Feds Target $100M ‘GozNym’ Cybercrime Network

May 16, 2019
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Law enforcement agencies in the United States and Europe today unsealed charges against 11 alleged members of the GozNym malware network, an international cybercriminal syndicate suspected of stealing $100 million from more than 41,000 victims with the help of a stealthy banking trojan by the same name.

The locations of alleged GozNym cybercrime group members. Source: DOJ

The indictments unsealed in a Pennsylvania court this week stem from a slew of cyber heists carried out between October 2015 and December 2016. They’re also related to the 2016 arrest of Krasimir Nikolov, a 47-year-old Bulgarian man who was extradited to the United States to face charges for allegedly cashing out bank accounts that were compromised by the GozNym malware.

Prosecutors say Nikolov, a.k.a. “pablopicasso,” “salvadordali,” and “karlo,” was key player in the GozNym crime group who used stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal their money through electronic funds transfers into bank accounts controlled by fellow conspirators.

According to the indictment, the GozNym network exemplified the concept of ‘cybercrime as a service,’ in that the defendants advertised their specialized technical skills and services on underground, Russian-language, online criminal forums. The malware was dubbed GozNym because it combines the stealth of a previous malware strain called Nymaim with the capabilities of the powerful Gozi banking trojan.

The feds say the ringleader of the group was Alexander Konovolov, 35, of Tbilisi, Georgia, who controlled more than 41,000 victim computers infected with GozNym and recruited various other members of the cybercrime team.

Vladimir Gorin, a.k.a “Voland,”  “mrv,” and “riddler,” of Orenburg, Russia allegedly was a malware developer who oversaw the creation, development, management, and leasing of GozNym.

The indictment alleges 32-year-old Eduard Malancini, a.k.a. “JekaProf” and “procryptgroup” from Moldova, specialized in “crypting” or obfuscating the GozNym malware to evade detection by antivirus software.

Four other men named in the indictment were accused of recruiting and managing “money mules,” willing or unwitting people who can be used to receive stolen funds on behalf of the criminal syndicate. One of those alleged mule managers — Farkhad Rauf Ogly Manokhim (a.k.a. “frusa”) of Volograd, Russia was arrested in 2017 in Sri Lanka on an international warrant from the United States, but escaped and fled back to Russia while on bail awaiting extradition.

Also charged was 28-year-old Muscovite Konstantin Volchkov, a.k.a. “elvi,”  who allegedly provided the spamming service used to disseminate malicious links that tried to foist GozNym on recipients who clicked.

The malicious links referenced in those spam emails were served via the Avalanche bulletproof hosting service, a distributed, cloud-hosting network that for seven years was rented out to hundreds of fraudsters for use in launching malware and phishing attacks. Avalanche was dismantled in Dec. 2016 by a similar international law enforcement action.

The alleged administrator of the Avalanche bulletproof network — 36-year-old Gennady Kapkanov from Poltova, Ukraine — has eluded justice in prior scrapes with the law: During the Avalanche takedown in Dec. 2016, Kapkanov fired an assault rifle at Ukrainian police who were trying to raid his apartment. Continue reading →

A Tough Week for IP Address Scammers

May 15, 2019
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In the early days of the Internet, there was a period when Internet Protocol version 4 (IPv4) addresses (e.g. 4.4.4.4) were given out like cotton candy to anyone who asked. But these days companies are queuing up to obtain new IP space from the various regional registries that periodically dole out the prized digits. With the value of a single IP hovering between $15-$25, those registries are now fighting a wave of shady brokers who specialize in securing new IP address blocks under false pretenses and then reselling to spammers. Here’s the story of one broker who fought back in the courts, and lost spectacularly.

On May 14, South Carolina U.S. Attorney Sherri Lydon filed criminal wire fraud charges against Amir Golestan, alleging he and his Charleston, S.C. based company Micfo LLC orchestrated an elaborate network of phony companies and aliases to secure more than 735,000 IPs from the American Registry for Internet Numbers (ARIN), a nonprofit which oversees IP addresses assigned to entities in the U.S., Canada, and parts of the Caribbean.

Interestingly, Micfo itself set this process in motion late last year when it sued ARIN. In December 2018, Micfo’s attorneys asked a federal court in Virginia to issue a temporary restraining order against ARIN, which had already told the company about its discovery of the phony front companies and was threatening to revoke some 735,000 IP addresses. That is, unless Micfo agreed to provide more information about its operations and customers.

At the time, many of the IP address blocks assigned to Micfo had been freshly resold to spammers. Micfo ultimately declined to provide ARIN the requested information, and as a result the court denied Micfo’s request (the transcript of that hearing is instructive and amusing).

But by virtue of the contract Micfo signed with ARIN, any further dispute had to be settled via arbitration. On May 13, that arbitration panel ordered Micfo to pay $350,000 for ARIN’s legal fees and to cough up any of those 735,000 IPs the company hadn’t already sold.

According to the criminal indictment in South Carolina, in 2017 and 2018 Golestan sold IP addresses using a third party broker:

“Golestan sold 65,536 IPv4 addresses for $13 each, for a total of $851,896,” the indictment alleges. “Golestan also organized a second transaction for another 65,536 IP addresses, for another approximately $1 million. During this same time period, Golestan had a contract to sell 327,680 IP addresses at $19 per address, for a total of $6.22 million” [this last transaction would be blocked.] Continue reading →

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Microsoft Patches ‘Wormable’ Flaw in Windows XP, 7 and Windows 2003

May 14, 2019
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Microsoft today is taking the unusual step of releasing security updates for unsupported but still widely-used Windows operating systems like XP and Windows 2003, citing the discovery of a “wormable” flaw that the company says could be used to fuel a fast-moving malware threat like the WannaCry ransomware attacks of 2017.

The May 2017 global malware epidemic WannaCry affected some 200,000 Windows systems in 150 countries. Source: Wikipedia.

The vulnerability (CVE-2019-0708) resides in the “remote desktop services” component built into supported versions of Windows, including Windows 7, Windows Server 2008 R2, and Windows Server 2008. It also is present in computers powered by Windows XP and Windows 2003, operating systems for which Microsoft long ago stopped shipping security updates.

Microsoft said the company has not yet observed any evidence of attacks against the dangerous security flaw, but that it is trying to head off a serious and imminent threat.

“While we have observed no exploitation of this vulnerability, it is highly likely that malicious actors will write an exploit for this vulnerability and incorporate it into their malware,” wrote Simon Pope, director of incident response for the Microsoft Security Response Center.

“This vulnerability is pre-authentication and requires no user interaction,” Pope said. “In other words, the vulnerability is ‘wormable,’ meaning that any future malware that exploits this vulnerability could propagate from vulnerable computer to vulnerable computer in a similar way as the WannaCry malware spread across the globe in 2017. It is important that affected systems are patched as quickly as possible to prevent such a scenario from happening.”

The WannaCry ransomware threat spread quickly across the world in May 2017 using a vulnerability that was particularly prevalent among systems running Windows XP and older versions of Windows. Microsoft had already released a patch for the flaw, but many older and vulnerable OSes were never updated. Europol estimated at the time that WannaCry spread to some 200,000 computers across 150 countries. Continue reading →

Nine Charged in Alleged SIM Swapping Ring

May 10, 2019
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Eight Americans and an Irishman have been charged with wire fraud this week for allegedly hijacking mobile phones through SIM-swapping, 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. From there, the attackers simply start requesting password reset links via text message for a variety of accounts tied to the hijacked phone number.

All told, the government said this gang — allegedly known to its members as “The Community” — made more than $2.4 million stealing cryptocurrencies and extorting people for restoring access to social media accounts that were hijacked after a successful SIM-swap.

Six of those charged this week in Michigan federal court were alleged to have been members of The Community of serial SIM swappers. They face a fifteen count indictment, including charges of wire fraud, conspiracy and aggravated identity theft (a charge that carries a mandatory two-year sentence). A separate criminal complaint unsealed this week charges three former employees of mobile phone providers for collaborating with The Community’s members.

Several of those charged have been mentioned by this blog previously. In August 2018, KrebsOnSecurity broke the news that police in Florida arrested 25-year-old Pasco County, Fla. city employee Ricky Joseph Handschumacher, charging him with grand theft and money laundering. As I reported in that story, “investigators allege Handschumacher was part of a group of at least nine individuals scattered across multiple states who for the past two years have drained bank accounts via an increasingly common scheme involving mobile phone SIM swaps.”

This blog also has featured several stories about the escapades of Ryan Stevenson, a 26-year-old West Haven, Conn. man who goes by the hacker name “Phobia.” Most recently, I wrote about how Mr. Stevenson earned a decent number of bug bounty rewards and public recognition from top telecom companies for finding and reporting security holes in their Web sites — all the while secretly operating a service that leveraged these same flaws to sell their customers’ personal data to people who were active in the SIM swapping community.

One of the six men charged in the conspiracy — Colton Jurisic, 20 of, Dubuque, Iowa — has been more well known under his hacker alias “Forza,” and “ForzaTheGod.” In December 2016, KrebsOnSecurity heard from a woman who had her Gmail, Instagram, Facebook and LinkedIn accounts hijacked after a group of individuals led by Forza taunted her on Twitter as they took over her phone account.

“They failed to get [her three-letter Twitter account name, redacted] because I had two-factor authentication turned on for twitter, combined with a new phone number of which they were unaware,” the source said in an email to KrebsOnSecurity in 2016. “@forzathegod had the audacity to even tweet me to say I was about to be hacked.” Continue reading →

What’s Behind the Wolters Kluwer Tax Outage?

May 7, 2019
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Early in the afternoon on Friday, May, 3, I asked a friend to relay a message to his security contact at CCH, the cloud-based tax division of the global information services firm Wolters Kluwer in the Netherlands. The message was that the same file directories containing new versions of CCH’s software were open and writable by any anonymous user, and that there were suspicious files in those directories indicating some user(s) abused that access.

Shortly after that report, the CCH file directory for tax software downloads was taken offline. As of this publication, several readers have reported outages affecting multiple CCH Web sites. These same readers reported being unable to access their clients’ tax data in CCH’s cloud because of the ongoing outages. A Reddit thread is full of theories.

One of the many open and writable directories on CCH’s site before my report on Friday.

I do not have any information on whether my report about the world-writable file server had anything to do with the outages going on now at CCH. Nor did I see any evidence that any client data was exposed on the site.

What I did see in those CCH directories were a few odd PHP and text files, including one that seemed to be promoting two different and unrelated Russian language discussion forums.

I sent Wolters Kluwer an email asking how long the file server had been so promiscuous (allowing anyone to upload files to the server), and what the company was doing to validate the integrity of the software made available for download by CCH tax customers.

Marisa Westcott, vice president of marketing and communications at Wolters Kluwer, told KrebsOnSecurity on Friday that she would “check with the team to see if we can get some answers to your questions.”

But subsequent emails and phone calls have gone unreturned. Calls to the company’s main support number (800-739-9998) generate the voice message, “We are currently experiencing technical difficulties. Please try your call again later.”

On Tuesday morning, Wolters Kluwer released an update on the extensive outage via Twitter, saying:

“Since yesterday, May 6, we are experiencing network and service interruptions affecting certain Wolters Kluwer platforms and applications. Out of an abundance of caution, we proactively took offline a number of other applications and we immediately began our investigation and remediation efforts. The secure use of our products and services is our top priority. we have ben able to restore network and services for a number – but not all — of our systems.”

Accounting Today reports today that a PR representative from Wolters Kluwer Tax & Accounting, which makes the CCH products, confirmed the outage was the result of a malware attack: Continue reading →

Feds Bust Up Dark Web Hub Wall Street Market

May 3, 2019
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Federal investigators in the United States, Germany and the Netherlands announced today the arrest and charging of three German nationals and a Brazilian man as the alleged masterminds behind the Wall Street Market (WSM), one of the world’s largest dark web bazaars that allowed vendors to sell illegal drugs, counterfeit goods and malware. Now, at least one former WSM administrator is reportedly trying to extort money from WSM vendors and buyers (supposedly including Yours Truly) — in exchange for not publishing details of the transactions.

The now-defunct Wall Street Market (WSM). Image: Dark Web Reviews.

A complaint filed Wednesday in Los Angeles alleges that the three defendants, who currently are in custody in Germany, were the administrators of WSM, a sophisticated online marketplace available in six languages that allowed approximately 5,400 vendors to sell illegal goods to about 1.15 million customers around the world.

“Like other dark web marketplaces previously shut down by authorities – Silk Road and AlphaBay, for example – WSM functioned like a conventional e-commerce website, but it was a hidden service located beyond the reach of traditional internet browsers, accessible only through the use of networks designed to conceal user identities, such as the Tor network,” reads a Justice Department release issued Friday morning.

The complaint alleges that for nearly three years, WSM was operated on the dark web by three men who engineered an “exit scam” last month, absconding with all of the virtual currency held in marketplace escrow and user accounts. Prosecutors say they believe approximately $11 million worth of virtual currencies was then diverted into the three men’s own accounts.

The defendants charged in the United States and arrested Germany on April 23 and 24 include 23-year-old resident of Kleve, Germany; a 31-year-old resident of Wurzburg, Germany; and a 29-year-old resident of Stuttgart, Germany. The complaint charges the men with two felony counts – conspiracy to launder monetary instruments, and distribution and conspiracy to distribute controlled substances. These three defendants also face charges in Germany.

Signs of the dark market seizure first appeared Thursday when WSM’s site was replaced by a banner saying it had been seized by the German Federal Criminal Police Office (BKA).

The seizure message that replaced the homepage of the Wall Street Market on on May 2.

Writing for ZDNet’s Zero Day blog, Catalin Cimpanu noted that “in this midst of all of this, one of the site’s moderators –named Med3l1n— began blackmailing WSM vendors and buyers, asking for 0.05 Bitcoin (~$280), and threatening to disclose to law enforcement the details of WSM vendors and buyers who made the mistake of sharing various details in support requests in an unencrypted form.

In a direct message sent to my Twitter account this morning, a Twitter user named @FerucciFrances who claimed to be part of the exit scam demanded 0.05 bitcoin (~$286) to keep quiet about a transaction or transactions allegedly made in my name on the dark web market. Continue reading →

Credit Union Sues Fintech Giant Fiserv Over Security Claims

May 3, 2019
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A Pennsylvania credit union is suing financial industry technology giant Fiserv, alleging that “baffling” security vulnerabilities in the company’s software are “wreaking havoc” on its customers. The credit union said the investigation that fueled the lawsuit was prompted by a 2018 KrebsOnSecurity report about glaring security weaknesses in a Fiserv platform that exposed personal and financial details of customers across hundreds of bank Web sites.

Brookfield, Wisc.-based Fiserv [NASDAQ:FISV] is a Fortune 500 company with 24,000 employees and $5.8 billion in earnings last year. Its account and transaction processing systems power the Web sites for hundreds of financial institutions — mostly small community banks and credit unions.

In August 2018, in response to inquiries by KrebsOnSecurity, Fiserv fixed a pervasive security and privacy hole in its online banking platform. The authentication weakness allowed bank customers to view account data for other customers, including account number, balance, phone numbers and email addresses.

In late April 2019, Fiserv was sued by Bessemer System Federal Credit Union, a comparatively tiny financial institution with just $38 million in assets. Bessemer said it was moved by that story to launch its own investigation into Fiserv’s systems, and it found a startlingly simple flaw: Firsev’s platform would let anyone reset the online banking password for a customer just by knowing their account number and the last four digits of their Social Security number.

Bessemer claims Fiserv’s systems let anyone reset a customer’s online banking password just by knowing their SSN and account number.

Recall that in my Aug 2018 report, Fiserv’s own systems were exposing online banking account numbers for its customers. Thus, an attacker would only need to know the last four digits of a target’s SSN to reset that customer’s password, according to Bessemer. And that information is for sale in multiple places online and in the cybercrime underground for a few bucks per person.

Bessemer further alleges Fiserv’s systems had no checks in place to prevent automated attacks that might let thieves rapidly guess the last four digits of the customer’s SSN — such as limiting the number of times a user can submit a login request, or imposing a waiting period after a certain number of failed login attempts.

The lawsuit says the fix Fiserv scrambled to put in place after Bessemer complained was “pitifully deficient and ineffective:”

“Fiserv attempted to fortify Bessemer’s online banking website by requiring users registering for an account to supply a member’s house number. This was ineffective because residential street addresses can be readily found on the internet and through other public sources. Moreover, this information can be guessed through a trial-and-error process. Most alarmingly, this security control was purely illusory. Because some servers were not enforcing this security check, it could be readily bypassed.”

Continue reading →

Data: E-Retail Hacks More Lucrative Than Ever

April 30, 2019
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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 Australia, Canada, France 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
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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 →

Who’s Behind the RevCode WebMonitor RAT?

April 22, 2019
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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 →