Posts Tagged: Verizon


12
Sep 18

U.S. Mobile Giants Want to be Your Online Identity

The four major U.S. wireless carriers today detailed a new initiative that may soon let Web sites eschew passwords and instead authenticate visitors by leveraging data elements unique to each customer’s phone and mobile subscriber account, such as location, customer reputation, and physical attributes of the device. Here’s a look at what’s coming, and the potential security and privacy trade-offs of trusting the carriers to handle online authentication on your behalf.

Tentatively dubbed “Project Verify” and still in the private beta testing phase, the new authentication initiative is being pitched as a way to give consumers both a more streamlined method of proving one’s identity when creating a new account at a given Web site, as well as replacing passwords and one-time codes for logging in to existing accounts at participating sites.

Here’s a promotional and explanatory video about Project Verify produced by the Mobile Authentication Task Force, whose members include AT&T, Sprint, T-Mobile and Verizon:

The mobile companies say Project Verify can improve online authentication because they alone have access to several unique signals and capabilities that can be used to validate each customer and their mobile device(s). This includes knowing the approximate real-time location of the customer; how long they have been a customer and used the device in question; and information about components inside the customer’s phone that are only accessible to the carriers themselves, such as cryptographic signatures tied to the device’s SIM card.

The Task Force currently is working on building its Project Verify app into the software that gets pre-loaded onto mobile devices sold by the four major carriers. The basic idea is that third-party Web sites could let the app (and, by extension, the user’s mobile provider) handle the process of authenticating the user’s identity, at which point the app would interactively log the user in without the need of a username and password.

In another example, participating sites could use Project Verify to supplement or replace existing authentication processes, such as two-factor methods that currently rely on sending the user a one-time passcode via SMS/text messages, which can be intercepted by cybercrooks.

The carriers also are pitching their offering as a way for consumers to pre-populate data fields on a Web site — such as name, address, credit card number and other information typically entered when someone wants to sign up for a new user account at a Web site or make purchases online.

Johannes Jaskolski, general manager for Mobile Authentication Task Force and assistant vice president of identity security at AT&T, said the group is betting that Project Verify will be attractive to online retailers partly because it can help them capture more sign-ups and sales from users who might otherwise balk at having to manually provide lots of data via a mobile device.

“We can be a primary authenticator where, just by authenticating to our app, you can then use that service,” Jaskolski said. “That can be on your mobile, but it could also be on another device. With subscriber consent, we can populate that information and make it much more effortless to sign up for or sign into services online. In other markets, we have found this type of approach reduced [customer] fall-out rates, so it can make third-party businesses more successful in capturing that.”

Jaskolski said customers who take advantage of Project Verify will be able to choose what types of data get shared between their wireless provider and a Web site on a per-site basis, or opt to share certain data elements across the board with sites that leverage the app for authentication and e-commerce.

“Many companies already rely on the mobile device today in their customer authentication flows, but what we’re saying is there’s going to be a better way to do this in a method that is intended from the start to serve authentication use cases,” Jaskolski said. “This is what everyone has been seeking from us already in co-opting other mobile features that were simply never designed for authentication.” Continue reading →


22
Aug 18

Alleged SIM Swapper Arrested in California

Authorities in Santa Clara, Calif. have arrested and charged a 19-year-old area man on suspicion hijacking mobile phone numbers as part of a scheme to steal large sums of bitcoin and other cryptocurrencies. The arrest is the third known law enforcement action this month targeting “SIM swappers,” individuals who specialize in stealing wireless phone numbers and hijacking online financial and social media accounts tied to those numbers.

Xzavyer Clemente Narvaez was arrested Aug. 17, 2018 by investigators working with Santa Clara County’s “REACT task force,” which says it’s targeting those involved in “the takeovers of cell phone, email and financial accounts resulting in the theft of cryptocurrency.”

Prosecutors allege Narvaez used the proceeds of his crimes (estimated at > $1 million in virtual currencies) to purchase luxury items, including a McLaren — a $200,000 high-performance sports car. Investigators said they interviewed several alleged victims of Narvaez, including one man who reported being robbed of $150,000 in virtual currencies after his phone number was hijacked.

A fraudulent SIM swap occurs when a victim’s cell phone service is redirected from a SIM card under the control of the victim to one under the control of the suspect, without the knowledge or authorization of the victim account holder.

When a victim experiences a fraudulent SIM swap, their phone suddenly has no service and all incoming calls and text messages are sent to the attacker’s device. This includes any one-time codes sent via text message or automated phone call that many companies use to supplement passwords for their online accounts.

Narvaez came to law enforcement’s attention following the arrest of Joel Ortiz, a gifted 20-year-old college student from Boston who was charged in July 2018 with using SIM swaps to steal more than $5 million in cryptocurrencies from 40 victims.

A redacted “statement of facts” in the case obtained by KrebsOnSecurity says records obtained from Google revealed that a cellular device used by Ortiz to commit SIM swaps had at one point been used to access the Google account identified as Xzavyer.Narvaez@gmail.com.

That statement refers frequently to the term IMEI; this is the International Mobile Equipment Identity number, which is a unique identification number or serial number that all mobile phones and smartphones have.

Prosecutors used data gathered from a large number of tech companies to put Narvaez’s phone in specific places near his home in Tracy, Calif. at the time his alleged victims reported having their phones hijacked. His alleged re-use of the same mobile device for multiple SIM hijacks ultimately gave him away:

“On 7/18/18, investigators received information from an AT&T investigator regarding unauthorized SIM swaps conducted through an AT&T authorized retailer. He reported that approximately 28 SIM swaps were conducted using the same employee ID number over an approximately two-week time period in November 2017. Records were obtained that included a list of IMEI numbers used to take over the victims’ cell phone numbers.”

“AT&T provided call detail records pertaining to the IMEI numbers listed to conduct the SIM swaps. One of those IMEI numbers, ending in 3218, was used to take over the cell phone of a resident of Illinois. I contacted the victim who verified that some of his accounts had been “hacked” in late 2017 but said he did not suffer any financial loss. Sgt. Tarazi analyzed the AT&T location data pertaining to that account takeover. That data indicated that on 7/27/17, when the victim from Illinois lost access to his accounts, the IMEI (ending in 3218) of the cell phone controlling the victim’s cell phone number was located in Tracy, California.”

“The specific tower is located approximately 0.6 miles away from the address 360 Yosemite Drive in Tracy. Several “NELOS” records (GPS coordinates logged by AT&T to estimate the location of devices on their network) indicate the phone was within 1000 meters of 360 Yosemite Drive in Tracy. AT&T also provided call detail records pertaining to Narvaez’ cell phone account, which was linked to him through financial services account records. Sgt. Tarazi examined those records and determined that Narvaez’ own cell phone was connected to the same tower and sector during approximately the same time frame that the suspect device (ending in 3218) was connected to the victim’s account.”

Apple responded to requests with records pertaining to customer accounts linked to that same suspect IMEI number. Those records identified three California residents whose Apple accounts were linked to that same IMEI number. Continue reading →


16
Aug 18

Hanging Up on Mobile in the Name of Security

An entrepreneur and virtual currency investor is suing AT&T for $224 million, claiming the wireless provider was negligent when it failed to prevent thieves from hijacking his mobile account and stealing millions of dollars in cryptocurrencies. Increasingly frequent, high-profile attacks like these are prompting some experts to say the surest way to safeguard one’s online accounts may be to disconnect them from the mobile providers entirely.

The claims come in a lawsuit filed this week in Los Angeles on behalf of Michael Terpin, who co-founded the first angel investor group for bitcoin enthusiasts in 2013. Terpin alleges that crooks stole almost $24 million worth of cryptocurrency after fraudulently executing a “SIM swap” on his mobile phone account at AT&T in early 2018.

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.

Terpin alleges that on January 7, 2018, someone requested an unauthorized SIM swap on his AT&T account, causing his phone to go dead and sending all incoming texts and phone calls to a device the attackers controlled. Armed with that access, the intruders were able to reset credentials tied to his cryptocurrency accounts and siphon nearly $24 million worth of digital currencies.

According to Terpin, this was the second time in six months someone had hacked his AT&T number. On June 11, 2017, Terpin’s phone went dead. He soon learned his AT&T password had been changed remotely after 11 attempts in AT&T stores had failed. At the time, AT&T suggested Terpin take advantage of the company’s “extra security” feature — a customer-specified six-digit PIN which is required before any account changes can be made.

Terpin claims an investigation by AT&T into the 2018 breach found that an employee at an AT&T store in Norwich, Conn. somehow executed the SIM swap on his account without having to enter his “extra security” PIN, and that AT&T knew or should have known that employees could bypass its customer security measures.

Terpin is suing AT&T for his $24 million worth of cryptocurrencies, plus $200 million in punitive damages. A copy of his complaint is here (PDF).

AT&T declined to comment on specific claims in the lawsuit, saying only in a statement that, “We dispute these allegations and look forward to presenting our case in court.”

AN ‘IDENTITY CRISIS’?

Mobile phone companies are a major weak point in authentication because so many companies have now built their entire procedure for authenticating customers on a process that involves sending a one-time code to the customer via SMS or automated phone call.

In some cases, thieves executing SIM swaps have already phished or otherwise stolen a target’s bank or email password. But many major social media platforms — such as Instagramallow users to reset their passwords using nothing more than text-based (SMS) authentication, meaning thieves can hijack those accounts just by having control over the target’s mobile phone number.

Allison Nixon is director of security research at Flashpoint, a security company in New York City that has been closely tracking the murky underworld of communities that teach people how to hijack phone numbers assigned to customer accounts at all of the major mobile providers.

Nixon calls the current SIM-jacking craze “a major identity crisis” for cybersecurity on multiple levels.

“Phone numbers were never originally intended as an identity document, they were designed as a way to contact people,” Nixon said. “But because of all these other companies are building in security measures, a phone number has become an identity document.”

In essence, mobile phone companies have become “critical infrastructure” for security precisely because so much is riding on who controls a given mobile number. At the same time, so little is needed to undo weak security controls put in place to prevent abuse.

“The infrastructure wasn’t designed to withstand the kind of attacks happening now,” Nixon said. “The protocols need to be changed, and there are probably laws affecting the telecom companies that need to be reviewed in light of how these companies have evolved.”

Unfortunately, with the major mobile providers so closely tied to your security, there is no way you can remove the most vulnerable chunks of this infrastructure — the mobile store employees who can be paid or otherwise bamboozled into helping these attacks succeed.

No way, that is, unless you completely disconnect your mobile phone number from any sort of SMS-based authentication you currently use, and replace it with Internet-based telephone services that do not offer “helpful” customer support — such as Google Voice.

Google Voice lets users choose a phone number that gets tied to their Google account, and any calls or messages to that number will be forwarded to your mobile number. But unlike phone numbers issued by the major mobile providers, Google Voice numbers can’t be stolen unless someone also hacks your Google password — in which case you likely have much bigger problems.

With Google Voice, there is no customer service person who can be conned over the phone into helping out. There is no retail-store employee who will sell access to your SIM information for a paltry $80 payday. In this view of security, customer service becomes a customer disservice.

Mind you, this isn’t my advice. The above statement summarizes the arguments allegedly made by one of the most accomplished SIM swap thieves in the game today. On July 12, 2018, police in California arrested Joel Ortiz, a 20-year-old college student from Boston who’s accused of using SIM swaps to steal more than $5 million in cryptocurrencies from 40 victims.

Ortiz allegedly had help from a number of unnamed accomplices who collectively targeted high-profile and wealthy people in the cryptocurrency space. In one of three brazen attacks at a bitcoin conference this year, Ortiz allegedly used his SIM swapping skills to steal more than $1.5 million from a cryptocurrency entrepreneur, including nearly $1 million the victim had crowdfunded.

A July 2018 posting from the “OG” Instagram account “0”, allegedly an account hijacked by Joel Ortiz (pictured holding an armload of Dom Perignon champagne).

Ortiz reportedly was a core member of OGUsers[dot]com, a forum that’s grown wildly popular among criminals engaging in SIM swaps to steal cryptocurrency and hijack high-value social media accounts. OG is short for “original gangster,” and it refers to a type of “street cred” for possession of social media account names that are relatively short (between one and six characters). On ogusers[dot]com, Ortiz allegedly picked the username “j”. Short usernames are considered more valuable because they confer on the account holder the appearance of an early adopter on most social networks.

Discussions on the Ogusers forum indicate Ortiz allegedly is the current occupant of perhaps the most OG username on Twitter — an account represented by the number zero “0”. The alias displayed on that twitter profile is “j0”. He also apparently controls the Instagram account by the same number, as well as the Instagram account “t”, which lists its alias as “Joel.”

Shown below is a cached snippet from an Ogusers forum posting by “j” (allegedly Ortiz), advising people to remove their mobile phone number from all important multi-factor authentication options, and to replace it with something like Google Voice.

Ogusers SIM swapper “j” advises forum members on how not to become victims of SIM swapping. Click to enlarge.

Continue reading →


24
Jul 18

Hackers Breached Virginia Bank Twice in Eight Months, Stole $2.4M

Hackers used phishing emails to break into a Virginia bank in two separate cyber intrusions over an eight-month period, making off with more than $2.4 million total. Now the financial institution is suing its insurance provider for refusing to fully cover the losses.

According to a lawsuit filed last month in the Western District of Virginia, the first heist took place in late May 2016, after an employee at The National Bank of Blacksburg fell victim to a targeted phishing email.

Photo copyright: Kerri Farley

The email allowed the intruders to install malware on the victim’s PC and to compromise a second computer at the bank that had access to the STAR Network, a system run by financial industry giant First Data that the bank uses to handle debit card transactions for customers. That second computer had the ability to manage National Bank customer accounts and their use of ATMs and bank cards.

Armed with this access, the bank says, hackers were able to disable and alter anti-theft and anti-fraud protections, such as 4-digit personal identification numbers (PINs), daily withdrawal limits, daily debit card usage limits, and fraud score protections.

National Bank said the first breach began Saturday, May 28, 2016 and continued through the following Monday. Normally, the bank would be open on a Monday, but that particular Monday was Memorial Day, a federal holiday in the United States. The hackers used hundreds of ATMs across North America to dispense funds from customer accounts. All told, the perpetrators stole more than $569,000 in that incident.

Following the 2016 breach, National Bank hired cybersecurity forensics firm Foregenix to investigate. The company determined the hacking tools and activity appeared to come from Russian-based Internet addresses.

In June of 2016, National Bank implemented additional security protocols, as recommended by FirstData. These protocols are known as “velocity rules” and were put in place to help the bank flag specific types of repeated transaction patterns that happen within a short period of time.

But just eight months later — in January 2017 according to the lawsuit — hackers broke in to the bank’s systems once more, again gaining access to the financial institution’s systems via a phishing email.

This time not only did the intruders regain access to the bank’s STAR Network, they also managed to compromise a workstation that had access to Navigator, which is software used by National Bank to manage credits and debits to customer accounts.

Prior to executing the second heist, the hackers used the bank’s Navigator system to fraudulently credit more than $2 million to various National Bank accounts. As with the first incident, the intruders executed their heist on a weekend. Between Jan. 7 and 9, 2017, the hackers modified or removed critical security controls and withdrew the fraudulent credits using hundreds of ATMs.

All the while, the intruders used the bank’s systems to actively monitor customer accounts from which the funds were being withdrawn. At the conclusion of the 2017 heist, the hackers used their access to delete evidence of fraudulent debits from customer accounts. The bank’s total reported loss from that breach was $1,833,984.

Verizon was hired to investigate the 2017 attack, and according to the bank Verizon’s forensics experts concluded that the tools and servers used by the hackers were of Russian origin. The lawsuit notes the company determined that it was likely the same group of attackers responsible for both intrusions. Verizon also told the bank that the malware the attackers used to gain their initial foothold at the bank in the 2017 breach was embedded in a booby-trapped Microsoft Word document. Continue reading →


22
Jun 18

Supreme Court: Police Need Warrant for Mobile Location Data

The U.S. Supreme Court today ruled that the government needs to obtain a court-ordered warrant to gather location data on mobile device users. The decision is a major development for privacy rights, but experts say it may have limited bearing on the selling of real-time customer location data by the wireless carriers to third-party companies.

Image: Wikipedia.

At issue is Carpenter v. United States, which challenged a legal theory the Supreme Court outlined more than 40 years ago known as the “third-party doctrine.” The doctrine holds that people who voluntarily give information to third parties — such as banks, phone companies, email providers or Internet service providers (ISPs) — have “no reasonable expectation of privacy.”

That framework in recent years has been interpreted to allow police and federal investigators to obtain information — such as mobile location data — from third parties without a warrant. But in a 5-4 ruling issued today that flies in the face of the third-party doctrine, the Supreme Court cited “seismic shifts in digital technology” allowing wireless carriers to collect “deeply revealing” information about mobile users that should be protected by the 4th Amendment to the U.S. Constitution, which is intended to shield Americans against unreasonable searches and seizures by the government.

Amy Howe, a reporter for SCOTUSblog.com, writes that the decision means police will generally need to get a warrant to obtain cell-site location information, a record of the cell towers (or other sites) with which a cellphone connected.

The ruling is no doubt a big win for privacy advocates, but many readers have been asking whether this case has any bearing on the sharing or selling of real-time customer location data by the mobile providers to third party companies. Last month, The New York times revealed that a company called Securus Technologies had been selling this highly sensitive real-time location information to local police forces across the United States, thanks to agreements the company had in place with the major mobile providers.

It soon emerged that Securus was getting its location data second-hand through a company called 3Cinteractive, which in turn was reselling data from California-based “location aggregator” LocationSmart. Roughly two weeks after The Times’ scoop, KrebsOnSecurity broke the news that anyone could look up the real time location data for virtually any phone number assigned by the major carriers, using a buggy try-before-you-buy demo page that LocationSmart had made available online for years to showcase its technology.

Since those scandals broke, LocationSmart disabled its promiscuous demo page. More importantly, AT&T, Sprint, T-Mobile and Verizon all have said they are now in the process of terminating agreements with third-parties to share this real-time location data.

Still, there is no law preventing the mobile providers from hashing out new deals to sell this data going forward, and many readers here have expressed concerns that the carriers can and eventually will do exactly that.

So the question is: Does today’s Supreme Court ruling have any bearing whatsoever on mobile providers sharing location data with private companies?

According to SCOTUSblog’s Howe, the answer is probably “no.”

“[Justice] Roberts emphasized that today’s ruling ‘is a narrow one’ that applies only to cell-site location records,” Howe writes. “He took pains to point out that the ruling did not ‘express a view on matters not before us’ – such as obtaining cell-site location records in real time, or getting information about all of the phones that connected to a particular tower at a particular time. He acknowledged that law-enforcement officials might still be able to obtain cell-site location records without a warrant in emergencies, to deal with ‘bomb threats, active shootings, and child abductions.'” Continue reading →


19
Jun 18

AT&T, Sprint, Verizon to Stop Sharing Customer Location Data With Third Parties

In the wake of a scandal involving third-party companies leaking or selling precise, real-time location data on virtually all Americans who own a mobile phone, AT&T, Sprint and Verizon now say they are terminating location data sharing agreements with third parties.

At issue are companies known in the wireless industry as “location aggregators,” entities that manage requests for real-time customer location data for a variety of purposes, such as roadside assistance and emergency response. These aggregators are supposed to obtain customer consent before divulging such information, but several recent incidents show that this third-party trust model is fundamentally broken.

On May 10, 2018, The New York Times broke the story that a little-known data broker named Securus was selling local police forces around the country the ability to look up the precise location of any cell phone across all of the major U.S. mobile networks.

Then it emerged that Securus had been hacked, its database of hundreds of law enforcement officer usernames and passwords plundered. We also learned that Securus’ data was ultimately obtained from a company called 3Cinteractive, which in turn obtained its data through a California-based location tracking firm called LocationSmart.

On May 17, KrebsOnSecurity broke the news of research by Carnegie Mellon University PhD student Robert Xiao, who discovered that a LocationSmart try-before-you-buy opt-in demo of the company’s technology was wide open — allowing real-time lookups from anyone on anyone’s mobile device — without any sort of authentication, consent or authorization.

LocationSmart disabled its demo page shortly after that story. By that time, Sen. Ron Wyden (D-Ore.) had already sent letters to AT&T, Sprint, T-Mobile and Verizon, asking them to detail any agreements to share real-time customer location data with third-party data aggregation firms.

AT&T, T-Mobile and Verizon all said they had terminated data-sharing agreements with Securus. In a written response (PDF) to Sen. Wyden, Sprint declined to share any information about third-parties with which it may share customer location data, and it was the only one of the four carriers that didn’t say it was terminating any data-sharing agreements.

T-Mobile and Verizon each said they both share real-time customer data with two companies — LocationSmart and another firm called Zumigo, noting that these companies in turn provide services to a total of approximately 75 other customers.

Verizon emphasized that Zumigo — unlike LocationSmart — has never offered any kind of mobile location information demo service via its site. Nevertheless, Verizon said it had decided to terminate its current location aggregation arrangements with both LocationSmart and Zumigo.

“Verizon has notified these location aggregators that it intends to terminate their ability to access and use our customers’ location data as soon as possible,” wrote Karen Zacharia, Verizon’s chief privacy officer. “We recognize that location information can provide many pro-consumer benefits. But our review of our location aggregator program has led to a number of internal questions about how best to protect our customers’ data. We will not enter into new location aggregation arrangements unless and until we are comfortable that we can adequately protect our customers’ location data through technological advancements and/or other practices.”

In its response (PDF), AT&T made no mention of any other company besides Securus. AT&T indicated it had no intention to stop sharing real-time location data with third-parties, stating that “without an aggregator, there would be no practical and efficient method to facilitate requests across different carriers.”

Sen. Wyden issued a statement today calling on all wireless companies to follow Verizon’s lead.

“Verizon deserves credit for taking quick action to protect its customers’ privacy and security,” Wyden said. “After my investigation and follow-up reports revealed that middlemen are selling Americans’ location to the highest bidder without their consent, or making it available on insecure web portals, Verizon did the responsible thing and promptly announced it was cutting these companies off. In contrast, AT&T, T-Mobile, and Sprint seem content to continuing to sell their customers’ private information to these shady middle men, Americans’ privacy be damned.”

Update, 5:20 p.m. ET: Shortly after Verizon’s letter became public, AT&T and Sprint have now said they, too, will start terminating agreements to share customer location data with third parties.

“Based on our current internal review, Sprint is beginning the process of terminating its current contracts with data aggregators to whom we provide location data,” the company said in an emailed statement. “This will take some time in order to unwind services to consumers, such as roadside assistance and fraud prevention services. Sprint previously suspended all data sharing with LocationSmart on May 25, 2018. We are taking this further step to ensure that any instances of unauthorized location data sharing for purposes not approved by Sprint can be identified and prevented if location data is shared inappropriately by a participating company.”

AT&T today also issued a statement: “Our top priority is to protect our customers’ information, and, to that end, we will be ending our work with aggregators for these services as soon as practical in a way that preserves important, potential lifesaving services like emergency roadside assistance.”

KrebsOnSecurity asked T-Mobile if the company planned to follow suit, and was referred to a tweet today from T-Mobile CEO John Legere, who wrote: “I’ve personally evaluated this issue & have pledged that T-Mobile will not sell customer location data to shady middlemen.” In a follow-up statement shared by T-Mobile, the company said, “We ended all transmission of customer data to Securus and we are terminating our location aggregator agreements.

Continue reading →


26
May 18

Why Is Your Location Data No Longer Private?

The past month has seen one blockbuster revelation after another about how our mobile phone and broadband providers have been leaking highly sensitive customer information, including real-time location data and customer account details. In the wake of these consumer privacy debacles, many are left wondering who’s responsible for policing these industries? How exactly did we get to this point? What prospects are there for changes to address this national privacy crisis at the legislative and regulatory levels? These are some of the questions we’ll explore in this article.

In 2015, the Federal Communications Commission under the Obama Administration reclassified broadband Internet companies as telecommunications providers, which gave the agency authority to regulate broadband providers the same way as telephone companies.

The FCC also came up with so-called “net neutrality” rules designed to prohibit Internet providers from blocking or slowing down traffic, or from offering “fast lane” access to companies willing to pay extra for certain content or for higher quality service.

In mid-2016, the FCC adopted new privacy rules for all Internet providers that would have required providers to seek opt-in permission from customers before collecting, storing, sharing and selling anything that might be considered sensitive — including Web browsing, application usage and location information, as well as financial and health data.

But the Obama administration’s new FCC privacy rules didn’t become final until December 2016, a month after then President-elect Trump was welcomed into office by a Republican controlled House and Senate.

Congress still had 90 legislative days (when lawmakers are physically in session) to pass a resolution killing the privacy regulations, and on March 23, 2017 the Senate voted 50-48 to repeal them. Approval of the repeal in the House passed quickly thereafter, and President Trump officially signed it on April 3, 2017.

In an op-ed published in The Washington Post, Ajit Pai — a former Verizon lawyer and President Trump’s pick to lead the FCC — said “despite hyperventilating headlines, Internet service providers have never planned to sell your individual browsing history to third parties.”

FCC Commissioner Ajit Pai.

“That’s simply not how online advertising works,” Pai wrote. “And doing so would violate ISPs’ privacy promises. Second, Congress’s decision last week didn’t remove existing privacy protections; it simply cleared the way for us to work together to reinstate a rational and effective system for protecting consumer privacy.”

Sen. Bill Nelson (D-Fla.) came to a different conclusion, predicting that the repeal of the FCC privacy rules would allow broadband providers to collect and sell a “gold mine of data” about customers.

“Your mobile broadband provider knows how you move about your day through information about your geolocation and internet activity through your mobile device,” Nelson said. The Senate resolution “will take consumers out of this driver’s seat and place the collection and use of their information behind a veil of secrecy.”

Meanwhile, pressure was building on the now Republican-controlled FCC to repeal the previous administration’s net neutrality rules. The major ISPs and mobile providers claimed the new regulations put them at a disadvantage relative to competitors that were not regulated by the FCC, such as Amazon, Apple, Facebook and Google.

On Dec. 14, 2017, FCC Chairman Pai joined two other Republic FCC commissioners in a 3-2 vote to dismantle the net neutrality regulations.

As The New York Times observed after the net neutrality repeal, “the commission’s chairman, Ajit Pai, vigorously defended the repeal before the vote. He said the rollback of the rules would eventually benefit consumers because broadband providers like AT&T and Comcast could offer them a wider variety of service options.”

“We are helping consumers and promoting competition,” Mr. Pai said. “Broadband providers will have more incentive to build networks, especially to underserved areas.”

MORE OR LESS CHOICE?

Some might argue we’ve seen reduced competition and more industry consolidation since the FCC repealed the rules. Major broadband and mobile provider AT&T and cable/entertainment giant Time Warner are now fighting the Justice Department in a bid to merge. Two of the four-largest mobile telecom and broadband providers — T-Mobile and Sprint — have announced plans for a $26 billion merger.

The FCC privacy rules from 2016 that were overturned by Congress sought to give consumers more choice about how their data was to be used, stored and shared. But consumers now have less “choice” than ever about how their mobile provider shares their data and with whom. Worse, the mobile and broadband providers themselves are failing to secure their own customers’ data.

This month, it emerged that the major mobile providers have been giving commercial third-parties the ability to instantly look up the precise location of any mobile subscriber in real time. KrebsOnSecurity broke the news that one of these third parties — LocationSmartleaked this ability for years to anyone via a buggy component on its Web site.

LocationSmart’s demo page featured a buggy component which allowed anyone to look up anyone else’s mobile device location, in real time, and without consent.

We also learned that another California company — Securus Technologies — was selling real-time location lookups to a number of state and local law enforcement agencies, and that accounts for dozens of those law enforcement officers were obtained by hackers.  Securus, it turned out, was ultimately getting its data from LocationSmart.

This week, researchers discovered that a bug in T-Mobile’s Web site let anyone access the personal account details of any customer with just their cell phone number, including full name, address, account number and some cases tax ID numbers.

Not to be outdone, Comcast was revealed to have exposed sensitive information on customers through a buggy component of its Web site that could be tricked into displaying the home address where the company’s wireless router is located, as well as the router’s Wi-Fi name and password.

It’s not clear how FCC Chairman Pai intends to “reinstate a rational and effective system for protecting consumer privacy,” as he pledged after voting last year to overturn the 2015 privacy rules. The FCC reportedly has taken at least tentative steps to open an inquiry into the LocationSmart debacle, although Sen. Ron Wyden (D-Ore.) has called on Chairman Pai to recuse himself on the inquiry because Pai once represented Securus as an attorney. (Wyden also had some choice words for the wireless companies).

The major wireless carriers all say they do not share customer location data without customer consent or in response to a court order or subpoena. Consent. All of these carriers pointed me to their privacy policies. It could be the carriers believe these policies clearly explain that simply by using their wireless device customers have opted-in to having their real-time location data sold or given to third-party companies.

Michelle De Mooy, director of the privacy and data project at the Center for Democracy & Technology (CDT), said if the mobile giants are burying that disclosure in privacy policy legalese, that’s just not good enough.

“Even if they say, ‘Our privacy policy says we can do this,’ it violates peoples’ reasonable expectations of when and why their location data is being collected and how that’s going to be used. It’s not okay to simply point to your privacy policies and expect that to be enough.”

Continue reading →


22
May 18

Mobile Giants: Please Don’t Share the Where

Your mobile phone is giving away your approximate location all day long. This isn’t exactly a secret: It has to share this data with your mobile provider constantly to provide better call quality and to route any emergency 911 calls straight to your location. But now, the major mobile providers in the United States — AT&T, Sprint, T-Mobile and Verizon — are selling this location information to third party companies — in real time — without your consent or a court order, and with apparently zero accountability for how this data will be used, stored, shared or protected.

Think about what’s at stake in a world where anyone can track your location at any time and in real-time. Right now, to be free of constant tracking the only thing you can do is remove the SIM card from your mobile device never put it back in unless you want people to know where you are.

It may be tough to put a price on one’s location privacy, but here’s something of which you can be sure: The mobile carriers are selling data about where you are at any time, without your consent, to third-parties for probably far less than you might be willing to pay to secure it.

The problem is that as long as anyone but the phone companies and law enforcement agencies with a valid court order can access this data, it is always going to be at extremely high risk of being hacked, stolen and misused.

Consider just two recent examples. Earlier this month The New York Times reported that a little-known data broker named Securus was selling local police forces around the country the ability to look up the precise location of any cell phone across all of the major U.S. mobile networks. Then it emerged that Securus had been hacked, its database of hundreds of law enforcement officer usernames and passwords plundered. We also found out that Securus’ data was ultimately obtained from a California-based location tracking firm LocationSmart.

On May 17, KrebsOnSecurity broke the news of research by Carnegie Mellon University PhD student Robert Xiao, who discovered that a LocationSmart try-before-you-buy opt-in demo of the company’s technology was wide open — allowing real-time lookups from anyone on anyone’s mobile device — without any sort of authentication, consent or authorization.

Xiao said it took him all of about 15 minutes to discover that LocationSmart’s lookup tool could be used to track the location of virtually any mobile phone user in the United States.

Securus seems equally clueless about protecting the priceless data to which it was entrusted by LocationSmart. Over the weekend KrebsOnSecurity discovered that someone — almost certainly a security professional employed by Securus — has been uploading dozens of emails, PDFs, password lists and other files to Virustotal.com — a service owned by Google that can be used to scan any submitted file against dozens of commercial antivirus tools.

Antivirus companies willingly participate in Virustotal because it gives them early access to new, potentially malicious files being spewed by cybercriminals online. Virustotal users can submit suspicious files of all kind; in return they’ll see whether any of the 60+ antivirus tools think the file is bad or benign.

One basic rule that all Virustotal users need to understand is that any file submitted to Virustotal is also available to customers who purchase access to the service’s file repository. Nevertheless, for the past two years someone at Securus has been submitting a great deal of information about the company’s operations to Virustotal, including copies of internal emails and PDFs about visitation policies at a number of local and state prisons and jails that made up much of Securus’ business.

Some of the many, many files uploaded to Virustotal.com over the years by someone at Securus Technologies.

One of the files, submitted on April 27, 2018, is titled “38k user pass microsemi.com – joomla_production.mic_users_blockedData.txt”.  This file includes the names and what appear to be hashed/scrambled passwords of some 38,000 accounts — supposedly taken from Microsemi, a company that’s been called the largest U.S. commercial supplier of military and aerospace semiconductor equipment.

Many of the usernames in that file do map back to names of current and former employees at Microsemi. KrebsOnSecurity shared a copy of the database with Microsemi, but has not yet received a reply. Securus also has not responded to requests for comment.

These files that someone at Securus apparently submitted regularly to Virustotal also provide something of an internal roadmap of Securus’ business dealings, revealing the names and login pages for several police departments and jails across the country, such as the Travis County Jail site’s Web page to access Securus’ data.

Check out the screen shot below. Notice that forgot password link there? Clicking that prompts the visitor to enter their username and to select a “security question” to answer. There are but three questions: “What is your pet’s name? What is your favorite color? And what town were you born in?” There don’t appear to be any limits on the number of times one can attempt to answer a secret question.

Choose wisely and you, too, could gain the ability to look up anyone’s precise mobile location.

Given such robust, state-of-the-art security, how long do you think it would take for someone to figure out how to reset the password for any authorized user at Securus’ Travis County Jail portal?

Yes, companies like Securus and Location Smart have been careless with securing our prized location data, but why should they care if their paying customers are happy and the real-time data feeds from the mobile industry keep flowing?

No, the real blame for this sorry state of affairs comes down to AT&T, Sprint, T-Mobile and Verizon. T-Mobile was the only one of the four major providers that admitted providing Securus and LocationSmart with the ability to perform real-time location lookups on their customers. The other three carriers declined to confirm or deny that they did business with either company. Continue reading →


17
May 18

Tracking Firm LocationSmart Leaked Location Data for Customers of All Major U.S. Mobile Carriers Without Consent in Real Time Via Its Web Site

LocationSmart, a U.S. based company that acts as an aggregator of real-time data about the precise location of mobile phone devices, has been leaking this information to anyone via a buggy component of its Web site — without the need for any password or other form of authentication or authorization — KrebsOnSecurity has learned. The company took the vulnerable service offline early this afternoon after being contacted by KrebsOnSecurity, which verified that it could be used to reveal the location of any AT&T, Sprint, T-Mobile or Verizon phone in the United States to an accuracy of within a few hundred yards.

On May 10, The New York Times broke the news that a different cell phone location tracking company called Securus Technologies had been selling or giving away location data on customers of virtually any major mobile network provider to a sheriff’s office in Mississippi County, Mo.

On May 15, ZDnet.com ran a piece saying that Securus was getting its data through an intermediary — Carlsbad, CA-based LocationSmart.

Wednesday afternoon Motherboard published another bombshell: A hacker had broken into the servers of Securus and stolen 2,800 usernames, email addresses, phone numbers and hashed passwords of authorized Securus users. Most of the stolen credentials reportedly belonged to law enforcement officers across the country — stretching from 2011 up to this year.

Several hours before the Motherboard story went live, KrebsOnSecurity heard from Robert Xiao, a security researcher at Carnegie Mellon University who’d read the coverage of Securus and LocationSmart and had been poking around a demo tool that LocationSmart makes available on its Web site for potential customers to try out its mobile location technology.

LocationSmart’s demo is a free service that allows anyone to see the approximate location of their own mobile phone, just by entering their name, email address and phone number into a form on the site. LocationSmart then texts the phone number supplied by the user and requests permission to ping that device’s nearest cellular network tower.

Once that consent is obtained, LocationSmart texts the subscriber their approximate longitude and latitude, plotting the coordinates on a Google Street View map. [It also potentially collects and stores a great deal of technical data about your mobile device. For example, according to their privacy policy that information “may include, but is not limited to, device latitude/longitude, accuracy, heading, speed, and altitude, cell tower, Wi-Fi access point, or IP address information”].

But according to Xiao, a PhD candidate at CMU’s Human-Computer Interaction Institute, this same service failed to perform basic checks to prevent anonymous and unauthorized queries. Translation: Anyone with a modicum of knowledge about how Web sites work could abuse the LocationSmart demo site to figure out how to conduct mobile number location lookups at will, all without ever having to supply a password or other credentials.

“I stumbled upon this almost by accident, and it wasn’t terribly hard to do,” Xiao said. “This is something anyone could discover with minimal effort. And the gist of it is I can track most peoples’ cell phone without their consent.”

Xiao said his tests showed he could reliably query LocationSmart’s service to ping the cell phone tower closest to a subscriber’s mobile device. Xiao said he checked the mobile number of a friend several times over a few minutes while that friend was moving and found he was then able to plug the coordinates into Google Maps and track the friend’s directional movement.

“This is really creepy stuff,” Xiao said, adding that he’d also successfully tested the vulnerable service against one Telus Mobility mobile customer in Canada who volunteered to be found.

Before LocationSmart’s demo was taken offline today, KrebsOnSecurity pinged five different trusted sources, all of whom gave consent to have Xiao determine the whereabouts of their cell phones. Xiao was able to determine within a few seconds of querying the public LocationSmart service the near-exact location of the mobile phone belonging to all five of my sources.

LocationSmart’s demo page.

One of those sources said the longitude and latitude returned by Xiao’s queries came within 100 yards of their then-current location. Another source said the location found by the researcher was 1.5 miles away from his current location. The remaining three sources said the location returned for their phones was between approximately 1/5 to 1/3 of a mile at the time.

Reached for comment via phone, LocationSmart Founder and CEO Mario Proietti said the company was investigating.

“We don’t give away data,” Proietti said. “We make it available for legitimate and authorized purposes. It’s based on legitimate and authorized use of location data that only takes place on consent. We take privacy seriously and we’ll review all facts and look into them.”

LocationSmart’s home page features the corporate logos of all four the major wireless providers, as well as companies like Google, Neustar, ThreatMetrix, and U.S. Cellular. The company says its technologies help businesses keep track of remote employees and corporate assets, and that it helps mobile advertisers and marketers serve consumers with “geo-relevant promotions.”

LocationSmart’s home page lists many partners.

It’s not clear exactly how long LocationSmart has offered its demo service or for how long the service has been so permissive; this link from archive.org suggests it dates back to at least January 2017. This link from The Internet Archive suggests the service may have existed under a different company name — loc-aid.com — since mid-2011, but it’s unclear if that service used the same code. Loc-aid.com is one of four other sites hosted on the same server as locationsmart.com, according to Domaintools.com. Continue reading →


9
May 18

Think You’ve Got Your Credit Freezes Covered? Think Again.

I spent a few days last week speaking at and attending a conference on responding to identity theft. The forum was held in Florida, one of the major epicenters for identity fraud complaints in United States. One gripe I heard from several presenters was that identity thieves increasingly are finding ways to open new mobile phone accounts in the names of people who have already frozen their credit files with the big-three credit bureaus. Here’s a look at what may be going on, and how you can protect yourself.

Carrie Kerskie is director of the Identity Fraud Institute at Hodges University in Naples. A big part of her job is helping local residents respond to identity theft and fraud complaints. Kerskie said she’s had multiple victims in her area recently complain of having cell phone accounts opened in their names even though they had already frozen their credit files at the big three credit bureausEquifax, Experian and Trans Union (as well as distant fourth bureau Innovis).

The freeze process is designed so that a creditor should not be able to see your credit file unless you unfreeze the account. A credit freeze blocks potential creditors from being able to view or “pull” your credit file, making it far more difficult for identity thieves to apply for new lines of credit in your name.

But Kerskie’s investigation revealed that the mobile phone merchants weren’t asking any of the four credit bureaus mentioned above. Rather, the mobile providers were making credit queries with the National Consumer Telecommunications and Utilities Exchange (NCTUE), or nctue.com.

Source: nctue.com

“We’re finding that a lot of phone carriers — even some of the larger ones — are relying on NCTUE for credit checks,” Kerskie said. “It’s mainly phone carriers, but utilities, power, water, cable, any of those, they’re all starting to use this more.”

The NCTUE is a consumer reporting agency founded by AT&T in 1997 that maintains data such as payment and account history, reported by telecommunication, pay TV and utility service providers that are members of NCTUE.

Who are the NCTUE’s members? If you call the 800-number that NCTUE makes available to get a free copy of your NCTUE credit report, the option for “more information” about the organization says there are four “exchanges” that feed into the NCTUE’s system: the NCTUE itself; something called “Centralized Credit Check Systems“; the New York Data Exchange; and the California Utility Exchange.

According to a partner solutions page at Verizon, the New York Data Exchange is a not-for-profit entity created in 1996 that provides participating exchange carriers with access to local telecommunications service arrears (accounts that are unpaid) and final account information on residential end user accounts.

The NYDE is operated by Equifax Credit Information Services Inc. (yes, that Equifax). Verizon is one of many telecom providers that use the NYDE (and recall that AT&T was the founder of NCTUE).

The California Utility Exchange collects customer payment data from dozens of local utilities in the state, and also is operated by Equifax (Equifax Information Services LLC).

Google has virtually no useful information available about an entity called Centralized Credit Check Systems. It’s possible it no longer exists. If anyone finds differently, please leave a note in the comments section.

When I did some more digging on the NCTUE, I discovered…wait for it…Equifax also is the sole contractor that manages the NCTUE database. The entity’s site is also hosted out of Equifax’s servers. Equifax’s current contract to provide this service expires in 2020, according to a press release posted in 2015 by Equifax. Continue reading →