Posts Tagged: Amazon


16
Nov 16

Chinese IoT Firm Siphoned Text Messages, Call Records

A Chinese technology firm has been siphoning text messages and call records from cheap Android-based mobile smart phones and secretly sending the data to servers in China, researchers revealed this week. The revelations came the same day the White House and the U.S. Department of Homeland Security issued sweeping guidelines aimed at building security into Internet-connected devices, and just hours before a key congressional panel sought recommendations from industry in regulating basic security standards for so-called “Internet of Things” (IoT) devices.

At the center of the spyware controversy is software made by Shanghai ADUPS Technology, a Chinese firm whose product touts the ability to wirelessly update software installed on mobile and and IoT devices. The ADUPS technology is typically bundled with smart phones made by dozens of global wireless firms including ZTE, BLU and Huawei, and sold at popular consumer destinations like Amazon and BestBuy. Often retailing for between $50 and $100, the sleek and powerful devices sell so cheaply because they also require the user to accept on-screen advertisements.

An About Us page at ADUPS's Web site explains the company's foothold in the IoT market.

An About Us page at ADUPS’s Web site explains the company’s foothold in the IoT market.

According to research released this week, the low up-front cost of these smart phones may be subsidized not just by ads but by also by the theft of private information stolen from users. Researchers at Fairfax, Va.-based security firm Kryptowire say the ADUPS software gives the company near-total control over the devices that it runs on, and that they have proof ADUPS has abused that control to siphon personal data from countless consumers.

Kryptowire researchers say they stumbled upon ADUPS’s spyware capabilities by accident after purchasing a $59 BLU R1 HD smart phone from Amazon.com for use during international travel. Prying apart the phone and the ADUPS software, they discovered that all call records and text messages to and from the device were being digitally copied, encrypted and secretly forwarded to a server in Shanghai, China every 72 hours.

They also learned that ADUPS’s product was able to mine user text messages for specific strings of text, as well as install and remove any software from host devices.

“This behavior cannot be detected by mobile anti-virus tools because they assume that software that ships with the device is not malware and that it is white-listed,” Kryptowire wrote in an advisory published Tuesday. “We were able to capture, decrypt, and trace the data on the network as they were sent to multiple server locations that are located in Shanghai, China.”

In a statement posted to its Web site, ADUPS said it collects “model information, device status, application information, bin/xbin information and summary information from phones and messages,” and that it has done so “in response to user demand to screen out junk texts and calls from advertisers.”

ADUPS further claims that the functionality was added in June 2016 to some Blu Product Inc. devices, and that it has since shipped an update through its firmware updating software to disable the spying functionality on Blu phones.

But Azzedine Benameur, director of research at Kryptowire, said ADUPS’s software — deeply embedded alongside the operating system on these mobile devices — gives it full ability to re-enable the spyware capabilities at any time. He says ADUPS’s public response to their research raises more questions than it answers.

“They do not provide how many devices were affected and how the data were used,” Benameur said. “Also, they don’t mention who had access to that data, including third parties and the Chinese government. Also, there might be other [manufacturers] and device models affected that ADUPS does not mention.”

ADUPS claims on its Web site to have worldwide presence with more than 700 million active users, and that its firmware is integrated into “more than 400 leading mobile operators, semiconductor vendors and device manufacturers spanning from wearable and mobile devices to cars and televisions.”

“This is just one random device of theirs that we looked at,” Benameur said. “For a company that claims to provide over-the-air updates for 700 million devices, including cars and millions of IoT devices…this is really scary and unacceptable behavior.”

ADUPS's offer to business partners, January 2015.

ADUPS’s offer to business partners, circa January 2015.

ADUPS’s current site promises the company’s partners “big data analytics” and higher profit for partners. Earlier versions of the same page from 2015 and cached at the Internet Archive promise partners a slightly less euphemistic menu of services, from an “app push service,” and “device data mining” to “unique package checking” and “mobile advertising.” Interestingly, this story from January 2015 documents how ADUPS’s software has been used to install unwanted apps on customer mobile devices.

As for the Blu R1 HD phone? Benameur said it would be nice if it came with a disclosure that owners can expect zero privacy or control while using it. Aside from that? “At $59, it’s a steal,” Benameur said. “Minus the spyware, it’s a great phone.” Continue reading →


26
Aug 16

Inside ‘The Attack That Almost Broke the Internet’

In March 2013, a coalition of spammers and spam-friendly hosting firms pooled their resources to launch what would become the largest distributed denial-of-service (DDoS) attack the Internet had ever witnessed. The assault briefly knocked offline the world’s largest anti-spam organization, and caused a great deal of collateral damage to innocent bystanders in the process. Here’s a never-before-seen look at how that attack unfolded, and a rare glimpse into the shadowy cybercrime forces that orchestrated it.

The following are excerpts taken verbatim from a series of Skype and IRC chat room logs generated by a group of “bullet-proof cybercrime hosts” — so called because they specialized in providing online hosting to a variety of clientele involved in spammy and scammy activities.

Facebook profile picture of Sven Olaf Kamphuis

Facebook profile picture of Sven Olaf Kamphuis

Gathered under the banner ‘STOPhaus,’ the group included a ragtag collection of hackers who got together on the 17th of March 2013 to launch what would quickly grow to a 300+Gigabits per second (Gbps) attack on Spamhaus.org, an anti-spam organization that they perceived as a clear and present danger to their spamming operations.

The attack –a stream of some 300 billion bits of data per second — was so large that it briefly knocked offline Cloudflare, a company that specializes in helping organizations stay online in the face of such assaults. Cloudflare dubbed it “The Attack that Almost Broke the Internet.

The campaign was allegedly organized by a Dutchman named Sven Olaf Kamphuis (pictured above). Kamphuis ran a company called CB3ROB, which in turn provided services for a Dutch company called “Cyberbunker,” so named because the organization was housed in a five-story NATO bunker and because it had advertised its services as a bulletproof hosting provider.

Kamphuis seemed to honestly believe his Cyberbunker was sovereign territory, even signing his emails “Prince of Cyberbunker Republic.” Arrested in Spain in April 2013 in connection with the attack on Spamhaus, Kamphuis was later extradited to The Netherlands to stand trial. He has publicly denied being part of the attacks and his trial is ongoing.

According to investigators, Kamphuis began coordinating the attack on Spamhaus after the anti-spam outfit added to its blacklist several of Cyberbunker’s Internet address ranges. The following logs, obtained by one of the parties to the week-long offensive, showcases the planning and executing of the DDoS attack, including digital assaults on a number of major Internet exchanges. The record also exposes the identities and roles of each of the participants in the attack.

The logs below are excerpts from a much longer conversation. The entire, unedited chat logs are available here. The logs are periodically broken up by text in italics, which includes additional context about each snippet of conversation. Also please note that the logs below may contain speech that some find offensive. Continue reading →


9
Mar 16

eero: A Mesh WiFi Router Built for Security

User-friendly and secure. Hardly anyone would pick either word to describe the vast majority of wireless routers in use today. So naturally I was intrigued a year ago when I had the chance to pre-order a eero, a new WiFi system billed as easy-to-use, designed with security in mind, and able to dramatically extend the range of a wireless network without compromising speed. Here’s a brief review of the eero system I received and installed a week ago.

Three eero devices designed to create a "mesh" wireless network with extended range without compromising speed.

Three eero devices designed to create an extended range “mesh” wireless network without compromising speed.

The standard eero WiFi system comes with three eero devices, each about the width of a square coaster and roughly an inch thick. Every individual eero unit has two built-in WiFi radios that are designed to hand off traffic with the other two units.

This two-radio aspect is important, as most consumer devices that are made and marketed as WiFi range extenders or “repeaters” contain only one radio, and thus end up halving the speed of the repeated WiFi signal.

The makers of eero recommend one device for every 1,000 square feet, and advise placing one device no further than 40 feet from another. Each eero has two ethernet ports in the back, but only one of the eeros needs to be connected directly into your modem with an ethernet cable. That means that a 3-piece eero set has a total of five available ethernet ports, or at least one open ethernet port at each eero location.

Most wireless routers require owners to configure the device by using a hard-wired computer or laptop, opening a browser and navigating to a numeric Internet address to enter some default credentials. From there, you’re on your own. In contrast, the eero system relies on a simple mobile app for setup. The app asks for your name, email address and mobile number, and then sends a text with a one-time passcode.

After you verify the code on your mobile device, the app prompts you to pick a network name (SSID) and password. The device defaults to WPA-2 PSK (AES) for encryption — the strongest security currently available.

Once you’ve assigned each eero a unique location — and as long as the three devices can talk to each other — the network should be set up. The entire process — from placing and plugging in the eeros to setting up the network —  took me about five minutes, but most of that was just me walking from one room or floor to the next to adjust the location of the devices. Continue reading →


3
Nov 15

How Carders Can Use eBay as a Virtual ATM

How do fraudsters “cash out” stolen credit card data? Increasingly, they are selling in-demand but underpriced products on eBay that they don’t yet own. Once the auction is over, the auction fraudster uses stolen credit card data to buy the merchandise from an e-commerce store and have it shipped to the auction winner. Because the auction winners actually get what they bid on and unwittingly pay the fraudster, very often the only party left to dispute the charge is the legitimate cardholder.

So-called “triangulation fraud” — scammers using stolen cards to buy merchandise won at auction by other eBay members — is not a new scam. But it’s a crime that’s getting more sophisticated and automated, at least according to a victim retailer who reached out to KrebsOnSecurity recently after he was walloped in one such fraud scheme.

The victim company — which spoke on condition of anonymity — has a fairly strong e-commerce presence, and is growing rapidly. For the past two years, it was among the Top 500 online retailers as ranked by InternetRetailer.com.

The company was hit with over 40 orders across three weeks for products that later traced back to stolen credit card data. The victimized retailer said it was able to stop a few of the fraudulent transactions before the items shipped, but most of the sales were losses that the victim firm had to absorb.

Triangulation fraud. Image: eBay Enterprise.

Triangulation fraud. Image: eBay Enterprise.

The scheme works like this: An auction fraudster sets up one (or multiple) eBay accounts and sells legitimate products.  A customer buys the item from the seller (fraudster) on eBay and the money gets deposited in the fraudster’s PayPal account.

The fraudster then takes the eBay order information to another online retailer which sells the same item, buys the item using stolen credit card data, and has the item shipped to the address of the eBay customer that is expecting the item. The fraudster then walks away with the money.

One reason this scheme is so sneaky is that the eBay customers are happy because they got their product, so they never complain or question the company that sent them the product. For the retailer, the order looks normal: The customer contact info in the order form is partially accurate: It has the customer’s correct shipping address and name, but may list a phone number that goes somewhere else — perhaps to a voicemail owned and controlled by the fraudster.

“For the retailer who ships thousands of orders every day, this fraudulent activity really doesn’t raise any red flags,” my source — we’ll call him “Bill,” — told me. “The only way they eventually find out is with a sophisticated fraud screening program, or when the ‘chargeback’ from Visa or MasterCard finally comes to them from the owner of the stolen card.”

In an emailed statement, eBay said the use of stolen or fraudulent credit card numbers to purchase goods on eBay is by no means unique to eBay.

“We believe collaboration and cooperation is the best way to combat fraud and organized retail crime of this nature, working in partnership with retailers and law enforcement,” wrote Ryan Moore, eBay’s senior manager of global corporate affairs. Detecting this type of fraud, Moore said, “relies heavily on the tools that merchants use themselves, which includes understanding their customers and implementing the correct credit card authorization protocols.”

Moore declined to discuss the technology and approaches the eBay uses to fight triangulation fraud — saying eBay doesn’t want tip its hand to cybercriminals. But he said the company uses internal tools and risk models to identify suspicious activity on its platform, and that it trains hundreds of retailers and law enforcement on various types of fraud, including triangulation fraud.

QUAD FRAUD?

Moore pointed to one education campaign on eBay’s site, which adds another wrinkle to this fraud scheme: Very often the people listing the item for sale on eBay are existing, long-time eBay members with good standing who get recruited to sell items via work-at-home job scams. These schemes typically advertise that the seller gets to keep a significant cut of the sale price — typically 30 percent.

A recruitment email from a work-at-home job scam that involves respondents in triangulation fraud. Source: eBay

A recruitment email from a work-at-home job scam that involves respondents in triangulation fraud. Source: eBay

Interesting, the guy selling carded goods stolen from Bill’s company has been on eBay for more than a decade and has a near-perfect customer feedback score. That seller is not being referenced in this story because his feedback page directly links to transactions from Bill’s company. Continue reading →


2
Jun 15

Phony Tax Refunds: A Cash Cow for Everyone

When identity thieves filed a phony $7,700 tax refund request in the name of Joe Garrett, Alabama’s deputy tax commissioner, they didn’t get all of the money they requested. A portion of the cash went to more than a half dozen U.S. companies that each grab a slice of the fraudulent refund, including banks, payment processing firms, tax preparation companies and e-commerce giants.

treas7700

When tax scammers file a fraudulent refund request, they usually take advantage of a process called a refund transfer. That allows the third party firm that helped prepare and process the return for filing (e.g. TurboTax) to get paid for their services by deducting the amount of their fee from the refund. Effectively, this lets identity thieves avoid paying a dime to TurboTax or other providers for processing the return.

In Garrett’s case, as with no doubt countless other fraudulent returns filed this year, the thieves requested that the return be deposited into a prepaid debit card account, which they could then use as a regular debit card to pay for goods and services, and/or use at ATMs to withdraw the ill-gotten gains in cash.

What’s more, the crooks asked the government to deposit $2,000 of the $7,700 they applied for in his name to an Amazon gift card ($2,000 is the maximum allowed under the Amazon gift card program). This is just another way for thieves to hedge their bets in case the debit card to which the majority of the stolen funds gets canceled.

“There are so many people making money off of electronic transfer of funds, it’s ridiculous,” said Julie Magee, Garrett’s boss and commissioner of Alabama’s Department of Revenue. “Five different financial institutions touched the fraudulent refund they filed in Joe’s name before it went to the thieves.” Continue reading →


25
Mar 15

Tax Fraud Advice, Straight from the Scammers

Some of the most frank and useful information about how to fight fraud comes directly from the mouths of the crooks themselves. Online cybercrime forums play a critical role here, allowing thieves to compare notes about how to evade new security roadblocks and steer clear of fraud tripwires. And few topics so reliably generate discussion on crime forums around this time of year as tax return fraud, as we’ll see in the conversations highlighted in this post.

File 'em Before the Bad Guys Can

File ’em Before the Bad Guys Can

As several stories these past few months have noted, those involved in tax refund fraud shifted more of their activities away from the Internal Revenue Service and toward state tax filings. This shift is broadly reflected in discussions on several fraud forums from 2014, in which members lament the apparent introduction of new fraud “filters” by the IRS that reportedly made perpetrating this crime at the federal level more challenging for some scammers.

One outspoken and unrepentant tax fraudster — a ne’er-do-well using the screen name “Peleus” — reported that he had far more luck filing phony returns at the state level last year. Peleus posted the following experience to a popular fraud forum in February 2014:

“Just wanted to share a bit of my results to see if everyone is doing so bad or it just me…Federal this year has been a pain in the ass. I have about 35 applications made for federal with only 2 paid refunds…I started early in January (15-20) on TT [TurboTax] and HR [H&R Block] and made about 35 applications on Federal and State..My stats are as follows:

Federal: 35 applications (less than 10% approval rate) – average per return $2500

State: 35 apps – 15 approved (average per return $1600). State works just as great as last year, their approval rate is nearly 50% and processing time no more than 10 – 12 days.

I know that the IRS has new check filters this year but federals suck big time this year, i only got 2 refunds approved from 35 applications …all my federals are between $2300 – $2600 which is the average refund amount in the US so i wouldn’t raise any flags…I also put a small yearly salary like 25-30k….All this precautions and my results still suck big time compared to last year when i had like 30%- 35% approval rate …what the fuck changed this year? Do they check the EIN from last year’s return so you need his real employer information?”

A seasoned tax return fraudster discusses strategy.

A seasoned tax return fraudster discusses strategy.

Several seasoned members of this fraud forum responded that the IRS had indeed become more strict in validating whether the W2 information supplied by the filer had the proper Employer Identification Number (EIN), a unique tax ID number assigned to each company. The fraudsters then proceeded to discuss various ways to mine social networking sites like LinkedIn for victims’ employer information.

GET YER EINs HERE

A sidebar is probably in order here. EINs are not exactly state secrets. Public companies publish their EINs on the first page of their annual 10-K filings with the Securities and Exchange Commission. Still, EINs for millions of small companies here in the United States are not so easy to find, and many small business owners probably treat this information as confidential.

Nevertheless, a number of organizations specialize in selling access to EINs. One of the biggest is Dun & Bradstreet, which, as I detailed in a 2013 exposé, Data Broker Giants Hacked by ID Theft Service, was compromised for six months by a service selling Social Security numbers and other data to identity thieves like Peleus.

Last year, I heard from a source close to the investigation into the Dun & Bradstreet breach who said the thieves responsible made off with more than six million EINs. In December 2014, I asked Dun &Bradstreet about the veracity of this claim, and received a blanket statement that did not address the six million figure, but stressed that EINs are not personally identifiable information and are available to the public. Continue reading →


17
Nov 14

Amazon: Spam Nation one of “Best of Month”

A quick update on my new book, Spam Nation, The Inside Story of Organized Cybercrime — From Global Epidemic to Your Front Door debuting on bookstore shelves  Tuesday, Nov. 18: Amazon has selected Spam Nation as one of their “Best Books of the Month” picks for November, listed alongside such notable authors as Stephen King and Nora Roberts.

abbotm-cIn addition, my publisher has graciously extended the freeZeusGard offer until Nov. 25 for the next 500 people who order more than one copy of the book.

In early October we launched a promotion in which the first 1,000 readers to preorder more than one copy of the book, audio recording and/or e-book version of Spam Nation would receive a free, KrebsOnSecurity-branded ZeusGard, a USB-based technology that’s designed to streamline the process of adopting the Live CD approach for online banking.

Approximately 500 readers took us up on this offer, but that means we still have about 500 left! Thankfully, my publisher (Sourcebooks) has agreed to extend this offer by one week (until Nov. 25, 2014).

Finally, if you live in Chicago, San Francisco, Seattle or Austin and would like a personalized copy of Spam Nation, please consider joining me this week as I drop by a local bookstore near you! See the tour schedule for dates, times and locations.


9
Jul 14

Pre-order Your Copy of ‘Spam Nation’ Now!

Some of you may have noticed that a new element recently debuted in the sidebar: The cover art for my upcoming book, Spam Nation, due to hit bookshelves (physical and virtual) November 18, 2014. Please allow me a few moments to explain what this book is about, and why you should pre-order it today.

The back of Spam Nation.

The back of Spam Nation. Click to enlarge.

Spam Nation delves deeper than perhaps any other publication into the workings of the cybercrime underground, giving readers unprecedented access to a well-hidden world that few outside of these communities have seen up close.

Update, Dec. 9, 2014: Spam Nation has just landed on the New York Times bestseller list!

Original post:

The backdrop of the story is a long-running turf war between two of the largest sponsors of spam. A true-crime tale of political corruption and ill-fated alliances, tragedy, murder and betrayal, this book explains how the conditions that gave rise to this pernicious industry still remain and are grooming a new class of cybercriminals.

But Spam Nation isn’t just about junk email; most of the entrepreneurs building and managing large-scale spam operations are involved in virtually every aspect of cybercrime for which there is a classification, including malware development, denial-of-service attacks, identity theft, credit card fraud, money laundering, commercial data breaches and extortion.

Spam Nation looks at the crucial role played by cybercrime forums, and how these communities simultaneously weave the social fabric of the underground while protecting scam artists from getting scammed.

The book also includes a detailed history of the Russian Business Network (RBN); how it became the virtual boogeyman of the Internet and prefigured an entire industry of “bulletproof” hosting providers.

Along the way, we meet numerous buyers who explain what motivated them to respond to spam and ingest pills ordered from shadowy online marketers. In the chapter “Meet the Spammers,” readers get a closer look at the junk emailers responsible for running the world’s largest botnets.

In addition, Spam Nation includes first-hand accounts of efforts by vigilante groups to dismantle spam and malware operations, and the vicious counterattacks that these campaigns provoked from the spam community.

Now, here’s the important bit: Anyone who pre-orders the book and emails their proof-of-purchase to this address before Nov. 18, 2014 will receive a signed copy. This extends even to those who opt for a digital copy of the book. That’s because the signature will come on a bookplate, which is simply a decorative label that is affixed to the inside front cover. Bookplates allow my publisher Sourcebooks to distribute signed copies of Spam Nation without having to constantly ship me very heavy truckloads of books to sign and then ship back again for reshipment.

The pre-order link for Amazon is here; readers who wish to purchase the book from Barnes & Noble can do so here. Fans of the Washington D.C. literary landmark Politics and Prose can pre-order the book from them at this link. Forward your emailed proof-of-purchase, or a scan/photo of your receipt. Basically anything that says you purchased the book, the quantity purchased, as well as your name and mailing address. Continue reading →