Posts Tagged: Hackforums


25
Apr 17

UK Man Gets Two Years in Jail for Running ‘Titanium Stresser’ Attack-for-Hire Service

A 20-year-old man from the United Kingdom was sentenced to two years in prison today after admitting to operating and selling access to “Titanium Stresser,” a simple-to-use service that let paying customers launch crippling online attacks against Web sites and individual Internet users.

Adam Mudd of Hertfordshire, U.K. admitted to three counts of computer misuse connected with his creating and operating the attack service, also known as a “stresser” or “booter” tool. Services like Titanium Stresser coordinate so-called “distributed denial-of-service” or DDoS attacks that hurl huge barrages of junk data at a site in a bid to make it crash or become otherwise unreachable to legitimate visitors.

Mudd's TitaniumStresser service.

Mudd’s TitaniumStresser service.

According to U.K. prosecutors, Mudd’s Titanium Stresser service was used by others in more than 1.7 million denial-of-service attacks against victims worldwide, with most countries in the world affected at some point. He originally built the booter service at the age of 15, earning more than $300,000 in ill-gotten gains from it. Also during his interviews, he admitted security breaches against his own college while he was there studying computer science.

Mudd pleaded guilty to three offences under the U.K. Computer Misuse Act and a further offense of money laundering under the Proceeds of Crime Act in October 2016.

“Today, he was sentenced to 24 months imprisonment for his own DDoS attacks, nine months for running a titanium stressor service and 24 months for money laundering the proceeds made from the stressor service, all to run concurrently,” reads a press release issued by the Eastern Region Special Operations Unit (ERSOU), an anti-cybercrime unit that worked with the U.K.’s National Crime Agency to investigate Mudd.

Detective Chief Inspector Martin Peters of the ERSOU’s Regional Crime Unit recalled that at sentencing the judge said the defendant likely would have received six years if he’d been tried as an adult and if he had no medical issues. Mudd had been slated to be sentenced last week, but that hearing was delayed until today after the court heard medical testimony on Mudd’s apparent struggles with autism.

The Mudd case is the latest in a string of law enforcement actions in the U.K., U.S. and elsewhere targeting booter service operators and their customers. In December 2016, federal investigators in the United States and Europe arrested nearly three-dozen people suspected of patronizing booter services. That crackdown was part of an effort by authorities to weaken demand for booter and stresser services and to impress upon customers that hiring someone to launch cyberattacks on your behalf can land you in jail.

In October 2016, the U.S. Justice Department charged two 19-year-old men alleged to have run booter services tied to the “Lizard Squad” hacking group. That same month the sprawling discussion forum Hackforums — once the most bustling marketplace on the Internet where people could compare and purchase booter and stresser service subscriptions — announced that it was permanently banning the sale and advertising of bootersContinue reading →


4
Apr 17

Dual-Use Software Criminal Case Not So Novel

“He built a piece of software. That tool was pirated and abused by hackers. Now the feds want him to pay for the computer crooks’ crimes.”

The above snippet is the subhead of a story published last month by the The Daily Beast titled, “FBI Arrests Hacker Who Hacked No One.” The subject of that piece — a 26-year-old American named Taylor Huddleston — faces felony hacking charges connected to two computer programs he authored and sold: An anti-piracy product called Net Seal, and a Remote Administration Tool (RAT) called NanoCore that he says was a benign program designed to help users remotely administer their computers.

Photo illustration by Lyne Lucien/The Daily Beast

Photo illustration by Lyne Lucien/The Daily Beast

The author of the Daily Beast story, former black hat hacker and Wired.com editor Kevin Poulsen, argues that Huddleston’s case raises a novel question: When is a programmer criminally responsible for the actions of his users?

“Some experts say [the case] could have far reaching implications for developers, particularly those working on new technologies that criminals might adopt in unforeseeable ways,” Poulsen wrote.

But a closer look at the government’s side of the story — as well as public postings left behind by the accused and his alleged accomplices — paints a more complex and nuanced picture that suggests this may not be the case to raise that specific legal question in any meaningful way.

Mark Rumold, senior staff attorney at the Electronic Frontier Foundation (EFF), said cases like these are not so cut-and-dry because they hinge on intent, and determining who knew what and when.

“I don’t read the government’s complaint as making the case that selling some type of RAT is illegal, and if that were the case I think we would be very interested in this,” Rumold said. “Whether or not [the government’s] claims are valid is going to be extraordinarily fact-specific, but unfortunately there is not a precise set of facts that would push this case from being about the valid reselling of a tool that no one questions can be done legally to crossing that threshold of engaging in a criminal conspiracy.”

Citing group chat logs and other evidence that hasn’t yet been made public, U.S. prosecutors say Huddleston intended NanoCore to function more like a Remote Access Trojan used to remotely control compromised PCs, and they’ve indicted Huddleston on criminal charges of conspiracy as well as aiding and abetting computer intrusions.

Poulsen depicts Huddleston as an ambitious — if extremely naive — programmer struggling to make an honest living selling what is essentially a dual-use software product. Using the nickname “Aeonhack,” Huddleston marketed his NanoCore RAT on Hackforums[dot]net, an English-language hacking forum that is overrun with young, impressionable but otherwise low-skilled hackers who are constantly looking for point-and-click tools and services that can help them demonstrate their supposed hacking prowess.

Yet we’re told that Huddleston was positively shocked to discover that many buyers on the forum were using his tools in a less-than-legal manner, and that in response he chastised and even penalized customers who did so. By way of example, Poulsen writes that Huddleston routinely used his Net Seal program to revoke the software licenses for customers who boasted online about using his NanoCore RAT illegally.

We later learn that — despite Net Seal’s copy protection abilities — denizens of Hackforums were able to pirate copies of NanoCore and spread it far and wide in malware and phishing campaigns. Eventually, Huddleston said he grew weary of all the drama and sold both programs to another Hackforums member, using the $60,000 or so in proceeds to move out of the rusty trailer he and his girlfriend shared and buy a house in a low-income corner of Hot Springs, Arkansas.

From the story:

Continue reading →


18
Jan 17

Who is Anna-Senpai, the Mirai Worm Author?

On September 22, 2016, this site was forced offline for nearly four days after it was hit with “Mirai,” a malware strain that enslaves poorly secured Internet of Things (IoT) devices like wireless routers and security cameras into a botnet for use in large cyberattacks. Roughly a week after that assault, the individual(s) who launched that attack — using the name “Anna-Senpai” — released the source code for Mirai, spawning dozens of copycat attack armies online.

After months of digging, KrebsOnSecurity is now confident to have uncovered Anna-Senpai’s real-life identity, and the identity of at least one co-conspirator who helped to write and modify the malware.

The Hackforums post that includes links to the Mirai source code.

Mirai co-author Anna-Senpai leaked the source code for Mirai on Sept. 30, 2016.

Before we go further, a few disclosures are probably in order. First, this is easily the longest story I’ve ever written on this blog. It’s lengthy because I wanted to walk readers through my process of discovery, which has taken months to unravel. The details help in understanding the financial motivations behind Mirai and the botnet wars that preceded it. Also, I realize there are a great many names to keep track of as you read this post, so I’ve included a glossary.

The story you’re reading now is the result of hundreds of hours of research.  At times, I was desperately seeking the missing link between seemingly unrelated people and events; sometimes I was inundated with huge amounts of information — much of it intentionally false or misleading — and left to search for kernels of truth hidden among the dross.  If you’ve ever wondered why it seems that so few Internet criminals are brought to justice, I can tell you that the sheer amount of persistence and investigative resources required to piece together who’s done what to whom (and why) in the online era is tremendous.

As noted in previous KrebsOnSecurity articles, botnets like Mirai are used to knock individuals, businesses, governmental agencies, and non-profits offline on a daily basis. These so-called “distributed denial-of-service (DDoS) attacks are digital sieges in which an attacker causes thousands of hacked systems to hit a target with so much junk traffic that it falls over and remains unreachable by legitimate visitors. While DDoS attacks typically target a single Web site or Internet host, they often result in widespread collateral Internet disruption.

A great deal of DDoS activity on the Internet originates from so-called ‘booter/stresser’ services, which are essentially DDoS-for-hire services which allow even unsophisticated users to launch high-impact attacks.  And as we will see, the incessant competition for profits in the blatantly illegal DDoS-for-hire industry can lead those involved down some very strange paths, indeed.

THE FIRST CLUES

The first clues to Anna-Senpai’s identity didn’t become clear until I understood that Mirai was just the latest incarnation of an IoT botnet family that has been in development and relatively broad use for nearly three years.

Earlier this summer, my site was hit with several huge attacks from a collection of hacked IoT systems compromised by a family of botnet code that served as a precursor to Mirai. The malware went by several names, including “Bashlite,” “Gafgyt,” “Qbot,” “Remaiten,” and “Torlus.”

All of these related IoT botnet varieties infect new systems in a fashion similar to other well-known Internet worms — propagating from one infected host to another. And like those earlier Internet worms, sometimes the Internet scanning these systems perform to identify other candidates for inclusion into the botnet is so aggressive that it constitutes an unintended DDoS on the very home routers, Web cameras and DVRs that the bot code is trying to subvert and recruit into the botnet. This kind of self-defeating behavior will be familiar to those who recall the original Morris Worm, NIMDA, CODE RED, Welchia, Blaster and SQL Slammer disruptions of yesteryear.

Infected IoT devices constantly scan the Web for other IoT things to compromise, wriggling into devices that are protected by little more than insecure factory-default settings and passwords. The infected devices are then forced to participate in DDoS attacks (ironically, many of the devices most commonly infected by Mirai and similar IoT worms are security cameras).

Mirai’s ancestors had so many names because each name corresponded to a variant that included new improvements over time. In 2014, a group of Internet hooligans operating under the banner “lelddos” very publicly used the code to launch large, sustained attacks that knocked many Web sites offline.

The most frequent target of the lelddos gang were Web servers used to host Minecraft, a wildly popular computer game sold by Microsoft that can be played from any device and on any Internet connection.

The object of Minecraft is to run around and build stuff, block by large pixelated block. That may sound simplistic and boring, but an impressive number of people positively adore this game – particularly pre-teen males. Microsoft has sold more than a 100 million copies of Minecraft, and at any given time there are over a million people playing it online. Players can build their own worlds, or visit a myriad other blocky realms by logging on to their favorite Minecraft server to play with friends.

Image: Minecraft.net

Image: Minecraft.net

A large, successful Minecraft server with more than a thousand players logging on each day can easily earn the server’s owners upwards of $50,000 per month, mainly from players renting space on the server to build their Minecraft worlds, and purchasing in-game items and special abilities.

Perhaps unsurprisingly, the top-earning Minecraft servers eventually attracted the attention of ne’er-do-wells and extortionists like the lelddos gang. Lelddos would launch a huge DDoS attack against a Minecraft server, knowing that the targeted Minecraft server owner was likely losing thousands of dollars for each day his gaming channel remained offline.

Adding urgency to the ordeal, many of the targeted server’s loyal customers would soon find other Minecraft servers to patronize if they could not get their Minecraft fix at the usual online spot.

Robert Coelho is vice president of ProxyPipe, Inc., a San Francisco company that specializes in protecting Minecraft servers from attacks.

“The Minecraft industry is so competitive,” Coelho said. “If you’re a player, and your favorite Minecraft server gets knocked offline, you can switch to another server. But for the server operators, it’s all about maximizing the number of players and running a large, powerful server. The more players you can hold on the server, the more money you make. But if you go down, you start to lose Minecraft players very fast — maybe for good.”

In June 2014, ProxyPipe was hit with a 300 gigabit per second DDoS attack launched by lelddos, which had a penchant for publicly taunting its victims on Twitter just as it began launching DDoS assaults at the taunted.

The hacker group "lelddos" tweeted at its victims before launching huge DDoS attacks against them.

The hacker group “lelddos” tweeted at its victims before launching huge DDoS attacks against them.

At the time, ProxyPipe was buying DDoS protection from Reston, Va. -based security giant Verisign. In a quarterly report published in 2014, Verisign called the attack the largest it had ever seen, although it didn’t name ProxyPipe in the report – referring to it only as a customer in the media and entertainment business.

Verisign said the 2014 attack was launched by a botnet of more than 100,000 servers running on SuperMicro IPMI boards. Days before the huge attack on ProxyPipe, a security researcher published information about a vulnerability in the SuperMicro devices that could allow them to be remotely hacked and commandeered for these sorts of attacks.

THE CENTRALITY OF PROTRAF

Coelho recalled that in mid-2015 his company’s Minecraft customers began coming under attack from a botnet made up of IoT devices infected with Qbot. He said the attacks were directly preceded by a threat made by a then-17-year-old Christopher “CJ” Sculti, Jr., the owner and sole employee of a competing DDoS protection company called Datawagon.

Datawagon also courted Minecraft servers as customers, and its servers were hosted on Internet space claimed by yet another Minecraft-focused DDoS protection provider — ProTraf Solutions.

CJ Sculti, Jr.

Christopher “CJ” Sculti, Jr.

According to Coelho, ProTraf was trying to woo many of his biggest Minecraft server customers away from ProxyPipe. Coelho said in mid-2015, Sculti reached out to him on Skype and said he was getting ready to disable Coelho’s Skype account. At the time, an exploit for a software weakness in Skype was being traded online, and this exploit could be used to remotely and instantaneously disable any Skype account.

Sure enough, Coelho recalled, his Skype account and two others used by co-workers were shut off just minutes after that threat, effectively severing a main artery of support for ProxyPipe’s customers – many of whom were accustomed to communicating with ProxyPipe via Skype.

“CJ messaged me about five minutes before the DDoS started, saying he was going to disable my skype,” Coelho said. “The scary thing about when this happens is you don’t know if your Skype account has been hacked and under control of someone else or if it just got disabled.”

Once ProxyPipe’s Skype accounts were disabled, the company’s servers were hit with a massive, constantly changing DDoS attack that disrupted ProxyPipe’s service to its Minecraft server customers. Coelho said within a few days of the attack, many of ProxyPipe’s most lucrative Minecraft servers had moved over to servers run protected by ProTraf Solutions.

“In 2015, the ProTraf guys hit us offline tons, so a lot of our customers moved over to them,” Coelho said. “We told our customers that we knew [ProTraf] were the ones doing it, but some of the customers didn’t care and moved over to ProTraf anyway because they were losing money from being down.”

I found Coelho’s story fascinating because it eerily echoed the events leading up to my Sept. 2016 record 620 Gbps attack. I, too, was contacted via Skype by Sculti — on two occasions. The first was on July 7, 2015, when Sculti reached out apropos of nothing to brag about scanning the Internet for IoT devices running default usernames and passwords, saying he had uploaded some kind of program to more than a quarter-million systems that his scans found.

Here’s a snippet of that conversation:

July 7, 2015:

21:37 CJ: http://krebsonsecurity.com/2015/06/crooks-use-hacked-routers-to-aid-cyberheists/
21:37 CJ: vulnerable routers are a HUGE issue
21:37 CJ: a few months ago
21:37 CJ: I scanned the internet with a few sets of defualt logins
21:37 CJ: for telnet
21:37 CJ: and I was able to upload and execute a binary
21:38 CJ: on 250k devices
21:38 CJ: most of which were routers
21:38 Brian Krebs: o_0

The second time I heard from Sculti on Skype was Sept. 20, 2016 — the day of my 620 Gbps attack. Sculti was angry over a story I’d just published that mentioned his name, and he began rather saltily maligning the reputation of a source and friend who had helped me with that story.

Indignant on behalf of my source and annoyed at Sculti’s rant, I simply blocked his Skype account from communicating with mine and went on with my day. Just minutes after that conversation, however, my Skype account was flooded with thousands of contact requests from compromised or junk Skype accounts, making it virtually impossible to use the software for making phone calls or instant messaging.

Six hours after that Sept. 20 conversation with Sculti, the huge 620 Gbps DDoS attack commenced on this site. Continue reading →


31
Oct 16

Hackforums Shutters Booter Service Bazaar

Perhaps the most bustling marketplace on the Internet where people can compare and purchase so-called “booter” and “stresser” subscriptions — attack-for-hire services designed to knock Web sites offline — announced last week that it has permanently banned the sale and advertising of these services.

On Friday, Oct. 28, Jesse LaBrocca — the administrator of the popular English-language hacking forum Hackforums[dot]net — said he was shutting down the “server stress testing” (SST) section of the forum. The move comes amid heightened public scrutiny of the SST industry, which has been linked to several unusually powerful recent attacks and is responsible for the vast majority of denial-of-service (DOS) attacks on the Internet today.

The administrator of Hackforums bans the sale and advertising of server stress testing (SST) services, also known as "booter" or "stresser" online attack-for-hire services.

The administrator of Hackforums bans the sale and advertising of server stress testing (SST) services, also known as “booter” or “stresser” online attack-for-hire services.

“Unfortunately once again the few ruin it for the many,” LaBrocca wrote under his Hackforums alias “Omniscient.” “I’m personally disappointed that this is the path I have to take in order to protect the community. I loathe having to censor material that could be beneficial to members. But I need to make sure that we continue to exist and given the recent events I think it’s more important that the section be permanently shut down.”

Last month, a record-sized DDoS hit KrebsOnSecurity.com. The attack was launched with the help of Mirai, a malware strain that enslaves poorly secured Internet-of-Things (IoT) devices like CCTV cameras and digital video recorders and uses them to launch crippling attacks.

At the end of September, a Hackforums user named “Anna_Senpai” used the forum to announce the release the source code for Mirai. A week ago, someone used Mirai to launch a massive attack on Internet infrastructure firm Dyn, which for the better part of a day lead to sporadic outages for some of the Web’s top destinations, including Twitter, PayPal, Reddit and Netflix.

The Hackforums post that includes links to the Mirai source code.

The Hackforums post that includes links to the Mirai source code.

As I noted in last week’s story Are the Days of Booter Services Numbered?, many booter service owners have been operating under the delusion or rationalization that their services are intended solely for Web site owners to test the ability of their sites to withstand data deluges.

Whatever illusions booter service operators or users may have harbored about their activities should have been dispelled following a talk delivered at the Black Hat security conference in Las Vegas this year. In that speech, FBI Agent Elliott Peterson issued an unambiguous warning that the agency was prepared to investigate and help prosecute people engaged in selling and buying from booter services.

But it wasn’t until this month’s attack on Dyn that LaBrocca warned the Hackforums community he may have to shut down the SST section.

“I can’t image this attention is going to be a good thing,” Omni said in an October 26, 2016 thread titled “Bad things.” “Already a Senator is calling for a hearing on the Internet of Things [link added]. In the end there could be new laws which effect [sic] us all. So for those responsible for the attacks and creating this mess….you dun goofed. I expect a lot of backlash to come out of this.”

If LaBrocca appears steamed from this turn of events, it’s probably with good reason: He stands to lose a fair amount of regular income by banning some of the most lucrative businesses on his forum. Vendors on Hackforums pay fees as high as $25 apiece to achieve a status that allows them to post new sales threads, and banner ads on the forum can run up to $200 per week.

"Stickies" advertising various "booter" or "stresser" DDoS-for-hire services.

“Stickies” advertising various “booter” or “stresser” DDoS-for-hire services.

Vendors who wish to “sticky” their ads — that is, pay to keep the ads displayed prominently near or at the top of a given discussion subforum — pay LaBrocca up to $60 per week for the prime sticky spots. And there were dozens of booter services advertised on Hackforums.

Allison Nixon, director of security research at Flashpoint and an expert on booter services, said the move could put many booter services out of business.

Nixon said the average booter service customer uses the attack services to settle grudges with opponents in online games, and that the closure of the SST subforum may make these services less attractive to those individuals.

“There is probably a lesser likelihood that the average gamer will see these services and think that it’s an okay idea to purchase them,” Nixon said. “The ease of access to these booters services makes people think it’s okay to use them. In gaming circles, for example, people will often use them to DDoS one another and not realize they might be shutting down an innocent person’s network. Recognizing that this is criminal activity on the same level of criminal hacking and fraud may discourage people from using these services, meaning the casual actor may be less likely to buy a booter subscription and launch DDoS attacks.”

While a welcome development, the closure of the SST subforum almost seems somewhat arbitrary given the sheer amount of other illegal hacking activity that is blatantly advertised on Hackforums, Nixon said.

“It’s interesting the norms that are on this forum because they’re so different from how you or I would recognize acceptable behavior,” she said. “For example, most people would think it’s not acceptable to see booter services advertised alongside remote access Trojans, malware crypting services and botnets.”

Other questionable services and subsections advertised on Hackforums include those intended for the sale of hacked social media and e-commerce accounts. More shocking are the dozens of threads wherein Hackforums members advertise the sale of “girl slaves,” essentially access to hacked computers belonging to teenage girls who can be extorted and exploited for payment or naked pictures. It’s worth noting that the youth who was arrested for snapping nude pictures of Miss Teen USA Cassidy Wolf through her webcam was a regular user of Hackforums.

Hackforums users advertising the sale and procurement of "girl slaves."

Hackforums users advertising the sale and procurement of “girl slaves.”

Continue reading →


27
Oct 16

Are the Days of “Booter” Services Numbered?

It may soon become easier for Internet service providers to anticipate and block certain types of online assaults launched by Web-based attack-for-hire services known as “booter” or “stresser” services, new research released today suggests.

The findings come from researchers in Germany who’ve been studying patterns that emerge when miscreants attempt to mass-scan the entire Internet looking for systems useful for launching these digital sieges — known as “distributed denial-of-service” or DDoS attacks.

ddosbomb

To understand the significance of their research, it may help to briefly examine how DDoS attacks have evolved. Not long ago, if one wanted to take down large Web site, one had to build and maintain a large robot network, or “botnet,” of hacked computers — which is a fairly time intensive, risky and technical endeavor.

These days, however, even the least sophisticated Internet user can launch relatively large DDoS attacks just by paying a few bucks for a subscription to one of dozens of booter or stresser services, some of which even accept credit cards and PayPal payments.

These Web-based DDoS-for-hire services don’t run on botnets: They generally employ a handful of powerful servers that are rented from some dodgy “bulletproof” hosting provider. The booter service accepts payment and attack instructions via a front end Web site that is hidden behind Cloudflare (a free DDoS protection service).

But the back end of the booter service is where the really interesting stuff happens. Virtually all of the most powerful and effective attack types used by booter services rely on a technique called traffic amplification and reflection, in which the attacker can reflect or “spoof” his traffic from one or more third-party machines toward the intended target.

In this type of assault, the attacker sends a message to a third party, while spoofing the Internet address of the victim. When the third party replies to the message, the reply is sent to the victim — and the reply is much larger than the original message, thereby amplifying the size of the attack.

To find vulnerable systems that can be leveraged this way, booters employ large-scale Internet scanning services that constantly seek to refresh the list of systems that can be used for amplification and reflection attacks. They do this because, as research has shown (PDF), anywhere from 40-50 percent of the amplifiers vanish or are reassigned new Internet addresses after one week.

Enter researchers from Saarland University in Germany, as well as the Yokohama National University and National Institute of Information and Communications Technology — both in Japan. In a years-long project first detailed in 2015, the researchers looked for scanning that appeared to be kicked off by ne’er-do-wells running booter services.

To accomplish this, the research team built a kind of distributed “honeypot” system — which they dubbed “AmpPot” — designed to mimic services known to be vulnerable to amplification attacks, such as DNS and NTP floods.

“To make them attractive to attackers, our honeypots send back legitimate responses,” the researchers wrote in a 2015 paper (PDF). “Attackers, in turn, will abuse these honeypots as amplifiers, which allows us to observe ongoing attacks, their victims, and the DDoS techniques. To prevent damage caused by our honeypots, we limit the response rate. This way, while attackers can still find these ratelimited honeypots, the honeypots stop replying in the face of attacks.”

In that 2015 paper, the researchers said they deployed 21 globally-distributed AmpPot instances, which observed more than 1.5 million attacks between February and May 2015. Analyzing the attacks more closely, they found that more than 96% of the attacks stem from single sources, such as booter services.

“When focusing on amplification DDoS attacks, we find that almost all of them (>96%) are caused by single sources (e.g. booters), and not botnets,” the team concluded. “However, we sadly do not have the numbers to compare this [to] DoS attacks in general.”

Many large-scale Internet scans like the ones the researchers sought to measure are launched by security firms and other researchers, so the team needed a way to differentiate between scans launched by booter services and those conducted for research or other benign purposes.

“To distinguish between scans performed by researchers and scans performed with malicious intent we relied on a simple assumption: That no attack would be based on the results of a scan performed by (ethical) researchers,” said Johannes Krupp, one of the main authors of the report. “In fact, thanks to our methodology, we do not have to make this distinction upfront, but we can rather look at the results and say: ‘We found attacks linked to this scanner, therefore this scanner must have been malicious.’ If a scan was truly performed by benign parties, we will not find attacks linked to it.”

SECRET IDENTIFIERS

What’s new in the paper being released today by students at Saarland University’s Center for IT-Security, Privacy and Accountability (CISPA) is the method by which the researchers were able to link these mass-scans to the very amplification attacks that follow soon after.

The researchers worked out a way to encode a secret identifier into the set of AmpPot honeypots that any subsequent attack will use, which varies per scan source. They then tested to see if the scan infrastructure was also used to actually launch (and not just to prepare) the attacks. Continue reading →


1
Oct 16

Source Code for IoT Botnet ‘Mirai’ Released

The source code that powers the “Internet of Things” (IoT) botnet responsible for launching the historically large distributed denial-of-service (DDoS) attack against KrebsOnSecurity last month has been publicly released, virtually guaranteeing that the Internet will soon be flooded with attacks from many new botnets powered by insecure routers, IP cameras, digital video recorders and other easily hackable devices.

The leak of the source code was announced Friday on the English-language hacking community Hackforums. The malware, dubbed “Mirai,” spreads to vulnerable devices by continuously scanning the Internet for IoT systems protected by factory default or hard-coded usernames and passwords.

The Hackforums post that includes links to the Mirai source code.

The Hackforums post that includes links to the Mirai source code.

Vulnerable devices are then seeded with malicious software that turns them into “bots,” forcing them to report to a central control server that can be used as a staging ground for launching powerful DDoS attacks designed to knock Web sites offline.

The Hackforums user who released the code, using the nickname “Anna-senpai,” told forum members the source code was being released in response to increased scrutiny from the security industry.

“When I first go in DDoS industry, I wasn’t planning on staying in it long,” Anna-senpai wrote. “I made my money, there’s lots of eyes looking at IOT now, so it’s time to GTFO [link added]. So today, I have an amazing release for you. With Mirai, I usually pull max 380k bots from telnet alone. However, after the Kreb [sic] DDoS, ISPs been slowly shutting down and cleaning up their act. Today, max pull is about 300k bots, and dropping.”

Sources tell KrebsOnSecurity that Mirai is one of at least two malware families that are currently being used to quickly assemble very large IoT-based DDoS armies. The other dominant strain of IoT malware, dubbed “Bashlight,” functions similarly to Mirai in that it also infects systems via default usernames and passwords on IoT devices.

According to research from security firm Level3 Communications, the Bashlight botnet currently is responsible for enslaving nearly a million IoT devices and is in direct competition with botnets based on Mirai.

“Both [are] going after the same IoT device exposure and, in a lot of cases, the same devices,” said Dale Drew, Level3’s chief security officer.
Continue reading →


8
Sep 16

Israeli Online Attack Service ‘vDOS’ Earned $600,000 in Two Years

vDOS  a “booter” service that has earned in excess of $600,000 over the past two years helping customers coordinate more than 150,000 so-called distributed denial-of-service (DDoS) attacks designed to knock Web sites offline — has been massively hacked, spilling secrets about tens of thousands of paying customers and their targets.

The vDOS database, obtained by KrebsOnSecurity.com at the end of July 2016, points to two young men in Israel as the principal owners and masterminds of the attack service, with support services coming from several young hackers in the United States.

The vDos home page.

The vDos home page.

To say that vDOS has been responsible for a majority of the DDoS attacks clogging up the Internet over the past few years would be an understatement. The various subscription packages to the service are sold based in part on how many seconds the denial-of-service attack will last. And in just four months between April and July 2016, vDOS was responsible for launching more than 277 million seconds of attack time, or approximately 8.81 years worth of attack traffic.

Let the enormity of that number sink in for a moment: That’s nearly nine of what I call “DDoS years” crammed into just four months. That kind of time compression is possible because vDOS handles hundreds — if not thousands — of concurrent attacks on any given day.

Although I can’t prove it yet, it seems likely that vDOS is responsible for several decades worth of DDoS years. That’s because the data leaked in the hack of vDOS suggest that the proprietors erased all digital records of attacks that customers launched between Sept. 2012 (when the service first came online) and the end of March 2016.

HOW vDOS GOT HACKED

The hack of vDOS came about after a source was investigating a vulnerability he discovered on a similar attack-for-hire service called PoodleStresser. The vulnerability allowed my source to download the configuration data for PoodleStresser’s attack servers, which pointed back to api.vdos-s[dot]com. PoodleStresser, as well as a large number of other booter services, appears to rely exclusively on firepower generated by vDOS.

From there, the source was able to exploit a more serious security hole in vDOS that allowed him to dump all of the service’s databases and configuration files, and to discover the true Internet address of four rented servers in Bulgaria (at Verdina.net) that are apparently being used to launch the attacks sold by vDOS. The DDoS-for-hire service is hidden behind DDoS protection firm Cloudflare, but its actual Internet address is 82.118.233.144.

vDOS had a reputation on cybercrime forums for prompt and helpful customer service, and the leaked vDOS databases offer a fascinating glimpse into the logistical challenges associated with running a criminal attack service online that supports tens of thousands of paying customers — a significant portion of whom are all trying to use the service simultaneously.

Multiple vDOS tech support tickets were filed by customers who complained that they were unable to order attacks on Web sites in Israel. Responses from the tech support staff show that the proprietors of vDOS are indeed living in Israel and in fact set the service up so that it was unable to attack any Web sites in that country — presumably so as to not attract unwanted attention to their service from Israeli authorities. Here are a few of those responses:

(‘4130′,’Hello `d0rk`,\r\nAll Israeli IP ranges have been blacklisted due to security reasons.\r\n\r\nBest regards,\r\nP1st.’,’03-01-2015 08:39),

(‘15462′,’Hello `g4ng`,\r\nMh, neither. I\’m actually from Israel, and decided to blacklist all of them. It\’s my home country, and don\’t want something to happen to them :)\r\n\r\nBest regards,\r\nDrop.’,’11-03-2015 15:35),

(‘15462′,’Hello `roibm123`,\r\nBecause I have an Israeli IP that is dynamic.. can\’t risk getting hit/updating the blacklist 24/7.\r\n\r\nBest regards,\r\nLandon.’,’06-04-2015 23:04),

(‘4202′,’Hello `zavi156`,\r\nThose IPs are in israel, and we have all of Israel on our blacklist. Sorry for any inconvinience.\r\n\r\nBest regards,\r\nJeremy.’,’20-05-2015 10:14),

(‘4202′,’Hello `zavi156`,\r\nBecause the owner is in Israel, and he doesn\’t want his entire region being hit offline.\r\n\r\nBest regards,\r\nJeremy.’,’20-05-2015 11:12),

(‘9057′,’There is a option to buy with Paypal? I will pay more than $2.5 worth.\r\nThis is not the first time I am buying booter from you.\r\nIf no, Could you please ask AplleJack? I know him from Israel.\r\nThanks.’,’21-05-2015 12:51),

(‘4120′,’Hello `takedown`,\r\nEvery single IP that\’s hosted in israel is blacklisted for safety reason. \r\n\r\nBest regards,\r\nAppleJ4ck.’,’02-09-2015 08:57),

WHO RUNS vDOS?

As we can see from the above responses from vDOS’s tech support, the owners and operators of vDOS are young Israeli hackers who go by the names P1st a.k.a. P1st0, and AppleJ4ck. The two men market their service mainly on the site hackforums[dot]net, selling monthly subscriptions using multiple pricing tiers ranging from $20 to $200 per month. AppleJ4ck hides behind the same nickname on Hackforums, while P1st goes by the alias “M30w” on the forum.

Some of P1st/M30W's posts on Hackforums regarding his service vDOS.

Some of P1st/M30W’s posts on Hackforums regarding his service vDOS.

vDOS appears to be the longest-running booter service advertised on Hackforums, and it is by far and away the most profitable such business. Records leaked from vDOS indicate that since July 2014, tens of thousands of paying customers spent a total of more than $618,000 at the service using Bitcoin and PayPal.

Incredibly, for brief periods the site even accepted credit cards in exchange for online attacks, although it’s unclear how much the site might have made in credit card payments because the information is not in the leaked databases.

The Web server hosting vDOS also houses several other sites, including huri[dot]biz, ustress[dot]io, and vstress[dot]net. Virtually all of the administrators at vDOS have an email account that ends in v-email[dot]org, a domain that also is registered to an Itay Huri with a phone number that traces back to Israel.

The proprietors of vDOS set their service up so that anytime a customer asked for technical assistance the site would blast a text message to six different mobile numbers tied to administrators of the service, using an SMS service called Nexmo.com. Two of those mobile numbers go to phones in Israel. One of them is the same number listed for Itay Huri in the Web site registration records for v-email[dot]org; the other belongs to an Israeli citizen named Yarden Bidani. Neither individual responded to requests for comment.

The leaked database and files indicate that vDOS uses Mailgun for email management, and the secret keys needed to manage that Mailgun service were among the files stolen by my source. The data shows that vDOS support emails go to itay@huri[dot]biz, itayhuri8@gmail.com and raziel.b7@gmail.com.

LAUNDERING THE PROCEEDS FROM DDOS ATTACKS

The $618,000 in earnings documented in the vDOS leaked logs is almost certainly a conservative income figure. That’s because the vDOS service actually dates back to Sept 2012, yet the payment records are not available for purchases prior to 2014. As a result, it’s likely that this service has made its proprietors more than $1 million.

vDOS does not currently accept PayPal payments. But for several years until recently it did, and records show the proprietors of the attack service worked assiduously to launder payments for the service through a round-robin chain of PayPal accounts.

They did this because at the time PayPal was working with a team of academic researchers to identify, seize and shutter PayPal accounts that were found to be accepting funds on behalf of booter services like vDOS. Anyone interested in reading more on their success in making life harder for these booter service owners should check out my August 2015 story, Stress-Testing the Booter Services, Financially.

People running dodgy online services that violate PayPal’s terms of service generally turn to several methods to mask the true location of their PayPal Instant Payment Notification systems. Here is an interesting analysis of how popular booter services are doing so using shell corporations, link shortening services and other tricks.

Turns out, AppleJ4ck and p1st routinely recruited other forum members on Hackforums to help them launder significant sums of PayPal payments for vDOS each week.

“The paypals that the money are sent from are not verified,” AppleJ4ck says in one recruitment thread. “Most of the payments will be 200$-300$ each and I’ll do around 2-3 payments per day.”

vDos co-owner AppleJ4ck recruiting Hackforums members to help launder PayPal payments for his booter service.

vDos co-owner AppleJ4ck recruiting Hackforums members to help launder PayPal payments for his booter service.

It is apparent from the leaked vDOS logs that in July 2016 the service’s owners implemented an additional security measure for Bitcoin payments, which they accept through Coinbase. The data shows that they now use an intermediary server (45.55.55.193) to handle Coinbase traffic. When a Bitcoin payment is received, Coinbase notifies this intermediary server, not the actual vDOS servers in Bulgaria.

A server situated in the middle and hosted at a U.S.-based address from Digital Ocean then updates the database in Bulgaria, perhaps because the vDOS proprietors believed payments from the USA would attract less interest from Coinbase than huge sums traversing through Bulgaria each day. Continue reading →


5
Nov 15

TalkTalk, Script Kids & The Quest for ‘OG’

So you’ve got two-step authentication set up to harden the security of your email account (you do, right?). But when was the last time you took a good look at the security of your inbox’s recovery email address? That may well be the weakest link in your email security chain, as evidenced by the following tale of a IT professional who saw two of his linked email accounts recently hijacked in a bid to steal his Twitter identity.

Screen Shot 2015-10-24 at 10.08.01 AMEarlier this week, I heard from Chris Blake, a longtime KrebsOnSecurity reader from the United Kingdom. Blake reached out because I’d recently written about a character of interest in the breach at British phone and broadband provider TalkTalk: an individual using the Twitter handle “@Fearful“.

Blake proceeded to explain how that same Fearful account had belonged to him for some time until May 2015, when an elaborate social engineering attack on his Internet service provider (ISP) allowed the current occupant of the account to swipe it out from under him.

On May 11, Blake received a text message on his mobile stating that his Microsoft Outlook account password had been changed. A minute later, he got another text from Microsoft saying his two-factor authentication (texted login codes to his phone) had been removed. After that, he could no longer log in to his Outlook account because someone had changed his password and removed his recovery email address (changing it to a free and disposable yopmail.com account).

Minutes after that, someone tweeted out the message from his account: “This twitter account is officially operated by Elliott G.” The tweet prior to that one mentions Blake by name and is a response to an inquiry to the Microsoft Store before the account was taken. The alias on Blake’s @Fearful account was changed to “Glubz”.

Blake said it took some time to figure out how the miscreant had hijacked his Twitter and Outlook accounts. Turns out, the recovery email address that he’d supplied for his Outlook account was to an email address at his local ISP, and the attacker executed the first step in the hijack by tricking a customer service employee at the ISP into redirecting his messages.

The attacker, apparently another person with a British accent, called Blake’s ISP pretending to be Blake and said he was locked out of his inbox. Could the ISP please change the domain name system (DNS) settings on his domain and associated mail account?

According to Blake, an investigation into the incident at the ISP shows that the customer service rep asked the caller to verify any other email addresses associated with Blake’s ISP account, and after some waiting the support employee actually read off a few of them. Seconds later, the attacker sent an email to the support person that spoofed one of those email addresses. After that, Blake’s ISP complied with the request, changing the DNS settings on his account to settings that the caller supplied for an account at Namecheaphosting.com.

OG IS A THING

With all of the access to other accounts that one’s inbox affords, the attacker in this case could have done some serious damage and cost Blake a lot of money. So why was he only interested in Blake’s Twitter account?

Short usernames are something of a prestige or status symbol for many youngsters, and some are willing to pay surprising amounts of money for them. Known as “OG” (short for “original” and also “original gangster”) in certain circles online, these can be usernames for virtually any service, from email accounts at Webmail providers to social media services like Instagram, Snapchat, Twitter and Youtube. People who traffic in OG accounts prize them because they can make the account holder appear to have been a savvy, early adopter of the service before it became popular and before all of the short usernames were taken.

“I didn’t realize this was even a thing until all this happened,” Blake said of the demand for OG accounts. “It wasn’t until the day after my email accounts were hacked that I realized it was really my Twitter account he was after.”

As it happens, the guy who is currently squatting on Blake’s @Fearful Twitter account — a young wanna-be hacker who uses the nickname “Glubz” — is very publicly in the business of selling hijacked OG accounts. In the screen shot below, we can see Glubz on the script kiddie-friendly online community Hackforums promoting his “OG Store,” in which he sells “Snapchats,” Email accounts and “Youtubes” for $10-$40 apiece, payable via Bitcoin or PayPal. The bottom of the message includes a link to Glubz’s personal site — elliottg[dot]net (also hosted at Namecheaphosting.com). Continue reading →


17
Aug 15

Stress-Testing the Booter Services, Financially

The past few years have witnessed a rapid proliferation of cheap, Web-based services that troublemakers can hire to knock virtually any person or site offline for hours on end. Such services succeed partly because they’ve enabled users to pay for attacks with PayPal. But a collaborative effort by PayPal and security researchers has made it far more difficult for these services to transact with their would-be customers.

Image:

Image:

By offering a low-cost, shared distributed denial-of-service (DDoS) attack infrastructure, these so-called “booter” and “stresser” services have attracted thousands of malicious customers and are responsible for hundreds of thousands of attacks per year. Indeed, KrebsOnSecurity has repeatedly been targeted in fairly high-volume attacks from booter services — most notably a service run by the Lizard Squad band of miscreants who took responsibility for sidelining the Microsoft xBox and Sony Playstation on Christmas Day 2014.

For more than two months in the summer 2014, researchers with George Mason University, UC Berkeley’s International Computer Science Institute, and the University of Maryland began following the money, posing as buyers of nearly two dozen booter services in a bid to discover the PayPal accounts that booter services were using to accept payments. In response to their investigations, PayPal began seizing booter service PayPal accounts and balances, effectively launching their own preemptive denial-of-service attacks against the payment infrastructure for these services.

PayPal will initially limit reported merchant accounts that are found to violate its terms of service (turns out, accepting payments for abusive services is a no-no). Once an account is limited, the merchant cannot withdraw or spend any of the funds in their account. This results in the loss of funds in these accounts at the time of freezing, and potentially additional losses due to opportunity costs the proprietors incur while establishing a new account. In addition, PayPal performed their own investigation to identify additional booter domains and limited accounts linked to these domains as well.

The efforts of the research team apparently brought some big-time disruption for nearly two-dozen of the top booter services. The researchers said that within a day or two following their interventions, they saw the percentage of active booters quickly dropping from 70 to 80 percent to around 50 percent, and continuing to decrease to a low of around 10 percent that were still active.

ppintervention

While some of the booter services went out of business shortly thereafter, more than a half-dozen shifted to accepting payments via Bitcoin (although the researchers found that this dramatically cut down on the services’ overall number of active customers). Once the target intervention began, they found the average lifespan of an account dropped to around 3.5 days, with many booters’ PayPal accounts only averaging around two days before they were no longer used again.

The researchers also corroborated the outages by monitoring hacker forums where the services were marketed, chronicling complaints from angry customers and booter service operators who were inconvenienced by the disruption (see screen shot galley below).

A booter service proprietor advertising his wares on the forum Hackforums complains about Paypal repeatedly limiting his account.

A booter service proprietor advertising his wares on the forum Hackforums complains about Paypal repeatedly limiting his account.

Another booter seller on Hackforums whinges about PayPal limiting the account he uses to accept attack payments from customers.

Another booter seller on Hackforums whinges about PayPal limiting the account he uses to accept attack payments from customers.

"It's a shame PayPal had to shut us down several times causing us to take money out of our own pocket to purchase servers, hosting and more," says this now-defunct booter service to its former customers.

“It’s a shame PayPal had to shut us down several times causing us to take money out of our own pocket to purchase servers, hosting and more,” says this now-defunct booter service to its former customers.

Deadlyboot went dead after the PayPal interventions. So sad.

Deadlyboot went dead after the PayPal interventions. So sad.

Daily attacks from Infected Stresser dropped off precipitously following the researchers' work.

Daily attacks from Infected Stresser dropped off precipitously following the researchers’ work.

As I’ve noted in past stories on booter service proprietors I’ve tracked down here in the United States, many of these service owners and operators are kids operating within easy reach of U.S. law enforcement. Based on the aggregated geo-location information provided by PayPal, the researchers found that over 44% of the customer and merchant PayPal accounts associated with booters are potentially owned by someone in the United States. Continue reading →


6
May 15

PayIvy Sells Your Online Accounts Via PayPal

Normally, if one wishes to buy stolen account credentials for paid online services like Netflix, Hulu, XBox Live or Spotify, the buyer needs to visit a cybercrime forum or drop into a dark Web marketplace that only accepts Bitcoin as payment. Increasingly, however, these accounts are showing up for sale at Payivy[dot]com, an open Web marketplace that happily accepts PayPal in exchange for a variety of stolen accounts.

A PayIvy seller advertising Netflix accounts for a dollar apiece.

A PayIvy seller advertising Netflix accounts for a dollar apiece. Unlike most sites selling hacked accounts, this one takes PayPal.

Marketed and sold by a Hackforums user named “Sh1eld” as a supposed method of selling ebooks and collecting payments for affiliate marketers, PayIvy has instead become a major conduit for hawking stolen accounts and credentials for a range of top Web services.

There is no central index of items for sale via PayIvy per se, but this catalog of cached sales threads offers a fairly representative glimpse: License keys for Adobe and Microsoft software products, user account credentials in bulk for services like Hulu, Netflix, Spotify, DirecTV and HBO Go, as well as a raft of gaming accounts at Origin, Steam, PlayStation and XBox Live. Other indexes at archive.is and PayIvy’s page at Reddit reveal similar results.

It’s not clear how or why PayPal isn’t shutting down most of these merchants, but some of the sellers clearly are testing things to see how far they can push it: In just five minutes of searching online, I found several PayIvy sellers who were accepting PayPal payments via PayIvy for…wait for it…hijacked PayPal accounts! The fact that PayIvy takes PayPal as payment means that buyers can purchase hacked accounts with [stolen] credit cards — or, worse yet, stolen PayPal accounts.

Jack Christin, Jr., associate general counsel at PayPal, said while the site itself is not in violation of its Acceptable Use Policies (AUP), there have been cases where PayPal has identified accounts selling goods that violate its policy and in those cases, the company has exited those merchants from its system.  Continue reading →