Posts Tagged: Reuters

Sep 15

Like Kaspersky, Russian Antivirus Firm Dr.Web Tested Rivals

A recent Reuters story accusing Russian security firm Kaspersky Lab of faking malware to harm rivals prompted denials from the company’s eponymous chief executive — Eugene Kaspersky — who called the story “complete BS” and noted that his firm was a victim of such activity.  But according to interviews with the CEO of Dr.Web — Kaspersky’s main competitor in Russia — both companies experimented with ways to expose antivirus vendors who blindly accepted malware intelligence shared by rival firms.

quarantineThe Reuters piece cited anonymous, former Kaspersky employees who said the company assigned staff to reverse-engineer competitors’ virus detection software to figure out how to fool those products into flagging good files as malicious. Such errors, known in the industry as “false positives,” can be quite costly, disruptive and embarrassing for antivirus vendors and their customers.

Reuters cited an experiment that Kaspersky first publicized in 2010, in which a German computer magazine created ten harmless files and told antivirus scanning service that Kaspersky detected them as malicious (Virustotal aggregates data on suspicious files and shares them with security companies). The story said the campaign targeted antivirus products sold or given away by AVG, Avast and Microsoft.

“Within a week and a half, all 10 files were declared dangerous by as many as 14 security companies that had blindly followed Kaspersky’s lead, according to a media presentation given by senior Kaspersky analyst Magnus Kalkuhl in Moscow in January 2010,” wrote Reuters’ Joe Menn. “When Kaspersky’s complaints did not lead to significant change, the former employees said, it stepped up the sabotage.”

Eugene Kaspersky posted a lengthy denial of the story on his personal blog, calling the story a “conflation of a number of facts with a generous amount of pure fiction.”  But according to Dr.Web CEO Boris Sharov, Kaspersky was not alone in probing which antivirus firms were merely aping the technology of competitors instead of developing their own.

Dr. Web CEO Boris Sharov.

Dr.Web CEO Boris Sharov.

In an interview with KrebsOnSecurity, Sharov said Dr.Web conducted similar analyses and reached similar conclusions, although he said the company never mislabeled samples submitted to testing labs.

“We did the same kind of thing,” Sharov said. “We went to the [antivirus] testing laboratories and said, ‘We are sending you clean files, but a little bit modified. Could you please check what your system says about that?'”

Sharov said the testing lab came back very quickly with an answer: Seven antivirus products detected the clean files as malicious.

“At this point, we were very confused, because our explanation was very clear: ‘We are sending you clean files. A little bit modified, but clean, harmless files,'” Sharov recalled of an experiment the company said it conducted over three years ago. “We then observed the evolution of these two files, and a week later, half of the antivirus products were flagging them as bad. But we never flagged these ourselves as bad.”

Sharov said the experiments by both Dr.Web and Kaspersky — although conducted differently and independently — were attempts to expose the reality that many antivirus products are simply following the leaders.

“The security industry in that case becomes bullshit, because people believe in those products and use them in their corporate environments without understanding that those products are just following others,” Sharov said. “It’s unacceptable.”

According to Sharov, a good antivirus product actually consists of two products: One that is sold to customers in a box and/or or online, and the second component that customers will never see — the back-end internal infrastructure of people, machines and databases that are constantly scanning incoming suspicious files and testing the overall product for quality assurance. Such systems, he said, include exhaustive “clean file” tests, which scan incoming samples to make sure they are not simply known, good files. Programs that have never been seen before are nearly always given more scrutiny, but they also are a frequent source of false positives.

“We have sometimes false positives because we are unable to gather all the clean files in the world,” Sharov said. “We know that we can get some part of them, but pretty sure we never get 100 percent. Anyway, this second part of the [antivirus product] should be much more powerful, to make sure what you release to public is not harmful or dangerous.”

Sharov said some antivirus firms (he declined to name which) have traditionally not invested in all of this technology and manpower, but have nevertheless gained top market share.

“For me it’s not clear that [Kaspersky Lab] would have deliberately attacked other antivirus firm, because you can’t attack a company in this way if they don’t have the infrastructure behind it,” Sharov said. Continue reading →

Apr 14

Tax Fraud Gang Targeted Healthcare Firms

Earlier this month, I wrote about an organized cybercrime gang that has been hacking into HR departments at organizations across the country and filing fraudulent tax refund requests with the IRS on employees of those victim firms. Today, we’ll look a bit closer at the activities of this crime gang, which appears to have targeted a large number of healthcare and senior living organizations that were all using the same third-party payroll and HR services provider.

taxfraudAs I wrote in the previous story, KrebsOnSecurity encountered a Web-based control panel that an organized criminal gang has been using to track bogus tax returns filed on behalf of employees at hacked companies whose HR departments had been relieved of W-2 forms for all employees.

Among the organizations listed in that panel were Plaintree Inc. and Griffin Faculty Practice Plan. Both entities are subsidiaries of Derby, Conn.-based Griffin Health Services Corp.

Steve Mordecai, director of human resources at Griffin Hospital, confirmed that a security breach at his organization had exposed the personal and tax data on “a limited number of employees for Griffin Health Services Corp. and Griffin Hospital.” Mordecai said the attackers obtained the information after stealing the organization’s credentials at a third-party payroll and HR management provider called UltiPro.

Mordecai said that the bad guys only managed to steal data on roughly four percent of the organization’s employees, but he declined to say how many employees the healthcare system currently has. An annual report (PDF) from 2009 states that Griffin Hospital alone had more than 1,384 employees.

Griffin employee tax records, as recorded in the fraudsters' Web-based control panel.

Griffin employee tax records, as recorded in the fraudsters’ Web-based control panel.

“Fortunately for us it was a limited number of employees who may have had their information breached or stolen,” Mordecai said. “There is a criminal investigation with the FBI that is ongoing, so I can’t say much more.”

The FBI did not return calls seeking comment. But according Reuters, the FBI recently circulated a private notice to healthcare providers, warning that the “cybersecurity systems at many healthcare providers are lax compared to other sectors, making them vulnerable to attacks by hackers searching for Americans’ personal medical records and health insurance data.”

According to information in their Web-based control panel, the attackers responsible for hacking into Griffin also may have infiltrated an organization called Medical Career Center Inc., but that could not be independently confirmed.

This crime gang also appears to have targeted senior living facilities, including SL Bella Terra LLC, a subsidiary of Chicago-based Senior Lifestyle Corp, an assisted living firm that operates in seven states. Senior Living did not return calls seeking comment.

In addition, the attackers hit  Swan Home Health LLC  in Menomonee Falls, Wisc., a company that recently changed its named to EnlivantMonica Lang, vice president of communications for Enlivant, said Swan Home Health is a subsidiary of Chicago-based Assisted Living Concepts Inc., an organization that owns and operates roughly 200 assisted living facilities in 20 states.

Swan Home Health employee's tax info, as recorded by the fraudsters.

Swan Home Health employee’s tax info, as recorded by the fraudsters.

ALC disclosed in March 2014 that a data breach in December 2013 had exposed the personal information on approximately 43,600 current and former employees. In its March disclosure, ALC said that its internal employee records were compromised after attackers stole login credentials to the company’s third-party payroll provider.

That disclosure didn’t name the third-party provider, but every victim organization I’ve spoken with that’s been targeted by this crime gang had outsourced their payroll and/or human resources operations to UltiPro.

Enlivant’s Lang confirmed that the company also relied on UltiPro, and that some employees have come forward to report attempts to file fraudulent tax refunds on their behalf with the IRS.

“We believe that [the attackers] accessed employee names, addresses, birthdays, Social Security numbers and pay information, which is plenty to get someone going from a tax fraud perspective,” Lang said in a telephone interview. Continue reading →

Sep 12

Chinese Hackers Blamed for Intrusion at Energy Industry Giant Telvent

A company whose software and services are used to remotely administer and monitor large sections of the energy industry began warning customers last week that it is investigating a sophisticated hacker attack spanning its operations in the United States, Canada and Spain. Experts say digital fingerprints left behind by attackers point to a Chinese hacking group tied to repeated cyber-espionage campaigns against key Western interests.

The attack comes as U.S. policymakers remain gridlocked over legislation designed to beef up the cybersecurity posture of energy companies and other industries that maintain some of the world’s most vital information networks.

In letters sent to customers last week, Telvent Canada Ltd. said that on Sept. 10, 2012 it learned of a breach of its internal firewall and security systems. Telvent said the attacker(s) installed malicious software and stole project files related to one of its core offerings — OASyS SCADA — a product that helps energy firms mesh older IT assets with more advanced “smart grid” technologies.

The firm said it was still investigating the incident, but that as a precautionary measure, it had disconnected the usual data links between clients and affected portions of its internal networks.

“In order to be able to continue to provide remote support services to our customers in a secure manner, we have established new procedures to be followed until such time as we are sure that there are not further intrusions into the Telvent network and that all virus or malware files have been eliminated,” the company said in a letter mailed to customers this week, a copy of which was obtained by “Although we do not have any reason to believe that the intruder(s) acquired any information that would enable them to gain access to a customer system or that any of the compromised computers have been connected to a customer system, as a further precautionary measure, we indefinitely terminated any customer system access by Telvent.”

The incident is the latest reminder of problems that can occur when corporate computer systems at critical networks are connected to sensitive control systems that were never designed with security in mind. Security experts have long worried about vulnerabilities being introduced into the systems that regulate the electrical grid as power companies transferred control of generation and distribution equipment from internal networks to so-called “supervisory control and data acquisition,” or SCADA, systems that can be accessed through the Internet or by phone lines. The move to SCADA systems boosts efficiency at utilities because it allows workers to operate equipment remotely, but experts say it also exposes these once-closed systems to cyber attacks.

Telvent did not respond to several requests for comment. But in a series of written communications to clients, the company detailed ongoing efforts to ascertain the scope and duration of the breach. In those communications, Telvent said it was working with law enforcement and a task force of representatives from its parent firm, Schneider Electric, a French energy conglomerate that employs 130,000 and has operations across the Americas, Western Europe and Asia. Telvent reportedly employs about 6,000 people in at least 19 countries around the world.

The disclosure comes just days after Telvent announced it was partnering with Foxborough, Mass. based Industrial Defender to expand its cybersecurity capabilities within Telvent’s key utility and critical infrastructure solutions. A spokesperson for Industrial Defender said the company does not comment about existing customers. Continue reading →