Posts Tagged: Visa


30
Jul 20

Is Your Chip Card Secure? Much Depends on Where You Bank

Chip-based credit and debit cards are designed to make it infeasible for skimming devices or malware to clone your card when you pay for something by dipping the chip instead of swiping the stripe. But a recent series of malware attacks on U.S.-based merchants suggest thieves are exploiting weaknesses in how certain financial institutions have implemented the technology to sidestep key chip card security features and effectively create usable, counterfeit cards.

A chip-based credit card. Image: Wikipedia.

Traditional payment cards encode cardholder account data in plain text on a magnetic stripe, which can be read and recorded by skimming devices or malicious software surreptitiously installed in payment terminals. That data can then be encoded onto anything else with a magnetic stripe and used to place fraudulent transactions.

Newer, chip-based cards employ a technology known as EMV that encrypts the account data stored in the chip. The technology causes a unique encryption key — referred to as a token or “cryptogram” — to be generated each time the chip card interacts with a chip-capable payment terminal.

Virtually all chip-based cards still have much of the same data that’s stored in the chip encoded on a magnetic stripe on the back of the card. This is largely for reasons of backward compatibility since many merchants — particularly those in the United States — still have not fully implemented chip card readers. This dual functionality also allows cardholders to swipe the stripe if for some reason the card’s chip or a merchant’s EMV-enabled terminal has malfunctioned.

But there are important differences between the cardholder data stored on EMV chips versus magnetic stripes. One of those is a component in the chip known as an integrated circuit card verification value or “iCVV” for short — also known as a “dynamic CVV.”

The iCVV differs from the card verification value (CVV) stored on the physical magnetic stripe, and protects against the copying of magnetic-stripe data from the chip and the use of that data to create counterfeit magnetic stripe cards. Both the iCVV and CVV values are unrelated to the three-digit security code that is visibly printed on the back of a card, which is used mainly for e-commerce transactions or for card verification over the phone.

The appeal of the EMV approach is that even if a skimmer or malware manages to intercept the transaction information when a chip card is dipped, the data is only valid for that one transaction and should not allow thieves to conduct fraudulent payments with it going forward.

However, for EMV’s security protections to work, the back-end systems deployed by card-issuing financial institutions are supposed to check that when a chip card is dipped into a chip reader, only the iCVV is presented; and conversely, that only the CVV is presented when the card is swiped. If somehow these do not align for a given transaction type, the financial institution is supposed to decline the transaction.

The trouble is that not all financial institutions have properly set up their systems this way. Unsurprisingly, thieves have known about this weakness for years. In 2017, I wrote about the increasing prevalence of “shimmers,” high-tech card skimming devices made to intercept data from chip card transactions.

A close-up of a shimmer found on a Canadian ATM. Source: RCMP.

More recently, researchers at Cyber R&D Labs published a paper detailing how they tested 11 chip card implementations from 10 different banks in Europe and the U.S. The researchers found they could harvest data from four of them and create cloned magnetic stripe cards that were successfully used to place transactions.

There are now strong indications the same method detailed by Cyber R&D Labs is being used by point-of-sale (POS) malware to capture EMV transaction data that can then be resold and used to fabricate magnetic stripe copies of chip-based cards.

Earlier this month, the world’s largest payment card network Visa released a security alert regarding a recent merchant compromise in which known POS malware families were apparently modified to target EMV chip-enabled POS terminals.

“The implementation of secure acceptance technology, such as EMV® Chip, significantly reduced the usability of the payment account data by threat actors as the available data only included personal account number (PAN), integrated circuit card verification value (iCVV) and expiration date,” Visa wrote. “Thus, provided iCVV is validated properly, the risk of counterfeit fraud was minimal. Additionally, many of the merchant locations employed point-to-point encryption (P2PE) which encrypted the PAN data and further reduced the risk to the payment accounts processed as EMV® Chip.”

Visa did not name the merchant in question, but something similar seems to have happened at Key Food Stores Co-Operative Inc., a supermarket chain in the northeastern United States. Key Food initially disclosed a card breach in March 2020, but two weeks ago updated its advisory to clarify that EMV transaction data also was intercepted.

“The POS devices at the store locations involved were EMV enabled,” Key Food explained. “For EMV transactions at these locations, we believe only the card number and expiration date would have been found by the malware (but not the cardholder name or internal verification code).”

While Key Food’s statement may be technically accurate, it glosses over the reality that the stolen EMV data could still be used by fraudsters to create magnetic stripe versions of EMV cards presented at the compromised store registers in cases where the card-issuing bank hadn’t implemented EMV correctly. Continue reading →


29
Jul 20

Here’s Why Credit Card Fraud is Still a Thing

Most of the civilized world years ago shifted to requiring computer chips in payment cards that make it far more expensive and difficult for thieves to clone and use them for fraud. One notable exception is the United States, which is still lurching toward this goal. Here’s a look at the havoc that lag has wrought, as seen through the purchasing patterns at one of the underground’s biggest stolen card shops that was hacked last year.

In October 2019, someone hacked BriansClub, a popular stolen card bazaar that uses this author’s likeness and name in its marketing. Whoever compromised the shop siphoned data on millions of card accounts that were acquired over four years through various illicit means from legitimate, hacked businesses around the globe — but mostly from U.S. merchants. That database was leaked to KrebsOnSecurity, which in turn shared it with multiple sources that help fight payment card fraud.

An ad for BriansClub has been using my name and likeness for years to peddle millions of stolen credit cards.

Among the recipients was Damon McCoy, an associate professor at New York University’s Tandon School of Engineering [full disclosure: NYU has been a longtime advertiser on this blog]. McCoy’s work in probing the credit card systems used by some of the world’s biggest purveyors of junk email greatly enriched the data that informed my 2014 book Spam Nation, and I wanted to make sure he and his colleagues had a crack at the BriansClub data as well.

McCoy and fellow NYU researchers found BriansClub earned close to $104 million in gross revenue from 2015 to early 2019, and listed over 19 million unique card numbers for sale. Around 97% of the inventory was stolen magnetic stripe data, commonly used to produce counterfeit cards for in-person payments.

“What surprised me most was there are still a lot of people swiping their cards for transactions here,” McCoy said.

In 2015, the major credit card associations instituted new rules that made it riskier and potentially more expensive for U.S. merchants to continue allowing customers to swipe the stripe instead of dip the chip. Complicating this transition was the fact that many card-issuing U.S. banks took years to replace their customer card stocks with chip-enabled cards, and countless retailers dragged their feet in updating their payment terminals to accept chip-based cards.

Indeed, three years later the U.S. Federal Reserve estimated (PDF) that 43.3 percent of in-person card payments were still being processed by reading the magnetic stripe instead of the chip. This might not have been such a big deal if payment terminals at many of those merchants weren’t also compromised with malicious software that copied the data when customers swiped their cards.

Following the 2015 liability shift, more than 84 percent of the non-chip cards advertised by BriansClub were sold, versus just 35 percent of chip-based cards during the same time period.

“All cards without a chip were in much higher demand,” McCoy said.

Perhaps surprisingly, McCoy and his fellow NYU researchers found BriansClub customers purchased only 40% of its overall inventory. But what they did buy supports the notion that crooks generally gravitate toward cards issued by financial institutions that are perceived as having fewer or more lax protections against fraud.

Source: NYU.

While the top 10 largest card issuers in the United States accounted for nearly half of the accounts put up for sale at BriansClub, only 32 percent of those accounts were sold — and at a roughly half the median price of those issued by small- and medium-sized institutions.

In contrast, more than half of the stolen cards issued by small and medium-sized institutions were purchased from the fraud shop. This was true even though by the end of 2018, 91 percent of cards for sale from medium-sized institutions were chip-based, and 89 percent from smaller banks and credit unions. Nearly all cards issued by the top ten largest U.S. card issuers (98 percent) were chip-enabled by that time.

REGION LOCK

The researchers found BriansClub customers strongly preferred cards issued by financial institutions in specific regions of the United States, specifically Colorado, Nevada, and South Carolina.

“For whatever reason, those regions were perceived as having lower anti-fraud systems or those that were not as effective,” McCoy said.

Cards compromised from merchants in South Carolina were in especially high demand, with fraudsters willing to spend twice as much on those cards per capita than any other state — roughly $1 per resident.

That sales trend also was reflected in the support tickets filed by BriansClub customers, who frequently were informed that cards tied to the southeastern United States were less likely to be restricted for use outside of the region.

Image: NYU.

McCoy said the lack of region locking also made stolen cards issued by banks in China something of a hot commodity, even though these cards demanded much higher prices (often more than $100 per account): The NYU researchers found virtually all available Chinese cards were sold soon after they were put up for sale. Ditto for the relatively few corporate and business cards for sale.

A lack of region locks may also have caused card thieves to gravitate toward buying up as many cards as they could from USAA, a savings bank that caters to active and former military service members and their immediate families. More than 83 percent of the available USAA cards were sold between 2015 and 2019, the researchers found.

Although Visa cards made up more than half of accounts put up for sale (12.1 million), just 36 percent were sold. MasterCards were the second most-plentiful (3.72 million), and yet more than 54 percent of them sold.

American Express and Discover, which unlike Visa and MasterCard are so-called “closed loop” networks that do not rely on third-party financial institutions to issue cards and manage fraud on them, saw 28.8 percent and 33 percent of their stolen cards purchased, respectively. Continue reading →


28
Jan 20

Wawa Breach May Have Compromised More Than 30 Million Payment Cards

In late December 2019, fuel and convenience store chain Wawa Inc. said a nine-month-long breach of its payment card processing systems may have led to the theft of card data from customers who visited any of its 850 locations nationwide. Now, fraud experts say the first batch of card data stolen from Wawa customers is being sold at one of the underground’s most popular crime shops, which claims to have 30 million records to peddle from a new nationwide breach.

On the evening of Monday, Jan. 27, a popular fraud bazaar known as Joker’s Stash began selling card data from “a new huge nationwide breach” that purportedly includes more than 30 million card accounts issued by thousands of financial institutions across 40+ U.S. states.

The fraud bazaar Joker’s Stash on Monday began selling some 30 million stolen payment card accounts that experts say have been tied back to a breach at Wawa in 2019.

Two sources that work closely with financial institutions nationwide tell KrebsOnSecurity the new batch of cards that went on sale Monday evening — dubbed “BIGBADABOOM-III” by Joker’s Stash — map squarely back to cardholder purchases at Wawa.

On Dec. 19, 2019, Wawa sent a notice to customers saying the company had discovered card-stealing malware installed on in-store payment processing systems and fuel dispensers at potentially all Wawa locations.

Pennsylvania-based Wawa says it discovered the intrusion on Dec. 10 and contained the breach by Dec. 12, but that the malware was thought to have been installed more than nine months earlier, around March 4. The exposed information includes debit and credit card numbers, expiration dates, and cardholder names. Wawa said the breach did not expose personal identification numbers (PINs) or CVV records (the three-digit security code printed on the back of a payment card).

A spokesperson for Wawa confirmed that the company today became aware of reports of criminal attempts to sell some customer payment card information potentially involved in the data security incident announced by Wawa on December 19, 2019.

“We have alerted our payment card processor, payment card brands, and card issuers to heighten fraud monitoring activities to help further protect any customer information,” Wawa said in a statement released to KrebsOnSecurity. “We continue to work closely with federal law enforcement in connection with their ongoing investigation to determine the scope of the disclosure of Wawa-specific customer payment card data.”

“We continue to encourage our customers to remain vigilant in reviewing charges on their payment card statements and to promptly report any unauthorized use to the bank or financial institution that issued their payment card by calling the number on the back of the card,” the statement continues. “Under federal law and card company rules, customers who notify their payment card issuer in a timely manner of fraudulent charges will not be responsible for those charges. In the unlikely event any individual customer who has promptly notified their card issuer of fraudulent charges related to this incident is not reimbursed, Wawa will work with them to reimburse them for those charges.”

Gemini Advisory, a New York-based fraud intelligence company, said the biggest concentrations of stolen cards for sale in the BIGBADABOOM-III batch map back to Wawa customer card use in Florida and Pennsylvania, the two most populous states where Wawa operates. Wawa also has locations in Delaware, Maryland, New Jersey, Virginia and the District of Columbia.

According to Gemini, Joker’s Stash has so far released only a small portion of the claimed 30 million. However, this is not an uncommon practice: Releasing too many stolen cards for sale at once tends to have the effect of depressing the overall price of stolen cards across the underground market.

“Based on Gemini’s analysis, the initial set of bases linked to “BIGBADABOOM-III” consisted of nearly 100,000 records,” Gemini observed. “While the majority of those records were from US banks and were linked to US-based cardholders, some records also linked to cardholders from Latin America, Europe, and several Asian countries. Non-US-based cardholders likely fell victim to this breach when traveling to the United States and utilizing Wawa gas stations during the period of exposure.”

Gemini’s director of research Stas Alforov stressed that some of the 30 million cards advertised for sale as part of this BIGBADABOOM batch may in fact be sourced from breaches at other retailers, something Joker’s Stash has been known to do in previous large batches.

Gemini monitors multiple carding sites like Joker’s Stash. The company found the median price of U.S.-issued records in the new Joker’s Stash batch is currently $17, with some of the international records priced as high as $210 per card.

“Apart from banks with a nationwide presence, only financial institutions along the East Coast had significant exposure,” Gemini concluded.

Representatives from MasterCard did not respond to requests for comment. Visa declined to comment for this story, but pointed to a series of alerts it issued in November and December 2019 about cybercrime groups increasingly targeting fuel dispenser merchants. Continue reading →


29
Oct 19

Takeaways from the $566M BriansClub breach

Reporting on the exposure of some 26 million stolen credit cards leaked from a top underground cybercrime store highlighted some persistent and hard truths. Most notably, that the world’s largest financial institutions tend to have a much better idea of which merchants and bank cards have been breached than do the thousands of smaller banks and credit unions across the United States. Also, a great deal of cybercrime seems to be perpetrated by a relatively small number of people.

In September, an anonymous source sent KrebsOnSecurity a link to a nearly 10 gb set of files that included data for approximately 26 million credit and debit cards stolen from hundreds — if not thousands — of hacked online and brick-and-mortar businesses over the past four years.

The data was taken from BriansClub, an underground “carding” store that has (ab)used this author’s name, likeness and reputation in its advertising since 2015. The card accounts were stolen by hackers or “resellers” who make a living breaking into payment card systems online and in the real world. Those resellers then share the revenue from any cards sold through BriansClub.

KrebsOnSecurity shared a copy of the BriansClub card database with Gemini Advisory, a New York-based company that monitors BriansClub and dozens of other carding shops to learn when new cards are added.

Gemini estimates that the 26 million cards — 46 percent credit cards and 54 percent debit cards — represent almost one-third of the existing 87 million credit and debit card accounts currently for sale in the underground.

“While many of these cards were added in previous years, more than 21.6 million will not expire until after October 2019, offering cybercriminal buyers ample opportunity to cash out these records,” Gemini wrote in an analysis of the BriansClub data shared with this author.

Cards stolen from U.S. residents made up the bulk of the data set (~24 million of the 26+ million cards), and as a result these far more plentiful cards were priced much lower than cards from banks outside the U.S. Between 2016 and 2019, cards stolen from U.S.-based bank customers fetched between $12.76 and $16.80 apiece, while non-U.S. cards were priced between $17.04 and $35.70 during the same period.

Image: Gemini Advisory.

Unfortunately for cybercrime investigators, the person who hacked BriansClub has not released (at least not to this author) any information about the BriansClub users, payments, vendors or resellers. [Side note: This hasn’t stopped an unscrupulous huckster from approaching several of my financial industry sources with unlikely offers of said data in exchange for bitcoin].

But the database does have records of which cards were sold and which resellers (identified only by a unique number) supplied those cards, Gemini found.

“While neither the vendor nor the buyer usernames appeared in this database, they were each assigned ID numbers,” Gemini wrote. “This allowed analysts to determine how prolific certain threat actors were on BriansClub and derive relevant metrics from this data.”

According to Gemini, there were 142 resellers and more than 50,000 buyers of the card data sold through BriansClub. These buyers purchased at least 9 million of the 27.2 million cards available. Continue reading →


17
Aug 18

Indian Bank Hit in $13.5M Cyberheist After FBI ATM Cashout Warning

On Sunday, Aug. 12, KrebsOnSecurity carried an exclusive: The FBI was warning banks about an imminent “ATM cashout” scheme about to unfold across the globe, thanks to a data breach at an unknown financial institution. On Aug. 14, a bank in India disclosed hackers had broken into its servers, stealing nearly $2 million in fraudulent bank transfers and $11.5 million unauthorized ATM withdrawals from cash machines in more than two dozen countries.

The FBI put out its alert on Friday, Aug. 10. The criminals who hacked into Pune, India-based Cosmos Bank executed their two-pronged heist the following day, sending co-conspirators to fan out and withdraw a total of about $11.5 million from ATMs in 28 countries.

The FBI warned it had intelligence indicating that criminals had breached an unknown payment provider’s network with malware to access bank customer card information and exploit network access, enabling large scale theft of funds from ATMs.

Organized cybercrime gangs that coordinate these so-called “unlimited attacks” typically do so by hacking or phishing their way into a bank or payment card processor. Just prior to executing on ATM cashouts, the intruders will remove many fraud controls at the financial institution, such as maximum withdrawal amounts and any limits on the number of customer ATM transactions daily.

The perpetrators alter account balances and security measures to make an unlimited amount of money available at the time of the transactions, allowing for large amounts of cash to be quickly removed from the ATM.

My story about the FBI alert was breaking news on Sunday, but it was just a day short of useful to financial institutions impacted by the breach and associated ATM cashout blitz.

But according to Indian news outlet Dailypionneer.com, there was a second attack carried out on August 13, when the Cosmos Bank hackers transferred nearly $2 million to the account of ALM Trading Limited at Hang Seng Bank in Hong Kong.

“The bank came to know about the malware attack on its debit card payment system on August 11, when it was observed that unusually repeated transactions were taking place through ATM VISA and Rupay Card for nearly two hours,” writes TN Raghunatha for the Daily Pioneer. Continue reading →


26
Jun 18

How to Avoid Card Skimmers at the Pump

Previous stories here on the proliferation of card-skimming devices hidden inside fuel pumps have offered a multitude of security tips for readers looking to minimize their chances of becoming the next victim, such as favoring filling stations that use security cameras and tamper-evident tape on their pumps. But according to police in San Antonio, Texas, there are far more reliable ways to avoid getting skimmed at a fuel station.

San Antonio, like most major U.S. cities, is grappling with a surge in pump skimming scams. So far in 2018, the San Antonio Police Department (SAPD) has found more than 100 skimming devices in area fuel pumps, and that figure already eclipses the total number of skimmers found in the area in 2017. The skimmers are hidden inside of the pumps, and there are often few if any outward signs that a pump has been compromised.

In virtually all cases investigated by the SAPD, the incidents occurred at filling stations using older-model pumps that have not yet been upgraded with physical and digital security features which make it far more difficult for skimmer thieves to tamper with fuel pumps and siphon customer card data (and PINs from debit card users).

Lt. Marcus Booth is the financial crimes unit director for the SAPD. Booth said most filling stations in San Antonio and elsewhere use legacy pumps that have a vertical card reader and a flat, membrane-based keypad. In addition, access to the insides of these older pumps frequently is secured via a master key that opens not only all pumps at a given station, but in many cases all pumps of a given model made by the same manufacturer.

Older model fuel pumps like this one feature a flat, membrane-based keypad and vertical card reader. Image: SAPD.

In contrast, Booth said, newer and more secure pumps typically feature a horizontal card acceptance slot along with a raised metallic keypad — much like a traditional payphone keypad and referred to in the fuel industry as a “full travel” keypad:

Newer, more tamper-resistant fuel pumps include raised metallic keypads (known in the industry as “full travel” keypads), horizontal card readers and custom locks for each pump.

Booth said the SAPD has yet to see a skimming incident involving newer pump models like the one pictured directly above.

“Here in San Antonio, many of these stations with these older keypads and card slots were getting hit all the time, sometimes weekly,” he said. “But as soon as those went over to newer gear, we’ve seen zero problems.”

According to Booth, the newer pumps include not only custom keys for each pump, but also tamper protections that physically shut down a pump if the machine is improperly accessed. What’s more, these more advanced pumps do a better job of compartmentalizing individual components, very often enclosing the electronics that serve the card reader and keypad in separately secured metal cages.

“Pretty much all these full travel metallic keypads are encrypted, and if you disconnect them they disable themselves and can only be re-enabled by technician,” Booth told KrebsOnSecurity. “Also, if the pump is opened improperly, it disables itself. These two specific items: The card reader or the pad, if you pull power to them they’re dead, and then they can only be re-enabled by an authorized technician.”

Newer pumps may also include more modern mobile payment options — such as Apple Pay — although many stations with pumps that advertise this capability have not yet enabled it, which allows customers to pay for fuel without ever sharing their credit or debit card account details with the fuel station. Continue reading →


26
Sep 17

Breach at Sonic Drive-In May Have Impacted Millions of Credit, Debit Cards

Sonic Drive-In, a fast-food chain with nearly 3,600 locations across 45 U.S. states, has acknowledged a breach affecting an unknown number of store payment systems. The ongoing breach may have led to a fire sale on millions of stolen credit and debit card accounts that are now being peddled in shadowy underground cybercrime stores, KrebsOnSecurity has learned.

sonicdrivein

The first hints of a breach at Oklahoma City-based Sonic came last week when I began hearing from sources at multiple financial institutions who noticed a recent pattern of fraudulent transactions on cards that had all previously been used at Sonic.

I directed several of these banking industry sources to have a look at a brand new batch of some five million credit and debit card accounts that were first put up for sale on Sept. 18 in a credit card theft bazaar previously featured here called Joker’s Stash:

This batch of some five million cards put up for sale Sept. 26, 2017 on the popular carding site Joker's Stash has been tied to a breach at Sonic Drive-In

This batch of some five million cards put up for sale today (Sept. 26, 2017) on the popular carding site Joker’s Stash has been tied to a breach at Sonic Drive-In. The first batch of these cards appear to have been uploaded for sale on Sept. 15.

Sure enough, two sources who agreed to purchase a handful of cards from that batch of accounts on sale at Joker’s discovered they all had been recently used at Sonic locations.

Armed with this information, I phoned Sonic, which responded within an hour that it was indeed investigating “a potential incident” at some Sonic locations.

“Our credit card processor informed us last week of unusual activity regarding credit cards used at SONIC,” reads a statement the company issued to KrebsOnSecurity. “The security of our guests’ information is very important to SONIC. We are working to understand the nature and scope of this issue, as we know how important this is to our guests. We immediately engaged third-party forensic experts and law enforcement when we heard from our processor. While law enforcement limits the information we can share, we will communicate additional information as we are able.”

Christi Woodworth, vice president of public relations at Sonic, said the investigation is still in its early stages, and the company does not yet know how many or which of its stores may be impacted.

The accounts apparently stolen from Sonic are part of a batch of cards that Joker’s Stash is calling “Firetigerrr,” and they are indexed by city, state and ZIP code. This geographic specificity allows potential buyers to purchase only cards that were stolen from Sonic customers who live near them, thus avoiding a common anti-fraud defense in which a financial institution might block out-of-state transactions from a known compromised card. Continue reading →


14
Sep 17

Equifax Hackers Stole 200k Credit Card Accounts in One Fell Swoop

Visa and MasterCard are sending confidential alerts to financial institutions across the United States this week, warning them about more than 200,000 credit cards that were stolen in the epic data breach announced last week at big-three credit bureau Equifax. At first glance, the private notices obtained by KrebsOnSecurity appear to suggest that hackers initially breached Equifax starting in November 2016. But Equifax says the accounts were all stolen at the same time — when hackers accessed the company’s systems in mid-May 2017.

equifax-hq

Both Visa and MasterCard frequently send alerts to card-issuing financial institutions with information about specific credit and debit cards that may have been compromised in a recent breach. But it is unusual for these alerts to state from which company the accounts were thought to have been pilfered.

In this case, however, Visa and MasterCard were unambiguous, referring to Equifax specifically as the source of an e-commerce card breach.

In a non-public alert sent this week to sources at multiple banks, Visa said the “window of exposure” for the cards stolen in the Equifax breach was between Nov. 10, 2016 and July 6, 2017. A similar alert from MasterCard included the same date range.

“The investigation is ongoing and this information may be amended as new details arise,” Visa said in its confidential alert, linking to the press release Equifax initially posted about the breach on Sept. 7, 2017.

The card giant said the data elements stolen included card account number, expiration date, and the cardholder’s name. Fraudsters can use this information to conduct e-commerce fraud at online merchants.

It would be tempting to conclude from these alerts that the card breach at Equifax dates back to November 2016, and that perhaps the intruders then managed to install software capable of capturing customer credit card data in real-time as it was entered on one of Equifax’s Web sites.

Indeed, that was my initial hunch in deciding to report out this story. But according to a statement from Equifax, the hacker(s) downloaded the data in one fell swoop in mid-May 2017.

“The attacker accessed a storage table that contained historical credit card transaction related information,” the company said. “The dates that you provided in your e-mail appear to be the transaction dates. We have found no evidence during our investigation to indicate the presence of card harvesting malware, or access to the table before mid-May 2017.” Continue reading →


17
Jun 17

Credit Card Breach at Buckle Stores

The Buckle Inc., a clothier that operates more than 450 stores in 44 U.S. states, disclosed Friday that its retail locations were hit by malicious software designed to steal customer credit card data. The disclosure came hours after KrebsOnSecurity contacted the company regarding reports from sources in the financial sector about a possible breach at the retailer.

buckle

On Friday morning, KrebsOnSecurity contacted The Buckle after receiving multiple tips from sources in the financial industry about a pattern of fraud on customer credit and debit cards which suggested a breach of point-of-sale systems at Buckle stores across the country.

Later Friday evening, The Buckle Inc. released a statement saying that point-of-sale malware was indeed found installed on cash registers at Buckle retail stores, and that the company believes the malware was stealing customer credit card data between Oct. 28, 2016 and April 14, 2017. The Buckle said purchases made on its online store were not affected.

As with the recent POS-malware based breach at Kmart, The Buckle said all of its stores are equipped with EMV-capable card terminals, meaning the point-of-sale machines can accommodate newer, more secure chip-based credit and debit cards. The malware copies account data stored on the card’s magnetic stripe. Armed with that information, thieves can clone the cards and use them to buy high-priced merchandise from electronics stores and big box retailers. Continue reading →


7
Mar 17

Payments Giant Verifone Investigating Breach

Credit and debit card payments giant Verifone [NYSE: PAY] is investigating a breach of its internal computer networks that appears to have impacted a number of companies running its point-of-sale solutions, according to sources. Verifone says the extent of the breach was limited to its corporate network and that its payment services network was not impacted.

San Jose, Calif.-based Verifone is the largest maker of credit card terminals used in the United States. It sells point-of-sale terminals and services to support the swiping and processing of credit and debit card payments at a variety of businesses, including retailers, taxis, and fuel stations.

On Jan. 23, 2017, Verifone sent an “urgent” email to all company staff and contractors, warning they had 24 hours to change all company passwords.

“We are currently investigating an IT control matter in the Verifone environment,” reads an email memo penned by Steve Horan, Verifone Inc.’s senior vice president and chief information officer. “As a precaution, we are taking immediate steps to improve our controls.”

An internal memo sent by Verifone's chief information officer to all staff and contractors, telling them to change their passwords. The memo also users would no longer be able to install software at will, apparently something everyone at the company could do prior to this notice.

An internal memo sent Jan. 23, 2017 by Verifone’s chief information officer to all staff and contractors, telling them to change their passwords. The memo also states that Verifone employees would no longer be able to install software at will, apparently something everyone at the company could do prior to this notice.

The internal Verifone memo — a copy of which was obtained by KrebsOnSecurity and is pictured above — also informed employees they would no longer be allowed to install software of any kind on company computers and laptops.

Asked about the breach reports, a Verifone spokesman said the company saw evidence in January 2017 of an intrusion in a “limited portion” of its internal network, but that the breach never impacted its payment services network.

An ad tied to Verifone's petroleum services point-of-sale offerings.

An ad tied to Verifone’s petroleum services point-of-sale offerings.

“In January 2017, Verifone’s information security team saw evidence of a limited cyber intrusion into our corporate network,” Verifone spokesman Andy Payment said. “Our payment services network was not impacted. We immediately began work to determine the type of information targeted and executed appropriate measures in response. We believe today that due to our immediate response, the potential for misuse of information is limited.”

Verifone’s Mr. Payment declined to answer additional questions about the breach, such as how Verifone learned about it and whether the company was initially notified by an outside party. But a source with knowledge of the matter told KrebsOnSecurity.com that the employee alert Verifone sent out on Jan, 23, 2017 was in response to a notification that Verifone received from the credit card companies Visa and Mastercard just days earlier in January.

A spokesperson for Visa declined to comment for this story. MasterCard officials did not respond to requests for comment.

According to my source, the intrusion impacted at least one corner of Verifone’s business: A customer support unit based in Clearwater, Fla. that provides comprehensive payment solutions specifically to gas and petrol stations throughout the United States — including, pay-at-the-pump credit card processing; physical cash registers inside the fuel station store; customer loyalty programs; and remote technical support.

The source said his employer shared with the card brands evidence that a Russian hacking group known for targeting payment providers and hospitality firms had compromised at least a portion of Verifone’s internal network.

The source says Visa and MasterCard were notified that the intruders appeared to have been inside of Verifone’s network since mid-2016. The source noted there is ample evidence the attackers used some of the same toolsets and infrastructure as the cybercrime gang that last year is thought to have hacked into Oracle’s MICROS division, a unit of Oracle that provides point-of-sale solutions to hundreds of thousands of retailers and hospitality firms.

Founded in Hawaii, U.S. in 1981, Verifone now operates in more than 150 countries worldwide and employ nearly 5,000 people globally.

Update, 1:17 p.m. ET: Verifone circled back post-publication with the following update to their statement: “According to the forensic information to-date, the cyber attempt was limited to controllers at approximately two dozen gas stations, and occurred over a short time frame. We believe that no other merchants were targeted and the integrity of our networks and merchants’ payment terminals remain secure and fully operational.”

Sources told KrebsOnSecurity that Verifone commissioned an investigation of the breach from Foregenix Ltd., a digital forensics firm based in the United Kingdom that lists Verifone as a “strategic partner.” Foregenix declined to comment for this story.

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