Posts Tagged: Noah Dunker


8
Jul 17

Self-Service Food Kiosk Vendor Avanti Hacked

Avanti Markets, a company whose self-service payment kiosks sit beside shelves of snacks and drinks in thousands of corporate breakrooms across America, has suffered of breach of its internal networks in which hackers were able to push malicious software out to those payment devices, the company has acknowledged. The breach may have jeopardized customer credit card accounts as well as biometric data, Avanti warned.

According to Tukwila, Wash.-based Avanti’s marketing literature, some 1.6 million customers use the company’s break room self-checkout devices — which allow customers to pay for drinks, snacks and other food items with a credit card, fingerprint scan or cash.

An Avanti Markets kiosk. Image: Avanti

An Avanti Markets kiosk. Image: Avanti

Sometime in the last few hours, Avanti published a “notice of data breach” on its Web site.

“On July 4, 2017, we discovered a sophisticated malware attack which affected kiosks at some Avanti Markets. Based on our investigation thus far, and although we have not yet confirmed the root cause of the intrusion, it appears the attackers utilized the malware to gain unauthorized access to customer personal information from some kiosks. Because not all of our kiosks are configured or used the same way, personal information on some kiosks may have been adversely affected, while other kiosks may not have been affected.”

Avanti said it appears the malware was designed to gather certain payment card information including the cardholder’s first and last name, credit/debit card number and expiration date.

Breaches at point-of-sale vendors have become almost regular occurrences over the past few years, but this breach is especially notable as it may also have jeopardized customer biometric data. That’s because the newer Avanti kiosk systems allow users to pay using a scan of their fingerprint.

“In addition, users of the Market Card option may have had their names and email addresses compromised, as well as their biometric information if they used the kiosk’s biometric verification functionality,” the company warned.

On Thursday, KrebsOnSecurity learned from a source at a law firm that the food vending machine in its employee lunchroom was no longer able to accept credit cards. The source said his firm’s information technology personnel told him the credit card functionality had been temporarily disabled because of a breach at Avanti.

Another source told this author that Avanti’s corporate network had been breached, and that Avanti had made the decision to turn off all self-checkouts for now — although the source said customers could still use cash at the machines.

“I was told that about half of the self-checkouts do not have P2Pe,” the source said, on condition of anonymity. P2Pe is short for “point-to-point encryption,” and it’s a technological solution that encrypts sensitive data such as credit card information at every point in the card transaction. In theory, P2Pe should to be able to protect card data even if there is malicious software resident on the device or network in question.

Avanti said in its notice that it had shut down payment processing at some locations, and that the company was working with its operators to purge infected systems of any malware from the attack and to take steps to “substantially minimize the risk of a data compromise in the future.”

THE MALWARE

On Friday evening, security firm RiskAnalytics published a blog post that detailed an experience from a customer who shared a remarkably similar experience to the one referenced by the anonymous law firm source above.

RiskAnalytics’s Noah Dunker wrote that the company’s technology on July 4 flagged suspicious behavior by a break room vending kiosk. Further inspection of the device and communications traffic emanating from it revealed it was infected with a family of point-of-sale malware known as PoSeidon (a.k.a. “FindPOS”) that siphons credit card data from point-of-sale devices.

“In our analysis of the incident, it seems most likely that the larger vendor was compromised, and some or all of the kiosks maintained by local vendors were impacted,” Dunker wrote. “We’ve been able to identify at least two smaller vendors with local operations that have been impacted in two different cities though we are not naming any impacted vendors yet, as we’ve been unable to contact them directly.”

KrebsOnSecurity reached out to RiskAnalytics to see if the vendor of the snack machine used by the victim organization he wrote about also was Avanti. Dunker confirmed that the kiosk vendor that was the subject of his post was indeed Avanti.

Dunker noted that much like point-of-sale devices at many restaurant chains, these snack machines usually are installed and managed by third-party technology companies, adding another layer of complexity to the challenge of securing these devices from hackers.

Dunker said RiskAnalytics first noticed something wasn’t right with its client’s break room snack machine after it began sending data out of the client’s network using an SSL encryption certificate that has long been associated with cybercrime activity — including ransomware activity dating back to 2015.

“This is a textbook example of an ‘Internet of Things’ (IoT) threat: A network-connected device, controlled and maintained by a third party, which cannot be easily patched, audited, or controlled by your own IT staff,” Dunker wrote. Continue reading →


12
May 16

Carding Sites Turn to the ‘Dark Cloud’

Crooks who peddle stolen credit cards on the Internet face a constant challenge: Keeping their shops online and reachable in the face of meddling from law enforcement officials, security firms, researchers and vigilantes. In this post, we’ll examine a large collection of hacked computers around the world that currently serves as a criminal cloud hosting environment for a variety of cybercrime operations, from sending spam to hosting malicious software and stolen credit card shops.

I first became aware of this botnet, which I’ve been referring to as the “Dark Cloud” for want of a better term, after hearing from Noah Dunker, director of security labs at  Kansas City-based vendor RiskAnalytics. Dunker reached out after watching a Youtube video I posted that featured some existing and historic credit card fraud sites. He asked what I knew about one of the carding sites in the video: A fraud shop called “Uncle Sam,” whose home page pictures a pointing Uncle Sam saying “I want YOU to swipe.”

The "Uncle Sam" carding shop is one of a half-dozen that reside on a Dark Cloud criminal hosting environment.

The “Uncle Sam” carding shop is one of a half-dozen that reside on a Dark Cloud criminal hosting environment.

I confessed that I knew little of this shop other than its existence, and asked why he was so interested in this particular crime store. Dunker showed me how the Uncle Sam card shop and at least four others were hosted by the same Dark Cloud, and how the system changed the Internet address of each Web site roughly every three minutes. The entire robot network, or”botnet,” consisted of thousands of hacked home computers spread across virtually every time zone in the world, he said. 

Dunker urged me not to take his word for it, but to check for myself the domain name server (DNS) settings of the Uncle Sam shop every few minutes. DNS acts as a kind of Internet white pages, by translating Web site names to numeric addresses that are easier for computers to navigate. The way this so-called “fast-flux” botnet works is that it automatically updates the DNS records of each site hosted in the Dark Cloud every few minutes, randomly shuffling the Internet address of every site on the network from one compromised machine to another in a bid to frustrate those who might try to take the sites offline.

Sure enough, a simple script was all it took to find a few dozen Internet addresses assigned to the Uncle Sam shop over just 20 minutes of running the script. When I let the DNS lookup script run overnight, it came back with more than 1,000 unique addresses to which the site had been moved during the 12 or so hours I let it run. According to Dunker, the vast majority of those Internet addresses (> 80 percent) tie back to home Internet connections in Ukraine, with the rest in Russia and Romania.

'Mr. Bin,' another carding shop hosting on the dark cloud service. A 'bin' is the "bank identification number" or the first six digits on a card, and it's mainly how fraudsters search for stolen cards.

‘Mr. Bin,’ another carding shop hosting on the dark cloud service. A ‘bin’ is the “bank identification number” or the first six digits on a card, and it’s mainly how fraudsters search for stolen cards.

“Right now there’s probably over 2,000 infected endpoints that are mostly broadband subscribers in Eastern Europe,” enslaved as part of this botnet, Dunker said. “It’s a highly functional network, and it feels kind of like a black market version of Amazon Web Services. Some of the systems appear to be used for sending spam and some are for big dynamic scaled content delivery.”

Dunker said that historic DNS records indicate that this botnet has been in operation for at least the past year, but that there are signs it was up and running as early as Summer 2014.

Wayne Crowder, director of threat intelligence for RiskAnalytics, said the botnet appears to be a network structure set up to push different crimeware, including ransomware, click fraud tools, banking Trojans and spam. Continue reading →