Posts Tagged: alex holden


19
May 20

Ukraine Nabs Suspect in 773M Password ‘Megabreach’

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 →


30
Apr 20

How Cybercriminals are Weathering COVID-19

In many ways, the COVID-19 pandemic has been a boon to cybercriminals: With unprecedented numbers of people working from home and anxious for news about the virus outbreak, it’s hard to imagine a more target-rich environment for phishers, scammers and malware purveyors. In addition, many crooks are finding the outbreak has helped them better market their cybercriminal wares and services. But it’s not all good news: The Coronavirus also has driven up costs and disrupted key supply lines for many cybercriminals. Here’s a look at how they’re adjusting to these new realities.

FUELED BY MULES

One of the more common and perennial cybercriminal schemes is “reshipping fraud,” wherein crooks buy pricey consumer goods online using stolen credit card data and then enlist others to help them collect or resell the merchandise.

Most online retailers years ago stopped shipping to regions of the world most frequently associated with credit card fraud, including Eastern Europe, North Africa, and Russia. These restrictions have created a burgeoning underground market for reshipping scams, which rely on willing or unwitting residents in the United States and Europe — derisively referred to as “reshipping mules” — to receive and relay high-dollar stolen goods to crooks living in the embargoed areas.

A screen shot from a user account at “Snowden,” a long-running reshipping mule service.

But apparently a number of criminal reshipping services are reporting difficulties due to the increased wait time when calling FedEx or UPS (to divert carded goods that merchants end up shipping to the cardholder’s address instead of to the mule’s). In response, these operations are raising their prices and warning of longer shipping times, which in turn could hamper the activities of other actors who depend on those services.

That’s according to Intel 471, a cyber intelligence company that closely monitors hundreds of online crime forums. In a report published today, the company said since late March 2020 it has observed several crooks complaining about COVID-19 interfering with the daily activities of their various money mules (people hired to help launder the proceeds of cybercrime).

“One Russian-speaking actor running a fraud network complained about their subordinates (“money mules”) in Italy, Spain and other countries being unable to withdraw funds, since they currently were afraid to leave their homes,” Intel 471 observed. “Also some actors have reported that banks’ customer-support lines are being overloaded, making it difficult for fraudsters to call them for social-engineering activities (such as changing account ownership, raising withdrawal limits, etc).”

Still, every dark cloud has a silver lining: Intel 471 noted many cybercriminals appear optimistic that the impending global economic recession (and resultant unemployment) “will make it easier to recruit low-level accomplices such as money mules.”

Alex Holden, founder and CTO of Hold Security, agreed. He said while the Coronavirus has forced reshipping operators to make painful shifts in several parts of their business, the overall market for available mules has never looked brighter.

“Reshipping is way up right now, but there are some complications,” he said.

For example, reshipping scams have over the years become easier for both reshipping mule operators and the mules themselves. Many reshipping mules are understandably concerned about receiving stolen goods at their home and risking a visit from the local police. But increasingly, mules have been instructed to retrieve carded items from third-party locations.

“The mules don’t have to receive stolen goods directly at home anymore,” Holden said. “They can pick them up at Walgreens, Hotel lobbies, etc. There are a ton of reshipment tricks out there.”

But many of those tricks got broken with the emergence of COVID-19 and social distancing norms. In response, more mule recruiters are asking their hires to do things like reselling goods shipped to their homes on platforms like eBay and Amazon.

“Reshipping definitely has become more complicated,” Holden said. “Not every mule will run 10 times a day to the post office, and some will let the goods sit by the mailbox for days. But on the whole, mules are more compliant these days.”

GIVE AND TAKE

KrebsOnSecurity recently came to a similar conclusion: Last month’s story, “Coronavirus Widens the Money Mule Pool,” looked at one money mule operation that had ensnared dozens of mules with phony job offers in a very short period of time. Incidentally, the fake charity behind that scheme — which promised to raise money for Coronavirus victims — has since closed up shop and apparently re-branded itself as the Tessaris Foundation.

Charitable cybercriminal endeavors were the subject of a report released this week by cyber intel firm Digital Shadows, which looked at various ways computer crooks are promoting themselves and their hacking services using COVID-19 themed discounts and giveaways.

Like many commercials on television these days, such offers obliquely or directly reference the economic hardships wrought by the virus outbreak as a way of connecting on an emotional level with potential customers.

“The illusion of philanthropy recedes further when you consider the benefits to the threat actors giving away goods and services,” the report notes. “These donors receive a massive boost to their reputation on the forum. In the future, they may be perceived as individuals willing to contribute to forum life, and the giveaways help establish a track record of credibility.”

Brian’s Club — one of the underground’s largest bazaars for selling stolen credit card data and one that has misappropriated this author’s likeness and name in its advertising — recently began offering “pandemic support” in the form of discounts for its most loyal customers.

Continue reading →


17
Mar 20

Coronavirus Widens the Money Mule Pool

With many people being laid off or working from home thanks to the Coronavirus pandemic, cybercrooks are almost certain to have more than their usual share of recruitable “money mules” — people who get roped into money laundering schemes under the pretense of a work-at-home job offer. Here’s the story of one upstart mule factory that spoofs a major nonprofit and tells new employees they’ll be collecting and transmitting donations for an international “Coronavirus Relief Fund.”

On the surface, the Web site for the Vasty Health Care Foundation certainly looks legitimate. It includes various sections on funding relief efforts around the globe, explaining that it “connects nonprofits, donors, and companies in nearly every country around the world.” The site says it’s a nonprofit with offices based in Nebraska and Quebec, Canada.

Vasty is a phony charity that pretends to raise money for Coronavirus victims but instead hires people to help launder stolen funds. This and the rest of the content at Vasty’s site was lifted from GlobalGiving, a legitimate charity that is helping people affected by the pandemic.

The “Vasty Health Care Foundation” is one of several fraudulent Web sites that recruit money mules in the name of helping Coronavirus victims. The content on Vasty’s site was lifted almost entirely from globalgiving.org, a legitimate charity that actually is trying to help people affected by the pandemic.

“We have been contacted by job seekers asking if we are related to some of these job opportunities they’ve been finding on Indeed.com and Monster.com,” said Kevin Conroy, chief product officer at GlobalGiving. “And we always tell them no that’s not from us, and not to cash any checks someone may be giving them in relation to those offers.”

The Vasty domain — vastyhealthcarefoundation[.]com — was registered just weeks ago, although the site claims its organization has been around for years.

The crooks behind this scheme also seem to have submitted the Vasty name in custom links at vetting sites like The Better Business Bureau and Guidestar that ultimately take one to a summary of data on GlobalGiving. No doubt this is part of an effort to lend legitimacy to the Vasty name (hovering over the links above reveals the trickery).

What proof is there that Vasty isn’t a legitimate charity? None of the dozens of Canadian mules contacted by this author responded to requests for comment. But KrebsOnSecurity received copious amounts of information about this scam from Milwaukee, Wisc. based Hold Security, which managed to intercept key file exchanges between threat actors through public file sharing services.

Among those files were a set of form letters and boilerplate email messages that describe the ideal candidate for the job at Vasty and welcome new recruits to the Vasty payroll. Here’s a look at part of the job description, which includes (not pictured) a description of the healthcare plans and other benefits allegedly offered to Vasty employees.

After congratulating applicants (everyone who applies is “hired”) on their new positions, Vasty asks the recruits to do some busy work. In this case, new hires are sent to local pharmacies on some bogus errand, such as to inspect the pricing of face masks and hand sanitizer products for price-gouging.

“Now we have the first task for you. You will have to perform a trip within your city. So that we can compensate for transportation costs along with your hourly rate, I ask you to keep receipts confirming your expenses.

LOCATION: Sam’s Geneva Street Pharmacy

ADDRESS:  284 Geneva St, St. Catharines, ON L2N 2E8

I ask you to go to the pharmacy at the specified address. We are increasingly receiving reports of private sellers violating the pricing policy for products such as: aspirin, face masks are loose surgical masks with elastic loops that go around the ears, hand sanitizers.”

New recruits are then asked to assemble and submit a written report of their observations at the store in question.

These types of menial, meaningless tasks are a typical tactic of money mule recruitment schemes and they serve two main purposes: They separate out slackers from people who really need and want a job, and they help the employee feel like he’s doing something useful and legitimate (aside from just moving money around, which if brought up too soon might make him question whether the job is legit). Continue reading →


26
Feb 20

Zyxel 0day Affects its Firewall Products, Too

On Monday, networking hardware maker Zyxel released security updates to plug a critical security hole in its network attached storage (NAS) devices that is being actively exploited by crooks who specialize in deploying ransomware. Today, Zyxel acknowledged the same flaw is present in many of its firewall products.

This week’s story on the Zyxel patch was prompted by the discovery that exploit code for attacking the flaw was being sold in the cybercrime underground for $20,000. Alex Holden, the security expert who first spotted the code for sale, said at the time the vulnerability was so “stupid” and easy to exploit that he wouldn’t be surprised to find other Zyxel products were similarly affected.

Now it appears Holden’s hunch was dead-on.

“We’ve now completed the investigation of all Zyxel products and found that firewall products running specific firmware versions are also vulnerable,” Zyxel wrote in an email to KrebsOnSecurity. “Hotfixes have been released immediately, and the standard firmware patches will be released in March.”

The updated security advisory from Zyxel states the exploit works against its UTM, ATP, and VPN firewalls running firmware version ZLD V4.35 Patch 0 through ZLD V4.35 Patch 2, and that those with firmware versions before ZLD V4.35 Patch 0 are not affected.

Zyxel’s new advisory suggests that some affected firewall product won’t be getting hotfixes or patches for this flaw, noting that the affected products listed in the advisory are only those which are “within their warranty support period.”

Indeed, while the exploit also works against more than a dozen of Zyxel’s NAS product lines, the company only released updates for NAS products that were newer than 2016. Its advice for those still using those unsupported NAS devices? “Do not leave the product directly exposed to the internet. If possible, connect it to a security router or firewall for additional protection.”

Hopefully, your vulnerable, unsupported Zyxel NAS isn’t being protected by a vulnerable, unsupported Zyxel firewall product.

CERT’s advisory on the flaw rate this vulnerability at a “10” — its most severe. My advice? If you can’t patch it, pitch it. The zero-day sales thread first flagged by Holden also hinted at the presence of post-authentication exploits in many Zyxel products, but the company did not address those claims in its security advisories.

Recent activity suggests that attackers known for deploying ransomware have been actively working to test the zero-day for use against targets. Holden said the exploit is now being used by a group of bad guys who are seeking to fold the exploit into Emotet, a powerful malware tool typically disseminated via spam that is frequently used to seed a target with malcode which holds the victim’s files for ransom.

“To me, a 0day exploit in Zyxel is not as scary as who bought it,” he said. “The Emotet guys have been historically targeting PCs, laptops and servers, but their venture now into IoT devices is very disturbing.”


24
Feb 20

Zyxel Fixes 0day in Network Storage Devices

Patch comes amid active exploitation by ransomware gangs

Networking hardware vendor Zyxel today released an update to fix a critical flaw in many of its network attached storage (NAS) devices that can be used to remotely commandeer them. The patch comes 12 days after KrebsOnSecurity alerted the company that precise instructions for exploiting the vulnerability were being sold for $20,000 in the cybercrime underground.

Based in Taiwan, Zyxel Communications Corp. (a.k.a “ZyXEL”) is a maker of networking devices, including Wi-Fi routers, NAS products and hardware firewalls. The company has roughly 1,500 employees and boasts some 100 million devices deployed worldwide. While in many respects the class of vulnerability addressed in this story is depressingly common among Internet of Things (IoT) devices, the flaw is notable because it has attracted the interest of groups specializing in deploying ransomware at scale.

KrebsOnSecurity first learned about the flaw on Feb. 12 from Alex Holden, founder of Milwaukee-based security firm Hold Security. Holden had obtained a copy of the exploit code, which allows an attacker to remotely compromise more than a dozen types of Zyxel NAS products remotely without any help from users.

A snippet from the documentation provided by 500mhz for the Zyxel 0day.

Holden said the seller of the exploit code — a ne’er-do-well who goes by the nickname “500mhz” –is known for being reliable and thorough in his sales of 0day exploits (a.k.a. “zero-days,” these are vulnerabilities in hardware or software products that vendors first learn about when exploit code and/or active exploitation shows up online).

For example, this and previous zero-days for sale by 500mhz came with exhaustive documentation detailing virtually everything about the flaw, including any preconditions needed to exploit it, step-by-step configuration instructions, tips on how to remove traces of exploitation, and example search links that could be used to readily locate thousands of vulnerable devices.

500mhz’s profile on one cybercrime forum states that he is constantly buying, selling and trading various 0day vulnerabilities.

“In some cases, it is possible to exchange your 0day with my existing 0day, or sell mine,” his Russian-language profile reads.

The profile page of 500mhz, translated from Russian to English via Google Chrome.

PARTIAL PATCH

KrebsOnSecurity first contacted Zyxel on Feb. 12, sharing a copy of the exploit code and description of the vulnerability. When four days elapsed without any response from the vendor to notifications sent via multiple methods, this author shared the same information with vulnerability analysts at the U.S. Department of Homeland Security (DHS) and with the CERT Coordination Center (CERT/CC), a partnership between DHS and Carnegie Mellon University.

Less than 24 hours after contacting DHS and CERT/CC, KrebsOnSecurity heard back from Zyxel, which thanked KrebsOnSecurity for the alert without acknowledging its failure to respond until they were sent the same information by others.

“Thanks for flagging,” Zyxel’s team wrote on Feb. 17. “We’ve just received an alert of the same vulnerabilities from US-CERT over the weekend, and we’re now in the process of investigating. Still, we heartily appreciate you bringing it to our attention.”

Earlier today, Zyxel sent a message saying it had published a security advisory and patch for the zero-day exploit in some of its affected products. The vulnerable devices include NAS542, NAS540, NAS520, NAS326, NSA325 v2, NSA325, NSA320S, NSA320, NSA310S, NSA310, NSA221, NSA220+, NSA220, and NSA210. The flaw is designated as CVE-2020-9054.

However, many of these devices are no longer supported by Zyxel and will not be patched. Zyxel’s advice for those users is simply “do not leave the product directly exposed to the internet.”

“If possible, connect it to a security router or firewall for additional protection,” the advisory reads.

Holden said given the simplicity of the exploit — which allows an attacker to seize remote control over an affected device by injecting just two characters to the username field of the login panel for Zyxel NAS devices — it’s likely other Zyxel products may have related vulnerabilities.

“Considering how stupid this exploit is, I’m guessing this is not the only one of its class in their products,” he said.

CERT’s advisory on the flaw rates it at a “10” — its most severe. The advisory includes additional mitigation instructions, including a proof-of-concept exploit that has the ability to power down affected Zyxel devices.

Continue reading →


6
Jan 20

The Hidden Cost of Ransomware: Wholesale Password Theft

Organizations in the throes of cleaning up after a ransomware outbreak typically will change passwords for all user accounts that have access to any email systems, servers and desktop workstations within their network. But all too often, ransomware victims fail to grasp that the crooks behind these attacks can and frequently do siphon every single password stored on each infected endpoint. The result of this oversight may offer attackers a way back into the affected organization, access to financial and healthcare accounts, or — worse yet — key tools for attacking the victim’s various business partners and clients.

In mid-November 2019, Wisconsin-based Virtual Care Provider Inc. (VCPI) was hit by the Ryuk ransomware strain. VCPI manages the IT systems for some 110 clients that serve approximately 2,400 nursing homes in 45 U.S. states. VCPI declined to pay the multi-million dollar ransom demanded by their extortionists, and the attack cut off many of those elder care facilities from their patient records, email and telephone service for days or weeks while VCPI rebuilt its network.

Just hours after that story was published, VCPI chief executive and owner Karen Christianson reached out to say she hoped I would write a follow-up piece about how they recovered from the incident. My reply was that I’d consider doing so if there was something in their experience that I thought others could learn from their handling of the incident.

I had no inkling at the time of how much I would learn in the days ahead.

EERIE EMAILS

On December 3, I contacted Christianson to schedule a follow-up interview for the next day. On the morning of Dec. 4 (less than two hours before my scheduled call with VCPI and more than two weeks after the start of their ransomware attack) I heard via email from someone claiming to be part of the criminal group that launched the Ryuk ransomware inside VCPI.

That email was unsettling because its timing suggested that whoever sent it somehow knew I was going to speak with VCPI later that day. This person said they wanted me to reiterate a message they’d just sent to the owner of VCPI stating that their offer of a greatly reduced price for a digital key needed to unlock servers and workstations seized by the malware would expire soon if the company continued to ignore them.

“Maybe you chat to them lets see if that works,” the email suggested.

The anonymous individual behind that communication declined to provide proof that they were part of the group that held VPCI’s network for ransom, and after an increasingly combative and personally threatening exchange of messages soon stopped responding to requests for more information.

“We were bitten with releasing evidence before hence we have stopped this even in our ransoms,” the anonymous person wrote. “If you want proof we have hacked T-Systems as well. You may confirm this with them. We havent [sic] seen any Media articles on this and as such you should be the first to report it, we are sure they are just keeping it under wraps.” Security news site Bleeping Computer reported on the T-Systems Ryuk ransomware attack on Dec. 3.

In our Dec. 4 interview, VCPI’s acting chief information security officer — Mark Schafer, CISO at Wisconsin-based SVA Consulting — confirmed that the company received a nearly identical message that same morning, and that the wording seemed “very similar” to the original extortion demand the company received.

However, Schafer assured me that VCPI had indeed rebuilt its email network following the intrusion and strictly used a third-party service to discuss remediation efforts and other sensitive topics. Continue reading →


23
Nov 19

110 Nursing Homes Cut Off from Health Records in Ransomware Attack

A ransomware outbreak has besieged a Wisconsin based IT company that provides cloud data hosting, security and access management to more than 100 nursing homes across the United States. The ongoing attack is preventing these care centers from accessing crucial patient medical records, and the IT company’s owner says she fears this incident could soon lead not only to the closure of her business, but also to the untimely demise of some patients.

Milwaukee, Wisc. based Virtual Care Provider Inc. (VCPI) provides IT consulting, Internet access, data storage and security services to some 110 nursing homes and acute-care facilities in 45 states. All told, VCPI is responsible for maintaining approximately 80,000 computers and servers that assist those facilities.

At around 1:30 a.m. CT on Nov. 17, unknown attackers launched a ransomware strain known as Ryuk inside VCPI’s networks, encrypting all data the company hosts for its clients and demanding a whopping $14 million ransom in exchange for a digital key needed to unlock access to the files. Ryuk has made a name for itself targeting businesses that supply services to other companies — particularly cloud-data firms — with the ransom demands set according to the victim’s perceived ability to pay.

In an interview with KrebsOnSecurity today, VCPI chief executive and owner Karen Christianson said the attack had affected virtually all of their core offerings, including Internet service and email, access to patient records, client billing and phone systems, and even VCPI’s own payroll operations that serve nearly 150 company employees.

The care facilities that VCPI serves access their records and other systems outsourced to VCPI by using a Citrix-based virtual private networking (VPN) platform, and Christianson said restoring customer access to this functionality is the company’s top priority right now.

“We have employees asking when we’re going to make payroll,” Christianson said. “But right now all we’re dealing with is getting electronic medical records back up and life-threatening situations handled first.”

Christianson said her firm cannot afford to pay the ransom amount being demanded — roughly $14 million worth of Bitcoin — and said some clients will soon be in danger of having to shut their doors if VCPI can’t recover from the attack.

“We’ve got some facilities where the nurses can’t get the drugs updated and the order put in so the drugs can arrive on time,” she said. “In another case, we have this one small assisted living place that is just a single unit that connects to billing. And if they don’t get their billing into Medicaid by December 5, they close their doors. Seniors that don’t have family to go to are then done. We have a lot of [clients] right now who are like, ‘Just give me my data,’ but we can’t.” Continue reading →


11
Nov 19

Retailer Orvis.com Leaked Hundreds of Internal Passwords on Pastebin

Orvis, a Vermont-based retailer that specializes in high-end fly fishing equipment and other sporting goods, leaked hundreds of internal passwords on Pastebin.com for several weeks last month, exposing credentials the company used to manage everything from firewalls and routers to administrator accounts and database servers, KrebsOnSecurity has learned. Orvis says the exposure was inadvertent, and that many of the credentials were already expired.

Based in Sunderland, VT. and founded in 1856, privately-held Orvis is the oldest mail-order retailer in the United States. The company has approximately 1,700 employees, 69 retail stores and 10 outlets in the US, and 18 retail stores in the UK.

In late October, this author received a tip from Wisconsin-based security firm Hold Security that a file containing a staggering number of internal usernames and passwords for Orvis had been posted to Pastebin.

Reached for comment about the source of the document, Orvis spokesperson Tucker Kimball said it was only available for a day before the company had it removed from Pastebin.

“The file contains old credentials, so many of the devices associated with the credentials are decommissioned and we took steps to address the remaining ones,” Kimball said. “We are leveraging our existing security tools to conduct an investigation to determine how this occurred.”

However, according to Hold Security founder Alex Holden, this enormous passwords file was actually posted to Pastebin on two separate occasions last month, the first being on Oct. 4, and the second Oct. 22. That finding was corroborated by 4iq.com, a company that aggregates information from leaked databases online.

Orvis did not respond to follow-up requests for comment via phone and email; the last two email messages sent by KrebsOnSecurity to Orvis were returned simply as “blocked.”

It’s not unusual for employees or contractors to post bits of sensitive data to public sites like Pastebin and Github, but the credentials file apparently published by someone working at or for Orvis is by far the most extreme example I’ve ever witnessed.

For instance, included in the Pastebin files from Orvis were plaintext usernames and passwords for just about every kind of online service or security product the company has used, including:

-Antivirus engines
-Data backup services
-Multiple firewall products
-Linux servers
-Cisco routers
-Netflow data
-Call recording services
-DNS controls
-Orvis wireless networks (public and private)
-Employee wireless phone services
-Oracle database servers
-Microsoft 365 services
-Microsoft Active Directory accounts and passwords
-Battery backup systems
-Security cameras
-Encryption certificates
-Mobile payment services
-Door and Alarm Codes
-FTP credentials
-Apple ID credentials
-Door controllers

By all accounts, this was a comprehensive goof: The Orvis credentials file even contained the combination to a locked safe in the company’ server room. Continue reading →


9
Aug 19

iNSYNQ Ransom Attack Began With Phishing Email

A ransomware outbreak that hit QuickBooks cloud hosting firm iNSYNQ in mid-July appears to have started with an email phishing attack that snared an employee working in sales for the company, KrebsOnSecurity has learned. It also looks like the intruders spent roughly ten days rooting around iNSYNQ’s internal network to properly stage things before unleashing the ransomware. iNSYNQ ultimately declined to pay the ransom demand, and it is still working to completely restore customer access to files.

Some of this detail came in a virtual “town hall” meeting held August 8, in which iNSYNQ chief executive Elliot Luchansky briefed customers on how it all went down, and what the company is doing to prevent such outages in the future.

A great many iNSYNQ’s customers are accountants, and when the company took its network offline on July 16 in response to the ransomware outbreak, some of those customers took to social media to complain that iNSYNQ was stonewalling them.

“We could definitely have been better prepared, and it’s totally unacceptable,” Luchansky told customers. “I take full responsibility for this. People waiting ridiculous amounts of time for a response is unacceptable.”

By way of explaining iNSYNQ’s initial reluctance to share information about the particulars of the attack early on, Luchansky told customers the company had to assume the intruders were watching and listening to everything iNSYNQ was doing to recover operations and data in the wake of the ransomware outbreak.

“That was done strategically for a good reason,” he said. “There were human beings involved with [carrying out] this attack in real time, and we had to assume they were monitoring everything we could say. And that posed risks based on what we did say publicly while the ransom negotiations were going on. It could have been used in a way that would have exposed customers even more. That put us in a really tough bind, because transparency is something we take very seriously. But we decided it was in our customers’ best interests to not do that.”

A paid ad that comes up prominently when one searches for “insynq” in Google.

Luchansky did not say how much the intruders were demanding, but he mentioned two key factors that informed the company’s decision not to pay up.

“It was a very substantial amount, but we had the money wired and were ready to pay it in cryptocurrency in the case that it made sense to do so,” he told customers. “But we also understood [that paying] would put a target on our heads in the future, and even if we actually received the decryption key, that wasn’t really the main issue here. Because of the quick reaction we had, we were able to contain the encryption part” to roughly 50 percent of customer systems, he said.

Luchansky said the intruders seeded its internal network with MegaCortex, a potent new ransomware strain first spotted just a couple of months ago that is being used in targeted attacks on enterprises. He said the attack appears to have been carefully planned out in advance and executed “with human intervention all the way through.”

“They decided they were coming after us,” he said. “It’s one thing to prepare for these sorts of events but it’s an entirely different experience to deal with first hand.”

According to an analysis of MegaCortex published this week by Accenture iDefense, the crooks behind this ransomware strain are targeting businesses — not home users — and demanding ransom payments in the range of two to 600 bitcoins, which is roughly $20,000 to $5.8 million.

“We are working for profit,” reads the ransom note left behind by the latest version of MegaCortex. “The core of this criminal business is to give back your valuable data in the original form (for ransom of course).”

A portion of the ransom note left behind by the latest version of MegaCortex. Image: Accenture iDefense.

Continue reading →


5
Aug 19

The Risk of Weak Online Banking Passwords

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 →