UK Sets Up Fake Booter Sites To Muddy DDoS Market

The United Kingdom’s National Crime Agency (NCA) has been busy setting up phony DDoS-for-hire websites that seek to collect information on users, remind them that launching DDoS attacks is illegal, and generally increase the level of paranoia for people looking to hire such services.

The NCA says all of its fake so-called “booter” or “stresser” sites — which have so far been accessed by several thousand people — have been created to look like they offer the tools and services that enable cyber criminals to execute these attacks.

“However, after users register, rather than being given access to cyber crime tools, their data is collated by investigators,” reads an NCA advisory on the program. “Users based in the UK will be contacted by the National Crime Agency or police and warned about engaging in cyber crime. Information relating to those based overseas is being passed to international law enforcement.”

The NCA declined to say how many phony booter sites it had set up, or for how long they have been running. The NCA says hiring or launching attacks designed to knock websites or users offline is punishable in the UK under the Computer Misuse Act 1990.

“Going forward, people who wish to use these services can’t be sure who is actually behind them, so why take the risk?” the NCA announcement continues.

The NCA campaign comes closely on the heels of an international law enforcement takedown involving four-dozen websites that made powerful DDoS attacks a point-and-click operation.

In mid-December 2022, the U.S. Department of Justice (DOJ) announced “Operation Power Off,” which seized four-dozen booter business domains responsible for more than 30 million DDoS attacks, and charged six U.S. men with computer crimes related to their alleged ownership of popular DDoS-for-hire services. In connection with that operation, the NCA also arrested an 18-year-old man suspected of running one of the sites.

According to U.S. federal prosecutors, the use of booter and stresser services to conduct attacks is punishable under both wire fraud laws and the Computer Fraud and Abuse Act (18 U.S.C. § 1030), and may result in arrest and prosecution, the seizure of computers or other electronics, as well as prison sentences and a penalty or fine.

The United Kingdom, which has been battling its fair share of domestic booter bosses, started running online ads in 2020 aimed at young people who search the Web for booter services.

As part of last year’s mass booter site takedown, the FBI and the Netherlands Police joined the NCA in announcing they are running targeted placement ads to steer those searching for booter services toward a website detailing the potential legal risks of hiring an online attack.

Highlights from the New U.S. Cybersecurity Strategy

The Biden administration today issued its vision for beefing up the nation’s collective cybersecurity posture, including calls for legislation establishing liability for software products and services that are sold with little regard for security. The White House’s new national cybersecurity strategy also envisions a more active role by cloud providers and the U.S. military in disrupting cybercriminal infrastructure, and it names China as the single biggest cyber threat to U.S. interests.

The strategy says the White House will work with Congress and the private sector to develop legislation that would prevent companies from disavowing responsibility for the security of their software products or services.

Coupled with this stick would be a carrot: An as-yet-undefined “safe harbor framework” that would lay out what these companies could do to demonstrate that they are making cybersecurity a central concern of their design and operations.

“Any such legislation should prevent manufacturers and software publishers with market power from fully disclaiming liability by contract, and establish higher standards of care for software in specific high-risk scenarios,” the strategy explains. “To begin to shape standards of care for secure software development, the Administration will drive the development of an adaptable safe harbor framework to shield from liability companies that securely develop and maintain their software products and services.”

Brian Fox, chief technology officer and founder of the software supply chain security firm Sonatype, called the software liability push a landmark moment for the industry.

“Market forces are leading to a race to the bottom in certain industries, while contract law allows software vendors of all kinds to shield themselves from liability,” Fox said. “Regulations for other industries went through a similar transformation, and we saw a positive result — there’s now an expectation of appropriate due care, and accountability for those who fail to comply. Establishing the concept of safe harbors allows the industry to mature incrementally, leveling up security best practices in order to retain a liability shield, versus calling for sweeping reform and unrealistic outcomes as previous regulatory attempts have.”

THE MOST ACTIVE, PERSISTENT THREAT

In 2012 (approximately three national cyber strategies ago), then director of the U.S. National Security Agency (NSA) Keith Alexander made headlines when he remarked that years of successful cyber espionage campaigns from Chinese state-sponsored hackers represented “the greatest transfer of wealth in history.”

The document released today says the People’s Republic of China (PRC) “now presents the broadest, most active, and most persistent threat to both government and private sector networks,” and says China is “the only country with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do so.”

Many of the U.S. government’s efforts to restrain China’s technology prowess involve ongoing initiatives like the CHIPS Act, a new law signed by President Biden last year that sets aside more than $50 billion to expand U.S.-based semiconductor manufacturing and research and to make the U.S. less dependent on foreign suppliers; the National Artificial Intelligence Initiative; and the National Strategy to Secure 5G.

As the maker of most consumer gizmos with a computer chip inside, China is also the source of an incredible number of low-cost Internet of Things (IoT) devices that are not only poorly secured, but are probably more accurately described as insecure by design.

The Biden administration said it would continue its previously announced plans to develop a system of labeling that could be applied to various IoT products and give consumers some idea of how secure the products may be. But it remains unclear how those labels might apply to products made by companies outside of the United States.

FIGHTING BADNESS IN THE CLOUD

One could convincingly make the case that the world has witnessed yet another historic transfer of wealth and trade secrets over the past decade — in the form of ransomware and data ransom attacks by Russia-based cybercriminal syndicates, as well as Russian intelligence agency operations like the U.S. government-wide Solar Winds compromise.

On the ransomware front, the White House strategy seems to focus heavily on building the capability to disrupt the digital infrastructure used by adversaries that are threatening vital U.S. cyber interests. The document points to the 2021 takedown of the Emotet botnet — a cybercrime machine that was heavily used by multiple Russian ransomware groups — as a model for this activity, but says those disruptive operations need to happen faster and more often.

To that end, the Biden administration says it will expand the capacity of the National Cyber Investigative Joint Task Force (NCIJTF), the primary federal agency for coordinating cyber threat investigations across law enforcement agencies, the intelligence community, and the Department of Defense.

“To increase the volume and speed of these integrated disruption campaigns, the Federal Government must further develop technological and organizational platforms that enable continuous, coordinated operations,” the strategy observes. “The NCIJTF will expand its capacity to coordinate takedown and disruption campaigns with greater speed, scale, and frequency. Similarly, DoD and the Intelligence Community are committed to bringing to bear their full range of complementary authorities to disruption campaigns.”

The strategy anticipates the U.S. government working more closely with cloud and other Internet infrastructure providers to quickly identify malicious use of U.S.-based infrastructure, share reports of malicious use with the government, and make it easier for victims to report abuse of these systems.

“Given the interest of the cybersecurity community and digital infrastructure owners and operators in continuing this approach, we must sustain and expand upon this model so that collaborative disruption operations can be carried out on a continuous basis,” the strategy argues. “Threat specific collaboration should take the form of nimble, temporary cells, comprised of a small number of trusted operators, hosted and supported by a relevant hub. Using virtual collaboration platforms, members of the cell would share information bidirectionally and work rapidly to disrupt adversaries.”

But here, again, there is a carrot-and-stick approach: The administration said it is taking steps to implement Executive Order (EO) 13984 –issued by the Trump administration in January 2021 — which requires cloud providers to verify the identity of foreign persons using their services.

“All service providers must make reasonable attempts to secure the use of their infrastructure against abuse or other criminal behavior,” the strategy states. “The Administration will prioritize adoption and enforcement of a risk-based approach to cybersecurity across Infrastructure-as-a-Service providers that addresses known methods and indicators of malicious activity including through implementation of EO 13984.”

Ted Schlein, founding partner of the cybersecurity venture capital firm Ballistic Ventures, said how this gets implemented will determine whether it can be effective.

“Adversaries know the NSA, which is the elite portion of the nation’s cyber defense, cannot monitor U.S.-based infrastructure, so they just use U.S.-based cloud infrastructure to perpetrate their attacks,” Schlein said. “We have to fix this. I believe some of this section is a bit pollyannaish, as it assumes a bad actor with a desire to do a bad thing will self-identify themselves, as the major recommendation here is around KYC (‘know your customer’).”

INSURING THE INSURERS

One brief but interesting section of the strategy titled “Explore a Federal Cyber Insurance Backdrop” contemplates the government’s liability and response to a too-big-to-fail scenario or “catastrophic cyber incident.”

“We will explore how the government can stabilize insurance markets against catastrophic risk to drive better cybersecurity practices and to provide market certainty when catastrophic events do occur,” the strategy reads.

When the Bush administration released the first U.S. national cybersecurity strategy 20 years ago after the 9/11 attacks, the popular term for that same scenario was a “digital Pearl Harbor,” and there was a great deal of talk then about how the cyber insurance market would soon help companies shore up their cybersecurity practices.

In the wake of countless ransomware intrusions, many companies now hold cybersecurity insurance to help cover the considerable costs of responding to such intrusions. Leaving aside the question of whether insurance coverage has helped companies improve security, what happens if every one of these companies has to make a claim at the same time?

The notion of a Digital Pearl Harbor incident struck many experts at the time as a hyperbolic justification for expanding the government’s digital surveillance capabilities, and an overstatement of the capabilities of our adversaries. But back in 2003, most of the world’s companies didn’t host their entire business in the cloud.

Today, nobody questions the capabilities, goals and outcomes of dozens of nation-state level cyber adversaries. And these days, a catastrophic cyber incident could be little more than an extended, simultaneous outage at multiple cloud providers.

The full national cybersecurity strategy is available from the White House website (PDF).

Hackers Claim They Breached T-Mobile More Than 100 Times in 2022

Three different cybercriminal groups claimed access to internal networks at communications giant T-Mobile in more than 100 separate incidents throughout 2022, new data suggests. In each case, the goal of the attackers was the same: Phish T-Mobile employees for access to internal company tools, and then convert that access into a cybercrime service that could be hired to divert any T-Mobile user’s text messages and phone calls to another device.

The conclusions above are based on an extensive analysis of Telegram chat logs from three distinct cybercrime groups or actors that have been identified by security researchers as particularly active in and effective at “SIM-swapping,” which involves temporarily seizing control over a target’s mobile phone number.

Countless websites and online services use SMS text messages for both password resets and multi-factor authentication. This means that stealing someone’s phone number often can let cybercriminals hijack the target’s entire digital life in short order — including access to any financial, email and social media accounts tied to that phone number.

All three SIM-swapping entities that were tracked for this story remain active in 2023, and they all conduct business in open channels on the instant messaging platform Telegram. KrebsOnSecurity is not naming those channels or groups here because they will simply migrate to more private servers if exposed publicly, and for now those servers remain a useful source of intelligence about their activities.

Each advertises their claimed access to T-Mobile systems in a similar way. At a minimum, every SIM-swapping opportunity is announced with a brief “Tmobile up!” or “Tmo up!” message to channel participants. Other information in the announcements includes the price for a single SIM-swap request, and the handle of the person who takes the payment and information about the targeted subscriber.

The information required from the customer of the SIM-swapping service includes the target’s phone number, and the serial number tied to the new SIM card that will be used to receive text messages and phone calls from the hijacked phone number.

Initially, the goal of this project was to count how many times each entity claimed access to T-Mobile throughout 2022, by cataloging the various “Tmo up!” posts from each day and working backwards from Dec. 31, 2022.

But by the time we got to claims made in the middle of May 2022, completing the rest of the year’s timeline seemed unnecessary. The tally shows that in the last seven-and-a-half months of 2022, these groups collectively made SIM-swapping claims against T-Mobile on 104 separate days — often with multiple groups claiming access on the same days.

KrebsOnSecurity shared a large amount of data gathered for this story with T-Mobile. The company declined to confirm or deny any of these claimed intrusions. But in a written statement, T-Mobile said this type of activity affects the entire wireless industry.

“And we are constantly working to fight against it,” the statement reads. “We have continued to drive enhancements that further protect against unauthorized access, including enhancing multi-factor authentication controls, hardening environments, limiting access to data, apps or services, and more. We are also focused on gathering threat intelligence data, like what you have shared, to help further strengthen these ongoing efforts.”

TMO UP!

While it is true that each of these cybercriminal actors periodically offer SIM-swapping services for other mobile phone providers — including AT&T, Verizon and smaller carriers — those solicitations appear far less frequently in these group chats than T-Mobile swap offers. And when those offers do materialize, they are considerably more expensive.

The prices advertised for a SIM-swap against T-Mobile customers in the latter half of 2022 ranged between USD $1,000 and $1,500, while SIM-swaps offered against AT&T and Verizon customers often cost well more than twice that amount.

To be clear, KrebsOnSecurity is not aware of specific SIM-swapping incidents tied to any of these breach claims. However, the vast majority of advertisements for SIM-swapping claims against T-Mobile tracked in this story had two things in common that set them apart from random SIM-swapping ads on Telegram.

First, they included an offer to use a mutually trusted “middleman” or escrow provider for the transaction (to protect either party from getting scammed). More importantly, the cybercriminal handles that were posting ads for SIM-swapping opportunities from these groups generally did so on a daily or near-daily basis — often teasing their upcoming swap events in the hours before posting a “Tmo up!” message announcement.

In other words, if the crooks offering these SIM-swapping services were ripping off their customers or claiming to have access that they didn’t, this would be almost immediately obvious from the responses of the more seasoned and serious cybercriminals in the same chat channel.

There are plenty of people on Telegram claiming to have SIM-swap access at major telecommunications firms, but a great many such offers are simply four-figure scams, and any pretenders on this front are soon identified and banned (if not worse).

One of the groups that reliably posted “Tmo up!” messages to announce SIM-swap availability against T-Mobile customers also reliably posted “Tmo down!” follow-up messages announcing exactly when their claimed access to T-Mobile employee tools was discovered and revoked by the mobile giant.

A review of the timestamps associated with this group’s incessant “Tmo up” and “Tmo down” posts indicates that while their claimed access to employee tools usually lasted less than an hour, in some cases that access apparently went undiscovered for several hours or even days.

TMO TOOLS

How could these SIM-swapping groups be gaining access to T-Mobile’s network as frequently as they claim? Peppered throughout the daily chit-chat on their Telegram channels are solicitations for people urgently needed to serve as “callers,” or those who can be hired to social engineer employees over the phone into navigating to a phishing website and entering their employee credentials.

Allison Nixon is chief research officer for the New York City-based cybersecurity firm Unit 221B. Nixon said these SIM-swapping groups will typically call employees on their mobile devices, pretend to be someone from the company’s IT department, and then try to get the person on the other end of the line to visit a phishing website that mimics the company’s employee login page.

Nixon argues that many people in the security community tend to discount the threat from voice phishing attacks as somehow “low tech” and “low probability” threats.

“I see it as not low-tech at all, because there are a lot of moving parts to phishing these days,” Nixon said. “You have the caller who has the employee on the line, and the person operating the phish kit who needs to spin it up and down fast enough so that it doesn’t get flagged by security companies. Then they have to get the employee on that phishing site and steal their credentials.”

In addition, she said, often there will be yet another co-conspirator whose job it is to use the stolen credentials and log into employee tools. That person may also need to figure out how to make their device pass “posture checks,” a form of device authentication that some companies use to verify that each login is coming only from employer-issued phones or laptops.

For aspiring criminals with little experience in scam calling, there are plenty of sample call transcripts available on these Telegram chat channels that walk one through how to impersonate an IT technician at the targeted company — and how to respond to pushback or skepticism from the employee. Here’s a snippet from one such tutorial that appeared recently in one of the SIM-swapping channels:

“Hello this is James calling from Metro IT department, how’s your day today?”

(yea im doing good, how r u)

i’m doing great, thank you for asking

i’m calling in regards to a ticket we got last week from you guys, saying you guys were having issues with the network connectivity which also interfered with [Microsoft] Edge, not letting you sign in or disconnecting you randomly. We haven’t received any updates to this ticket ever since it was created so that’s why I’m calling in just to see if there’s still an issue or not….”

TMO DOWN!

The TMO UP data referenced above, combined with comments from the SIM-swappers themselves, indicate that while many of their claimed accesses to T-Mobile tools in the middle of 2022 lasted hours on end, both the frequency and duration of these events began to steadily decrease as the year wore on.

T-Mobile declined to discuss what it may have done to combat these apparent intrusions last year. However, one of the groups began to complain loudly in late October 2022 that T-Mobile must have been doing something that was causing their phished access to employee tools to die very soon after they obtained it.

One group even remarked that they suspected T-Mobile’s security team had begun monitoring their chats.

Indeed, the timestamps associated with one group’s TMO UP/TMO DOWN notices show that their claimed access was often limited to less than 15 minutes throughout November and December of 2022.

Whatever the reason, the calendar graphic above clearly shows that the frequency of claimed access to T-Mobile decreased significantly across all three SIM-swapping groups in the waning weeks of 2022.

SECURITY KEYS

T-Mobile US reported revenues of nearly $80 billion last year. It currently employs more than 71,000 people in the United States, any one of whom can be a target for these phishers.

T-Mobile declined to answer questions about what it may be doing to beef up employee authentication. But Nicholas Weaver, a researcher and lecturer at University of California, Berkeley’s International Computer Science Institute, said T-Mobile and all the major wireless providers should be requiring employees to use physical security keys for that second factor when logging into company resources.

“These breaches should not happen,” Weaver said. “Because T-Mobile should have long ago issued all employees security keys and switched to security keys for the second factor. And because security keys provably block this style of attack.”

The most commonly used security keys are inexpensive USB-based devices. A security key implements a form of multi-factor authentication known as Universal 2nd Factor (U2F), which allows the user to complete the login process simply by inserting the USB key and pressing a button on the device. The key works without the need for any special software drivers.

The allure of U2F devices for multi-factor authentication is that even if an employee who has enrolled a security key for authentication tries to log in at an impostor site, the company’s systems simply refuse to request the security key if the user isn’t on their employer’s legitimate website, and the login attempt fails. Thus, the second factor cannot be phished, either over the phone or Internet.

THE ROLE OF MINORS IN SIM-SWAPPING

Nixon said one confounding aspect of SIM-swapping is that these criminal groups tend to recruit teenagers to do their dirty work.

“A huge reason this problem has been allowed to spiral out of control is because children play such a prominent role in this form of breach,” Nixon said.

Nixon said SIM-swapping groups often advertise low-level jobs on places like Roblox and Minecraft, online games that are extremely popular with young adolescent males.

“Statistically speaking, that kind of recruiting is going to produce a lot of people who are underage,” she said. “They recruit children because they’re naive, you can get more out of them, and they have legal protections that other people over 18 don’t have.”

For example, she said, even when underage SIM-swappers are arrested, the offenders tend to go right back to committing the same crimes as soon as they’re released.

In January 2023, T-Mobile disclosed that a “bad actor” stole records on roughly 37 million current customers, including their name, billing address, email, phone number, date of birth, and T-Mobile account number.

In August 2021, T-Mobile acknowledged that hackers made off with the names, dates of birth, Social Security numbers and driver’s license/ID information on more than 40 million current, former or prospective customers who applied for credit with the company. That breach came to light after a hacker began selling the records on a cybercrime forum.

In the shadow of such mega-breaches, any damage from the continuous attacks by these SIM-swapping groups can seem insignificant by comparison. But Nixon says it’s a mistake to dismiss SIM-swapping as a low volume problem.

“Logistically, you may only be able to get a few dozen or a hundred SIM-swaps in a day, but you can pick any customer you want across their entire customer base,” she said. “Just because a targeted account takeover is low volume doesn’t mean it’s low risk. These guys have crews that go and identify people who are high net worth individuals and who have a lot to lose.”

Nixon said another aspect of SIM-swapping that causes cybersecurity defenders to dismiss the threat from these groups is the perception that they are full of low-skilled “script kiddies,” a derisive term used to describe novice hackers who rely mainly on point-and-click hacking tools.

“They underestimate these actors and say this person isn’t technically sophisticated,” she said. “But if you’re rolling around in millions worth of stolen crypto currency, you can buy that sophistication. I know for a fact some of these compromises were at the hands of these ‘script kiddies,’ but they’re not ripping off other people’s scripts so much as hiring people to make scripts for them. And they don’t care what gets the job done, as long as they get to steal the money.”

U.S. Govt. Apps Bundled Russian Code With Ties to Mobile Malware Developer

A recent scoop by Reuters revealed that mobile apps for the U.S. Army and the Centers for Disease Control and Prevention (CDC) were integrating software that sends visitor data to a Russian company called Pushwoosh, which claims to be based in the United States. But that story omitted an important historical detail about Pushwoosh: In 2013, one of its developers admitted to authoring the Pincer Trojan, malware designed to surreptitiously intercept and forward text messages from Android mobile devices.

Pushwoosh says it is a U.S. based company that provides code for software developers to profile smartphone app users based on their online activity, allowing them to send tailor-made notifications. But a recent investigation by Reuters raised questions about the company’s real location and truthfulness.

The Army told Reuters it removed an app containing Pushwoosh in March, citing “security concerns.” The Army app was used by soldiers at one of the nation’s main combat training bases.

Reuters said the CDC likewise recently removed Pushwoosh code from its app over security concerns, after reporters informed the agency Pushwoosh was not based in the Washington D.C. area — as the company had represented — but was instead operated from Novosibirsk, Russia.

Pushwoosh’s software also was found in apps for “a wide array of international companies, influential nonprofits and government agencies from global consumer goods company Unilever and the Union of European Football Associations (UEFA) to the politically powerful U.S. gun lobby, the National Rifle Association (NRA), and Britain’s Labour Party.”

The company’s founder Max Konev told Reuters Pushwoosh “has no connection with the Russian government of any kind” and that it stores its data in the United States and Germany.

But Reuters found that while Pushwoosh’s social media and U.S. regulatory filings present it as a U.S. company based variously in California, Maryland and Washington, D.C., the company’s employees are located in Novosibirsk, Russia.

Reuters also learned that the company’s address in California does not exist, and that two LinkedIn accounts for Pushwoosh employees in Washington, D.C. were fake.

“Pushwoosh never mentioned it was Russian-based in eight annual filings in the U.S. state of Delaware, where it is registered, an omission which could violate state law,” Reuters reported.

Pushwoosh admitted the LinkedIn profiles were fake, but said they were created by a marketing firm to drum up business for the company — not misrepresent its location.

Pushwoosh told Reuters it used addresses in the Washington, D.C. area to “receive business correspondence” during the coronavirus pandemic. A review of the Pushwoosh founder’s online presence via Constella Intelligence shows his Pushwoosh email address was tied to a phone number in Washington, D.C. that was also connected to email addresses and account profiles for over a dozen other Pushwoosh employees.

THE PINCER TROJAN CONNECTION

The dust-up over Pushwoosh came in part from data gathered by Zach Edwards, a security researcher who until recently worked for the Internet Safety Labs, a nonprofit organization that funds research into online threats.

Edwards said Pushwoosh began as Arello-Mobile, and for several years the two co-branded — appearing side by side at various technology expos. Around 2016, he said, the two companies both started using the Pushwoosh name.

A search on Pushwoosh’s code base shows that one of the company’s longtime developers is a 41-year-old from Novosibirsk named Yuri Shmakov. In 2013, KrebsOnSecurity interviewed Shmakov for the story, “Who Wrote the Pincer Android Trojan?” wherein Shmakov acknowledged writing the malware as a freelance project.

Shmakov told me that, based on the client’s specifications, he suspected it might ultimately be put to nefarious uses. Even so, he completed the job and signed his work by including his nickname in the app’s code.

“I was working on this app for some months, and I was hoping that it would be really helpful,” Shmakov wrote. “[The] idea of this app is that you can set it up as a spam filter…block some calls and SMS remotely, from a Web service. I hoped that this will be [some kind of] blacklist, with logging about blocked [messages/calls]. But of course, I understood that client [did] not really want this.”

Shmakov did not respond to requests for comment. His LinkedIn profile says he stopped working for Arello Mobile in 2016, and that he currently is employed full-time as the Android team leader at an online betting company.

In a blog post responding to the Reuters story, Pushwoosh said it is a privately held company incorporated under the state laws of Delaware, USA, and that Pushwoosh Inc. was never owned by any company registered in the Russian Federation.

“Pushwoosh Inc. used to outsource development parts of the product to the Russian company in Novosibirsk, mentioned in the article,” the company said. “However, in February 2022, Pushwoosh Inc. terminated the contract.”

However, Edwards noted that dozens of developer subdomains on Pushwoosh’s main domain still point to JSC Avantel, an Internet provider based in Novosibirsk, Russia.

WAR GAMES

Edwards said the U.S. Army’s app had a custom Pushwoosh configuration that did not appear on any other customer implementation.

“It had an extremely custom setup that existed nowhere else,” Edwards said. “Originally, it was an in-app Web browser, where it integrated a Pushwoosh javascript so that any time a user clicked on links, data went out to Pushwoosh and they could push back whatever they wanted through the in-app browser.”

An Army Times article published the day after the Reuters story ran said at least 1,000 people downloaded the app, which “delivered updates for troops at the National Training Center on Fort Irwin, Calif., a critical waypoint for deploying units to test their battlefield prowess before heading overseas.”

In April 2022, roughly 4,500 Army personnel converged on the National Training Center for a war games exercise on how to use lessons learned from Russia’s war against Ukraine to prepare for future fights against a major adversary such as Russia or China.

Edwards said despite Pushwoosh’s many prevarications, the company’s software doesn’t appear to have done anything untoward to its customers or users.

“Nothing they did has been seen to be malicious,” he said. “Other than completely lying about where they are, where their data is being hosted, and where they have infrastructure.”

GOV 311

Edwards also found Pushwoosh’s technology embedded in nearly two dozen mobile apps that were sold to cities and towns across Illinois as a way to help citizens access general information about their local communities and officials.

The Illinois apps that bundled Pushwoosh’s technology were produced by a company called Government 311, which is owned by Bill McCarty, the current director of the Springfield Office of Budget and Management. A 2014 story in The State Journal-Register said Gov 311’s pricing was based on population, and that the app would cost around $2,500 per year for a city with approximately 25,000 people.

McCarty told KrebsOnSecurity that his company stopped using Pushwoosh “years ago,” and that it now relies on its own technology to provide push notifications through its 311 apps.

But Edwards found some of the 311 apps still try to phone home to Pushwoosh, such as the 311 app for Riverton, Ill.

“Riverton ceased being a client several years ago, which [is] probably why their app was never updated to change out Pushwoosh,” McCarty explained. “We are in the process of updating all client apps and a website refresh. As part of that, old unused apps like Riverton 311 will be deleted.”

FOREIGN ADTECH THREAT?

Edwards said it’s far from clear how many other state and local government apps and Web sites rely on technology that sends user data to U.S. adversaries overseas. In July, Congress introduced an amended version of the Intelligence Authorization Act for 2023, which included a new section focusing on data drawn from online ad auctions that could be used to geolocate individuals or gain other information about them.

Business Insider reports that if this section makes it into the final version — which the Senate also has to pass — the Office for the Director of National Intelligence (ODNI) will have 60 days after the Act becomes law to produce a risk assessment. The assessment will look into “the counterintelligence risks of, and the exposure of intelligence community personnel to, tracking by foreign adversaries through advertising technology data,” the Act states.

Edwards says he’s hoping those changes pass, because what he found with Pushwoosh is likely just a drop in a bucket.

“I’m hoping that Congress acts on that,” he said. “If they were to put a requirement that there’s an annual audit of risks from foreign ad tech, that would at least force people to identify and document those connections.”

A Deep Dive Into the Residential Proxy Service ‘911’

For the past seven years, an online service known as 911 has sold access to hundreds of thousands of Microsoft Windows computers daily, allowing customers to route their Internet traffic through PCs in virtually any country or city around the globe — but predominantly in the United States. 911 says its network is made up entirely of users who voluntarily install its “free VPN” software. But new research shows the proxy service has a long history of purchasing installations via shady “pay-per-install” affiliate marketing schemes, some of which 911 operated on its own.

911[.]re is one of the original “residential proxy” networks, which allow someone to rent a residential IP address to use as a relay for his/her Internet communications, providing anonymity and the advantage of being perceived as a residential user surfing the web.

From a website’s perspective, the IP traffic of a residential proxy network user appears to originate from the rented residential IP address, not from the proxy service customer. These services can be used in a legitimate manner for several business purposes — such as price comparisons or sales intelligence — but they are massively abused for hiding cybercrime activity because they can make it difficult to trace malicious traffic to its original source.

Residential proxy services are often marketed to people seeking the ability to evade country-specific blocking by the major movie and media streaming providers. But some of them — like 911 — build their networks in part by offering “free VPN” or “free proxy” services that are powered by software which turns the user’s PC into a traffic relay for other users. In this scenario, users indeed get to use a free VPN service, but they are often unaware that doing so will turn their computer into a proxy that lets others use their Internet address to transact online.

Researchers at the University of Sherbrooke in Canada recently published an analysis of 911, and found there were roughly 120,000 PCs for rent via the service, with the largest number of them located in the United States.

“The 911[.]re network uses at least two free VPN services to lure its users to install a malware-like software that achieves persistence on the user’s computer,” the researchers wrote. “During the research we identified two free VPN services that [use] a subterfuge to lure users to install software that looks legitimate but makes them part of the network. These two software are currently unknown to most if not all antivirus companies.”

The researchers concluded that 911 is supported by a “mid scale botnet-like infrastructure that operates in several networks, such as corporate, government and critical infrastructure.” The Canadian team said they found many of the 911 nodes available for rent were situated within several major US-based universities and colleges, critical infrastructures such as clean water, defense contractors, law enforcement and government networks.

Highlighting the risk that 911 nodes could pose to internal corporate networks, they observed that “the infection of a node enables the 911.re user to access shared resources on the network such as local intranet portals or other services.”

“It also enables the end user to probe the LAN network of the infected node,” the paper continues. “Using the internal router, it would be possible to poison the DNS cache of the LAN router of the infected node, enabling further attacks.”

THE INTERNET NEVER FORGETS

A review of the clues left behind by 911’s early days on the Internet paint a more complete picture of this long-running proxy network. The domain names used by 911 over the years have a few common elements in their original WHOIS registration records, including the address ustraffic@qq.com and a Yunhe Wang from Beijing.

That ustraffic email is tied to a small number of interesting domains, including browsingguard[.]com, cleantraffic[.]net, execlean[.]net, proxygate[.]net, and flashupdate[.]net.

A cached copy of flashupdate[.]net available at the Wayback Machine shows that in 2016 this domain was used for the “ExE Bucks” affiliate program, a pay-per-install business which catered to people already running large collections of hacked computers or compromised websites. Affiliates were paid a set amount for each installation of the software, with higher commissions for installs in more desirable nations, particularly Europe, Canada and the United States.

“We load only one software — it’s a Socks5 proxy program,” read the message to ExE Bucks affiliates. The website said affiliates were free to spread the proxy software by any means available (i.e. “all promotion methods allowed”). The website’s copyright suggests the ExE Bucks affiliate program dates back to 2012.

Another domain tied to the ustraffic@qq.com email in 2016 was ExeClean[.]net, a service that advertised to cybercriminals seeking to obfuscate their malicious software so that it goes undetected by all or at least most of the major antivirus products on the market.

“Our technology ensures the maximum security from reverse engineering and antivirus detections,” ExEClean promised.

Yet another domain connected to the ustraffic email is p2pshare[.]net, which advertised “free unlimited internet file-sharing platform” for those who agreed to install their software.

Still more domains associated with ustraffic@qq.com suggest 911’s proxy has been disguised as security updates for video player plugins, including flashplayerupdate[.]xyz, mediaplayerupdate[.]xyz, and videoplayerupdate[.]xyz.

The earliest version of the 911 website available from the Wayback Machine is from 2016. A sister service called proxygate[.]net launched roughly a year prior to 911 as a “free” public test of the budding new residential proxy service. “Basically using clients to route for everyone,” was how Proxygate described itself in 2016.

For more than a year after its founding, the 911 website was written entirely in Simplified Chinese. The service has only ever accepted payment via virtual currencies such as Bitcoin and Monero, as well as Alipay and China UnionPay, both payment platforms based in China.

Initially, the terms and conditions of 911’s “End User License Agreement (EULA) named a company called Wugaa Enterprises LLC, which was registered in California in 2016. Records from the California Secretary of State office show that in November 2016, Wugaa Enterprises said it was in the Internet advertising business, and had named as its CEO as one Nicolae Aurelian Mazgarean of Brasov, Romania.

A search of European VAT numbers shows the same Brasov, RO address tied to an enterprise called PPC Leads SRL (in the context of affiliate-based marketing, “PPC” generally refers to the term “pay-per-click”).

911’s EULA would later change its company name and address in 2017, to International Media Ltd. in the British Virgin Islands. That is the same information currently displayed on the 911 website.

The EULA attached to 911 software downloaded from browsingguard[.]com (tied to the same ustraffic@qq email that registered 911) references a company called Gold Click Limited. According to the UK Companies House, Gold Click Limited was registered in 2016 to a 34-year-old Yunhe Wang from Beijing City. Many of the WHOIS records for the above mentioned domains also include the name Yunhe Wang, or some variation thereof.

In a response to questions from KrebsOnSecurity, 911 said the researchers were wrong, and that 911 has nothing to do with any of the other domains mentioned above.

“We have 911 SDK link and how it works described clearly in the “Terms of use” of affiliated partners products, and we have details of how the community powered network works on our webpages,” read an email response.

“Besides that, for protecting the end users, we banned many domains’ access and blocked the vulnerable ports, e.g. spamming emails, and torrent is not possible from the 911 network,” the reply continued. “Same as scanning and many others…Accessing to the Lan network and router is also blocked. We are monitoring 911 user’s account closely, once any abnormal behavior detected, we suspend the user’s account right away.”

FORUM ACTIVITY?

911 has remained one of the most popular services among denizens of the cybercrime underground for years, becoming almost shorthand for connecting to that “last mile” of cybercrime. Namely, the ability to route one’s malicious traffic through a computer that is geographically close to the consumer whose credit card they’re about to charge at some website, or whose bank account they’re about to empty.

Given the frequency with which 911 has been praised by cybercrooks on the top forums, it was odd to find the proprietors of 911 do not appear to have created any official support account for the service on any of several dozen forums reviewed by this author going back a decade. However there are two cybercriminal identities on the forums that have responded to individual 911 help requests, and who promoted the sale of 911 accounts via their handles.

Both of these identities were active on the crime forum fl.l33t[.]su between 2016 and 2019. The user “Transfer” advertised and sold access to 911 from 2016 to 2018, amid many sales threads where they advertised expensive electronics and other consumer goods that were bought online with stolen credit cards.

In a 2017 discussion on fl.l33t[.]su, the user who picked the handle “527865713” could be seen answering private messages in response to help inquiries seeking someone at 911. That identity is tied to an individual who for years advertised the ability to receive and relay large wire transfers from China.

One ad from this user in 2016 offered a “China wire service” focusing on Western Union payments, where “all transfers are accepted in China.” The service charged 20 percent of all “scam wires,” unauthorized wire transfers resulting from bank account takeovers or scams like CEO impersonation schemes.

911 TODAY

In August 2021, 911’s biggest competitor — a 15-year-old proxy network built on malware-compromised PCs called VIP72 — abruptly closed up shop. Almost overnight, an overwhelming number of former VIP72 customers began shifting their proxy activities to 911.

That’s according to Riley Kilmer, co-founder of Spur.us — a security company that monitors anonymity services. Kilmer said 911 also gained an influx of new customers after the Jan. 2022 closure of LuxSocks, another malware-based proxy network.

“911’s user base skyrocketed after VIP72 and then LuxSocks went away,” Kilmer said. “And it’s not hard to see why. 911 and VIP72 are both Windows-based apps that operate in a similar way, where you buy private access to IPs.”

Kilmer said 911 is interesting because it appears to be based in China, while nearly all of the other major proxy networks are Russian-backed or Russian-based.

“They have two basic methods to get new IPs,” Kilmer said. “The free VPN apps, and the other is trojanized torrents. They’ll re-upload Photoshop and stuff like that so that it’s backdoored with the 911 proxy. They claim the proxy is bundled with legitimate software and that users all agree to their Terms of Service, meanwhile they can hide behind the claim that it was some affiliate who installed the software, not them.”

Kilmer said at last count, 911 had nearly 200,000 proxy nodes for sale, spanning more than 200 countries: The largest geographic concentration is the United States, where more than 42,000 proxies are currently for rent by the service.

PARTING THOUGHTS

Beware of “free” or super low-cost VPN services. Proper VPN services are not cheap to operate, so the revenue for the service has to come from somewhere. And there are countless “free” VPN services that are anything but, as we’ve seen with 911.

In general, the rule of thumb for transacting online is that if you’re not the paying customer, then you and/or your devices are probably the product that’s being sold to others. Many free VPN services will enlist users as VPN nodes for others to use, and some even offset costs by collecting and reselling data from their users.

All VPN providers claim to prioritize the privacy of their users, but many then go on to collect and store all manner of personal and financial data from those customers. Others are fairly opaque about their data collection and retention policies.

I’ve largely avoided wading into the fray about which VPN services are best, but there are so many shady and just plain bad ones out there that I’d be remiss if I didn’t mention one VPN provider whose business practices and transparency of operation consistently distinguish them from the rest. If maintaining your privacy and anonymity are primary concerns for you as a VPN user, check out Mullvad.net.

Let me make clear that KrebsOnSecurity does not have any financial or business ties to this company (for the avoidance of doubt, this post doesn’t even link to them). I mention it only because I’ve long been impressed with their candor and openness, and because Mullvad goes out of its way to discourage customers from sharing personal or financial data.

To that end, Mullvad will even accept mailed payments of cash to fund accounts, quite a rarity these days. More importantly, the service doesn’t ask users to share phone numbers, email addresses or any other personal information. Nor does it require customers to create passwords: Each subscription can be activated just by entering a Mullvad account number (woe to those who lose their account number).

I wish more companies would observe this remarkably economical security practice, which boils down to the mantra, “You don’t have to protect what you don’t collect.”

Update, July 24, 11:15 a.m. ET: 911’s homepage now includes a banner saying the service has halted new registrations and payments. “We are reviewing our network and adding a series of security measures to prevent misuse of our services,” the message reads. “Proxy balance top-up and new user registration are closed. We are reviewing every existing user, to ensure their usage is legit and [in] compliance with our Terms of Service.”

Update, July 30, 10:07 a.m. ET: 911 announced on July 28 that it is permanently closing down, following a series of data breaches this month that 911 says resulted in the deletion of customer data.