a legal manner, but there are all types of agreements that have to be in place before this can happen,” Clayton said. “And you don’t get that for ten bucks a month.” Continue reading →

Report: ATM Skimmer Gang Had Protection from Mexican Attorney General’s Office

May 26, 2020
37 Comments

A group of Romanians operating an ATM company in Mexico and suspected of bribing technicians to install sophisticated Bluetooth-based skimmers in cash machines throughout several top Mexican tourist destinations have enjoyed legal protection from a top anti-corruption official in the Mexican attorney general’s office, according to a new complaint filed with the government’s internal affairs division.

As detailed this week by the Mexican daily Reforma, several Mexican federal, state and municipal officers filed a complaint saying the attorney general office responsible for combating corruption had initiated formal proceedings against them for investigating Romanians living in Mexico who are thought to be part of the ATM skimming operation.

Florian Tudor (right) and his business associates at a press conference earlier this year. Image: Reforma.

Reforma said the complaint centers on Camilo Constantino Rivera, who heads the unit in the Mexican Special Prosecutor’s office responsible for fighting corruption. It alleges Rivera has an inherent conflict of interest because his brother has served as a security escort and lawyer for Floridan Tudor, the reputed boss of a Romanian crime syndicate recently targeted by the FBI for running an ATM skimming and human trafficking network that operates throughout Mexico and the United States.

Tudor, a.k.a. “Rechinu” or “The Shark,” and his ATM company Intacash, were the subject of a three part investigation by KrebsOnSecurity published in September 2015. That series tracked the activities of a crime gang which was rumored to be bribing and otherwise coercing ATM technicians into installing Bluetooth-based skimming devices inside cash machines throughout popular tourist destinations in and around Mexico’s Yucatan Peninsula — including Cancun, Cozumel, Playa del Carmen and Tulum.

In 2018, 44-year-old Romanian national Sorinel Constantin Marcu was found shot dead in his car in Mexico. Marcu’s older brother told KrebsOnSecurity shortly after the murder that his brother was Tudor’s personal bodyguard but at some point had a falling out with Tudor and his associates over money. Marcu the elder said his brother was actually killed in front of a new apartment complex being built and paid for by Mr. Tudor, and that the dead man’s body was moved to make it look like he was slain in his car instead.

On March 31, 2019, police in Cancun, Mexico arrested 42-year-old Tudor and 37-year-old Adrian Nicholae Cosmin for the possession of an illegal firearm and cash totaling nearly 500,000 pesos (~USD $26,000) in both American and Mexican denominations. Two months later, a judge authorized the search of several of Tudor’s properties.

The Reforma report says Rivera’s office subsequently initiated proceedings against and removed several agents who investigated the crime ring, alleging those agents abused their authority and conducted illegal searches. The complaint against Rivera charges that the criminal protection racket also included the former chief of police in Cancun.

In September 2019, prosecutors with the Southern District of New York unsealed indictments and announced arrests against 18 people accused of running an ATM skimming and money laundering operation that netted $20 million. The defendants in that case — nearly all of whom are Romanians living in the United States and Mexico — included Florian Claudio Martin, described by Romanian newspapers as “the brother of Rechinu,” a.k.a. Tudor. Continue reading →

Riding the State Unemployment Fraud ‘Wave’

May 23, 2020
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When a reliable method of scamming money out of people, companies or governments becomes widely known, underground forums and chat networks tend to light up with activity as more fraudsters pile on to claim their share. And that’s exactly what appears to be going on right now as multiple U.S. states struggle to combat a tsunami of phony Pandemic Unemployment Assistance (PUA) claims. Meanwhile, a number of U.S. states are possibly making it easier for crooks by leaking their citizens’ personal data from the very websites the unemployment scammers are using to file bogus claims.

Last week, the U.S. Secret Service warned of “massive fraud” against state unemployment insurance programs, noting that false filings from a well-organized Nigerian crime ring could end up costing the states and federal government hundreds of millions of dollars in losses.

Since then, various online crime forums and Telegram chat channels focused on financial fraud have been littered with posts from people selling tutorials on how to siphon unemployment insurance funds from different states.

Denizens of a Telegram chat channel newly rededicated to stealing state unemployment funds discussing cashout methods.

Yes, for roughly $50 worth of bitcoin, you too can quickly jump on the unemployment fraud “wave” and learn how to swindle unemployment insurance money from different states. The channel pictured above and others just like it are selling different “methods” for defrauding the states, complete with instructions on how best to avoid getting your phony request flagged as suspicious.

Although, at the rate people in these channels are “flexing” — bragging about their fraudulent earnings with screenshots of recent multiple unemployment insurance payment deposits being made daily — it appears some states aren’t doing a whole lot of fraud-flagging.

A still shot from a video a fraudster posted to a Telegram channel overrun with people engaged in unemployment insurance fraud shows multiple $800+ payments in one day from Massachusetts’ Department of Unemployment Assistance (DUA).

A federal fraud investigator who’s helping to trace the source of these crimes and who spoke with KrebsOnSecurity on condition of anonymity said many states have few controls in place to spot patterns in fraudulent filings, such as multiple payments going to the same bank accounts, or filings made for different people from the same Internet address.

In too many cases, he said, the deposits are going into accounts where the beneficiary name does not match the name on the bank account. Worse still, the source said, many states have dramatically pared back the amount of information required to successfully request an unemployment filing.

“The ones we’re seeing worst hit are the states that aren’t asking where you worked,” the investigator said. “It used to be they’d have a whole list of questions about your previous employer, and you had to show you were trying to find work. But now because of the pandemic, there’s no such requirement. They’ve eliminated any controls they had at all, and now they’re just shoveling money out the door based on Social Security number, name, and a few other details that aren’t hard to find.” Continue reading →

Ukraine Nabs Suspect in 773M Password ‘Megabreach’

May 19, 2020
27 Comments

In January 2019, dozens of media outlets raised the alarm about a new “megabreach” involving the release of some 773 million stolen usernames and passwords that was breathlessly labeled “the largest collection of stolen data in history.” A subsequent review by KrebsOnSecurity quickly determined the data was years old and merely a compilation of credentials pilfered from mostly public data breaches. Earlier today, authorities in Ukraine said they’d apprehended a suspect in the case.

The Security Service of Ukraine (SBU) on Tuesday announced the detention of a hacker known as Sanix (a.k.a. “Sanixer“) from the Ivano-Frankivsk region of the country. The SBU said they found on Sanix’s computer records showing he sold databases with “logins and passwords to e-mail boxes, PIN codes for bank cards, e-wallets of cryptocurrencies, PayPal accounts, and information about computers hacked for further use in botnets and for organizing distributed denial-of-service (DDoS) attacks.”

Items SBU authorities seized after raiding Sanix’s residence. Image: SBU.

Sanix became famous last year for posting to hacker forums that he was selling the 87GB password dump, labeled “Collection #1.” Shortly after his sale was first detailed by Troy Hunt, who operates the HaveIBeenPwned breach notification service, KrebsOnSecurity contacted Sanix to find out what all the fuss was about. From that story:

“Sanixer said Collection#1 consists of data pulled from a huge number of hacked sites, and was not exactly his ‘freshest’ offering. Rather, he sort of steered me away from that archive, suggesting that — unlike most of his other wares — Collection #1 was at least 2-3 years old. His other password packages, which he said are not all pictured in the above screen shot and total more than 4 terabytes in size, are less than a year old, Sanixer explained.”

Alex Holden, chief technology officer and founder of Milwaukee-based Hold Security, said Sanixer’s claim to infamy was simply for disclosing the Collection #1 data, which was just one of many credential dumps amalgamated by other cyber criminals.

“Today, it is even a more common occurrence to see mixing new and old breached credentials,” Holden said. “In fact, large aggregations of stolen credentials have been around since 2013-2014. Even the original attempt to sell the Yahoo breach data was a large mix of several previous unrelated breaches. Collection #1 was one of many credentials collections output by various cyber criminals gangs.” Continue reading →

This Service Helps Malware Authors Fix Flaws in their Code

May 18, 2020
32 Comments

Almost daily now there is news about flaws in commercial software that lead to computers getting hacked and seeded with malware. But the reality is most malicious software also has its share of security holes that open the door for security researchers or ne’er-do-wells to liberate or else seize control over already-hacked systems. Here’s a look at one long-lived malware vulnerability testing service that is used and run by some of the Dark Web’s top cybercriminals.

It is not uncommon for crooks who sell malware-as-a-service offerings such as trojan horse programs and botnet control panels to include backdoors in their products that let them surreptitiously monitor the operations of their customers and siphon data stolen from victims. More commonly, however, the people writing malware simply make coding mistakes that render their creations vulnerable to compromise.

At the same time, security companies are constantly scouring malware code for vulnerabilities that might allow them peer to inside the operations of crime networks, or to wrest control over those operations from the bad guys. There aren’t a lot of public examples of this anti-malware activity, in part because it wades into legally murky waters. More importantly, talking publicly about these flaws tends to be the fastest way to get malware authors to fix any vulnerabilities in their code.

Enter malware testing services like the one operated by “RedBear,” the administrator of a Russian-language security site called Krober[.]biz, which frequently blogs about security weaknesses in popular malware tools.

For the most part, the vulnerabilities detailed by Krober aren’t written about until they are patched by the malware’s author, who’s paid a small fee in advance for a code review that promises to unmask any backdoors and/or harden the security of the customer’s product.

RedBear’s profile on the Russian-language xss[.]is cybercrime forum.

RedBear’s service is marketed not only to malware creators, but to people who rent or buy malicious software and services from other cybercriminals. A chief selling point of this service is that, crooks being crooks, you simply can’t trust them to be completely honest.

“We can examine your (or not exactly your) PHP code for vulnerabilities and backdoors,” reads his offering on several prominent Russian cybercrime forums. “Possible options include, for example, bot admin panels, code injection panels, shell control panels, payment card sniffers, traffic direction services, exchange services, spamming software, doorway generators, and scam pages, etc.”

As proof of his service’s effectiveness, RedBear points to almost a dozen articles on Krober[.]biz which explain in intricate detail flaws found in high-profile malware tools whose authors have used his service in the past, including; the Black Energy DDoS bot administration panel; malware loading panels tied to the Smoke and Andromeda bot loaders; the RMS and Spyadmin trojans; and a popular loan scam script.

ESTRANGED BEDFELLOWS

RedBear doesn’t operate this service on his own. Over the years he’s had several partners in the project, including two very high-profile cybercriminals (or possibly just one, as we’ll see in a moment) who until recently operated under the hacker aliases “upO” and “Lebron.”

From 2013 to 2016, upO was a major player on Exploit[.]in — one of the most active and venerated Russian-language cybercrime forums in the underground — authoring almost 1,500 posts on the forum and starting roughly 80 threads, mostly focusing on malware. For roughly one year beginning in 2016, Lebron was a top moderator on Exploit.

One of many articles Lebron published on Krober[.]biz that detailed flaws found in malware submitted to RedBear’s vulnerability testing service.

In 2016, several members began accusing upO of stealing source code from malware projects under review, and then allegedly using or incorporating bits of the code into malware projects he marketed to others.

up0 would eventually be banned from Exploit for getting into an argument with another top forum contributor, wherein both accused the other of working for or with Russian and/or Ukrainian federal authorities, and proceeded to publish personal information about the other that allegedly outed their real-life identities.

The cybercrime actor “upO” on Exploit[.]in in late 2016, complaining that RedBear was refusing to pay a debt owed to him.

Lebron first appeared on Exploit in September 2016, roughly two months before upO was banished from the community. After serving almost a year on the forum while authoring hundreds of posts and threads (including many articles first published on Krober), Lebron abruptly disappeared from Exploit.

His departure was prefaced by a series of increasingly brazen accusations by forum members that Lebron was simply upO using a different nickname. His final post on Exploit in May 2017 somewhat jokingly indicated he was joining an upstart ransomware affiliate program. Continue reading →

U.S. Secret Service: “Massive Fraud” Against State Unemployment Insurance Programs

May 16, 2020
147 Comments

A well-organized Nigerian crime ring is exploiting the COVID-19 crisis by committing large-scale fraud against multiple state unemployment insurance programs, with potential losses in the hundreds of millions of dollars, according to a new alert issued by the U.S. Secret Service.

A memo seen by KrebsOnSecurity that the Secret Service circulated to field offices around the United States on Thursday says the ring has been filing unemployment claims in different states using Social Security numbers and other personally identifiable information (PII) belonging to identity theft victims, and that “a substantial amount of the fraudulent benefits submitted have used PII from first responders, government personnel and school employees.”

“It is assumed the fraud ring behind this possesses a substantial PII database to submit the volume of applications observed thus far,” the Secret Service warned. “The primary state targeted so far is Washington, although there is also evidence of attacks in North Carolina, Massachusetts, Rhode Island, Oklahoma, Wyoming and Florida.”

The Secret Service said the fraud network is believed to consist of hundred of “mules,” a term used to describe willing or unwitting individuals who are recruited to help launder the proceeds of fraudulent financial transactions.

“In the state of Washington, individuals residing out-of-state are receiving multiple ACH deposits from the State of Washington Unemployment Benefits Program, all in different individuals’ names with no connection to the account holder,” the notice continues.

The Service’s memo suggests the crime ring is operating in much the same way as crooks who specialize in filing fraudulent income tax refund requests with the states and the U.S. Internal Revenue Service (IRS), a perennial problem that costs the states and the U.S. Treasury hundreds of millions of dollars in revenue each year.

In those schemes, the scammers typically recruit people — often victims of online romance scams or those who also are out of work and looking for any source of income — to receive direct deposits from the fraudulent transactions, and then forward the bulk of the illicit funds to the perpetrators.

A federal fraud investigator who spoke with KrebsOnSecurity on condition of anonymity said many states simply don’t have enough controls in place to detect patterns that might help better screen out fraudulent unemployment applications, such as looking for multiple applications involving the same Internet addresses and/or bank accounts. The investigator said in some states fraudsters need only to submit someone’s name, Social Security number and other basic information for their claims to be processed.

Elaine Dodd, executive vice president of the fraud division at the Oklahoma Bankers Association, said financial institutions in her state earlier this week started seeing a flood of high-dollar transfers tied to employment claims filed for people in Washington, with many transfers in the $9,000 to $20,000 range.

“It’s been unbelievable to see the huge number of bogus filings here, and in such large amounts,” Dodd said, noting that one fraudulent claim sent to a mule in Oklahoma was for more than $29,000. “I’m proud of our bankers because they’ve managed to stop a lot of these transfers, but some are already gone. Most mules seem to have [been involved in] romance scams.”

While it might seem strange that people in Washington would be asking to receive their benefits via ACH deposits at a bank in Oklahoma, Dodd said the people involved seem to have a ready answer if anyone asks: One common refrain is that the claimants live in Washington but were riding out the Coronavirus pandemic while staying with family in Oklahoma. Continue reading →

Microsoft Patch Tuesday, May 2020 Edition

May 12, 2020
34 Comments

Microsoft today issued software updates to plug at least 111 security holes in Windows and Windows-based programs. None of the vulnerabilities were labeled as being publicly exploited or detailed prior to today, but as always if you’re running Windows on any of your machines it’s time once again to prepare to get your patches on.

May marks the third month in a row that Microsoft has pushed out fixes for more than 110 security flaws in its operating system and related software. At least 16 of the bugs are labeled “Critical,” meaning ne’er-do-wells can exploit them to install malware or seize remote control over vulnerable systems with little or no help from users.

But focusing solely on Microsoft’s severity ratings may obscure the seriousness of the flaws being addressed this month. Todd Schell, senior product manager at security vendor Ivanti, notes that if one looks at the “exploitability assessment” tied to each patch — i.e., how likely Microsoft considers each can and will be exploited for nefarious purposes — it makes sense to pay just as much attention to the vulnerabilities Microsoft has labeled with the lesser severity rating of “Important.”

Virtually all of the non-critical flaws in this month’s batch earned Microsoft’s “Important” rating.

“What is interesting and often overlooked is seven of the ten [fixes] at higher risk of exploit are only rated as Important,” Schell said. “It is not uncommon to look to the critical vulnerabilities as the most concerning, but many of the vulnerabilities that end up being exploited are rated as Important vs Critical.”

For example, Satnam Narang from Tenable notes that two remote code execution flaws in Microsoft Color Management (CVE-2020-1117) and Windows Media Foundation (CVE-2020-1126) could be exploited by tricking a user into opening a malicious email attachment or visiting a website that contains code designed to exploit the vulnerabilities. However, Microsoft rates these vulnerabilities as “Exploitation Less Likely,” according to their Exploitability Index.

In contrast, three elevation of privilege vulnerabilities that received a rating of “Exploitation More Likely” were also patched, Narang notes. These include a pair of “Important” flaws in Win32k (CVE-2020-1054, CVE-2020-1143) and one in the Windows Graphics Component (CVE-2020-1135). Elevation of Privilege vulnerabilities are used by attackers once they’ve managed to gain access to a system in order to execute code on their target systems with elevated privileges. There are at least 56 of these types of fixes in the May release.

Schell says if your organization’s plan for prioritizing the deployment of this month’s patches stops at vendor severity or even CVSS scores above a certain level you may want to reassess your metrics.

“Look to other risk metrics like Publicly Disclosed, Exploited (obviously), and Exploitability Assessment (Microsoft specific) to expand your prioritization process,” he advised.

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