Posts Tagged: Avalanche


16
May 19

Feds Target $100M ‘GozNym’ Cybercrime Network

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 →


8
Dec 16

‘Avalanche’ Crime Ring Leader Eludes Justice

The accused ringleader of a cyber fraud gang that allegedly rented out access to a criminal cloud hosting service known as “Avalanche” is now a fugitive from justice following a bizarre series of events in which he shot at Ukrainian police, was arrested on cybercrime charges and then released from custody.

Gennady Kapkanov. Source: NPU.gov

Gennady Kapkanov. Source: NPU.gov

On Nov. 30, authorities across Europe coordinated the arrest of five individuals thought to be tied to the Avalanche crime gang, in an operation that the FBI and its partners abroad described as an unprecedented global law enforcement response to cybercrime.

According to Ukrainian news outlets, the alleged leader of the gang — 33-year-old Russian Gennady Kapkanov — did not go quietly. Kapkanov allegedly shot at officers with a Kalashnikov assault rifle through the front door as they prepared to raid his home, and then attempted to escape off of his 4th floor apartment balcony.

Ukrainian police arrested Kapkanov and booked him on cybercrime charges. But a judge in the city of Poltava, Ukraine later ordered Kapkanov released, saying the prosecution had failed to file the proper charges (including charges of shooting at police officers), charges which could have allowed authorities to hold him much longer. Ukrainian media reports that police have since lost track of Kapkanov.

Ukraine’s Prosecutor General Yuri Lutsenko is now calling for the ouster of the prosecutor in charge of the case. Meanwhile, the Ukranian authorities are now asking the public for help in re-arresting Kapkanov.

kapkanovguns

Weapons police say they seized from Kapkanov’s apartment. Source: npu.gov.ua

Continue reading →


1
Dec 16

‘Avalanche’ Global Fraud Ring Dismantled

In what’s being billed as an unprecedented global law enforcement response to cybercrime, federal investigators in the United States, United Kingdom and Europe today say they’ve dismantled a sprawling cybercrime machine known as “Avalanche” — a distributed, cloud-hosting network that for the past seven years has been rented out to fraudsters for use in launching countless malware and phishing attacks.

The global distribution of servers used in the Avalanche crime machine. Source: Shadowserver.org

The global distribution of servers used in the Avalanche crime machine. Source: Shadowserver.org

According to Europol, the action was the result of a four-year joint investigation between Europol, Eurojust the FBI and authorities in the U.K. and Germany that culminated on Nov. 30, 2016 with the arrest of five individuals, the seizure of 39 Web servers, and the sidelining of more than 830,000 web domains used in the scheme.

Built as a criminal cloud-hosting environment that was rented out to scammers, spammers other ne’er-do-wells, Avalanche has been a major source of cybercrime for years. In 2009, when investigators say the fraud network first opened for business, Avalanche was responsible for funneling roughly two-thirds of all phishing attacks aimed at stealing usernames and passwords for bank and e-commerce sites.  By 2011, Avalanche was being heavily used by crooks to deploy banking Trojans.

The U.K.’s National Crime Agency (NCA), says the more recent Avalanche fraud network comprised up to 600 servers worldwide and was used to host as many as 800,000 web domains at a time. Continue reading →