Who Owns Your Wireless Service? Crooks Do.

August 7, 2019

Incessantly annoying and fraudulent robocalls. Corrupt wireless company employees taking hundreds of thousands of dollars in bribes to unlock and hijack mobile phone service. Wireless providers selling real-time customer location data, despite repeated promises to the contrary. A noticeable uptick in SIM-swapping attacks that lead to multi-million dollar cyberheists.

If you are somehow under the impression that you — the customer — are in control over the security, privacy and integrity of your mobile phone service, think again. And you’d be forgiven if you assumed the major wireless carriers or federal regulators had their hands firmly on the wheel.

No, a series of recent court cases and unfortunate developments highlight the sad reality that the wireless industry today has all but ceded control over this vital national resource to cybercriminals, scammers, corrupt employees and plain old corporate greed.

On Tuesday, Google announced that an unceasing deluge of automated robocalls had doomed a feature of its Google Voice service that sends transcripts of voicemails via text message.

Google said “certain carriers” are blocking the delivery of these messages because all too often the transcripts resulted from unsolicited robocalls, and that as a result the feature would be discontinued by Aug. 9. This is especially rich given that one big reason people use Google Voice in the first place is to screen unwanted communications from robocalls, mainly because the major wireless carriers have shown themselves incapable or else unwilling to do much to stem the tide of robocalls targeting their customers.

AT&T in particular has had a rough month. In July, the Electronic Frontier Foundation (EFF) filed a class action lawsuit on behalf of AT&T customers in California to stop the telecom giant and two data location aggregators from allowing numerous entities — including bounty hunters, car dealerships, landlords and stalkers — to access wireless customers’ real-time locations without authorization.

And on Monday, the U.S. Justice Department revealed that a Pakistani man was arrested and extradited to the United States to face charges of bribing numerous AT&T call-center employees to install malicious software and unauthorized hardware as part of a scheme to fraudulently unlock cell phones.

Ars Technica reports the scam resulted in millions of phones being removed from AT&T service and/or payment plans, and that the accused allegedly paid insiders hundreds of thousands of dollars to assist in the process.

We should all probably be thankful that the defendant in this case wasn’t using his considerable access to aid criminals who specialize in conducting unauthorized SIM swaps, an extraordinarily invasive form of fraud in which scammers bribe or trick employees at mobile phone stores into seizing control of the target’s phone number and diverting all texts and phone calls to the attacker’s mobile device.

Late last month, a federal judge in New York rejected a request by AT&T to dismiss a $224 million lawsuit over a SIM-swapping incident that led to $24 million in stolen cryptocurrency.

The defendant in that case, 21-year-old Manhattan resident Nicholas Truglia, is alleged to have stolen more than $80 million from victims of SIM swapping, but he is only one of many individuals involved in this incredibly easy, increasingly common and lucrative scheme. The plaintiff in that case alleges that he was SIM-swapped on two different occasions, both allegedly involving crooked or else clueless employees at AT&T wireless stores.

And let’s not forget about all the times various hackers figured out ways to remotely use a carrier’s own internal systems for looking up personal and account information on wireless subscribers.

So what the fresh hell is going on here? And is there any hope that lawmakers or regulators will do anything about these persistent problems? Gigi Sohn, a distinguished fellow at the Georgetown Institute for Technology Law and Policy, said the answer — at least in this administration — is probably a big “no.”

“The takeaway here is the complete and total abdication of any oversight of the mobile wireless industry,” Sohn told KrebsOnSecurity. “Our enforcement agencies aren’t doing anything on these topics right now, and we have a complete and total breakdown of oversight of these incredibly powerful and important companies.” Continue reading

The Risk of Weak Online Banking Passwords

August 5, 2019

If you bank online and choose weak or re-used passwords, there’s a decent chance your account could be pilfered by cyberthieves — even if your bank offers multi-factor authentication as part of its login process. This story is about how crooks increasingly are abusing third-party financial aggregation services like Mint, PlaidYodlee, YNAB and others to surveil and drain consumer accounts online.

Crooks are constantly probing bank Web sites for customer accounts protected by weak or recycled passwords. Most often, the attacker will use lists of email addresses and passwords stolen en masse from hacked sites and then try those same credentials to see if they permit online access to accounts at a range of banks.

A screenshot of a password-checking tool being used to target Chase Bank customers who re-use passwords from other sites. Image: Hold Security.

From there, thieves can take the list of successful logins and feed them into apps that rely on application programming interfaces (API)s from one of several personal financial data aggregators which help users track their balances, budgets and spending across multiple banks.

A number of banks that do offer customers multi-factor authentication — such as a one-time code sent via text message or an app — have chosen to allow these aggregators the ability to view balances and recent transactions without requiring that the aggregator service supply that second factor. That’s according to Brian Costello, vice president of data strategy at Yodlee, one of the largest financial aggregator platforms.

Costello said while some banks have implemented processes which pass through multi-factor authentication (MFA) prompts when consumers wish to link aggregation services, many have not.

“Because we have become something of a known quantity with the banks, we’ve set up turning off MFA with many of them,” Costello said.  “Many of them are substituting coming from a Yodlee IP or agent as a factor because banks have historically been relying on our security posture to help them out.”

Such reconnaissance helps lay the groundwork for further attacks: If the thieves are able to access a bank account via an aggregator service or API, they can view the customer’s balance(s) and decide which customers are worthy of further targeting.

This targeting can occur in at least one of two ways. The first involves spear phishing attacks to gain access to that second authentication factor, which can be made much more convincing once the attackers have access to specific details about the customer’s account — such as recent transactions or account numbers (even partial account numbers).

The second is through an unauthorized SIM swap, a form of fraud in which scammers bribe or trick employees at mobile phone stores into seizing control of the target’s phone number and diverting all texts and phone calls to the attacker’s mobile device.

But beyond targeting customers for outright account takeovers, the data available via financial aggregators enables a far more insidious type of fraud: The ability to link the target’s bank account(s) to other accounts that the attackers control.

That’s because PayPal, Zelle, and a number of other pure-play online financial institutions allow customers to link accounts by verifying the value of microdeposits. For example, if you wish to be able to transfer funds between PayPal and a bank account, the company will first send a couple of tiny deposits  — a few cents, usually — to the account you wish to link. Only after verifying those exact amounts will the account-linking request be granted. Continue reading

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Capital One Data Theft Impacts 106M People

July 30, 2019

Federal prosecutors this week charged a Seattle woman with stealing data from more than 100 million credit applications made with Capital One Financial Corp. Incredibly, much of this breach played out publicly over several months on social media and other open online platforms. What follows is a closer look at the accused, and what this incident may mean for consumers and businesses.

Paige “erratic” Thompson, in an undated photo posted to her Slack channel.

On July 29, FBI agents arrested Paige A. Thompson on suspicion of downloading nearly 30 GB of Capital One credit application data from a rented cloud data server. Capital One said the incident affected approximately 100 million people in the United States and six million in Canada.

That data included approximately 140,000 Social Security numbers and approximately 80,000 bank account numbers on U.S. consumers, and roughly 1 million Social Insurance Numbers (SINs) for Canadian credit card customers.

“Importantly, no credit card account numbers or log-in credentials were compromised and over 99 percent of Social Security numbers were not compromised,” Capital One said in a statement posted to its site.

“The largest category of information accessed was information on consumers and small businesses as of the time they applied for one of our credit card products from 2005 through early 2019,” the statement continues. “This information included personal information Capital One routinely collects at the time it receives credit card applications, including names, addresses, zip codes/postal codes, phone numbers, email addresses, dates of birth, and self-reported income.”

The FBI says Capital One learned about the theft from a tip sent via email on July 17, which alerted the company that some of its leaked data was being stored out in the open on the software development platform Github. That Github account was for a user named “Netcrave,” which includes the resume and name of one Paige A. Thompson.

The tip that alerted Capital One to its data breach.

The complaint doesn’t explicitly name the cloud hosting provider from which the Capital One credit data was taken, but it does say the accused’s resume states that she worked as a systems engineer at the provider between 2015 and 2016. That resume, available on Gitlab here, reveals Thompson’s most recent employer was Amazon Inc.

Further investigation revealed that Thompson used the nickname “erratic” on Twitter, where she spoke openly over several months about finding huge stores of data intended to be secured on various Amazon instances.

The Twitter user “erratic” posting about tools and processes used to access various Amazon cloud instances.

According to the FBI, Thompson also used a public Meetup group under the same alias, where she invited others to join a Slack channel named “Netcrave Communications.”

KrebsOnSecurity was able to join this open Slack channel Monday evening and review many months of postings apparently made by Erratic about her personal life, interests and online explorations. One of the more interesting posts by Erratic on the Slack channel is a June 27 comment listing various databases she found by hacking into improperly secured Amazon cloud instances.

That posting suggests Erratic may also have located tens of gigabytes of data belonging to other major corporations:

According to Erratic’s posts on Slack, the two items in the list above beginning with “ISRM-WAF” belong to Capital One.

Continue reading

No Jail Time for “WannaCry Hero”

July 29, 2019

Marcus Hutchins, the “accidental hero” who helped arrest the spread of the global WannaCry ransomware outbreak in 2017, will receive no jail time for his admitted role in authoring and selling malware that helped cyberthieves steal online bank account credentials from victims, a federal judge ruled Friday.

Marcus Hutchins, just after he was revealed as the security expert who stopped the WannaCry worm. Image: twitter.com/malwaretechblog

The British security enthusiast enjoyed instant fame after the U.K. media revealed he’d registered and sinkholed a domain name that researchers later understood served as a hidden “kill switch” inside WannaCry, a fast-spreading, highly destructive strain of ransomware which propagated through a Microsoft Windows exploit developed by and subsequently stolen from the U.S. National Security Agency.

In August 2017, FBI agents arrested then 23-year-old Hutchins on suspicion of authoring and spreading the “Kronos” banking trojan and a related malware tool called UPAS Kit. Hutchins was released shortly after his arrest, but ordered to remain in the United States pending trial.

Many in the security community leaped to his defense at the time, noting that the FBI’s case appeared flimsy and that Hutchins had worked tirelessly through his blog to expose cybercriminals and their malicious tools. Hundreds of people donated to his legal defense fund.

In September 2017, KrebsOnSecurity published research which strongly suggested Hutchins’ dozens of alter egos online had a fairly lengthy history of developing and selling various malware tools and services. In April 2019, Hutchins pleaded guilty to criminal charges of conspiracy and to making, selling or advertising illegal wiretapping devices.

At his sentencing hearing July 26, U.S. District Judge Joseph Peter Stadtmueller said Hutchins’ action in halting the spread of WannaCry was far more consequential than the two malware strains he admitted authoring, and sentenced him to time served plus one year of supervised release.  Continue reading

The Unsexy Threat to Election Security

July 25, 2019

Much has been written about the need to further secure our elections, from ensuring the integrity of voting machines to combating fake news. But according to a report quietly issued by a California grand jury this week, more attention needs to be paid to securing social media and email accounts used by election officials at the state and local level.

California has a civil grand jury system designed to serve as an independent oversight of local government functions, and each county impanels jurors to perform this service annually. On Wednesday, a grand jury from San Mateo County in northern California released a report which envisions the havoc that might be wrought on the election process if malicious hackers were able to hijack social media and/or email accounts and disseminate false voting instructions or phony election results.

“Imagine that a hacker hijacks one of the County’s official social media accounts and uses it to report false results on election night and that local news outlets then redistribute those fraudulent election results to the public,” the report reads.

“Such a scenario could cause great confusion and erode public confidence in our elections, even if the vote itself is actually secure,” the report continues. “Alternatively, imagine that a hacker hijacks the County’s elections website before an election and circulates false voting instructions designed to frustrate the efforts of some voters to participate in the election. In that case, the interference could affect the election outcome, or at least call the results into question.”

In San Mateo County, the office of the Assessor-County Clerk-Recorder and Elections (ACRE) is responsible for carrying out elections and announcing local results. The ACRE sends election information to some 43,000 registered voters who’ve subscribed to receive sample ballots and voter information, and its Web site publishes voter eligibility information along with instructions on how and where to cast ballots.

The report notes that concerns about the security of these channels are hardly theoretical: In 2010, intruders hijacked ACRE’s election results Web page, and in 2016, cyber thieves successfully breached several county employee email accounts in a spear-phishing attack.

In the wake of the 2016 attack, San Mateo County instituted two-factor authentication for its email accounts — requiring each user to log in with a password and a one-time code sent via text message to their mobile device. However, the county uses its own Twitter, Facebook, Instagram and YouTube accounts to share election information, and these accounts are not currently secured by two-factor authentication, the report found. Continue reading

Neo-Nazi SWATters Target Dozens of Journalists

July 24, 2019

Nearly three dozen journalists at a broad range of major publications have been targeted by a far-right group that maintains a Deep Web database listing the personal information of people who threaten their views. This group specializes in encouraging others to harass those targeted by their ire, and has claimed responsibility for dozens of bomb threats and “swatting” incidents, where police are tricked into visiting potentially deadly force on the target’s address.

At issue is a site called the “Doxbin,” which hosts the names, addresses, phone number and often known IP addresses, Social Security numbers, dates of birth and other sensitive information on hundreds of people — and in some cases the personal information of the target’s friends and family.

A significant number of the 400+ entries on the Doxbin are for journalists (32 at last count, including Yours Truly), although the curators of Doxbin have targeted everyone from federal judges to executives at major corporations. In January 2019, the group behind Doxbin claimed responsibility for doxing and swatting a top Facebook executive.

At least two of the journalists listed on the Doxbin have been swatted in the past six months, including Pulitzer prize winning columnist Leonard G. Pitts Jr.

In some cases, as in the entries for reporters from CNN, Politico, ProPublica and Vox, no reason is mentioned for their inclusion. But in many others, the explanation seems connected to stories the journalist has published dealing with race or the anti-fascist (antifa) movement.

“Anti-white race/politics writer,” reads the note next to Pitts’ entry in the Doxbin.

Many of those listed on the site soon find themselves on the receiving end of extended threats and harassment. Carey Holzman, a computer technician who runs a Youtube channel on repairing and modding computers, was swatted in January, at about the same time his personal information showed up on the Doxbin.

More recently, his tormentors started calling his mobile phone at all hours of the night, threatening to hire a hit man to kill him. They even promised to have drugs ordered off the Dark Web and sent to his home, as part of a plan to get him arrested for drug possession.

“They said they were going to send me three grams of cocaine,” Holzman told KrebsOnSecurity.

Sure enough, earlier this month a small vial of white powder arrived via the U.S. Postal Service. Holzman said he didn’t open the vial, but instead handed it over to the local police for testing. Continue reading

What You Should Know About the Equifax Data Breach Settlement

July 22, 2019

Big-three credit bureau Equifax has reportedly agreed to pay at least $650 million to settle lawsuits stemming from a 2017 breach that let intruders steal personal and financial data on roughly 148 million Americans. Here’s a brief primer that attempts to break down what this settlement means for you, and what it says about the value of your identity.

Q: What happened?

A: If the terms of the settlement are approved by a court, the Federal Trade Commission says Equifax will be required to spend up to $425 million helping consumers who can demonstrate they were financially harmed by the breach. The company also will provide up to 10 years of free credit monitoring to those who had their data exposed.

Q: What about the rest of the money in the settlement?

A: An as-yet undisclosed amount will go to pay lawyers fees for the plaintiffs.

Q: $650 million seems like a lot. Is that some kind of record?

A: If not, it’s pretty close. The New York Times reported earlier today that it was thought to be the largest settlement ever paid by a company over a data breach, but that statement doesn’t appear anywhere in their current story.

Q: Hang on…148 million affected consumers…out of that $425 million pot that comes to just $2.87 per victim, right?

A: That’s one way of looking at it. But as always, the devil is in the details. You won’t see a penny or any other benefit unless you do something about it, and how much you end up costing the company (within certain limits) is up to you.

The Times reports that the proposed settlement assumes that only around seven million people will sign up for their credit monitoring offers. “If more do, Equifax’s costs for providing it could rise meaningfully,” the story observes.

Q: Okay. What can I do?

A: You can visit www.equifaxbreachsettlement.com, although none of this will be official or on offer until a court approves the settlement.

Q: Uh, that doesn’t look like Equifax’s site…

A: Good eyes! It’s not. It’s run by a third party. But we should probably just be grateful for that; given Equifax’s total dumpster fire of a public response to the breach, the company has shown itself incapable of operating (let alone securing) a properly functioning Web site.

Q: What can I get out of this?

A: In a nutshell, affected consumers are eligible to apply for one or more remedies, including:

Free credit monitoring: At least three years of credit monitoring via all three major bureaus simultaneously, including Equifax, Experian and Trans Union. The settlement also envisions up to six more years of single bureau monitoring through Experian. Or, if you don’t want to take advantage of the credit monitoring offers, you can opt instead for a $125 cash payment. You can’t get both.

Reimbursement: …For the time you spent remedying identity theft or misuse of your personal information caused by the breach, or purchasing credit monitoring or credit reports. This is capped at 20 total hours at $25 per hour ($500). Total cash reimbursement payment will not exceed $20,000 per consumer.

Help with ongoing identity theft issues: Up to seven years of “free assisted identity restoration services.” Again, the existing breach settlement page is light on specifics there.

Q: Does this cover my kids/dependents, too?

A: The FTC says if you were a minor in May 2017 (when Equifax first learned of the breach), you are eligible for a total of 18 years of free credit monitoring.

Q: How do I take advantage of any of these?

A: You can’t yet. The settlement has to be approved first. The settlement Web site says to check back again later. In addition to checking the breach settlement site periodically, consumers can sign up with the FTC to receive email updates about this settlement.

Update: The eligibility site is now active, at this link.

The settlement site said consumers also can call 1-833-759-2982 for more information. Press #2 on your phone’s keypad if you want to skip the 1-minute preamble and get straight into the queue to speak with a real person.

KrebsOnSecurity dialed in to ask for more details on the “free assisted identity restoration services,” and the person who took my call said they’d need to have some basic information about me in order to proceed. He said they needed my name, address and phone number to proceed. I gave him a number and a name, and after checking with someone he came back and said the restoration services would be offered by Equifax, but confirmed that affected consumers would still have to apply for it.

He added that the Equifaxbreachsettlement.com site will soon include a feature that lets visitors check to see if they’re eligible, but also confirmed that just checking eligibility won’t entitle one to any of the above benefits: Consumers will still need to file a claim through the site (when it’s available to do so). Continue reading

QuickBooks Cloud Hosting Firm iNSYNQ Hit in Ransomware Attack

July 19, 2019

Cloud hosting provider iNSYNQ says it is trying to recover from a ransomware attack that shut down its network and has left customers unable to access their accounting data for the past three days. Unfortunately for iNSYNQ, the company appears to be turning a deaf ear to the increasingly anxious cries from its users for more information about the incident.

A message from iNSYNQ to customers.

Gig Harbor, Wash.-based iNSYNQ specializes in providing cloud-based QuickBooks accounting software and services. In a statement posted to its status page, iNSYNQ said it experienced a ransomware attack on July 16, and took its network offline in a bid to contain the spread of the malware.

“The attack impacted data belonging to certain iNSYNQ clients, rendering such data inaccessible,” the company said. “As soon as iNSYNQ discovered the attack, iNSYNQ took steps to contain it. This included turning off some servers in the iNSYNQ environment.”

iNSYNQ said it has engaged outside cybersecurity assistance and to determine whether any customer data was accessed without authorization, but that so far it has no estimate for when those files might be available again to customers.

Meanwhile, iNSYNQ’s customers — many of them accountants who manage financial data for a number of their own clients — have taken to Twitter to vent their frustration over a lack of updates since that initial message to users.

In response, the company appears to have simply deleted or deactivated its Twitter account (a cached copy from June 2019 is available here). Several customers venting about the outage on Twitter also accused the company of unpublishing negative comments about the incident from its Facebook page.

Some of those customers also said iNSYNQ initially blamed the outage on an alleged problem with U.S.-based nationwide cable ISP giant Comcast. Meanwhile, competing cloud hosting providers have been piling on to the tweetstorms about the iNSYNQ outage by marketing their own services, claiming they would never subject their customers to a three-day outage.

iNSYNQ has not yet responded to requests for comment.

Update, 4:35 p.m. ET: I just heard from iNSYNQ’s CEO Elliot Luchansky, who shared the following:

While we have continually updated our website and have emailed customers once if not twice daily during this malware attack, I acknowledge we’ve had to keep the detail fairly minimal.

Unfortunately, and as I’m sure you’re familiar with, the lack of detailed information we’ve shared has been purposeful and in an effort to protect our customers and their data- we’re in a behind the scenes trench warfare doing everything we possibly can to secure and restore our system and customer data and backups. I understand why our customers are frustrated, and we want more than anything to share every piece of information that we have.

Our customers and their businesses are our number one priority right now. Our team is working around the clock to secure and restore access to all impacted data, and we believe we have an end in sight in the near future.

You know as well as we that no one is 100% impervious to this – businesses large and small, governments and individuals are susceptible. iNSYNQ and our customers were the victims of a malware attack that’s a totally new variant that hadn’t been detected before, confirmed by the experienced and knowledgeable cybersecurity team we’ve employed.

Continue reading

Party Like a Russian, Carder’s Edition

July 17, 2019

“It takes a certain kind of man with a certain reputation
To alleviate the cash from a whole entire nation…”

KrebsOnSecurity has seen some creative yet truly bizarre ads for dodgy services in the cybercrime underground, but the following animated advertisement for a popular credit card fraud shop likely takes the cake.

The name of this particular card shop won’t be mentioned here, and its various domain names featured in the video have been pixelated so as not to further promote the online store in question.

But points for knowing your customers, and understanding how to push emotional buttons among a clientele that mostly views America’s financial system as one giant ATM that never seems to run out of cash.

WARNING: Some viewers may find this video disturbing. Also, it is almost certainly Not Safe for Work.

The above commercial is vaguely reminiscent of the slick ads produced for and promoted by convicted Ukrainian credit card fraudster Vladislav “BadB” Horohorin, who was sentenced in 2013 to serve 88 months in prison for his role in the theft of more than $9 million from RBS Worldpay, an Atlanta-based credit card processor. (In February 2017, Horohorin was released and deported from the United States. He now works as a private cybersecurity consultant).

The clip above is loosely based on the 2016 music video, “Party Like a Russian,” produced by British singer-songwriter Robbie Williams.

Tip of the hat to Alex Holden of Hold Security for finding and sharing this video.