Data: E-Retail Hacks More Lucrative Than Ever

April 30, 2019

For many years and until quite recently, credit card data stolen from online merchants has been worth far less in the cybercrime underground than cards pilfered from hacked brick-and-mortar stores. But new data suggests that over the past year, the economics of supply-and-demand have helped to double the average price fetched by card-not-present data, meaning cybercrooks now have far more incentive than ever to target e-commerce stores.

Traditionally, the average price for card data nabbed from online retailers — referred to in the underground as “CVVs” — has ranged somewhere between $2 and $8 per account. CVVs are are almost exclusively purchased by criminals looking to make unauthorized purchases at online stores, a form of thievery known as “card not present” fraud.

In contrast, the value of “dumps” — hacker slang for card data swiped from compromised retail stores, hotels and restaurants with the help of malware installed on point-of-sale systems — has long hovered around $15-$20 per card. Dumps allow street thieves to create physical clones of debit and credit cards, which are then used to perpetrate so-called “card present” fraud at brick and mortar stores.

But according to Gemini Advisory, a New York-based company that works with financial institutions to monitor dozens of underground markets trafficking in both types of data, over the past year the demand for CVVs has far outstripped supply, bringing prices for both CVVs and dumps roughly in line with each other.

Median price of card not present (CNP) vs. card-present (CP) over the past year. Image: Gemini

Stas Alforov, director of research and development at Gemini, says his company is currently monitoring most underground stores that peddle stolen card data — including such heavy hitters as Joker’s Stash, Trump’s Dumps, and BriansDump.

Contrary to popular belief, when these shops sell a CVV or dump, that record is then removed from the inventory of items for sale, allowing companies that track such activity to determine roughly how many new cards are put up for sale and how many have sold. Underground markets that do otherwise quickly earn a reputation among criminals for selling unreliable card data and are soon forced out of business.

“We can see in pretty much real-time what’s being sold and which marketplaces are the most active or have the highest number of records and where the bad guys shop the most,” Alforov said. “The biggest trend we’ve seen recently is there appears to be a much greater demand than there is supply of card not present data being uploaded to these markets.”

Alforov said dumps are still way ahead in terms of the overall number of compromised records for sale. For example, over the past year Gemini has seen some 66 million new dumps show up on underground markets, and roughly half as many CVVs.

“The demand for card not present data remains strong while the supply is not as great as the bad guys need it to be, which means prices have been steadily going up,” Alforov said. “A lot of the bad guys who used to do card present fraud are now shifting to card-not-present fraud.”

One likely reason for that shift is the United States is the last of the G20 nations to make the transition to more secure chip-based payment cards, which is slowly making it more difficult and expensive for thieves to turn dumps into cold hard cash. This same increase in card-not-present fraud has occurred in virtually every other country that long ago made the chip card transition, including AustraliaCanadaFrance and the United Kingdom.

The increasing value of CVV data may help explain why we’ve seen such a huge uptick over the past year in e-commerce sites getting hacked. In a typical online retailer intrusion, the attackers will use vulnerabilities in content management systems, shopping cart software, or third-party hosted scripts to upload malicious code that snarfs customer payment details directly from the site before it can be encrypted and sent to card processors. Continue reading

P2P Weakness Exposes Millions of IoT Devices

April 26, 2019

A peer-to-peer (P2P) communications technology built into millions of security cameras and other consumer electronics includes several critical security flaws that expose the devices to eavesdropping, credential theft and remote compromise, new research has found.

A map showing the distribution of some 2 million iLinkP2P-enabled devices that are vulnerable to eavesdropping, password theft and possibly remote compromise, according to new research.

The security flaws involve iLnkP2P, software developed by China-based Shenzhen Yunni Technology. iLnkP2p is bundled with millions of Internet of Things (IoT) devices, including security cameras and Webcams, baby monitors, smart doorbells, and digital video recorders.

iLnkP2P is designed to allow users of these devices to quickly and easily access them remotely from anywhere in the world, without having to tinker with one’s firewall: Users simply download a mobile app, scan a barcode or enter the six-digit ID stamped onto the bottom of the device, and the P2P software handles the rest.

A Webcam made by HiChip that includes the iLnkP2P software.

But according to an in-depth analysis shared with KrebsOnSecurity by security researcher Paul Marrapese, iLnkP2P devices offer no authentication or encryption and can be easily enumerated, allowing potential attackers to establish a direct connection to these devices while bypassing any firewall restrictions.

Marrapese said a proof-of-concept script he built identified more than two million vulnerable devices around the globe (see map above). He found that 39 percent of the vulnerable IoT things were in China; another 19 percent are located in Europe; seven percent of them are in use in the United States.

Although it may seem impossible to enumerate more than a million devices with just a six-digit ID, Marrapese notes that each ID begins with a unique alphabetic prefix that identifies which manufacturer produced the device, and there are dozens of companies that white-label the iLnkP2P software.

For example, HiChip — a Chinese IoT vendor that Marrapese said accounts for nearly half of the vulnerable devices — uses the prefixes FFFF, GGGG, HHHH, IIII, MMMM, ZZZZ.

These prefixes identify different product lines and vendors that use iLnkP2P. If the code stamped on your IoT device begins with one of these, it is vulnerable.

“In theory, this allows them to support nearly 6 million devices for these prefixes alone,” Marrapese said. “In reality, enumeration of these prefixes has shown that the number of online devices was ~1,517,260 in March 2019. By enumerating all of the other vendor prefixes, that pushes the number toward 2 million.”

Marrapese said he also built a proof-of-concept attack that can steal passwords from devices by abusing their built-in “heartbeat” feature. Upon being connected to a network, iLnkP2P devices will regularly send a heartbeat or “here I am” message to their preconfigured P2P servers and await further instructions.

“A P2P server will direct connection requests to the origin of the most recently-received heartbeat message,” Marrapese said. “Simply by knowing a valid device UID, it is possible for an attacker to issue fraudulent heartbeat messages that will supersede any issued by the genuine device. Upon connecting, most clients will immediately attempt to authenticate as an administrative user in plaintext, allowing an attacker to obtain the credentials to the device.” Continue reading

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Who’s Behind the RevCode WebMonitor RAT?

April 22, 2019

The owner of a Swedish company behind a popular remote administration tool (RAT) implicated in thousands of malware attacks shares the same name as a Swedish man who pleaded guilty in 2015 to co-creating the Blackshades RAT, a similar product that was used to infect more than half a million computers with malware, KrebsOnSecurity has learned.

An advertisement for RevCode WebMonitor.

At issue is a program called “WebMonitor,” which was designed to allow users to remotely control a computer (or multiple machines) via a Web browser. The makers of WebMonitor, a company in Sweden called “RevCode,” say their product is legal and legitimate software “that helps firms and personal users handle the security of owned devices.”

But critics say WebMonitor is far more likely to be deployed on “pwned” devices, or those that are surreptitiously hacked. The software is broadly classified as malware by most antivirus companies, likely thanks to an advertised feature list that includes dumping the remote computer’s temporary memory; retrieving passwords from dozens of email programs; snarfing the target’s Wi-Fi credentials; and viewing the target’s Webcam.

In a writeup on WebMonitor published in April 2018, researchers from security firm Palo Alto Networks noted that the product has been primarily advertised on underground hacking forums, and that its developers promoted several qualities of the software likely to appeal to cybercriminals looking to secretly compromise PCs.

For example, RevCode’s website touted the software’s compatibility with all “crypters,” software that can encrypt, obfuscate and manipulate malware to make it harder to detect by antivirus programs. Palo Alto also noted WebMonitor includes the option to suppress any notification boxes that may pop up when the RAT is being installed on a computer.

A screenshot of the WebMonitor builder panel.

RevCode maintains it is a legitimate company officially registered in Sweden that obeys all applicable Swedish laws. A few hours of searching online turned up an interesting record at Ratsit AB, a credit information service based in Sweden. That record indicates RevCode is owned by 28-year-old Swedish resident Alex Yücel.

In February 2015, a then 24-year-old Alex Yücel pleaded guilty in a U.S. court to computer hacking and to creating, marketing and selling Blackshades, a RAT that was used to compromise and spy on hundreds of thousands of computers. Arrested in Moldova in 2013 as part of a large-scale, international takedown against Blackshades and hundreds of customers, Yücel became the first person ever to be extradited from Moldova to the United States. Continue reading

Marcus “MalwareTech” Hutchins Pleads Guilty to Writing, Selling Banking Malware

April 19, 2019

Marcus Hutchins, a 24-year-old blogger and malware researcher arrested in 2017 for allegedly authoring and selling malware designed to steal online banking credentials, has pleaded guilty to criminal charges of conspiracy and to making, selling or advertising illegal wiretapping devices.

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

Hutchins, who authors the popular blog MalwareTech, was virtually unknown to most in the security community until May 2017 when the U.K. media revealed him as the “accidental hero” who inadvertently halted the global spread of WannaCry, a ransomware contagion that had taken the world by storm just days before.

In August 2017, Hutchins was arrested by FBI agents in Las Vegas on suspicion of authoring and/or selling “Kronos,” a strain of malware designed to steal online banking credentials. A British citizen, Hutchins has been barred from leaving the United States since his arrest.

Many of Hutchins’ supporters and readers had trouble believing the charges against him, and in response KrebsOnSecurity published a lengthy investigation into activities tied to his various online personas over the years.

As I wrote in summary of that story, the clues suggested “Hutchins began developing and selling malware in his mid-teens — only to later develop a change of heart and earnestly endeavor to leave that part of his life squarely in the rearview mirror.” Nevertheless, there were a number of indications that Hutchins’ alleged malware activity continued into his adulthood.

In a statement posted to his Twitter feed and to malwaretech.com, Hutchins said today he had pleaded guilty to two charges related to writing malware in the years prior to his career in security. Continue reading

Wipro Intruders Targeted Other Major IT Firms

April 18, 2019

The crooks responsible for launching phishing campaigns that netted dozens of employees and more than 100 computer systems last month at Wipro, India’s third-largest IT outsourcing firm, also appear to have targeted a number of other competing providers, including Infosys and Cognizant, new evidence suggests. The clues so far suggest the work of a fairly experienced crime group that is focused on perpetrating gift card fraud.

On Monday, KrebsOnSecurity broke the news that multiple sources were reporting a cybersecurity breach at Wipro, a major trusted vendor of IT outsourcing for U.S. companies. The story cited reports from multiple anonymous sources who said Wipro’s trusted networks and systems were being used to launch cyberattacks against the company’s customers.

A screen shot of the Wipro phishing site securemail.wipro.com.internal-message[.]app. Image: urlscan.io

In a follow-up story Wednesday on the tone-deaf nature of Wipro’s public response to this incident, KrebsOnSecurity published a list of “indicators of compromise” or IOCs, telltale clues about tactics, tools and procedures used by the bad guys that might signify an attempted or successful intrusion.

If one examines the subdomains tied to just one of the malicious domains mentioned in the IoCs list (internal-message[.]app), one very interesting Internet address is connected to all of them — 185.159.83[.]24. This address is owned by King Servers, a well-known bulletproof hosting company based in Russia.

According to records maintained by Farsight Security, that address is home to a number of other likely phishing domains:

securemail.pcm.com.internal-message[.]app
secure.wipro.com.internal-message[.]app
securemail.wipro.com.internal-message[.]app
secure.elavon.com.internal-message[.]app
securemail.slalom.com.internal-message[.]app
securemail.avanade.com.internal-message[.]app
securemail.infosys.com.internal-message[.]app
securemail.searshc.com.internal-message[.]app
securemail.capgemini.com.internal-message[.]app
securemail.cognizant.com.internal-message[.]app
secure.rackspace.com.internal-message[.]app
securemail.virginpulse.com.internal-message[.]app
secure.expediagroup.com.internal-message[.]app
securemail.greendotcorp.com.internal-message[.]app
secure.bridge2solutions.com.internal-message[.]app
ns1.internal-message[.]app
ns2.internal-message[.]app
mail.internal-message[.]app
ns3.microsoftonline-secure-login[.]com
ns4.microsoftonline-secure-login[.]com
tashabsolutions[.]xyz
www.tashabsolutions[.]xyz

The subdomains listed above suggest the attackers may also have targeted American retailer Sears; Green Dot, the world’s largest prepaid card vendor; payment processing firm Elavon; hosting firm Rackspace; business consulting firm Avanade; IT provider PCM; and French consulting firm Capgemini, among others. KrebsOnSecurity has reached out to all of these companies for comment, and will update this story in the event any of them respond with relevant information.

WHAT ARE THEY AFTER?

It appears the attackers in this case are targeting companies that in one form or another have access to either a ton of third-party company resources, and/or companies that can be abused to conduct gift card fraud.

Wednesday’s follow-up on the Wipro breach quoted an anonymous source close to the investigation saying the criminals responsible for breaching Wipro appear to be after anything they can turn into cash fairly quickly. That source, who works for a large U.S. retailer, said the crooks who broke into Wipro used their access to perpetrate gift card fraud at the retailer’s stores.

Another source said the investigation into the Wipro breach by a third party company has determined so far the intruders compromised more than 100 Wipro systems  and installed on each of them ScreenConnect, a legitimate remote access tool. Investigators believe the intruders were using the ScreenConnect software on the hacked Wipro systems to connect remotely to Wipro client systems, which were then used to leverage further access into Wipro customer networks.

This is remarkably similar to activity that was directed against a U.S. based company in 2016 and 2017. In May 2018, Maritz Holdings Inc., a Missouri-based firm that handles customer loyalty and gift card programs for third-parties, sued Cognizant (PDF), saying a forensic investigation determined that hackers used Cognizant’s resources in an attack on Maritz’s loyalty program that netted the attackers more than $11 million in fraudulent eGift cards. Continue reading

How Not to Acknowledge a Data Breach

April 17, 2019

I’m not a huge fan of stories about stories, or those that explore the ins and outs of reporting a breach. But occasionally I feel obligated to publish such accounts when companies respond to a breach report in such a way that it’s crystal clear they wouldn’t know what to do with a data breach if it bit them in the nose, let alone festered unmolested in some dark corner of their operations.

And yet, here I am again writing the second story this week about a possibly serious security breach at an Indian company that provides IT support and outsourcing for a ridiculous number of major U.S. corporations (spoiler alert: the second half of this story actually contains quite a bit of news about the breach investigation).

On Monday, KrebsOnSecurity broke the news that multiple sources were reporting a cybersecurity breach at Wipro, the third-largest IT services provider in India and a major trusted vendor of IT outsourcing for U.S. companies. The story cited reports from multiple anonymous sources who said Wipro’s trusted networks and systems were being used to launch cyberattacks against the company’s customers.

Wipro asked me to give them several days to investigate the request and formulate a public comment. Three days after I reached out, the quote I ultimately got from them didn’t acknowledge any of the concerns raised by my sources. Nor did the statement even acknowledge a security incident.

Six hours after my story ran saying Wipro was in the throes of responding to a breach, the company was quoted in an Indian daily newspaper acknowledging a phishing incident. The company’s statement claimed its sophisticated systems detected the breach internally and identified the affected employees, and that it had hired an outside digital forensics firm to investigate further.

Less than 24 hours after my story ran, Wipro executives were asked on a quarterly investor conference call to respond to my reporting. Wipro Chief Operating Officer Bhanu Ballapuram told investors that many of the details in my story were in error, and implied that the breach was limited to a few employees who got phished. The matter was characterized as handled, and other journalists on the call moved on to different topics.

At this point, I added a question to the queue on the earnings conference call and was afforded the opportunity to ask Wipro’s executives what portion(s) of my story was inaccurate. A Wipro executive then proceeded to read bits of a written statement about their response to the incident, and the company’s chief operating officer agreed to have a one-on-one call with KrebsOnSecurity to address the stated grievances about my story. Security reporter Graham Cluley was kind enough to record that bit of the call and post it on Twitter.

In the follow-up call with Wipro, Ballapuram took issue with my characterization that the breach had lasted “months,” saying it had only been a matter of weeks since employees at the company had been successfully phished by the attackers. I then asked when the company believed the phishing attacks began, and Ballapuram said he could not confirm the approximate start date of the attacks beyond “weeks.”

Ballapuram also claimed that his corporation was hit by a “zero-day” attack. Actual zero-day vulnerabilities involve somewhat infrequent and quite dangerous weaknesses in software and/or hardware that not even the maker of the product in question understands before the vulnerability is discovered and exploited by attackers for private gain.

Because zero-day flaws usually refer to software that is widely in use, it’s generally considered good form if one experiences such an attack to share any available details with the rest of the world about how the attack appears to work — in much the same way you might hope a sick patient suffering from some unknown, highly infectious disease might nonetheless choose to help doctors diagnose how the infection could have been caught and spread.

Wipro has so far ignored specific questions about the supposed zero-day, other than to say “based on our interim investigation, we have shared the relevant information of the zero-day with our AV [antivirus] provider and they have released the necessary signatures for us.”

My guess is that what Wipro means by “zero-day” is a malicious email attachment that went undetected by all commercial antivirus tools before it infected Wipro employee systems with malware.

Ballapuram added that Wipro has gathered and disseminated to affected clients a set of “indicators of compromise,” telltale clues about tactics, tools and procedures used by the bad guys that might signify an attempted or successful intrusion.

Hours after that call with Ballapuram, I heard from a major U.S. company that is partnering with Wipro (at least for now). The source said his employer opted to sever all online access to Wipro employees within days of discovering that these Wipro accounts were being used to target his company’s operations.

The source said the indicators of compromise that Wipro shared with its customers came from a Wipro customer who was targeted by the attackers, but that Wipro was sending those indicators to customers as if they were something Wipro’s security team had put together on its own. Continue reading

Experts: Breach at IT Outsourcing Giant Wipro

April 15, 2019

Indian information technology (IT) outsourcing and consulting giant Wipro Ltd. [NYSE:WIT] is investigating reports that its own IT systems have been hacked and are being used to launch attacks against some of the company’s customers, multiple sources tell KrebsOnSecurity. Wipro has refused to respond to questions about the alleged incident.

Earlier this month, KrebsOnSecurity heard independently from two trusted sources that Wipro — India’s third-largest IT outsourcing company — was dealing with a multi-month intrusion from an assumed state-sponsored attacker.

Both sources, who spoke on condition of anonymity, said Wipro’s systems were seen being used as jumping-off points for digital fishing expeditions targeting at least a dozen Wipro customer systems.

The security experts said Wipro’s customers traced malicious and suspicious network reconnaissance activity back to partner systems that were communicating directly with Wipro’s network.

On April 9, KrebsOnSecurity reached out to Wipro for comment. That prompted an email on Apr. 10 from Vipin Nair, Wipro’s head of communications. Nair said he was traveling and needed a few days to gather more information before offering an official response.

On Friday, Apr. 12, Nair sent a statement that acknowledged none of the questions Wipro was asked about an alleged security incident involving attacks against its own customers.

“Wipro has a multilayer security system,” the company wrote. “The company has robust internal processes and a system of advanced security technology in place to detect phishing attempts and protect itself from such attacks. We constantly monitor our entire infrastructure at heightened level of alertness to deal with any potential cyber threat.”

Wipro has not responded to multiple additional requests for comment. Since then, two more sources with knowledge of the investigation have come forward to confirm the outlines of the incident described above. Continue reading

‘Land Lordz’ Service Powers Airbnb Scams

April 14, 2019

Scammers who make a living swindling Airbnb.com customers have a powerful new tool at their disposal: A software-as-a-service offering called “Land Lordz,” which helps automate the creation and management of fake Airbnb Web sites and the sending of messages to advertise the fraudulent listings.

The ne’er-do-well who set up the account below has been paying $550 a month for a Land Lordz “basic plan” subscription at landlordz[.]site that helps him manage more than 500 scam properties and interactions with up to 100 (soon-to-be-scammed) “guests” looking to book the fake listings. Currently, this scammer has just four dozen listings, virtually all of which are for properties in London and the surrounding United Kingdom.

The Land Lordz administrative panel for a scammer who’s running dozens of Airbnb scams in the United Kingdom.

Your typical victim will respond to an advertisement for a listing provided at Airbnb.com, and be assured they can pay through Airbnb, which offers buyer protection and refunds for unhappy customers. But when the interested party inquires about the listing, they are sent a link to a site that looks like Airbnb.com but which is actually a phishing page.

In the case of these particular fraudsters, their fake page was “airbnb.longterm-airbnb[.]co[.]uk” (I’ve added brackets to prevent the link from being clickable). The site looks exactly like the real Airbnb, includes pictures of the requested property, and steers visitors toward signing in or to creating a new account. The fake site simply forwards all requests on this page to Airbnb.com, and records any usernames and passwords submitted through the site.

The fake Airbnb site used by the scammers logged all Airbnb credentials submitted by new and existing users.

Continue reading

Android 7.0+ Phones Can Now Double as Google Security Keys

April 11, 2019

Google this week made it easier for Android users to enable strong 2-factor authentication (2FA) when logging into Google’s various services. The company announced that all phones running Android 7.0 and higher can now be used as Security Keys, an additional authentication layer that helps thwart phishing sites and password theft.

As first disclosed by KrebsOnSecurity last summer, Google maintains it has not had any of its 85,000+ employees successfully phished on their work-related accounts since early 2017, when it began requiring all employees to use physical Security Keys in place of passwords and one-time codes.

The most commonly used Security Keys are inexpensive USB-based devices that offer an alternative approach to 2FA, which requires the user to log in to a Web site using something they know (the password) and something they have (e.g. a one-time token, key fob or mobile device).

But Google said starting this week, any mobile phone running Android 7.0+ (Nougat) can serve the same function as a USB-based security key. Once a user has enrolled their Android phone as a Security Key, the user will need to approve logins via a prompt sent to their phone after submitting their username and password at a Google login page.

Many readers have expressed confusion or skepticism about how Security Keys can prevent users from getting hooked by phishing sites or clever man-in-the-middle attacks. This capability was described in far greater visual detail in this video last year by Christiaan Brand, product manager at Google Cloud.

But the short version is that even if a user who has enrolled a Security Key for authentication tries to log in at a site pretending to be Google, the company’s systems simply refuse to request the Security Key if the user isn’t on an official Google site, and the login attempt fails.

“It puts you in this mode….[in] which is there is no other way to log in apart from the Security Key,” Brand said. “No one can trick you into a downgrade attack, no one can trick you into anything different. You need to provide a security key or you don’t get into your account.”

Google says built-in security keys are available on phones running Android 7.0+ (Nougat) with Google Play Services, enabling existing phones to act as users’ primary 2FA method for work (G Suite, Cloud Identity, and GCP) and personal Google accounts to sign in on a Bluetooth-enabled Chrome OS, macOS X, or Windows 10 device with a Chrome browser. Continue reading

Patch Tuesday Lowdown, April 2019 Edition

April 9, 2019

Microsoft today released fifteen software updates to fix more than 70 unique security vulnerabilities in various flavors of its Windows operating systems and supported software, including at least two zero-day bugs. These patches apply to Windows, Internet Explorer (IE) and Edge browsers, Office, Sharepoint and Exchange. Separately, Adobe has issued security updates for Acrobat/Reader and Flash Player.

According to security firm Rapid 7, two of the vulnerabilities — CVE-2019-0803 and CVE-2019-0859 — are already being exploited in the wild. They can result in unauthorized elevation of privilege, and affect all supported versions of Windows.

“An attacker must already have local access to an affected system to use these to gain kernel-level code execution capabilities,” Rapid7 researcher Greg Wiseman observed. “However, one of the 32 Remote Code Execution (RCE) vulnerabilities patched today could potentially be used with them in an exploit chain to obtain full control of a system.”

Aside from these zero-day privilege escalation flaws, Wiseman said, it’s a fairly standard Patch Tuesday.

“Which of course still means that there are bugs that should be patched as soon as possible, such as the eight vulnerabilities classified as critical in the scripting engine used by Microsoft browsers, and CVE-2019-0822 (an RCE in Microsoft Office that can be exploited by convincing a user to open a malicious file).”

Adobe’s Patch Tuesday includes security updates for its Flash Player and AIR software,  as well as Adobe Reader and Acrobat.

Flash updates are installed along with other monthly Windows patch rollups for consumers, and auto-installed by Google Chrome, but users may need to reboot the operating system (in the case of IE/Edge) or the browser (in Chrome) for the new updates to take effect.

Adobe’s actions also sound the death knell for Adobe Shockwave Player, which has at long last reached end-of-life.

That means no more security updates for Shockwave, which has always been something of an ugly stepchild to Flash. That is to say, Shockwave never really got the security attention Flash has received but nevertheless has been just as vulnerable and often lagging months or years behind Flash in terms of updates. Continue reading