Posts Tagged: CrowdStrike

Aug 15

Inside the $100M ‘Business Club’ Crime Gang

New research into a notorious Eastern European organized cybercrime gang accused of stealing more than $100 million from banks and businesses worldwide provides an unprecedented, behind-the-scenes look at an exclusive “business club” that dabbled in cyber espionage and worked closely with phantom Chinese firms on Russia’s far eastern border.

In the summer of 2014, the U.S. Justice Department joined multiple international law enforcement agencies and security firms in taking down the Gameover ZeuS botnet, an ultra-sophisticated, global crime machine that infected upwards of a half-million PCs.

Thousands of freelance cybercrooks have used a commercially available form of the ZeuS banking malware for years to siphon funds from Western bank accounts and small businesses. Gameover ZeuS, on the other hand, was a closely-held, customized version secretly built by the ZeuS author himself (following a staged retirement) and wielded exclusively by a cadre of hackers that used the systems in countless online extortion attacks, spam and other illicit moneymaking schemes.

Last year’s takedown of the Gameover ZeuS botnet came just months after the FBI placed a $3 million bounty on the botnet malware’s alleged author — a Russian programmer named Evgeniy Mikhailovich Bogachev who used the hacker nickname “Slavik.” But despite those high-profile law enforcement actions, little has been shared about the day-to-day operations of this remarkably resourceful cybercrime gang.

That changed today with the release of a detailed report from Fox-IT, a security firm based in the Netherlands that secretly gained access to a server used by one of the group’s members. That server, which was rented for use in launching cyberattacks, included chat logs between and among the crime gang’s core leaders, and helped to shed light on the inner workings of this elite group.

The alleged ZeuS Trojan author, Yevgeniy Bogachev, Evgeniy Mikhaylovich Bogachev, a.k.a. "lucky12345", "slavik", "Pollingsoon". Source: "most wanted, cyber.

The alleged ZeuS Trojan author, Yevgeniy Bogachev, Evgeniy Mikhaylovich Bogachev, a.k.a. “lucky12345”, “slavik”, “Pollingsoon”. Source: “most wanted, cyber.


The chat logs show that the crime gang referred to itself as the “Business Club,” and counted among its members a core group of a half-dozen people supported by a network of more than 50 individuals. In true Oceans 11 fashion, each Business Club member brought a cybercrime specialty to the table, including 24/7 tech support technicians, third-party suppliers of ancillary malicious software, as well as those engaged in recruiting “money mules” — unwitting or willing accomplices who could be trained or counted on to help launder stolen funds.

“To become a member of the business club there was typically an initial membership fee and also typically a profit sharing agreement,” Fox-IT wrote. “Note that the customer and core team relationship was entirely built on trust. As a result not every member would directly get full access, but it would take time until all the privileges of membership would become available.”

Michael Sandee, a principal security expert at Fox-IT and author of the report, said although Bogachev and several other key leaders of the group were apparently based in or around Krasnodar — a temperate area of Russia on the Black Sea — the crime gang had members that spanned most of Russia’s 11 time zones.

Geographic diversity allowed the group — which mainly worked regular 9-5 hour days Monday through Friday — to conduct their cyberheists against banks by following the rising sun across the globe — emptying accounts at Australia and Asian banks in the morning there, European banks in the afternoon, before handing the operations over to a part of the late afternoon team based in Eastern Europe that would attempt to siphon funds from banks that were just starting their business day in the United States.

“They would go along with the time zone, starting with banks in Australia, then continuing in Asia and following the business day wherever it was, ending the day with [attacks against banks in] the United States,” Sandee said.



Continue reading →

Feb 15

Anthem Breach May Have Started in April 2014

Analysis of open source information on the cybercriminal infrastructure likely used to siphon 80 million Social Security numbers and other sensitive data from health insurance giant Anthem suggests the attackers may have first gained a foothold in April 2014, nine months before the company says it discovered the intrusion.

The Wall Street Journal reported last week that security experts involved in the ongoing forensics investigation into the breach say the servers and attack tools used in the attack on Anthem bear the hallmark of a state-sponsored Chinese cyber espionage group known by a number of names, including “Deep Panda,” “Axiom,” Group 72,” and the “Shell_Crew,” to name but a few.

Deep Panda is the name given to this group by security firm CrowdStrike. In November 2014, Crowdstrike published a snapshot of a graphic showing the malware and malicious Internet servers used in what security experts at PriceWaterhouseCoopers dubbed the ScanBox Framework, a suite of tools that have been used to launch a number of cyber espionage attacks.

A Maltego transform published by CrowdStrike. The graphic is intended to illustrate some tools and Internet servers that are closely tied to a Chinese cyber espionage group that CrowdStrike calls "Deep Panda."

A Maltego transform published by CrowdStrike. The graphic is intended to illustrate some tools and Internet servers thought to be closely tied to a Chinese cyber espionage group that CrowdStrike calls “Deep Panda.”

Crowdstrike’s snapshot (produced with the visualization tool Maltego) lists many of the tools the company has come to associate with activity linked to Deep Panda, including a password stealing Trojan horse program called Derusbi, and an Internet address — 198[dot]200[dot]45[dot]112.

CrowdStrike’s image curiously redacts the resource tied to that Internet address (note the black box in the image above), but a variety of open source records indicate that this particular address was until very recently the home for a very interesting domain: The third and fourth characters in that domain name are the numeral one, but it appears that whoever registered the domain was attempting to make it look like “Wellpoint,” the former name of Anthem before the company changed its corporate name in late 2014.

We11point[dot]com was registered on April 21, 2014 to a bulk domain registration service in China. Eight minutes later, someone changed the site’s registration records to remove any trace of a connection to China.

Intrigued by the fake Wellpoint domains, Rich Barger, chief information officer for Arlington, Va. security firm ThreatConnect Inc., dug deeper into so-called “passive DNS” records — historic records of the mapping between numeric Internet addresses and domain names. That digging revealed a host of other subdomains tied to the suspicious we11point[dot]com site. In the process, Barger discovered that these subdomains — including myhr.we11point[dot]com, and hrsolutions.we11point[dot]com  mimicked components of Wellpoint’s actual network as it existed in April 2014.

“We were able to verify that the evil we11point infrastructure is constructed to masquerade as legitimate Wellpoint infrastructure,” Barger said.

Another fishy subdomain that Barger discovered was extcitrix.we11point[dot]com. The “citrix” portion of that domain likely refers to Citrix, a software tool that many large corporations commonly use to allow employees remote access to internal networks over a virtual private network (VPN).

Interestingly, that extcitrix.we11point[dot]com domain, first put online on April 22, 2014, was referenced in a malware scan from a malicious file that someone uploaded to malware scanning service According to the writeup on that malware, it appears to be a backdoor program masquerading as Citrix VPN software. The malware is digitally signed with a certificate issued to an organization called DTOPTOOLZ Co. According to CrowdStrike and other security firms, that digital signature is the calling card of the Deep Panda Chinese espionage group. Continue reading →

Feb 15

China To Blame in Anthem Hack?

Bloomberg reports that U.S. federal investigators probing the theft of 80 million Social Security records and other sensitive data from insurance giant Anthem Inc. are pointing the finger at state-sponsored hackers from China. Although unconfirmed, that suspicion would explain a confidential alert the FBI circulated last week warning that Chinese hackers were targeting personally identifiable information from U.S. commercial and government networks.

According to this story from Bloomberg’s Michael Riley and Jordan Robertson, “the attack appears to follow a pattern of thefts of medical data by foreigners seeking a pathway into the personal lives and computers of a select group — defense contractors, government workers and others, according to a U.S. government official familiar with a more than year-long investigation into the evidence of a broader campaign.”

While the story is light on details, it adds a bit more context to an FBI “flash alert” that KrebsOnSecurity obtained independently last week. The alert said the FBI has received information regarding a group of cyber actors who have compromised and stolen sensitive business information and Personally Identifiable Information (PII) from US commercial and government networks through cyber espionage.”


The alert notes that analysis of malware samples used in the attack indicate a significant amount of the computer network exploitation activities emanated from infrastructure located within China. The FBI said the tools used in the attack were referenced in open source reports on Deep Panda, a claim that also shows up in the Bloomberg piece. That story references data about Deep Panda from cybersecurity firm CrowdStrike, which specializes in attributing nation state-level attacks.

According to the FBI, Deep Panda has previously used Adobe Flash zero-day exploits in order to gain initial access to victim networks. While it may be unrelated, it’s worth noting that in the past two weeks alone, Adobe has shipped no fewer than three unscheduled, emergency updates to address Flash Player vulnerabilities that were being exploited in active attacks at the time Adobe released patches.

The FBI’s flash advisory continues:

“Information obtained from victims indicates that PII was a priority target. The FBI notes that stolen PII has been used in other instances to target or otherwise facilitate various malicious activities such as financial fraud though the FBI is not aware of such activity by this group. Any activity related to this group detected on a network should be considered an indication of a compromise requiring extensive mitigation and contact with law enforcement.”


In its own writeup on Deep Panda from mid-2014, CrowdStrike notes that “for almost three years now, CrowdStrike has monitored DEEP PANDA targeting critical and strategic business verticals including: government, defense, financial, legal, and the telecommunications industries. At the think tanks, [we have] detected targeting of senior individuals involved in geopolitical policy issues, in particular in the China/Asia Pacific region. DEEP PANDA presents a very serious threat not just to think tanks, but also multinational financial institutions, law firms, defense contractors, and government agencies.” Continue reading →

Jul 14

Microsoft Darkens 4MM Sites in Malware Fight

Millions of Web sites were shuttered Monday morning after Microsoft executed a legal sneak attack against a malware network thought to be responsible for more than 7.4 million infections of Windows PCs worldwide.

A diagram showing how crooks abused's services to control malware networks. Source: Microsoft.

A diagram showing how crooks abused’s services to control malware networks. Source: Microsoft.

In its latest bid to harness the power of the U.S. legal system to combat malicious software and cybercrooks, Microsoft convinced a Nevada court to grant the software giant authority over nearly two dozen domains belonging to, a company that provides dynamic domain name services.

Dynamic DNS services are used to map domain names to numeric Internet address that may change frequently. Typically, the biggest users of dynamic DNS services are home Internet users who wish to have a domain name that will always point back to their home computer, no matter how many times their ISP changes the numeric Internet address assigned to that computer.

In this case, however, the attackers responsible for leveraging two malware families — remote-access Trojans known as “njrat” and “njw0rm” — were using’s services to guarantee that PCs they infected would always be able to reach the Internet servers.

Microsoft told the court that miscreants who were using these two malware strains were leveraging more than 18,400 hostnames that belonged to On June 26, the court granted Microsoft the authority to temporarily seize control over 23 domains owned by — essentially all of the domains that power’s free dynamic DNS services.

Microsoft was supposed to filter out the traffic flowing to and from those 18,400+ hostnames, and allow the remaining, harmless traffic to flow through to its rightful destination. But according to marketing manager Natalie Goguen, that’s not at all what happened.

“They made comments that they’d only taken down bad hostnames and were supposedly redirecting all good traffic through to users, but it’s not happening, and they’re not able to handle our traffic volumes,” Goguen said. “Many legitimate users that use our services have been down all day.”

Goguen said while Microsoft claimed that there were more than 18,000 malicious hostnames involved, could only find a little more than 2,000 from that list that were still active as of Monday morning. Meanwhile, some four million hostnames remain offline, with customer support requests piling up.

“So, to go after 2,000 or so bad sites, [Microsoft] has taken down four million,” Goguen said. Continue reading →

Jun 14

‘Operation Tovar’ Targets ‘Gameover’ ZeuS Botnet, CryptoLocker Scourge

The U.S. Justice Department is expected to announce today an international law enforcement operation to seize control over the Gameover ZeuS botnet, a sprawling network of hacked Microsoft Windows computers that currently infects an estimated 500,000 to 1 million compromised systems globally. Experts say PCs infected with Gameover are being harvested for sensitive financial and personal data, and rented out to an elite cadre of hackers for use in online extortion attacks, spam and other illicit moneymaking schemes.

This graphic, from 2012, shows the decentralized nature of P2P network connectivity of 23,196 PCs infected with Gameover.  Image: Dell SecureWorks

This graphic, from 2012, shows the decentralized nature of P2P network connectivity of 23,196 PCs infected with Gameover. Image: Dell SecureWorks

The sneak attack on Gameover, dubbed “Operation Tovar,” began late last week and is a collaborative effort by investigators at the FBI, Europol, and the UK’s National Crime Agency; security firms CrowdStrike, Dell SecureWorks, SymantecTrend Micro and McAfee; and academic researchers at VU University Amsterdam and Saarland University in Germany. News of the action first came to light in a blog post published briefly on Friday by McAfee, but that post was removed a few hours after it went online.

Gameover is based on code from the ZeuS Trojan, an infamous family of malware that has been used in countless online banking heists. Unlike ZeuS — which was sold as a botnet creation kit to anyone who had a few thousand dollars in virtual currency to spend — Gameover ZeuS has since October 2011 been controlled and maintained by a core group of hackers from Russia and Ukraine.

Those individuals are believed to have used the botnet in high-dollar corporate account takeovers that frequently were punctuated by massive distributed-denial-of-service (DDoS) attacks intended to distract victims from immediately noticing the thefts. According to the Justice Department, Gameover has been implicated in the theft of more than $100 million in account takeovers.

The curators of Gameover also have reportedly loaned out sections of their botnet to vetted third-parties who have used them for a variety of purposes. One of the most popular uses of Gameover has been as a platform for seeding infected systems with CryptoLocker, a nasty strain of malware that locks your most precious files with strong encryption until you pay a ransom demand.

According to a 2012 research paper published by Dell SecureWorks, the Gameover Trojan is principally spread via Cutwail, one of the world’s largest and most notorious spam botnets (for more on Cutwail and its origins and authors, see this post). These junk emails typically spoof trusted brands, including shipping and phone companies, online retailers, social networking sites and financial institutions. The email lures bearing Gameover often come in the form of an invoice, an order confirmation, or a warning about an unpaid bill (usually with a large balance due to increase the likelihood that a victim will click the link). The links in the email have been replaced with those of compromised sites that will silently probe the visitor’s browser for outdated plugins that can be leveraged to install malware.

It will be interesting to hear how the authorities and security researchers involved in this effort managed to gain control over the Gameover botnet, which uses an advanced peer-to-peer (P2P) mechanism to control and update the bot-infected systems. Continue reading →

Jan 14

A Closer Look at the Target Malware, Part II

Yesterday’s story about the point-of-sale malware used in the Target attack has prompted a flood of analysis and reporting from antivirus and security vendors about related malware. Buried within those reports are some interesting details that speak to possible actors involved and to the timing and discovery of this breach.

targetsmashAs is the case with many data breaches, the attackers in this attack used a virtual toolbox of crimeware to get the job done. As I noted in a Tweet shortly after filing my story Wednesday, at least one of those malware samples includes the text string “Rescator.” Loyal readers of this blog will probably find this name familiar. That’s because Rescator was the subject of a blog post that I published on Dec. 24, 2013, titled “Who is Selling Cards from Target?“.

In that post, I examined a network of underground cybercrime shops that were selling almost exclusively credit and debit card accounts stolen from Target stores. I showed how those underground stores all traced back to a miscreant who uses the nickname Rescator, and how clues about Rescator’s real-life identity suggested he might be a particular young man in Odessa, Ukraine.

This afternoon, McAfee published a blog post confirming many of the findings in my story yesterday, including that two malware uploaders used in connection with the Target attack contained the Rescator string:


A private message on cpro[dot]su between Rescator and a member interested in his card shop. Notice the ad for Rescator's email flood service at the bottom.

A private message on cpro[dot]su between Rescator and a member interested in his card shop. Notice the ad for Rescator’s email flood service at the bottom.

Earlier this morning, Seculert posted an analysis that confirmed my reporting that the thieves used a central server within Target to aggregate the data hoovered up by the point-of-sale malware installed at Target. According to Seculert, the attack consisted of two stages.

“First, the malware that infected Target’s checkout counters (PoS) extracted credit numbers and sensitive personal details. Then, after staying undetected for 6 days, the malware started transmitting the stolen data to an external FTP server, using another infected machine within the Target network.”

Continue reading →

May 13

Zero-Day Exploit Published for IE8

Security experts are warning that a newly discovered vulnerability in Internet Explorer 8 is being actively exploited to break into Microsoft Windows systems. Complicating matters further, computer code that can be used to reliably exploit the flaw is now publicly available online.

IEwarningIn an advisory released May 3, Microsoft said it was investigating reports of a vulnerability in IE8, and that it was aware of attacks that attempt to exploit this bug. The company stresses that other versions of IE — including IE6, 7, 9 and 10 are not affected by the vulnerability. However, all versions of IE8 are vulnerable, including copies running on Windows XP, Vista and Windows 7.

Meanwhile, a new module that exploits this IE8 bug is now available for the Metasploit Framework, a free penetration testing tool. I would expect this exploit or some version of it will soon be rolled into commercial exploit kits that are sold in the cybercrime underground (assuming this has not already happened).

Update, May 9, 9:00 a.m. ET: Microsoft has released a fix-it tool to blunt attacks on this bug. See this story for more information.

Original post:

The security hole has already been leveraged in at least one high-profile attack. Over the weekend, several security vendors reported that the U.S. Department of Labor Web site had been hacked and seeded with code designed to exploit the flaw and download malicious software.

The attack on the Labor Department site is seen as a watering hole attack, which involves the targeted compromise of legitimate websites thought to be of interest to or frequented by end users who belong to organizations that attackers wish to infiltrate. Previous watering hole attacks have targeted the Web site for the Council on Foreign Relations, the Association of Southeast Asian Nations, and the National Democratic Institute.

According to CrowdStrike, the server used to control this latest attack on the Labor Department site was The company said analysis of the logs from the attacker’s infrastructure revealed that visitors from 37 different countries browsed the site during the time it was compromised with the malicious code. AlienVault, Invincea and Cisco Systems have published additional details on this attack. AlienVault also said it has since spotted the same exploit used on at least nine other hacked Web sites, including several non-profit groups and a large European company.

Continue reading →

May 12

At the Crossroads of eThieves and Cyberspies

Lost in the annals of campy commercials from the 1980s is a series of ads that featured improbable scenes between two young people (usually of the opposite sex) who always somehow caused the inadvertent collision of peanut butter and chocolate. After the mishap, one would complain, “Hey you got your chocolate in my peanut butter!,” and the other would shout, “You got your peanut butter in my chocolate!” The youngsters would then sample the product of their happy accident and be amazed to find someone had already combined the two flavors into a sweet and salty treat that is commercially available.

It may be that the Internet security industry is long overdue for its own “Reese’s moment.” Many security experts who got their start analyzing malware and tracking traditional cybercrime recently have transitioned to investigating malware and attacks associated with so-called advanced persistent threat (APT) incidents. The former centers on the theft of financial data that can be used to quickly extract cash from victims; the latter refers to often prolonged attacks involving a hunt for more strategic information, such as intellectual property, trade secrets and data related to national security and defense.

Experts steeped in both areas seem to agree that there is little overlap between the two realms, neither in the tools the two sets of attackers use, their methods, nor in their motivations or rewards. Nevertheless, I’ve heard some of these same experts remark that traditional cyber thieves could dramatically increase their fortunes if they only took the time to better understand the full value of the PCs that get ensnared in their botnets.

In such a future, Chinese nationalistic hackers, for example, could avoid spending weeks or months trying to break into Fortune 500 companies using carefully targeted emails or zero-day software vulnerabilities; instead, they could just purchase access to PCs at these companies that are already under control of traditional hacker groups.

Every now and then, evidence surfaces to suggest that bridges between these two disparate worlds are under construction. Last month, I had the opportunity to peer into a botnet of more than 3,400 PCs — most of them in the United States. The systems were infected with a new variant of the Citadel Trojan, an offshoot of the ZeuS Trojan whose chief distinguishing feature is a community of users who interact with one another in a kind of online social network. This botnet was used to conduct cyberheists against several victims, but it was a curious set of scripts designed to run on each infected PC that caught my eye.

Continue reading →

Mar 12

Researchers Clobber Khelios Spam Botnet

Experts from across the security industry collaborated this week to quarantine more than 110,000 Microsoft Windows PCs that were infected with the Khelios worm, a contagion that forces infected PCs to blast out junk email advertising rogue Internet pharmacies.

Most botnets are relatively fragile: If security experts or law enforcement agencies seize the Internet servers used to control the zombie network, the crime machine eventually implodes. But Khelios (a.k.a. “Kelihos”) was built to withstand such attacks, employing a peer-to-peer structure not unlike that used by popular music and file-sharing sites to avoid takedown by the entertainment industry.

Update, 11:07 a.m. ET: Multiple sources are now reporting that within hours of the Khelios.B takedown, Khelios.C was compiled and launched. It appears to be spreading via Facebook.

Original post: The distributed nature of a P2P botnet allows the botmaster to orchestrate its activities by seeding a few machines in the network with encrypted instructions. Those systems then act as a catalyst, relaying the commands from one infected machine to another in rapid succession.

P2P botnets can be extremely resilient, but they typically posses a central weakness: They are only as strong as the encryption that scrambles the directives that the botmaster sends to infected machines. In other words,  anyone who manages to decipher the computer language needed to talk to the compromised systems can send them new instructions, such as commands to connect to a control server that is beyond the reach of the miscreant(s) who constructed the botnet.

That’s precisely the approach that security researchers used to seize control of Khelios. The caper was pulled off by a motley band of security experts from the Honeynet Project, Kaspersky, SecureWorks, and startup security firm CrowdStrike. The group figured out how to crack the encryption used to control systems infected with Khelios, and then sent a handful of machines new instructions to connect to a Web server that the researchers controlled.

That feat allowed the research team to wrest the botnet from the miscreants who created it, said Adam Meyers, director of intelligence for CrowdStrike. The hijacking of the botnet took only a few minutes, and when it was complete, the team had more than 110,000 PCs reporting to its surrogate control server.

“Once we injected that information in the P2P node, it was essentially propagating everything else for us,” Meyers said. “By taking advantage of the intricacies of the protocol, we were providing the most up-to-date information that all of hosts were spreading.”

The group is now working to notify ISPs where the infected hosts reside, in hopes of cleaning up the bot infestations. Meyers said that, for some unknown reason, the largest single geographic grouping of Khelios-infected systems – 25 percent — were located in Poland. U.S.-based ISPs were home to the second largest contingent of Khelios bots. Meyers said about 80 percent of the Khelios-infected systems they sinkholed were running Windows XP, an increasingly insecure operating system that Microsoft released more than a decade ago. Continue reading →