Posts Tagged: Motherboard


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 →


1
Jun 17

OneLogin: Breach Exposed Ability to Decrypt Data

OneLogin, an online service that lets users manage logins to sites and apps from a single platform, says it has suffered a security breach in which customer data was compromised, including the ability to decrypt encrypted data.

oneloginHeadquartered in San Francisco, OneLogin provides single sign-on and identity management for cloud-base applications. OneLogin counts among its customers some 2,000 companies in 44 countries, over 300 app vendors and more than 70 software-as-a-service providers.

A breach that allowed intruders to decrypt customer data could be extremely damaging for affected customers. After OneLogin customers sign into their account, the service takes care of remembering and supplying the customer’s usernames and passwords for all of their other applications.

In a brief blog post Wednesday, OneLogin chief information security officer Alvaro Hoyos wrote that the company detected unauthorized access to OneLogin data.

“Today we detected unauthorized access to OneLogin data in our US data region. We have since blocked this unauthorized access, reported the matter to law enforcement, and are working with an independent security firm to determine how the unauthorized access happened and verify the extent of the impact of this incident. We want our customers to know that the trust they have placed in us is paramount.”

“While our investigation is still ongoing, we have already reached out to impacted customers with specific recommended remediation steps and are actively working to determine how best to prevent such an incident from occurring in the future and will update our customers as these improvements are implemented.”

OneLogin’s blog post includes no other details, aside from a reference to the company’s compliance page. The company has not yet responded to request for comment. However, Motherboard has obtained a copy of a message OneLogin reportedly sent to its customers about the incident, and that missive contains a critical piece of information:

“Customer data was compromised, including the ability to decrypt encrypted data,” reads the message OneLogin sent to customers.

According to Motherboard, the message also directed customers to a list of required steps to minimize any damage from the breach, such as generating new API keys and OAuth tokens (OAuth being a system for logging into accounts), creating new security certificates as well as credentials; recycling any secrets stored in OneLogin’s Secure Notes feature; and having end-users update their passwords.

Gartner Inc. financial fraud analyst Avivah Litan said she has long discouraged companies from using cloud-based single sign-on services, arguing that they are the digital equivalent to an organization putting all of its eggs in one basket.

“It’s just such a massive single point of failure,” Litan said. “And this breach shows that other [cloud-based single sign-on] services are vulnerable, too. This is a big deal and it’s disruptive for victim customers, because they have to now change the inner guts of their authentication systems and there’s a lot of employee inconvenience while that’s going on.”

KrebsOnSecurity will likely update this story throughout the day as more details become available.

Update 7:54 p.m ET: OneLogin posted an update to its blog with more details about the breach:

“Our review has shown that a threat actor obtained access to a set of AWS keys and used them to access the AWS API from an intermediate host with another, smaller service provider in the US. Evidence shows the attack started on May 31, 2017 around 2 am PST. Through the AWS API, the actor created several instances in our infrastructure to do reconnaissance. OneLogin staff was alerted of unusual database activity around 9 am PST and within minutes shut down the affected instance as well as the AWS keys that were used to create it.”

Customer impact

“The threat actor was able to access database tables that contain information about users, apps, and various types of keys. While we encrypt certain sensitive data at rest, at this time we cannot rule out the possibility that the threat actor also obtained the ability to decrypt data. We are thus erring on the side of caution and recommending actions our customers should take, which we have already communicated to our customers.”