Posts Tagged: Europol


20
Jul 17

Exclusive: Dutch Cops on AlphaBay ‘Refugees’

Following today’s breaking news about U.S. and international authorities taking down the competing Dark Web drug bazaars AlphaBay and Hansa Market, KrebsOnSecurity caught up with the Dutch investigators who took over Hansa on June 20, 2017. When U.S. authorities shuttered AlphaBay on July 5, police in The Netherlands saw a massive influx of AlphaBay refugees who were unwittingly fleeing directly into the arms of investigators. What follows are snippets from an exclusive interview with Petra Haandrikman, team leader of the Dutch police unit that infiltrated Hansa.

Vendors on both AlphaBay and Hansa sold a range of black market items — most especially controlled substances like heroin. According to the U.S. Justice Department, AlphaBay alone had some 40,000 vendors who marketed a quarter-million sales listings for illegal drugs to more than 200,000 customers. The DOJ said that as of earlier this year, AlphaBay had 238 vendors selling heroin. Another 122 vendors advertised Fentanyl, an extremely potent synthetic opioid that has been linked to countless overdoses and deaths.

In our interview, Haandrikman detailed the dual challenges of simultaneously dealing with the exodus of AlphaBay users to Hansa and keeping tabs on the giant increase in new illicit drug orders that were coming in daily as a result.

The profile and feedback of a top AlphaBay vendor.

The profile and feedback of a top AlphaBay vendor. Image: ShadowDragon.io

KrebsOnSecurity (K): Talk a bit about how your team was able to seize control over Hansa.

Haandrikman (H): When we knew the FBI was working on AlphaBay, we thought ‘What’s better than if they come to us?’ The FBI wanted [the AlphaBay takedown] to look like an exit scam [where the proprietors of a dark web marketplace suddenly abscond with everyone’s money]. And we knew a lot of vendors on AlphaBay would probably come over to Hansa when AlphaBay was closed.

K: Where was Hansa physically based?

H: We knew the Hansa servers were in Lithuania, so we sent an MLAT (mutual legal assistance treaty) request to Lithuania and requested if we could proceed with our planned actions in their country. They were very willing to help us in our investigations.

K: So you made a copy of the Hansa servers?

H: We gained physical access to the machines in Lithuania, and were able to set up some clustering between the [Hansa] database servers in Lithuania and servers we were running in our country. With that, we were able to get a real time copy of the Hansa database, and then copy over the Web site code itself.

K: Did you have to take Hansa offline for a while during this process?

H: No, it didn’t really go offline. We were able to create our own copy of the site that was running on servers in the Netherlands. So there were two copies of the site running simultaneously.

The now-defunct Hansa Market.

The now-defunct Hansa Market.

K: At a press conference on this effort at the U.S. Justice Department in Washington, D.C. today, Rob Wainwright, director of the European law enforcement organization Europol, detailed how the closure of AlphaBay caused a virtual stampede of former AlphaBay buyers and sellers taking their business to Hansa Market. Tell us more about what that influx was like, and how you handled it.

H: Yes, we called them “AlphaBay refugees.” It wasn’t the technical challenge that caused problems. Because this was a police operation, we wanted to keep up with the orders to see if there were any large amounts [of drugs] being ordered to one place, [so that] we could share information with our law enforcement partners internationally.

K: How exactly did you deal with that? Were you able to somehow slow down the orders coming in?

H: We just closed registration on Hansa for new users for a few days. So there was a temporary restriction for being able to register on the site, which slowed down the orders each day to make sure that we could cope with the orders that were coming in.

K: Did anything unexpected happen as a result?

H: Some people started selling their Hansa accounts on Reddit. I read somewhere that one Hansa user sold his account for $40. The funny part about that was that sale happened about five minutes before we re-opened registration. There was a lot of frustration from ex-AlphaBay users that weren’t allowed to register on the site. But we also got defended by the Hansa community on social media, who said it was a great decision by us to educate certain AlphaBay users on Hansa etiquette, which doesn’t allow the sale of things permitted on AlphaBay and other dark markets, such as child pornography and firearms.

A message from Dutch authorities listing the top dark market vendors by nickname.

A message from Dutch authorities listing the top dark market vendors by nickname.

Continue reading →


20
Jul 17

After AlphaBay’s Demise, Customers Flocked to Dark Market Run by Dutch Police

Earlier this month, news broke that authorities had seized the Dark Web marketplace AlphaBay, an online black market that peddled everything from heroin to stolen identity and credit card data. But it wasn’t until today, when the U.S. Justice Department held a press conference to detail the AlphaBay takedown that the other shoe dropped: Police in The Netherlands for the past month have been operating Hansa Market, a competing Dark Web bazaar that enjoyed a massive influx of new customers immediately after the AlphaBay takedown.

The normal home page for the dark Web market Hansa has been replaced by this message from U.S. law enforcement authorities.

The normal home page for the dark Web market Hansa has been replaced by this message from U.S. law enforcement authorities.

U.S. Attorney General Jeff Sessions called the AlphaBay closure “the largest takedown in world history,” targeting some 40,000 vendors who marketed a quarter-million listings for illegal drugs to more than 200,000 customers.

“By far, most of this activity was in illegal drugs, pouring fuel on the fire of a national drug epidemic,” Sessions said. “As of earlier this year, 122 vendors advertised Fentanyl. 238 advertised heroin. We know of several Americans who were killed by drugs on AlphaBay.”

Andrew McCabe, acting director of the FBI, said AlphaBay was roughly 10 times the size of the Silk Road, a similar dark market that was shuttered in a global law enforcement sting in October 2013.

As impressive as those stats may be, the real coup in this law enforcement operation became evident when Rob Wainwright, director of the European law enforcement organization Europol, detailed how the closure of AlphaBay caused a virtual stampede of former AlphaBay buyers and sellers taking their business to Hansa Market, which had been quietly and completely taken over by Dutch police one month earlier — on June 20.

“What this meant…was that we could identify and disrupt the regular criminal activity that was happening on Hansa Market but also sweep up all of those new users that were displaced from AlphaBay and looking for a new trading plot form for their criminal activities,” Wainwright told the media at today’s press conference, which seemed more interested in asking Attorney General Sessions about a recent verbal thrashing from President Trump.

“In fact, they flocked to Hansa in droves,” Wainwright continued. “We recorded an eight times increase in the number of human users on Hansa immediately following the takedown of AlphaBay. Since the undercover operation to take over Hansa market by the Dutch Police, usernames and passwords of thousands of buyers and sellers of illicit commodities have been identified and are the subject of follow-up investigations by Europol and our partner agencies.” Continue reading →


13
Dec 16

‘Operation Tarpit’ Targets Customers of Online Attack-for-Hire Services

Federal investigators in the United States and Europe last week arrested nearly three-dozen people suspected of patronizing so-called “booter” services that can be hired to knock targeted Web sites offline. The global crackdown is part of an effort by authorities to weaken demand for these services by impressing upon customers that hiring someone to launch cyberattacks on your behalf can land you in jail.

On Dec. 9, 2016, the U.S. Federal Bureau of Investigation (FBI) arrested Sean Sharma, a 26-year-old student at the University of California accused of using a booter service to knock a San Francisco chat service company’s Web site offline.

Sharma was one of almost three dozen others across 13 countries who were arrested on suspicion of paying for cyberattacks. As part of a coordinated law enforcement effort dubbed “Operation Tarpit,” investigators here and abroad also executed more than 100 so-called “knock-and-talk” interviews with booter buyers who were quizzed about their involvement but not formally charged with crimes.

Netspoof's DDoS-for-hire packages. Image: Samsclass.info.

Netspoof’s DDoS-for-hire packages. Image: Samsclass.info.

Stresser and booter services leverage commercial hosting services and security weaknesses in Internet-connected devices to hurl huge volleys of junk traffic at targeted Web sites. These attacks, known as “distributed denial-of-service” (DDoS) assaults, are digital sieges aimed at causing a site to crash or at least to remain unreachable by legitimate Web visitors.

“DDoS tools are among the many specialized cyber crime services available for hire that may be used by professional criminals and novices alike,” said Steve Kelly, FBI unit chief of the International Cyber Crime Coordination Cell, a task force created earlier this year by the FBI whose stated mission is to ‘defeat the most significant cyber criminals and enablers of the cyber underground.’ “While the FBI is working with our international partners to apprehend and prosecute sophisticated cyber criminals, we also want to deter the young from starting down this path.”

According to Europol, the European Union’s law enforcement agency, the operation involved arrests and interviews of suspected DDoS-for-hire customers in Australia, Belgium, France, Hungary, Lithuania, the Netherlands, Norway, Portugal, Romania, Spain, Sweden, the United Kingdom, and the U.S. Europol said investigators are only warning one-time users, but aggressively pursuing repeat offenders who frequented the booter services.

“This successful operation marks the kick-off of a prevention campaign in all participating countries in order to raise awareness of the risk of young adults getting involved in cybercrime,” reads a statement released Monday by Europol. “Many do it for fun without realizing the consequences of their actions – but the penalties can be severe and have a negative impact on their future prospects.”

The arrests stemmed at least in part from successes that investigators had infiltrating a booter service operating under the name “Netspoof.” According to the U.K.’s National Crime Agency, Netspoof offered subscription packages ranging from £4 (~USD $5) to £380 (~USD $482) – with some customers paying more than £8,000 (> USD $10,000) to launch hundreds of attacks. The NCA said twelve people were arrested in connection with the Netspoof investigation, and that victims included gaming providers, government departments, internet hosting companies, schools and colleges.

The Netspoof portion of last week’s operation was fueled by the arrest of Netspoof’s founder — 20-year-old U.K. resident Grant Manser. As Bleeping Computer reports, Manser’s business had 12,800 registered users, of which 400 bought his tools, launching 603,499 DDoS attacks on 224,548 targets.

Manser was sentenced in April 2016 to two years youth detention suspended for 18 months, as well as 100 hours of community service. According to BC’s Catalin Cimpanu, the judge in Manser’s case went easy on him because he built safeguards in his tools that prevented customers from attacking police, hospitals and government institutions. 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 →


27
Jun 15

A Busy Week for Ne’er-Do-Well News

We often hear about the impact of cybercrime, but too seldom do we read about the successes that law enforcement officials have in apprehending those responsible and bringing them to justice. Last week was an especially busy time for cybercrime justice, with authorities across the globe bringing arrests, prosecutions and some cases stiff sentences in connection with a broad range of cyber crimes, including ATM and bank account cashouts, malware distribution and “swatting” attacks.

Ercan Findikoglu, posing with piles of cash.

Ercan Findikoglu, posing with piles of cash.

Prosecutors in New York had a big week. Appearing in the U.S. court system for the first time last week was Ercan “Segate” Findikoglu, a 33-year-old Turkish man who investigators say was the mastermind behind a series of Oceans 11-type ATM heists between 2011 and 2013 that netted thieves more than $55 million.

According to prosecutors, Findikoglu organized the so-called “ATM cashouts” by hacking into networks of several credit and debit card payment processors. With each processor, the intruders were able to simultaneously lift the daily withdrawal limits on numerous prepaid accounts and dramatically increase the account balances on those cards to allow ATM withdrawals far in excess of the legitimate card balances.

The cards were then cloned and sent to dozens of co-conspirators around the globe, who used the cards at ATMs to withdraw millions in cash in the span of just a few hours. Investigators say these attacks are known in the cybercrime underground as “unlimited operations” because the manipulation of withdrawal limits lets the crooks steal literally unlimited amounts of cash until the operation is shut down.

Two of the attacks attributed to Findikoglu and his alleged associates were first reported on this blog, including a February 2011 attack against Fidelity National Information Services (FIS), and a $5 million heist in late 2012 involving a card network in India. The most brazen and lucrative heist, a nearly $40 million cashout against the Bank of Muscat in Oman, was covered in a May 2013 New York Times piece, which concludes with a vignette about the violent murder of alleged accomplice in the scheme.

Also in New York, a Manhattan federal judge sentenced the co-creator of the “Blackshades” Trojan to nearly five years in prison after pleading guilty to helping hundreds of people use and spread the malware. Twenty-five year old Swedish national Alexander Yucel was ordered to forfeit $200,000 and relinquish all of the computer equipment he used in commission of his crimes.

As detailed in this May 2014 piece, Blackshades Users Had It Coming, the malware was sophisticated but marketed mainly on English language cybecrime forums to young men who probably would have a hard time hacking their way out of a paper bag, let alone into someone’s computer. Initially sold via PayPal for just $40, Blackshades offered users a way to remotely spy on victims, and even included tools and tutorials to help users infect victim PCs. Many of Yucel’s customers also have been rounded up by law enforcement here in the U.S. an abroad. Continue reading →


5
Dec 13

ZeroAccess Botnet Down, But Not Out

Europol, Microsoft Kneecap Click-Fraud Botnet

Authorities in Europe joined Microsoft Corp. this week in disrupting “ZeroAccess,” a vast botnet that has enslaved more than two million PCs with malicious software in an elaborate and lucrative scheme to defraud online advertisers.

The action comes partly from Europol’s European Cybercrime Center (EC3), as well as law enforcement cybercrime units from Germany, Latvia, Switzerland and the Netherlands, countries that hosted many of the Internet servers used to control the ZeroAccess botnet.

In tandem with the law enforcement moves in Europe, Microsoft filed a civil lawsuit to unmask eight separate cybercriminals thought to be operating the giant botnet, and to block incoming and outgoing communications between infected PCs in the United States and those 18 control servers, according to a statement released by EC3.

The malware the powers the botnet, also known as “ZAccess” and “Sirefef,” is a complex threat that has evolved significantly since its inception in 2009. It began as a malware delivery platform that was used to spread other threats, such as fake antivirus software (a.k.a. “scareware”).

In recent years, however, the miscreants behind ZeroAccess rearchitected the botnet so that infected systems were forced to perpetrate a moneymaking scheme known as “click fraud” — the practice of fraudulently generating clicks on ads without any intention of fruitfully interacting with the advertiser’s site.

Maps of ZeroAccess infected PCs in Texas. Source: botnetlegalnotice.com

Maps of ZeroAccess infected PCs in Texas. Source: botnetlegalnotice.com

It remains unclear how much this coordinated action will impact the operations of ZeroAccess over the long term. Early versions of ZeroAccess relied on a series of control servers to receive updates, but recent versions of the botnet malware were designed to make the network as a whole more resilient and resistant to targeted takedowns such as the one executed this week.

Specifically, ZeroAccess employs a peer-to-peer (P2P) architecture in which new instructions and payloads are distributed from one infected host to another. P2P-based botnets are designed to eliminate a single point of failure, so that if one node used to control the botnet is knocked offline, the remainder of the botnet can still function.

The actions this week appear to have targeted the servers that deliver a specific component of ZeroAccess that gives infected systems new instructions on how to defraud various online advertisers — including Microsoft. While this effort will not disable the ZeroAccess botnet (the infected systems will likely remain infected), it should allow Microsoft to determine which online affiliates and publishers are associated with the miscreants behind ZeroAccess, since those publishers will have stopped sending traffic directly after the takedown occurred.

Continue reading →