Posts Tagged: Azerigazbank


13
Jul 11

Azeri Banks Corner Fake AV, Pharma Market

Banks in Azerbaijan that have courted the shadowy trade in spam-advertised pharmaceuticals now have cornered the market for processing credit card payments for fake antivirus software, new data reveals.

In June, KrebsOnSecurity highlighted research from the University of California, San Diego (UCSD) showing that Azerigazbank, a financial institution in Azerbaijan, was the primary merchant bank for most major online-fraud pharmacy affiliate programs. By the time that research was published, those programs had moved their business to another bank in Azerbaijan, JSCB Bank Standard.

Earlier this month, researchers from the University of California, Santa Barbara (UCSB) revealed that three of the most popular fake AV affiliate services — which pay hackers to foist worthless software on clueless Internet users — processed tens of millions of dollars in payments through Bank Standard and the International Bank of Azerbaijan.

UCSD researcher Damon McCoy has been making targeted “buys” at dozens of fake AV sites, trying to identify their partner banks. The fake AV operations that McCoy follows are distinct from those in the UCSB research; the UCSB team asked that the names of the rogue AV programs they infiltrated not be published, citing ongoing law enforcement investigations.

A popular fraud forum features a banner ad recruiting affiliates for BestAV

In late 2010, McCoy began buying rogue antivirus software from fake AV affiliate businesses BestAV and Gagarincash — the latter named after Yuri Gagarin, the Russian cosmonaut who was the first man launched into space. McCoy said both fake AV operations previously used Bank Standard, but within the past month have switched to the International Bank of Azerbaijan.

McCoy also tracked a more elusive fake AV affiliate program that he calls Win7Security, after the program’s most profitable brand of fake AV. McCoy said that for the past several months he’d lost track of Win7Security, and hadn’t seen any of its sites being pimped in the usual places, such as malware-laced banner ads and booby-trapped Web sites that redirect users to fake AV sites.

Recently, I heard from a source that stumbled upon a portion of the customer database for a payment processing firm  idpay.com. It’s not clear where this company is based; it claims to have offices in Russia, New York and the United Kingdom, but neither NY nor the UK has any record of that company, and the company did not respond to requests for comment. The idpay.com database indicates that a large number of fake AV Web sites were using idpay.com to process payments (a partial list is here).

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28
Jun 11

Banks Hold Key to Killing Rogue Pharmacies

More than half of all sales at the world’s largest rogue Internet pharmacy in the last four years were charged to credit and debit cards issued by the top seven card-issuing banks, new research suggests.

Unlicensed pharmacies create public health risks and confuse consumers who are looking for safe and reliable prescription medicines. Rogue pharma Web sites are primarily advertised with the help of spam, malicious software, and hacked Web sites. Curbing this drug dealing activity would promote both public health and Internet users’ safety.

Recent findings highlight additional levers that policymakers could use to curb sales at rogue online pharmacies, by convincing the card-issuing banks to stop accepting these charges or by enacting legislation similar to that used to squelch online gambling operations.

The figures shown below come from sales data stolen from Glavmed, a Russian affiliate program that pays webmasters to host and promote online pharmacy sites that sell a variety of prescription drugs without requiring a prescription. Last summer, a source sent KrebsOnSecurity a copy of the Glavmed database, which includes credit card numbers and associated buyer information for nearly $70 million worth of sales at Glavmed sites between 2006 and 2010.

I sorted the buyer data by bank identification number (BIN), indicated by the first six digits in each credit or debit card number. My analysis shows that at least 15 percent of all Glavmed purchases — approximately $10.7 million in rogue pill buys — were made with cards issued by Bank of America.

The Glavmed sales using cards issued by the top seven credit card issuers were almost certainly higher than listed in the chart above.  About 12 percent of the Glavmed sales could not be categorized by bank ID number (some card issuers may have been absorbed into larger banks). Hence, the analysis considers only the 88 percent of Glavmed transactions for which the issuing bank was known. More significantly, the figures in this the analysis do not include close to $100 million in sales generated during that same time period by Spamit.com, a now defunct sister program of Glavmed whose members mainly promoted rogue pharmacies via junk e-mail; the leaked database did not contain credit or debit card numbers for those purchase records. Continue reading →


13
Jun 11

Organization Chart Reveals ChronoPay’s Links to Shady Internet Projects

An online criminal enterprise, as tightly structured as any legitimate business corporation, was exposed in 2010. Emails and documents taken from employees of ChronoPay — Russia’s largest online payments processor — were shared with a select group of law enforcement agencies and with KrebsOnSecurity.com. The communications provide the strongest evidence yet that a notorious rogue online pharmacy and other shady enterprises are controlled by ChronoPay executives and employees.

The leaked ChronoPay emails show that in August 2010 co-founder Pavel Vrublevsky authorized a payment of 37,350 Russian Rubles (about $1,200) for a multi-user license of an Intranet service called MegaPlan.  The documents indicate that Vrublevsky used the service to help manage the sprawling projects related to ChronoPay’s “black” operations, including the processing of payments for rogue anti-virus software, violent “rape” porn sites, and knockoff prescription drugs sold through hundreds of Web sites affiliated with a rogue online pharmacy program Rx-Promotion.com.

ChronoPay employees used their MegaPlan accounts to track payment processing issues, order volumes, and advertising partnerships for these black programs. In a move straight out of the Quentin Tarantino film Reservoir Dogs, the employees adopted nicknames like “Mr. Kink,” “Mr. Heppner,” and “Ms. Nati.” However, in a classic failure of operational security, many of these folks had their messages automatically forwarded to their real ChronoPay email accounts.

MegaPlan offers an application that makes it simple for clients to create organizational charts, and the account paid for by ChronoPay includes a chart showing the hierarchy and reporting structure of its dark divisions.

A screen shot of the organization chart from ChronoPay’s MegaPlan Intranet system.

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