Posts Tagged: Joel Ortiz


6
Feb 19

More Alleged SIM Swappers Face Justice

Prosecutors in Northern California have charged two men with using unauthorized SIM swaps to steal and extort money from victims. One of the individuals charged allegedly used a hacker nickname belonging to a key figure in the underground who’s built a solid reputation hijacking mobile phone numbers for profit.

According to indictments unsealed this week, Tucson, Ariz. resident Ahmad Wagaafe Hared and Matthew Gene Ditman of Las Vegas were part of a group that specialized in tricking or bribing representatives at the major wireless providers into giving them control over phone numbers belonging to people they later targeted for extortion and theft.

Investigators allege that between October 2016 and May 2018, Hared and Ditman grew proficient at SIM swapping, a complex form of mobile phone fraud that is often used to steal large amounts of cryptocurrencies and other items of value from victims.

The Justice Department says Hared was better known to his co-conspirators as “winblo.” That nickname corresponds to an extremely active and at one time revered member of the forum ogusers[.]com, a marketplace for people who wish to sell highly prized social media account names — including short usernames at Twitter, Instagram and other sites that can fetch thousands of dollars apiece.

Winblo’s account on ogusers[.]com

Winblo was an associate and business partner of another top Oguser member, a serial SIM swapper known to Oguser members as “Xzavyer.” In August 2018, authorities in California arrested a hacker by the same name — whose real name is Xzavyer Clemente Narvaez — charging him with identity theft, grand theft, and computer intrusion.

Prosecutors allege Narvaez used the proceeds of his crimes (estimated at > $1 million in virtual currencies) to purchase luxury items, including a McLaren — a $200,000 high-performance sports car.

According to the indictments against Hared and Ditman, one of the men (the indictment doesn’t specify which) allegedly used his ill-gotten gains to purchase a BMW i8, an automobile that sells for about $150,000.

Investigators also say the two men stole approximately 40 bitcoins from their SIM swapping victims. That’s roughly $136,000 in today’s conversion, but it would have been substantially more in 2017 when the price of a single bitcoin reached nearly $20,000.

Interestingly, KrebsOnSecurity was contacted in 2018 by a California man who said he was SIM swapped by Winblo and several associates. That victim, who asked not to be identified for fear of reprisals, said his Verizon mobile number was SIM hijacked by Winblo and others who used that access to take over his Twitter and PayPal accounts and then demand payment for the return of the accounts.

A computer specialist by trade, the victim said he was targeted because he’d invested in a cryptocurrency startup, and that the hackers found his contact information from a list of investors they’d somehow obtained. As luck would have it, he didn’t have much of value to steal in his accounts.

The victim said he learned more about his tormentors and exactly how they’d taken over his mobile number after they invited him to an online chat to negotiate a price for the return of his accounts.

“They told me they had called a Verizon employee line [posing as a Verizon employee] and managed to get my Verizon account ID number,” said my victim source. “Once they had that, they called Verizon customer service and had them reset the password. They literally just called and pretended to be me, and were able to get my account tied to another SIM card.”

The victim said his attackers even called his mom because the mobile account was in her name. Soon after that, his phone went dead.

“The funny thing was, after I got my account back the next day, there was a voicemail from a Verizon customer service agent who said something like, ‘Hey [omitted], heard you were having trouble with your line, hope the new SIM card is working okay, give us a call if not, have a nice day.'” Continue reading →


9
Nov 18

Bug Bounty Hunter Ran ISP Doxing Service

A Connecticut man who’s earned bug bounty rewards and public recognition from top telecom companies for finding and reporting security holes in their Web sites secretly operated a service that leveraged these same flaws to sell their customers’ personal data, KrebsOnSecurity has learned.

In May 2018, ZDNet ran a story about the discovery of a glaring vulnerability in the Web site for wireless provider T-Mobile that let anyone look up customer home addresses and account PINs. The story noted that T-Mobile disabled the feature in early April after being alerted by a 22-year-old “security researcher” named Ryan Stevenson, and that the mobile giant had awarded Stevenson $1,000 for reporting the discovery under its bug bounty program.

The Twitter account @phobia, a.k.a. Ryan Stevenson. The term “plug” referenced next to his Twitch profile name is hacker slang for employees at mobile phone stores who can be tricked or bribed into helping with SIM swap attacks.

Likewise, AT&T has recognized Stevenson for reporting security holes in its services. AT&T’s bug bounty site lets contributors share a social media account or Web address where they can be contacted, and in Stevenson’s case he gave the now-defunct Twitter handle “@Phoobia.”

Stevenson’s Linkedin profile — named “Phobias” — says he specializes in finding exploits in numerous Web sites, including hotmail.com, yahoo.com, aol.com, paypal.com and ebay.com. Under the “contact info” tab of Stevenson’s profile it lists the youtube.com account of “Ryan” and the Facebook account “Phobia” (also now deleted).

Coincidentally, I came across multiple variations on this Phobia nickname as I was researching a story published this week on the epidemic of fraudulent SIM swaps, a complex form of mobile phone fraud that is being used to steal millions of dollars in cryptocurrencies.

Unauthorized SIM swaps also are often used to hijack so-called “OG” user accounts — usually short usernames on top social network and gaming Web sites that are highly prized by many hackers 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. Some OG usernames can be sold for thousands of dollars in underground markets.

This week’s SIM swapping story quoted one recent victim who lost $100,000 after his mobile phone number was briefly stolen in a fraudulent SIM swap. The victim said he was told by investigators in Santa Clara, Calif. that the perpetrators of his attack were able to access his T-Mobile account information using a specialized piece of software that gave them backdoor access to T-Mobile’s customer database.

Both the Santa Clara investigators and T-Mobile declined to confirm or deny the existence of this software. But their non-denials prompted me to start looking for it on my own. So naturally I began searching at ogusers-dot-com, a forum dedicated to the hacking, trading and sale of OG accounts. Unsurprisingly, ogusers-dot-com also has traditionally been the main stomping grounds for many individuals involved in SIM swapping attacks.

It didn’t take long to discover an account on ogusers named “Ryan,” who for much of 2018 has advertised a number of different “doxing” services — specifically those aimed at finding the personal information of customers at major broadband and telecom companies. Continue reading →


22
Aug 18

Alleged SIM Swapper Arrested in California

Authorities in Santa Clara, Calif. have arrested and charged a 19-year-old area man on suspicion hijacking mobile phone numbers as part of a scheme to steal large sums of bitcoin and other cryptocurrencies. The arrest is the third known law enforcement action this month targeting “SIM swappers,” individuals who specialize in stealing wireless phone numbers and hijacking online financial and social media accounts tied to those numbers.

Xzavyer Clemente Narvaez was arrested Aug. 17, 2018 by investigators working with Santa Clara County’s “REACT task force,” which says it’s targeting those involved in “the takeovers of cell phone, email and financial accounts resulting in the theft of cryptocurrency.”

Prosecutors allege Narvaez used the proceeds of his crimes (estimated at > $1 million in virtual currencies) to purchase luxury items, including a McLaren — a $200,000 high-performance sports car. Investigators said they interviewed several alleged victims of Narvaez, including one man who reported being robbed of $150,000 in virtual currencies after his phone number was hijacked.

A fraudulent SIM swap occurs when a victim’s cell phone service is redirected from a SIM card under the control of the victim to one under the control of the suspect, without the knowledge or authorization of the victim account holder.

When a victim experiences a fraudulent SIM swap, their phone suddenly has no service and all incoming calls and text messages are sent to the attacker’s device. This includes any one-time codes sent via text message or automated phone call that many companies use to supplement passwords for their online accounts.

Narvaez came to law enforcement’s attention following the arrest of Joel Ortiz, a gifted 20-year-old college student from Boston who was charged in July 2018 with using SIM swaps to steal more than $5 million in cryptocurrencies from 40 victims.

A redacted “statement of facts” in the case obtained by KrebsOnSecurity says records obtained from Google revealed that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as Xzavyer.Narvaez@gmail.com.

That statement refers frequently to the term IMEI; this is the International Mobile Equipment Identity number, which is a unique identification number or serial number that all mobile phones and smartphones have.

Prosecutors used data gathered from a large number of tech companies to put Narvaez’s phone in specific places near his home in Tracy, Calif. at the time his alleged victims reported having their phones hijacked. His alleged re-use of the same mobile device for multiple SIM hijacks ultimately gave him away:

“On 7/18/18, investigators received information from an AT&T investigator regarding unauthorized SIM swaps conducted through an AT&T authorized retailer. He reported that approximately 28 SIM swaps were conducted using the same employee ID number over an approximately two-week time period in November 2017. Records were obtained that included a list of IMEI numbers used to take over the victims’ cell phone numbers.”

“AT&T provided call detail records pertaining to the IMEI numbers listed to conduct the SIM swaps. One of those IMEI numbers, ending in 3218, was used to take over the cell phone of a resident of Illinois. I contacted the victim who verified that some of his accounts had been “hacked” in late 2017 but said he did not suffer any financial loss. Sgt. Tarazi analyzed the AT&T location data pertaining to that account takeover. That data indicated that on 7/27/17, when the victim from Illinois lost access to his accounts, the IMEI (ending in 3218) of the cell phone controlling the victim’s cell phone number was located in Tracy, California.”

“The specific tower is located approximately 0.6 miles away from the address 360 Yosemite Drive in Tracy. Several “NELOS” records (GPS coordinates logged by AT&T to estimate the location of devices on their network) indicate the phone was within 1000 meters of 360 Yosemite Drive in Tracy. AT&T also provided call detail records pertaining to Narvaez’ cell phone account, which was linked to him through financial services account records. Sgt. Tarazi examined those records and determined that Narvaez’ own cell phone was connected to the same tower and sector during approximately the same time frame that the suspect device (ending in 3218) was connected to the victim’s account.”

Apple responded to requests with records pertaining to customer accounts linked to that same suspect IMEI number. Those records identified three California residents whose Apple accounts were linked to that same IMEI number. Continue reading →


16
Aug 18

Hanging Up on Mobile in the Name of Security

An entrepreneur and virtual currency investor is suing AT&T for $224 million, claiming the wireless provider was negligent when it failed to prevent thieves from hijacking his mobile account and stealing millions of dollars in cryptocurrencies. Increasingly frequent, high-profile attacks like these are prompting some experts to say the surest way to safeguard one’s online accounts may be to disconnect them from the mobile providers entirely.

The claims come in a lawsuit filed this week in Los Angeles on behalf of Michael Terpin, who co-founded the first angel investor group for bitcoin enthusiasts in 2013. Terpin alleges that crooks stole almost $24 million worth of cryptocurrency after fraudulently executing a “SIM swap” on his mobile phone account at AT&T in early 2018.

A SIM card is the tiny, removable chip in a mobile device that allows it to connect to the provider’s network. Customers can legitimately request a SIM swap when their existing SIM card has been damaged, or when they are switching to a different phone that requires a SIM card of another size.

But SIM swaps are frequently abused by scam artists who trick mobile providers into tying a target’s service to a new SIM card and mobile phone that the attackers control. Unauthorized SIM swaps often are perpetrated by fraudsters who have already stolen or phished a target’s password, as many banks and online services rely on text messages to send users a one-time code that needs to be entered in addition to a password for online authentication.

Terpin alleges that on January 7, 2018, someone requested an unauthorized SIM swap on his AT&T account, causing his phone to go dead and sending all incoming texts and phone calls to a device the attackers controlled. Armed with that access, the intruders were able to reset credentials tied to his cryptocurrency accounts and siphon nearly $24 million worth of digital currencies.

According to Terpin, this was the second time in six months someone had hacked his AT&T number. On June 11, 2017, Terpin’s phone went dead. He soon learned his AT&T password had been changed remotely after 11 attempts in AT&T stores had failed. At the time, AT&T suggested Terpin take advantage of the company’s “extra security” feature — a customer-specified six-digit PIN which is required before any account changes can be made.

Terpin claims an investigation by AT&T into the 2018 breach found that an employee at an AT&T store in Norwich, Conn. somehow executed the SIM swap on his account without having to enter his “extra security” PIN, and that AT&T knew or should have known that employees could bypass its customer security measures.

Terpin is suing AT&T for his $24 million worth of cryptocurrencies, plus $200 million in punitive damages. A copy of his complaint is here (PDF).

AT&T declined to comment on specific claims in the lawsuit, saying only in a statement that, “We dispute these allegations and look forward to presenting our case in court.”

AN ‘IDENTITY CRISIS’?

Mobile phone companies are a major weak point in authentication because so many companies have now built their entire procedure for authenticating customers on a process that involves sending a one-time code to the customer via SMS or automated phone call.

In some cases, thieves executing SIM swaps have already phished or otherwise stolen a target’s bank or email password. But many major social media platforms — such as Instagramallow users to reset their passwords using nothing more than text-based (SMS) authentication, meaning thieves can hijack those accounts just by having control over the target’s mobile phone number.

Allison Nixon is director of security research at Flashpoint, a security company in New York City that has been closely tracking the murky underworld of communities that teach people how to hijack phone numbers assigned to customer accounts at all of the major mobile providers.

Nixon calls the current SIM-jacking craze “a major identity crisis” for cybersecurity on multiple levels.

“Phone numbers were never originally intended as an identity document, they were designed as a way to contact people,” Nixon said. “But because of all these other companies are building in security measures, a phone number has become an identity document.”

In essence, mobile phone companies have become “critical infrastructure” for security precisely because so much is riding on who controls a given mobile number. At the same time, so little is needed to undo weak security controls put in place to prevent abuse.

“The infrastructure wasn’t designed to withstand the kind of attacks happening now,” Nixon said. “The protocols need to be changed, and there are probably laws affecting the telecom companies that need to be reviewed in light of how these companies have evolved.”

Unfortunately, with the major mobile providers so closely tied to your security, there is no way you can remove the most vulnerable chunks of this infrastructure — the mobile store employees who can be paid or otherwise bamboozled into helping these attacks succeed.

No way, that is, unless you completely disconnect your mobile phone number from any sort of SMS-based authentication you currently use, and replace it with Internet-based telephone services that do not offer “helpful” customer support — such as Google Voice.

Google Voice lets users choose a phone number that gets tied to their Google account, and any calls or messages to that number will be forwarded to your mobile number. But unlike phone numbers issued by the major mobile providers, Google Voice numbers can’t be stolen unless someone also hacks your Google password — in which case you likely have much bigger problems.

With Google Voice, there is no customer service person who can be conned over the phone into helping out. There is no retail-store employee who will sell access to your SIM information for a paltry $80 payday. In this view of security, customer service becomes a customer disservice.

Mind you, this isn’t my advice. The above statement summarizes the arguments allegedly made by one of the most accomplished SIM swap thieves in the game today. On July 12, 2018, police in California arrested Joel Ortiz, a 20-year-old college student from Boston who’s accused of using SIM swaps to steal more than $5 million in cryptocurrencies from 40 victims.

Ortiz allegedly had help from a number of unnamed accomplices who collectively targeted high-profile and wealthy people in the cryptocurrency space. In one of three brazen attacks at a bitcoin conference this year, Ortiz allegedly used his SIM swapping skills to steal more than $1.5 million from a cryptocurrency entrepreneur, including nearly $1 million the victim had crowdfunded.

A July 2018 posting from the “OG” Instagram account “0”, allegedly an account hijacked by Joel Ortiz (pictured holding an armload of Dom Perignon champagne).

Ortiz reportedly was a core member of OGUsers[dot]com, a forum that’s grown wildly popular among criminals engaging in SIM swaps to steal cryptocurrency and hijack high-value social media accounts. OG is short for “original gangster,” and it refers to a type of “street cred” for possession of social media account names that are relatively short (between one and six characters). On ogusers[dot]com, Ortiz allegedly picked the username “j”. Short usernames are considered more valuable because they confer on the account holder the appearance of an early adopter on most social networks.

Discussions on the Ogusers forum indicate Ortiz allegedly is the current occupant of perhaps the most OG username on Twitter — an account represented by the number zero “0”. The alias displayed on that twitter profile is “j0”. He also apparently controls the Instagram account by the same number, as well as the Instagram account “t”, which lists its alias as “Joel.”

Shown below is a cached snippet from an Ogusers forum posting by “j” (allegedly Ortiz), advising people to remove their mobile phone number from all important multi-factor authentication options, and to replace it with something like Google Voice.

Ogusers SIM swapper “j” advises forum members on how not to become victims of SIM swapping. Click to enlarge.

Continue reading →


7
Aug 18

Florida Man Arrested in SIM Swap Conspiracy

Police in Florida have arrested a 25-year-old man accused of being part of a multi-state cyber fraud ring that hijacked mobile phone numbers in online attacks that siphoned hundreds of thousands of dollars worth of bitcoin and other cryptocurrencies from victims.

On July 18, 2018, Pasco County authorities arrested Ricky Joseph Handschumacher, an employee of the city of Port Richey, Fla, charging him with grand theft and money laundering. Investigators allege Handschumacher was part of a group of at least nine individuals scattered across multiple states who for the past two years have drained bank accounts via an increasingly common scheme involving mobile phone “SIM swaps.”

A SIM card is the tiny, removable chip in a mobile device that allows it to connect to the provider’s network. Customers can legitimately request a SIM swap when their existing SIM card has been damaged, or when they are switching to a different phone that requires a SIM card of another size.

But SIM swaps are frequently abused by scam artists who trick mobile providers into tying a target’s service to a new SIM card and mobile phone that the attackers control. Unauthorized SIM swaps often are perpetrated by fraudsters who have already stolen or phished a target’s password, as many banks and online services rely on text messages to send users a one-time code that needs to be entered in addition to a password for online authentication.

In some cases, fraudulent SIM swaps succeed thanks to lax authentication procedures at mobile phone stores. In other instances, mobile store employees work directly with cyber criminals to help conduct unauthorized SIM swaps, as appears to be the case with the crime gang that allegedly included Handschumacher.

A WORRIED MOM

According to court documents, investigators first learned of the group’s activities in February 2018, when a Michigan woman called police after she overheard her son talking on the phone and pretending to be an AT&T employee. Officers responding to the report searched the residence and found multiple cell phones and SIM cards, as well as files on the kid’s computer that included “an extensive list of names and phone numbers of people from around the world.”

The following month, Michigan authorities found the same individual accessing personal consumer data via public Wi-Fi at a local library, and seized 45 SIM cards, a laptop and a Trezor wallet — a hardware device designed to store crytpocurrency account data. In April 2018, the mom again called the cops on her son — identified only as confidential source #1 (“CS1”) in the criminal complaint — saying he’d obtained yet another mobile phone.

Once again, law enforcement officers were invited to search the kid’s residence, and this time found two bags of SIM cards and numerous driver’s licenses and passports. Investigators said they used those phony documents to locate and contact several victims; two of the victims each reported losing approximately $150,000 in cryptocurrencies after their phones were cloned; the third told investigators her account was drained of $50,000.

CS1 later told investigators he routinely conducted the phone cloning and cashouts in conjunction with eight other individuals, including Handschumacher, who allegedly used the handle “coinmission” in the group’s daily chats via Discord and Telegram. Search warrants revealed that in mid-May 2018 the group worked in tandem to steal 57 bitcoins from one victim — then valued at almost $470,000 — and agreed to divide the spoils among members.

GRAND PLANS

Investigators soon obtained search warrants to monitor the group’s Discord server chat conversations, and observed Handschumacher allegedly bragging in these chats about using the proceeds of his alleged crimes to purchase land, a house, a vehicle and a “quad vehicle.” Interestingly, Handschumacher’s public Facebook page remains public, and is replete with pictures that he posted of recent new vehicle aquisitions, including a pickup truck and multiple all-terrain vehicles and jet skis.

The Pasco County Sheriff’s office says their surveillance of the Discord server revealed that the group routinely paid employees at cellular phone companies to assist in their attacks, and that they even discussed a plan to hack accounts belonging to the CEO of cryptocurrency exchange Gemini Trust Company. The complaint doesn’t mention the CEO by name, but the current CEO is bitcoin billionaire Tyler Winklevoss, who co-founded the exchange along with his twin brother Cameron.

“Handschumacher and another co-conspirator talk about compromising the CEO of Gemini and posted his name, date of birth, Skype username and email address into the conversation,” the complaint reads. “Handschumacher and the co-conspirators discuss compromising the CEO’s Skype account and T-Mobile account. The co-conspirator states he will call his ‘guy’ at T-Mobile to ask about the CEO’s account.” Continue reading →