Posts Tagged: Sofacy


15
Nov 17

R.I.P. root9B? We Hardly Knew Ya!

root9B Holdings, a company that many in the security industry consider little more than a big-name startup aimed at cashing in on the stock market’s insatiable appetite for cybersecurity firms, surprised no one this week when it announced it was ceasing operations at the end of the year.

Founded in 2011 as root9B Technologies, the company touted itself as an IT security training firm staffed by an impressive list of ex-military leaders with many years of cybersecurity experience at the Department of Defense and National Security Agency (NSA). As it began to attract more attention from investors, root9B’s focus shifted to helping organizations hunt for cyber intruders within their networks.

By 2015, root9B was announcing lucrative cybersecurity contracts with government agencies and the infusion of millions from investors. The company’s stock was ballooning in price, reaching an all-time high in mid-May 2015.

That was just days after root9B issued a headline-grabbing report about how its cyber intelligence had single-handedly derailed a planned Russian cyber attack on several U.S. financial institutions.

The report, released May 12, 2015, claimed root9B had uncovered plans by an infamous Russian hacking group to target several banks. The company said the thwarted operation was orchestrated by Fancy Bear/Sofacy, a so-called “advanced persistent threat” (APT) hacking group known for launching sophisticated phishing attacks aimed at infiltrating some of the world’s biggest corporations.  root9B released its Q1 2015 earnings two days later, reporting record revenues.

On May 20, 2015, KrebsOnSecurity published a rather visceral dissection of that root9B report: Security Firm Redefines APT; African Phishing Threat. The story highlighted the thinness of the report’s claims, pointing to multiple contradictory findings by other security firms which suggested the company had merely detected several new phishing domains being erected by a comparatively low-skilled African phishing gang that was well-known to investigators and U.S. banks.

In mid-June 2015, an anonymous researcher who’d apparently done a rather detailed investigation into root9B’s finances said the company was “a worthless reverse-merger created by insiders with [a] long history of penny-stock wipeouts, fraud allegations, and disaster.”

That report, published by the crowd-sourced financial market research site SeekingAlpha.com, sought to debunk claims by root9B that it possessed “proprietary” cybersecurity hardware and software, noting that the company mainly acts as a reseller of a training module produced by a third party.

root9B’s stock price never recovered from those reports, and began a slow but steady decline after mid-2015. In Dec. 2016, root9B Technologies announced a reverse split of its issued and outstanding common stock, saying it would be moving to the NASDAQ market with the trading symbol RTNB and a new name — root9B Holdings. On January 18, 2017, a reshuffled root9B rang the market opening bell at NASDAQ, and got a bounce when it said it’d been awarded a five-year training contract to support the U.S. Defense Department. Continue reading →


20
May 15

Security Firm Redefines APT: African Phishing Threat

A security firm made headlines earlier this month when it boasted it had thwarted plans by organized Russian cyber criminals to launch an attack against multiple US-based banks. But a closer look at the details behind that report suggests the actors in question were relatively unsophisticated Nigerian phishers who’d simply registered a bunch of new fake bank Web sites.

The report was released by Colorado Springs, Colo.-based security vendor root9B, which touts a number of former National Security Agency (NSA) and Department of Defense cybersecurity experts among its ranks. The report attracted coverage by multiple media outlets, including, Fox News, PoliticoSC Magazine and The Hill. root9B said it had unearthed plans by a Russian hacking gang known variously as the Sofacy Group and APT28. APT is short for “advanced persistent threat,” and it’s a term much used among companies that sell cybersecurity services in response to breaches from state-funded adversaries in China and Russia that are bent on stealing trade secrets via extremely stealthy attacks.

The cover art for the root9B report.

The cover art for the root9B report.

“While performing surveillance for a root9B client, the company discovered malware generally associated with nation state attacks,” root9B CEO Eric Hipkins wrote of the scheme, which he said was targeted financial institutions such as Bank of America, Regions Bank and TD Bank, among others.

“It is the first instance of a Sofacy or other attack being discovered, identified and reported before an attack occurred,” Hipkins said. “Our team did an amazing job of uncovering what could have been a significant event for the international banking community. We’ve spent the past three days informing the proper authorities in Washington and the UAE, as well as the CISOs at the financial organizations.”

However, according to an analysis of the domains reportedly used by the criminals in the planned attack, perhaps root9B should clarify what it means by APT. Unless the company is holding back key details about their research, their definition of APT can more accurately be described as “African Phishing Threat.”

The report correctly identifies several key email addresses and physical addresses that the fraudsters used in common across all of the fake bank domains. But root9B appears to have scant evidence connecting the individual(s) who registered those domains to the Sofacy APT gang. Indeed, a reading of their analysis suggests their sole connection is that some of the fake bank domains used a domain name server previously associated with Sofacy activity: carbon2u[dot]com (warning: malicious host that will likely set off antivirus alerts).

The problem with that linkage is although carbon2u[dot]com was in fact at one time associated with activity emanating from the Sofacy APT group, Sofacy is hardly the only bad actor using that dodgy name server. There is plenty of other badness unrelated to Sofacy that calls Carbon2u home for their DNS operations, including these clowns.

From what I can tell, the vast majority of the report documents activity stemming from Nigerian scammers who have been conducting run-of-the-mill bank phishing scams for almost a decade now and have left quite a trail.

rolexzadFor example, most of the wordage in this report from root9B discusses fake domains registered to a handful of email addresses, including “adeweb2001@yahoo.com,” adeweb2007@yahoo.com,” and “rolexzad@yahoo.com”.

Each of these emails have long been associated with phishing sites erected by apparent Nigerian scammers. They are tied to this Facebook profile for a Showunmi Oluwaseun, who lists his job as CEO of a rather fishy-sounding organization called Rolexzad Fishery Nig. Ltd.

Continue reading →