Posts Tagged: Paypal


15
Feb 17

Who Ran Leakedsource.com?

Late last month, multiple news outlets reported that unspecified law enforcement officials had seized the servers for Leakedsource.com, perhaps the largest online collection of usernames and passwords leaked or stolen in some of the worst data breaches — including billions of credentials for accounts at top sites like LinkedIn and Myspace.

In a development that could turn out to be deeply ironic, it seems that the real-life identity of LeakedSource’s principal owner may have been exposed by many of the same stolen databases he’s been peddling.

The now-defunct Leakedsource service.

The now-defunct LeakedSource service.

LeakedSource in October 2015 began selling access to passwords stolen in high-profile breaches. Enter any email address on the site’s search page and it would tell you if it had a password corresponding to that address. However, users had to select a payment plan before viewing any passwords.

LeakedSource was a curiosity to many, and for some journalists a potential source of news about new breaches. But unlike services such as BreachAlarm and HaveIBeenPwned.com — which force users to verify that they can access a given account or inbox before the site displays whether it has found a password associated with the account in question — LeakedSource did nothing to validate users. This fact, critics charged, showed that the proprietors of LeakedSource were purely interested in making money and helping others pillage accounts.

I also was curious about LeakedSource, but for a different reason. I wanted to chase down something I’d heard from multiple sources: That one of the administrators of LeakedSource also was the admin of abusewith[dot]us, a site unabashedly dedicated to helping people hack email and online gaming accounts.

Abusewith[dot]us began in September 2013 as a forum for learning and teaching how to hack accounts at Runescape, a massively multiplayer online role-playing game (MMORPG) set in a medieval fantasy realm where players battle for kingdoms and riches.
runescape

The currency with which Runescape players buy and sell weapons, potions and other in-game items are virtual gold coins, and many of Abusewith[dot]us’s early members traded in a handful of commodities: Phishing kits and exploits that could be used to steal Runescape usernames and passwords from fellow players; virtual gold plundered from hacked accounts; and databases from hacked forums and Web sites related to Runescape and other online games.

The administrator of Abusewith[dot]us is a hacker who uses the nickname “Xerx3s.” The avatar attached to Xerx3s’s account suggests the name is taken from Xerxes the Great, a Persian king who lived during the fifth century BC.

Xerx3s the hacker appears to be especially good at breaking into discussion forums and accounts dedicated to Runescape and online gaming. Xerx3s also is a major seller of Runescape gold — often sold to other players at steep discounts and presumably harvested from hacked accounts.

Xerx3s's administrator account profile at Abusewith.us.

Xerx3s’s administrator account profile at Abusewith.us.

I didn’t start looking into who might be responsible for LeakedSource until July 2016, when I sought an interview by reaching out to the email listed on the site (leakedsourceonline@gmail.com). Soon after, I received a Jabber chat invite from the address “leakedsource@chatme.im.”

The entirety of that brief interview is archived here. I wanted to know whether the proprietors of the service believed they were doing anything wrong (we’ll explore more about the legal aspects of LeakedSource’s offerings later in this piece).  Also, I wanted to learn whether the rumors of LeakedSource arising out of Abusewith[us] were true.

“After many of the big breaches of 2015, we noticed a common public trend…’Where can I search it to see if I was affected?’,” wrote the anonymous person hiding behind the leakedsource@chatme.im account. “And thus, the idea was born to fill that need, not rising out of anything. We are however going to terminate the interview as it does seem to be more of a witch hunt instead of journalism. Thank you for your time.”

Nearly two weeks after that chat with the LeakedSource administrator, I got a note from a source who keeps fairly close tabs on the major players in the English-speaking cybercrime underground. My source told me he’d recently chatted with Xerx3s using the Jabber address Xerx3s has long used prior to the creation of LeakedSource — xerx3s@chatme.im.

Xerx3s told my source in great detail about my conversation with the Leakedsource administrator, suggesting that either Xerx3s was the same person I spoke with in my brief interview with LeakedSource, or that the LeakedSource admin had shared a transcript of our chat with Xerx3s.

Although his username on Abusewith[dot]us was Xerx3s, many of Xerx3s’s closest associates on the forum referred to him as “Wade” in their forum postings. This is in reference to a pseudonym Xerx3s frequently used, “Jeremy Wade.”

An associate of Xerx3s tells another abusewith[dot]us user that Xerx3s is the owner of LeakedSource. That comment was later deleted from the discussion thread pictured here.

An associate of Xerx3s tells another abusewith[dot]us user that Xerx3s is the owner of LeakedSource. That comment was later deleted from the discussion thread pictured here.

One email address this Jeremy Wade identity used pseudonymously was imjeremywade@gmail.com. According to a “reverse WHOIS” record search ordered through Domaintools.com, that email address is tied to two domain names registered in 2015: abusing[dot]rs, and cyberpay[dot]info. The original registration records for each site included the name “Secure Gaming LLC.” [Full disclosure: Domaintools is an advertiser on this blog].

The “Jeremy Wade” pseudonym shows up in a number of hacked forum databases that were posted to both Abusewith[dot]us and LeakedSource, including several other sites related to hacking and password abuse.

For example, the user database stolen and leaked from the DDoS-for-hire service “panic-stresser[dot]xyz” shows that a PayPal account tied to the email address eadeh_andrew@yahoo.com paid $5 to cover a subscription for a user named “jeremywade;” The leaked Panicstresser database shows the Jeremywade account was tied to the email address xdavros@gmail.com, and that the account was created in July 2012.

The leaked Panicstresser database also showed that the first login for that Jeremywade account came from the Internet address 68.41.238.208, which is a dynamic Internet address assigned to residential customers of Comcast Communications in Michigan.

According to a large number of forum postings, it appears that whoever used the xdavros@gmail.com address also created several variations on that address, including alexdavros@gmail.com, davrosalex3@yahoo.com, davrosalex4@yahoo.com, as well as themarketsales@gmail.com.

The Gmail account xdavros@gmail.com was used to register at least four domain names almost six years ago in 2011. Two of those domains — daily-streaming.com and tiny-chats.com — were originally registered to a “Nick Davros” at 3757 Dunes Parkway, Muskegon, Mich. The other two were registered to a Nick or Alex Davros at 868 W. Hile Rd., Muskegon, Mich. All four domain registration records included the phone number +12313430295.

I took that 68.41.238.208 Internet address that the leaked Panicstresser database said was tied to the account xdavros@gmail.com and ran an Internet search on it. The address turned up in yet another compromised hacker forum database — this time in the leaked user database for sinister[dot]ly, ironically another site where users frequently post databases plundered from other sites and forums.

The leaked sinister[dot]ly forum database shows that a user by the name of “Jwade” who registered under the email address trpkisaiah@gmailcom first logged into the forum from the same Comcast Internet address tied to the xdavros@gmail.com account at Panicstresser. 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 →


3
Nov 15

How Carders Can Use eBay as a Virtual ATM

How do fraudsters “cash out” stolen credit card data? Increasingly, they are selling in-demand but underpriced products on eBay that they don’t yet own. Once the auction is over, the auction fraudster uses stolen credit card data to buy the merchandise from an e-commerce store and have it shipped to the auction winner. Because the auction winners actually get what they bid on and unwittingly pay the fraudster, very often the only party left to dispute the charge is the legitimate cardholder.

So-called “triangulation fraud” — scammers using stolen cards to buy merchandise won at auction by other eBay members — is not a new scam. But it’s a crime that’s getting more sophisticated and automated, at least according to a victim retailer who reached out to KrebsOnSecurity recently after he was walloped in one such fraud scheme.

The victim company — which spoke on condition of anonymity — has a fairly strong e-commerce presence, and is growing rapidly. For the past two years, it was among the Top 500 online retailers as ranked by InternetRetailer.com.

The company was hit with over 40 orders across three weeks for products that later traced back to stolen credit card data. The victimized retailer said it was able to stop a few of the fraudulent transactions before the items shipped, but most of the sales were losses that the victim firm had to absorb.

Triangulation fraud. Image: eBay Enterprise.

Triangulation fraud. Image: eBay Enterprise.

The scheme works like this: An auction fraudster sets up one (or multiple) eBay accounts and sells legitimate products.  A customer buys the item from the seller (fraudster) on eBay and the money gets deposited in the fraudster’s PayPal account.

The fraudster then takes the eBay order information to another online retailer which sells the same item, buys the item using stolen credit card data, and has the item shipped to the address of the eBay customer that is expecting the item. The fraudster then walks away with the money.

One reason this scheme is so sneaky is that the eBay customers are happy because they got their product, so they never complain or question the company that sent them the product. For the retailer, the order looks normal: The customer contact info in the order form is partially accurate: It has the customer’s correct shipping address and name, but may list a phone number that goes somewhere else — perhaps to a voicemail owned and controlled by the fraudster.

“For the retailer who ships thousands of orders every day, this fraudulent activity really doesn’t raise any red flags,” my source — we’ll call him “Bill,” — told me. “The only way they eventually find out is with a sophisticated fraud screening program, or when the ‘chargeback’ from Visa or MasterCard finally comes to them from the owner of the stolen card.”

In an emailed statement, eBay said the use of stolen or fraudulent credit card numbers to purchase goods on eBay is by no means unique to eBay.

“We believe collaboration and cooperation is the best way to combat fraud and organized retail crime of this nature, working in partnership with retailers and law enforcement,” wrote Ryan Moore, eBay’s senior manager of global corporate affairs. Detecting this type of fraud, Moore said, “relies heavily on the tools that merchants use themselves, which includes understanding their customers and implementing the correct credit card authorization protocols.”

Moore declined to discuss the technology and approaches the eBay uses to fight triangulation fraud — saying eBay doesn’t want tip its hand to cybercriminals. But he said the company uses internal tools and risk models to identify suspicious activity on its platform, and that it trains hundreds of retailers and law enforcement on various types of fraud, including triangulation fraud.

QUAD FRAUD?

Moore pointed to one education campaign on eBay’s site, which adds another wrinkle to this fraud scheme: Very often the people listing the item for sale on eBay are existing, long-time eBay members with good standing who get recruited to sell items via work-at-home job scams. These schemes typically advertise that the seller gets to keep a significant cut of the sale price — typically 30 percent.

A recruitment email from a work-at-home job scam that involves respondents in triangulation fraud. Source: eBay

A recruitment email from a work-at-home job scam that involves respondents in triangulation fraud. Source: eBay

Interesting, the guy selling carded goods stolen from Bill’s company has been on eBay for more than a decade and has a near-perfect customer feedback score. That seller is not being referenced in this story because his feedback page directly links to transactions from Bill’s company. 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 →


20
Aug 13

How Not to DDoS Your Former Employer

Pro tip: If you’re planning to launch a debilitating denial-of-service attack against your former employer, try not to “like” the Facebook page of the DDoS-for-hire Web service that you intend to use in the assault.

Tell that to Kevin Courtois, a 28-year-old from Three Rivers, Quebec who was arrested earlier this year for allegedly launching a volley of cyber attacks against his former company over a nine month period beginning in May 2012. Courtois did not respond to requests for comment.

Courtois’s former employer — Concepta Inc., an information security firm based in his hometown — was not the only one suffering from attacks. The assaults — which ranged in size from a few gigabits per second to up to 10 gbps — grew so large that they began significantly affecting Concepta’s Internet service provider  — another Three Rivers company called Xittel. Eventually, the attacks shifted to targeting Xittel directly.

Xittel later hired Robert Masse, a security consultant from Montreal who spoke about the details of this case in a talk at the Black Hat security conference in Las Vegas last month. Xittel and Concepta compared notes and told Masse they’d settled on Cortois as the likely culprit. One potential clue: Cortois had left Concepta to start his own company that specialized in DDoS protection services. 

Masse said when he began his investigation he noticed that Courtois had liked the Facebook page of demolitionstresser.com, a now defunct booter site that redirected him to….wait for it…ragebooter.net. For those of you who haven’t read my story on ragebooter.net and its proprietor Justin Poland, please check it out after reading this piece. In that story, Poland claimed to have been working for the FBI, and even to have backdoored his own service so that FBI agents could snoop on user activity.

Masse said he decided to contact Poland to see what he might be willing to disclose about any ragebooter.net customer who’d been using the service to launch attacks against Concepta and Xittel. Masse said he created an account at ragebooter.net, funded it with $200 via the site’s default payment method — Paypal — and then reached out to Poland via his support handle in Skype. Would Poland be willing to sell the logs of a particular customer? Say….anyone who happened to be currently using ragebooter to attack a certain Internet address block in Three Rivers, Quebec?

MasseyStrings According to Masse, Poland initially replied that, why yes, there was an attack going on that very moment against that IP address. “For sure, this morning,” Poland wrote in a Skype chat. “First attack November 25 (2012).” Masse said Poland then pasted the account information for a user named…wait for it…”concepta2.” Concepta2 had signed up with ragebooter using the email address traverse2000@hotmail.com, according to the Ragebooter.net users database that was leaked earlier this year. A historic reverse WHOIS record lookup at domaintools.com, that email address was used to register at least 36 different Web sites, most of them originally registered to a Kevin Courtois from Quebec.

Masse said Poland quickly thought better of posting his customers’ information in a Skype chat with a stranger, and deleted the message a few seconds after he’d pasted it. But Masse was able to retrieve a copy of the message by dumping the memory cache for his Skype client on his OS X machine.

Continue reading →


14
Aug 13

Buying Battles in the War on Twitter Spam

The success of social networking community Twitter has given rise to an entire shadow economy that peddles dummy Twitter accounts by the thousands, primarily to spammers, scammers and malware purveyors. But new research on identifying bogus accounts has helped Twitter to drastically deplete the stockpile of existing accounts for sale, and holds the promise of driving up costs for both vendors of these shady services and their customers.

Image: Twitterbot.info

Image: Twitterbot.info

Twitter prohibits the sale and auto-creation of accounts, and the company routinely suspends accounts created in violation of that policy. But according to researchers from George Mason University, the International Computer Science Institute and the University of California, Berkeley, Twitter traditionally has done so only after these fraudulent accounts have been used to spam and attack legitimate Twitter users.

Seeking more reliable methods of detecting auto-created accounts before they can be used for abuse, the researchers approached Twitter last year for the company’s blessing to purchase credentials from a variety of Twitter account merchants. Permission granted, the researchers spent more than $5,000 over ten months buying accounts from at least 27 different underground sellers.

In a report to be presented at the USENIX security conference in Washington, D.C. today, the research team details its experience in purchasing more than 121,000 fraudulent Twitter accounts of varying age and quality, at prices ranging from $10 to $200 per one thousand accounts.

The research team quickly discovered that nearly all fraudulent Twitter account merchants employ a range of countermeasures to evade the technical hurdles that Twitter erects to stymie the automated creation of new accounts.

“Our findings show that merchants thoroughly understand Twitter’s existing defenses against automated registration, and as a result can generate thousands of accounts with little disruption in availability or instability in pricing,” the paper reads. “We determine that merchants can provide thousands of accounts within 24 hours at a price of $0.02 – $0.10 per account.”

SPENDING MONEY TO MAKE MONEY

For example, to fulfill orders for fraudulent Twitter accounts, merchants typically pay third-party services to help solve those squiggly-letter CAPTCHA challenges. I’ve written here and here about these virtual sweatshops, which rely on low-paid workers in China, India and Eastern Europe who earn pennies per hour deciphering the puzzles.

topemailThe Twitter account sellers also must verify new accounts with unique email addresses, and they tend to rely on services that sell cheap, auto-created inboxes at HotmailYahoo and Mail.ru, the researchers found. “The failure of email confirmation as a barrier directly stems from pervasive account abuse tied to web mail providers,” the team wrote. “60 percent of the accounts were created with Hotmail, followed by yahoo.com and mail.ru.”

Bulk-created accounts at these Webmail providers are among the cheapest of the free email providers, probably because they lack additional account creation verification mechanisms required by competitors like Google, which relies on phone verification. Compare the prices at this bulk email merchant: 1,000 Yahoo accounts can be had for $10 (1 cent per account), and the same number Hotmail accounts go for $12. In contrast, it costs $200 to buy 1,000 Gmail accounts.

topcountriesFinally, the researchers discovered that Twitter account merchants very often spread their new account registrations across thousands of Internet addresses to avoid Twitter’s IP address blacklisting and throttling. They concluded that some of the larger account sellers have access to large botnets of hacked PCs that can be used as proxies during the registration process.

“Our analysis leads us to believe that account merchants either own or rent access to thousands of compromised hosts to evade IP defenses,” the researchers wrote.

Damon McCoy, an assistant professor of computer science at GMU and one of the authors of the study, said the top sources of the proxy IP addresses were computers in developing countries like India, Ukraine, Thailand, Mexico and Vietnam.  “These are countries where the price to buy installs [installations of malware that turns PCs into bots] is relatively low,” McCoy said.

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3
Jun 13

Cashout Service for Ransomware Scammers

There are 1,001 ways to swindle people online, but the hardest part for crooks is converting those ill-gotten gains into cash. A new service catering to purveyors of ransomware — malware that hijacks PCs until victims pay a ransom – levees a hefty fee for laundering funds from these scams, and it does so by abusing a legitimate Web site that allows betting on dog and horse races in the United States.

Ransonware scam spoofing the DHS to obtain Moneypak/unlock codes.

Ransonware scam spoofing the DHS to obtain Moneypak/unlock codes. Source: botnets.fr

Ransomware is most often distributed via hacked or malicious sites that exploit browser vulnerabilities.  Typically, these scams impersonate the Department of Homeland Security or the FBI (or the equivalent federal investigative authority in the victim’s country) and try to frighten people into paying fines to avoid prosecution for supposedly downloading child pornography and pirated content.

Ransomware locks the victim’s PC until he either pays the ransom or finds a way to remove the malware. Victims are instructed to pay the ransom by purchasing a prepaid MoneyPak card, sold at everything from Walgreens to Wal-Mart (some scams tell victims to pay using a PaySafe or Ukash card). Victims are then told to send the attackers a 14-digit voucher code that allows the bad guys to redeem those MoneyPak vouchers for cash.

Trouble is, taking funds off of a MoneyPak requires either spending it at stores that accept it, or hooking it up to a U.S. bank account, to PayPal, or to a prepaid Visa or Mastercard. What’s more, most miscreants who are even halfway competent at spreading ransomware can expect to collect dozens of MoneyPak codes per day, so cashing out via the above-mentioned methods simply does not scale well for successful bad guys (particularly those who live outside of the United States).

Last week, I stumbled on a ransomware cashout service hosted in Minsk, Belarus that helps simplify the process. It checks the balances of MoneyPak codes by abusing a feature built into betamerica.com, a legitimate and legal site where gamblers can go to bet on dog and horse races in the United States.  Specifically, the ransomware cashout service queries a page at betamerica.com that lets customers fund their betting accounts using MoneyPak.

I reached out to Betamerica.com’s operations team and spoke with a woman who would only give her name as “Leslie.” Leslie said the company had already flagged the account that was being used to check the MoneyPak voucher codes.

“This account was already flagged as some type of bot or compromise, and was set to non-wagering,” she said, explaining that this status prevents customer accounts from placing bets on races. Leslie said Betamerica scrutinizes the Moneypak activity because fraudsters have tried to use the codes to launder money.

“We are pretty diligent, because in the past we have had [individuals who] will try to do a Moneypak deposit and then do a withdrawal, basically trying to launder it. Bottom line is that money has to be wagered. It’s not going to be returned to you in another form.”

When I first encountered this ransomware cashout service and discovered the connection to Betamerica, I was sure the miscreants were trying to launder money through the betting site. But after my conversation with Leslie, the true scope of this ransomware operation began to come into focus. It appears to involve the cooperation of several sets of actors:

MoneyPak cashout scheme.

Scheme to cash out $300 MoneyPak vouchers obtained from ransomware victims.

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16
May 13

Ragebooter: ‘Legit’ DDoS Service, or Fed Backdoor?

On Monday, I profiled asylumbooter.com, one of several increasingly public DDoS-for-hire services posing as Web site “stress testing” services. Today, we’ll look at ragebooter.net, yet another attack service except for one secret feature which sets it apart from the competition: According the site’s proprietor, ragebooter.net includes a hidden backdoor that lets the FBI monitor customer activity.

Ddos-for-hire site ragebooter.net

Ddos-for-hire site ragebooter.net

This bizarre story began about a week ago, when I first started trying to learn who was responsible for running RageBooter. In late March, someone hacked and leaked the users table for ragebooter.net. The database showed that the very first user registered on the site picked the username “Justin,” and signed up with the email address “primalpoland@gmail.com.”

That email address is tied to a now-defunct Facebook account for 22-year-old Justin Poland from Memphis, Tenn. Poland’s personal Facebook account used the alias “PRIMALRAGE,” and was connected to a Facebook page for an entity called Rage Productions. Shortly after an interview with KrebsOnSecurity, Poland’s personal Facebook page was deleted, and his name was removed from the Rage Productions page.

Ragebooter.net’s registration records are hidden behind WHOIS privacy protection services. But according to a historic WHOIS lookup at domaintools.com, that veil of secrecy briefly fell away when the site was moved behind Cloudflare.com, a content distribution network that also protects sites against DDoS attacks like the ones Ragebooter and its ilk help to create (as I noted in Monday’s story, some of the biggest targets of booter services are in fact other booter services). For a brief period in Oct. 2012, the WHOIS records showed that ragebooter.net was registered by a Justin Poland in Memphis.

I “friended” Poland on Facebook and said I wanted to interview him. He accepted my request and sent me a chat to ask why I wanted to speak with him. I said I was eager to learn more about his business, and in particular why he thought it was okay to run a DDoS-for-hire service. While we were chatting, I took the liberty of perusing his profile pictures, which included several of a large tattoo he’d had inked across the top of his back — “Primal Rage” in a typeface fashioned after the text used in the Transformers movie series.

Poland is serious about his business.

Poland is serious about his business.

“Since it is a public service on a public connection to other public servers this is not illegal,” Poland explained, saying that he’d even consulted with an attorney about the legality of his business. When I asked whether launching reflected DNS attacks was okay, Poland said his service merely took advantage of the default settings of some DNS servers.

“Nor is spoofing the sender address [illegal],” he wrote. “If the root user of the server does not want that used they can simple disable recursive DNS. My service is a legal testing service. How individuals use it is at there [sic] own risk and responsibilitys [sic].  I do not advertise this service anywhere nor do I entice or encourage illegal usage of the product. How the user uses it is at their own risk. I provide logs to any legal law enforcement and keep logs for up to 7 days.”

The conversation got interesting when I asked the logical follow-up question: Had the police or federal authorities ever asked for information about his customers?

That was when Poland dropped the bomb, informing me that he was actually working for the FBI.

“I also work for the FBI on Tuesdays at 1pm in memphis, tn,” Poland wrote. “They allow me to continue this business and have full access. The FBI also use the site so that they can moniter [sic] the activitys [sic] of online users.. They even added a nice IP logger that logs the users IP when they login.”

When I asked Poland to provide more information that I might use to verify his claims that he was working for the FBI, the conversation turned combative, and he informed me that I wasn’t allowed to use any of the information he’d already shared with me. I replied that I hadn’t and wouldn’t agree that any of our discussion was to be off the record, and he in turn promised to sue me if I ran this story. That was more or less the end of that conversation.

As to the relative legality of booter services, I consulted Mark Rasch, a security expert and former attorney for the U.S. Department of Justice. Rasch said companies hire stress testing services all the time, but usually as part of a more inclusive penetration testing engagement. In such engagements, Rasch said, it is common for the parties conducting the tests to insist upon and obtain beforehand a “get out of jail free card,” essentially a notarized letter from the customer stating that the testing firm was hired to break into and otherwise probe the security and stability of the targeted Web site.

“This is also why locksmiths generally force you to show ID that proves your address before they’ll break into a house for you,” Rasch said. “The standard in the security industry is not only to require proof that you own the sites that are going to be shut down or attacked, but also an indemnification provision.”

On Monday, I pinged Mr. Poland once more, again using Facebook’s chat function. I wanted to hear more about his claim that he was working for the feds. To my surprise, he gave me the number of a Memphis man he referred to as his FBI contact, a man Poland said he knew only as “Agent Lies.”

The man who answered at the phone number supplied by Poland declined to verify his name, seemed peeved that I’d called, and demanded to know who gave me his phone number. When I told him that I was referred to him by Mr. Poland, the person on the other end of the line informed me that he was not authorized to to speak with the press directly. He rattled off the name and number of the press officer in the FBI’s Memphis field office, and hung up.

Just minutes after I spoke with “Agent Lies,” Justin dropped me a line to say that he could not be my ‘friend’ any longer. “I have been asked to block you. Have a nice day,” Poland wrote in a Facebook chat, without elaborating. His personal Facebook page disappeared moments later.

Not long after that, I heard back from Joel Siskovic, spokesman for the Memphis FBI field office, who said he could neither confirm nor deny Poland’s claims. Siskovic also declined to verify whether the FBI had an Agent Lies.

“People come forward all the time and make claims they are working with us, and sometimes it’s true and sometimes it’s not,” Siskovic said. “But it wouldn’t be prudent for us to confirm that we have individuals helping us or assisting us, either because they’re being good citizens or because they’re somehow compelled to.”

Update, June 1: A little Googling shows that there is in fact an FBI Agent Lies in the Memphis area. Many of the public cases that Agent Lies has testified in appear to be child-exploitation related, such as this one (PDF).

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10
Aug 12

‘Booter Shells’ Turn Web Sites into Weapons

Hacked Web sites aren’t just used for hosting malware anymore. Increasingly, they are being retrofitted with tools that let miscreants harness the compromised site’s raw server power for attacks aimed at knocking other sites offline.

It has long been standard practice for Web site hackers to leave behind a Web-based “shell,” a tiny “backdoor” program that lets them add, delete and run files on compromised server. But in a growing number of Web site break-ins, the trespassers also are leaving behind simple tools called “booter shells,” which allow the miscreants to launch future denial-of-service attacks without the need for vast networks of infected zombie computers.

absoboot.com’s configuration page

According to Prolexic, an anti-DDoS company I’ve been working with for the past few weeks to ward off attacks on my site, with booter shells DDoS attacks can be launched more readily and can cause more damage, with far fewer machines. “Web servers typically have 1,000+ times the capacity of a workstation, providing hackers with a much higher yield of malicious traffic with the addition of each infected web server,” the company said in a recent advisory.

The proliferation of booter shells has inevitably led to online services that let paying customers leverage these booter shell-backdoored sites. One such service is absoboot.com, also reachable at twbooter.com. Anyone can sign up, fund the account with Paypal or one of several other virtual currencies, and start attacking. The minimum purchase via PayPal is $15, which buys you about 5 hours worth of keeping a site down or at least under attack.

If you’d prefer to knock an individual internet user offline as opposed to a Web site, absoBoot includes a handy free tool that lets users discover someone’s IP address. Just select an image of your choice (or use the pre-selected image) and send the target a customized link that is specific to your absoBoot account. The link to the picture is mapped to a domain crafted to look like it takes you to imageshack.us; closer inspection of the link shows that it fact ends in “img501.ws,” and records the recipients IP address if he or she views the image. Continue reading →


21
Jun 12

A Closer Look: Email-Based Malware Attacks

Nearly every time I write about a small- to mid-sized business that has lost hundreds of thousands of dollars after falling victim to a malicious software attack, readers want to know how the perpetrators broke through the victim organization’s defenses, and which type of malware paved the way. Normally, victim companies don’t know or disclose that information, so to get a better idea, I’ve put together a profile of the top email-based malware attacks for each day over the past month.

Top malware email attacks in past 30 days. Source: UAB

This data draws from daily reports compiled by the computer forensics and security management students at the University of Alabama at Birmingham, a school I visited last week to give a guest lecture and to gather reporting for a bigger project I’m chasing. The UAB reports track the top email-based threats from each day, and include information about the spoofed brand or lure, the method of delivering the malware, and links to Virustotal.com, which show the percentage of antivirus products that detected the malware as hostile.

As the chart I compiled above indicates, attackers are switching the lure or spoofed brand quite often, but popular choices include Amazon.com, the Better Business Bureau, DHL, Facebook, LinkedIn, PayPal, Twitter and Verizon Wireless.

Also noticeable is the lack of antivirus detection on most of these password stealing and remote control Trojans. The average detection rate for these samples was 24.47 percent, while the median detection rate was just 19 percent. This means that if you click a malicious link or open an attachment in one of these emails, there is less than a one-in-five chance your antivirus software will detect it as bad.

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