Canadian Man Stuck in Triangle of E-Commerce Fraud

A Canadian man who says he’s been falsely charged with orchestrating a complex e-commerce scam is seeking to clear his name. His case appears to involve “triangulation fraud,” which occurs when a consumer purchases something online — from a seller on Amazon or eBay, for example — but the seller doesn’t actually own the item for sale. Instead, the seller purchases the item from an online retailer using stolen payment card data. In this scam, the unwitting buyer pays the scammer and receives what they ordered, and very often the only party left to dispute the transaction is the owner of the stolen payment card.

Timothy Barker, 56, was until recently a Band Manager at Duncan’s First Nation, a First Nation in northwestern Alberta, Canada. A Band Manager is responsible for overseeing the delivery of all Band programs, including community health services, education, housing, social assistance, and administration.

Barker told KrebsOnSecurity that during the week of March 31, 2023 he and the director of the Band’s daycare program discussed the need to purchase items for the community before the program’s budget expired for the year.

“There was a rush to purchase items on the Fiscal Year 2023 timeline as the year ended on March 31,” Barker recalled.

Barker said he bought seven “Step2 All Around Playtime Patio with Canopy” sets from a seller on Amazon.ca, using his payment card on file to pay nearly $2,000 for the items.

On the morning of April 7, Barker’s Facebook account received several nasty messages from an Ontario woman he’d never met. She demanded to know why he’d hacked her Walmart account and used it to buy things that were being shipped to his residence. Barker shared a follow-up message from the woman, who later apologized for losing her temper.

“If this is not the person who did this to me, I’m sorry, I’m pissed,” the lady from Ontario said. “This order is being delivered April 14th to the address above. If not you, then someone who has the same name. Now I feel foolish.”

On April 12, 2023, before the Amazon purchases had even arrived at his home, Barker received a call from an investigator with the Royal Canadian Mounted Police (RCMP), who said Barker urgently needed to come down to the local RCMP office for an interview related to “an investigation.” Barker said the officer wouldn’t elaborate at the time on the nature of the investigation, and that he told the officer he was in Halifax for several days but could meet after his return home.

According to Barker, the investigator visited his home anyway the following day and began questioning his wife, asking about his whereabouts, his work, and when he might return home.

On April 14, six boxes arrived to partially fulfill his Amazon order; another box was delayed, and the Amazon.ca seller he’d purchased from said the remaining box was expected to ship the following week. Barker said he was confused because all six boxes came from Walmart instead of Amazon, and the shipping labels had his name and address on them but carried a contact phone number in Mexico.

Three days later, the investigator called again, demanding he submit to an interview.

“He then asked where my wife was and what her name is,” Barker said. “He wanted to know her itinerary for the day. I am now alarmed and frightened — this doesn’t feel right.”

Barker said he inquired with a local attorney about a consultation, but that the RCMP investigator showed up at his house before he could speak to the lawyer. The investigator began taking pictures of the boxes from his Amazon order.

“The [investigator] derisively asked why would anyone order so many play sets?” Barker said. “I started to give the very logical answer that we are helping families improve their children’s home life and learning for toddlers when he cut me off and gave the little speech about giving a statement after my arrest. He finally told me that he believes that I used someone’s credit card in Ontario to purchase the Walmart products.”

Eager to clear his name, Barker said he shared with the police copies of his credit card bills and purchase history at Amazon. But on April 21, the investigator called again to say he was coming to arrest Barker for theft.

“He said that if I was home at five o’clock then he would serve the papers at the house and it would go easy and I wouldn’t have to go to the station,” Barker recalled. “If I wasn’t home, then he would send a search team to locate me and drag me to the station. He said he would kick the door down if I didn’t answer my phone. He said he had every right to break our door down.”

Barker said he briefly conferred with an attorney about how to handle the arrest. Later that evening, the RCMP arrived with five squad cars and six officers.

“I asked if handcuffs were necessary – there is no danger of violence,” Barker said. “I was going to cooperate. His response was to turn me around and cuff me. He walked me outside and stood me beside the car for a full 4 or 5 minutes in full view of all the neighbors.”

Barker believes he and the Ontario woman are both victims of triangulation fraud, and that someone likely hacked the Ontario woman’s Walmart account and added his name and address as a recipient.

But he says he has since lost his job as a result of the arrest, and now he can’t find new employment because he has a criminal record. Barker’s former employer — Duncan’s First Nation — did not respond to requests for comment.

“In Canada, a criminal record is not a record of conviction, it’s a record of charges and that’s why I can’t work now,” Barker said. “Potential employers never find out what the nature of it is, they just find out that I have a criminal arrest record.”

Barker said that right after his arrest, the RCMP called the Ontario woman and told her they’d solved the crime and arrested the perpetrator.

“They even told her my employer had put me on administrative leave,” he said. “Surely, they’re not allowed to do that.”

Contacted by KrebsOnSecurity, the woman whose Walmart account was used to fraudulently purchase the child play sets said she’s not convinced this was a case of triangulation fraud. She declined to elaborate on why she believed this, other than to say the police told her Barker was a bad guy.

“I don’t think triangulation fraud was used in this case,” she said. “My actual Walmart.ca account was hacked and an order was placed on my account, using my credit card. The only thing Mr. Barker did was to order the item to be delivered to his address in Alberta.”

Barker shared with this author all of the documentation he gave to the RCMP, including screenshots of his Amazon.ca account showing that the items in dispute were sold by a seller named “Adavio,” and that the merchant behind this name was based in Turkey.

That Adavio account belongs to a young computer engineering student and “SEO expert” based in Adana, Turkey who did not respond to requests for comment.

Amazon.ca said it conducted an investigation and found that Mr. Barker never filed a complaint about the seller or transaction in question. The company noted that Adavio currently has a feedback rating of 4.5 stars out of 5.

“Amazon works hard to provide customers with a great experience and it’s our commitment to go above and beyond to make things right for customers,” Amazon.ca said in a written statement. “If a customer has an issue with an order, they may flag to Amazon through our Customer Service page.”

Barker said when he went to file a complaint with Amazon last year he could no longer find the Adavio account on the website, and that the site didn’t have a category for the type of complaint he wanted to file.

When he first approached KrebsOnSecurity about his plight last summer, Barker said he didn’t want any media attention to derail the chances of having his day in court, and confronting the RCMP investigator with evidence proving that he was being wrongfully prosecuted and maligned.

But a week before his court date arrived at the end of November 2023, prosecutors announced the charges against him would be stayed, meaning they had no immediate plans to prosecute the case further but that the investigation could still be reopened at some point in the future.

The RCMP declined to comment for this story, other than to confirm they had issued a stay of proceedings in the case.

Barker says the stay has left him in legal limbo — denying him the ability to clear his name, while giving the RCMP a free pass for a botched investigation. He says he has considered suing the investigating officer for defamation, but has been told by his attorney that the bar for success in such cases against the government is extremely high.

“I’m a 56-year-old law-abiding citizen, and I haven’t broken any laws,” Barker said, wondering aloud who would be stupid enough to use someone else’s credit card and have the stolen items shipped directly to their home.

“Their putting a stay on the proceedings without giving any evidence or explanation allows them to cover up bad police work,” he said. “It’s all so stupid.”

Triangulation fraud is hardly a new thing. KrebsOnSecurity first wrote about it from an e-commerce vendor’s perspective in 2015, but the scam predates that story by many years and is now a well-understood problem. The Canadian authorities should either let Mr. Barker have his day in court, or drop the charges altogether.

E-Crime Rapper ‘Punchmade Dev’ Debuts Card Shop

The rapper and social media personality Punchmade Dev is perhaps best known for his flashy videos singing the praises of a cybercrime lifestyle. With memorable hits such as “Internet Swiping” and “Million Dollar Criminal” earning millions of views, Punchmade has leveraged his considerable following to peddle tutorials on how to commit financial crimes online. But until recently, there wasn’t much to support a conclusion that Punchmade was actually doing the cybercrime things he promotes in his songs.

Punchmade Dev’s most controversial mix — a rap called “Wire Fraud Tutorial” — was taken down by Youtube last summer for violating the site’s rules. Punchmade shared on social media that the video’s removal was prompted by YouTube receiving a legal process request from law enforcement officials.

The 24-year-old rapper told reporters he wasn’t instructing people how to conduct wire fraud, but instead informing his fans on how to avoid being victims of wire fraud. However, this is difficult to discern from listening to the song, which sounds very much like a step-by-step tutorial on how to commit wire fraud.

“Listen up, I’m finna show y’all how to hit a bank,” Wire Fraud Tutorial begins. “Just pay attention, this is a quick way to jug in any state. First you wanna get a bank log from a trusted site. Do your research because the information must be right.”

And even though we’re talking about an individual who regularly appears in videos wearing a half-million dollars worth of custom jewelry draped around his arm and neck (including the functional diamond-encrusted payment card skimming device pictured above), there’s never been much evidence that Punchmade was actually involved in committing cybercrimes himself. Even his most vocal critics acknowledged that the whole persona could just be savvy marketing.

That changed recently when Punchmade’s various video and social media accounts began promoting a new web shop that is selling stolen payment cards and identity data, as well as hacked financial accounts and software for producing counterfeit checks.

The official Punchmadedev account on Instagram links to many of the aforementioned rap videos and tutorials on cybercriming, as well as to Punchmadedev’s other profiles and websites. Among them is mainpage[.]me/punchmade, which includes the following information for “Punchmade Empire ®”

-212,961 subscribers

#1 source on Telegram

Contact: @whopunchmade

24/7 shop: https://punchmade[.]atshop[.]io

Visiting that @whopunchmade Telegram channel shows this user is promoting punchmade[.]atshop[.]io, which is currently selling hacked bank accounts and payment cards with high balances.

Clicking “purchase” on the C@sh App offering, for example, shows that for $80 the buyer will receive logins to Cash App accounts with balances between $3,000 and $5,000. “If you buy this item you’ll get my full support on discord/telegram if there is a problem!,” the site promises. Purchases can be made in cryptocurrencies, and checking out prompts one to continue payment at Coinbase.com.

Another item for sale, “Fullz + Linkable CC,” promises “ID Front + Back, SSN with 700+ Credit Score, and Linkable CC” or credit card. That also can be had for $80 in crypto.

WHO IS PUNCHMADE DEV?

Punchmade has fashioned his public persona around a collection of custom-made, diamond-covered necklaces that are as outlandish and gaudy as they are revelatory. My favorite shot from one of Punchmade’s videos features at least three of these monstrosities: One appears to be a boring old diamond and gold covered bitcoin, but the other two necklaces tell us something about where Punchmade is from:

One of them includes the logo and mascot of the University of Kentucky. The other, an enormous diamond studded skyline, appears to have been designed based on the skyline in Lexington, Ky:

The “About” page on Punchmade Dev’s Spotify profile describes him as “an American artist, rapper, musician, producer, director, entrepreneur, actor and investor.” “Punchmade Dev is best known for his creative ways to use technology, video gaming, and social media to build a fan base,” the profile continues.

The profile explains that he launched his own record label in 2021 called Punchmade Records, where he produces his own instrumentals and edits his own music videos.

A search on companies that include the name “punchmade” at the website of the Kentucky Secretary of State brings up just one record: OBN Group LLC, in Lexington, Ky. This November 2021 record includes a Certificate of Assumed Name, which shows that Punchmade LLC is the assumed name of OBN Group LLC.

The president of OBN Group LLC is listed as Devon Turner. A search on the Secretary of State website for other businesses tied to Devon Turner reveals just one other record: A now-defunct entity called DevTakeFlightBeats Inc.

The breach tracking service Constella Intelligence finds that Devon Turner from Lexington, Ky. used the email address obndevpayments@gmail.com. A lookup on this email at DomainTools.com shows it was used to register the domain foreverpunchmade[.]com, which is registered to a Devon Turner in Lexington, Ky. A copy of this site at archive.org indicates it once sold Punchmade Dev-branded t-shirts and other merchandise.

Mr. Turner did not respond to multiple requests for comment.

Searching online for Devon Turner and “Punchmade” brings up a video from @brainjuiceofficial, a YouTube channel that focuses on social media celebrities. @Brainjuiceofficial says Turner was born in October 2000, the oldest child of a single mother of five whose husband was not in the picture.

The video says the six-foot five Turner played basketball, track and football in high school, but that he gradually became obsessed with playing the video game NBA 2K17 and building a following of people watching him play the game competitively online.

According to this brief documentary, Turner previously streamed his NBA 2K17 videos on a YouTube channel called DevTakeFlight, although he originally went by the nickname OBN Dev.

“Things may eventually catch up to Devon if he isn’t careful,” @Brainjuiceofficial observed, noting that Turner has been shot at before, and also robbed at an ATM while flexing a bunch of cash for a picture and wearing $500k in jewelry. “Although you have a lot of people that are into what you do, there are a lot of people waiting for you to slip up.”

Here’s Some Bitcoin: Oh, and You’ve Been Served!

A California man who lost $100,000 in a 2021 SIM-swapping attack is suing the unknown holder of a cryptocurrency wallet that harbors his stolen funds. The case is thought to be the first in which a federal court has recognized the use of information included in a bitcoin transaction — such as a link to a civil claim filed in federal court — as reasonably likely to provide notice of the lawsuit to the defendant. Experts say the development could make it easier for victims of crypto heists to recover stolen funds through the courts without having to wait years for law enforcement to take notice or help.

Ryan Dellone, a healthcare worker in Fresno, Calif., asserts that thieves stole his bitcoin on Dec. 14, 2021, by executing an unauthorized SIM-swap that involved an employee at his mobile phone provider who switched Dellone’s phone number over to a new device the attackers controlled.

Dellone says the crooks then used his phone number to break into his account at Coinbase and siphon roughly $100,000 worth of cryptocurrencies. Coinbase is also named as a defendant in the lawsuit, which alleges the company ignored multiple red flags, and that it should have detected and stopped the theft. Coinbase did not respond to requests for comment.

Working with experts who track the flow of funds stolen in cryptocurrency heists, Dellone’s lawyer Ethan Mora identified a bitcoin wallet that was the ultimate destination of his client’s stolen crypto. Mora says his client has since been made aware that the bitcoin address in question is embroiled in an ongoing federal investigation into a cryptocurrency theft ring.

Mora said it’s unclear if the bitcoin address that holds his client’s stolen money is being held by the government or by the anonymous hackers. Nevertheless, he is pursuing a novel legal strategy that allows his client to serve notice of the civil suit to that bitcoin address — and potentially win a default judgment to seize his client’s funds within — without knowing the identity of his attackers or anything about the account holder.

In a civil lawsuit seeking monetary damages, a default judgment is usually entered on behalf of the plaintiff if the defendant fails to respond to the complaint within a specified time. Assuming that the cybercriminals who stole the money don’t dispute Dellone’s claim, experts say the money could be seized by cryptocurrency exchanges if the thieves ever tried to move it or spend it.

The U.S. courts have generally held that if you’re going to sue someone, you have to provide some kind of meaningful and timely communication about that lawsuit to the defendant in a way that is reasonably likely to provide them notice.

Not so long ago, you had track down your defendant and hire someone to physically serve them with a copy of the court papers. But legal experts say the courts have evolved their thinking in recent years about what constitutes meaningful service, and now allow notification via email.

On Dec. 14, 2023, a federal judge in the Eastern District of California granted Dellone permission to serve notice of his lawsuit directly to the suspected hackers’ bitcoin address — using a short message that was attached to roughly $100 worth of bitcoin Mora sent to the address.

Bitcoin transactions are public record, and each transaction can be sent along with an optional short message. The message uses what’s known as an “OP RETURN,” or an instruction of the Bitcoin scripting language that allows users to attach metadata to a transaction — and thus save it on the blockchain.

In the $100 bitcoin transaction Mora sent to the disputed bitcoin address, the OP RETURN message read: “OSERVICE – SUMMONS, COMPLAINT U.S. Dist. E.D. Cal. LINK: t.ly/123cv01408_service,” which is a short link to a copy of the lawsuit hosted on Google Drive.

“The courts are adapting to the new style of service of process,” said Mark Rasch, a former federal prosecutor at the U.S. Department of Justice. “And that’s helpful and useful and necessary.”

Rasch said Mora’s strategy could force the government to divulge information about their case, or else explain to a judge why the plaintiff shouldn’t be able to recover their stolen funds without further delay. Rasch said it could be that Dellone’s stolen crypto was seized as part of a government asset forfeiture, but that either way there is no reason Uncle Sam should hold some cybercrime victims’ life savings indefinitely.

“The government doesn’t need the crypto as evidence, but in a forfeiture action the money goes to the government,” Rasch said. “But it was never the government’s money, and that doesn’t help the victim. The government should be providing information to the victims of cryptocurrency theft so that their attorneys can go get the money back themselves.”

Nick Bax is a security researcher who specializes in tracing the labyrinthine activity of criminals trying to use cryptocurrency exchanges and other financial instruments to launder the proceeds of cybercrime. Bax said Mora’s method could allow more victims to stake legitimate legal claims to their stolen funds.

“If you get a default judgment against a bitcoin address, for example, and then down the road that bitcoin gets sent to an exchange that complies with or abides by U.S. court orders, then it’s yours,” Bax said. “I’ve seen funds with a court order on them get frozen by the exchanges that decided it made sense to comply with orders from a U.S. federal court.”

Bax’s research was featured in a Sept. 2023 story here about how experts now believe it’s likely hackers are cracking open some of the password vaults stolen in the 2022 data breach at LastPass.

“I’ve talked to a lot victims who have had life-changing amounts of money being seized and would like that money back,” Bax said. “A big goal here is just making civil cases more efficient. Because then people can help themselves and they don’t need to rely solely on law enforcement with its limited resources. And that’s really the goal: To scale this and make it economically viable.”

While Dellone’s lawsuit may be the first time anyone has obtained approval from a federal judge to use bitcoin to notify another party of a civil action, the technique has been used in several recent unrelated cases involving other cryptocurrencies, including Ethereum and NFTs.

The law firm DLAPiper writes that in November 2022, the U.S. District Court for the Southern District of Florida “authorized service of a lawsuit seeking the recovery of stolen digital assets by way of a non-fungible token or NFT containing the text of the complaint and summons, as well as a hyperlink to a website created by the plaintiffs containing all pleadings and orders in the action.”

In approving Dellone’s request for service via bitcoin transaction, the judge overseeing the case cited a recent New York Superior Court ruling in a John Doe case brought by victims seeking to unmask the crooks behind a $1.3 million cyberheist.

In the New York case, the state trial court found it was acceptable for the plaintiffs to serve notice of the suit via cryptocurrency transactions because the defendants regularly used the Blockchain address to which the tokens were sent, and had recently done so. Also, the New York court found that because the account in question contained a significant sum of money, it was unlikely to be abandoned or forgotten.

“Thus the court inferred the defendants were likely to access the account in the future,” wrote Judge Helena M. March-Kuchta, for the Eastern District of California, summarizing the New York case. “Finally, the plaintiff had no alternative means of contacting these unknown defendants.”

Experts say regardless of the reason for a cryptocurrency theft or loss — whether it’s from a romance scam or a straight-up digital mugging — it’s important for victims to file an official report both with their local police and with the FBI’s Internet Crime Complaint Center (ic3.gov). The IC3 collects reports on cybercrime and sometimes bundles victim reports into cases for DOJ/FBI prosecutors and investigators.

The hard truth is that most victims will never see their stolen funds again. But sometimes federal investigators win minor victories and manage to seize or freeze crypto assets that are known to be associated with specific crimes and criminals. In those cases, the government will eventually make an effort to find, contact and in some cases remunerate known victims.

It might take many years for this process to unfold. But if and when they do make that effort, federal investigators are likely to focus their energies and attention responding to victims who staked a claim and can support it with documentation.

But have no illusions that any of this is likely to happen in a timeframe that is meaningful to victims in the short run. For example, in 2013 the U.S. government seized the assets of the virtual currency Liberty Reserve, massively disrupting a major vehicle for laundering the proceeds of cybercrime and other illegal activities.

When the government offered remuneration to Liberty Reserve account holders who wished to make a financial loss claim and supply supporting documentation, KrebsOnSecurity filed a claim. There wasn’t money much in my Liberty Reserve account; I simply wanted to know how long it would take for federal investigators to follow up on my claim, or indeed if they would at all.

In 2020 KrebsOnSecurity was contacted by an investigator with the U.S. Internal Revenue Service (IRS) who was seeking to discuss my claim. The investigator said they would have called sooner, but that it had taken that long for the IRS to gain legal access to the funds seized in the 2013 Liberty Reserve takedown.

Meet Ika & Sal: The Bulletproof Hosting Duo from Hell

In 2020, the United States brought charges against four men accused of building a bulletproof hosting empire that once dominated the Russian cybercrime industry and supported multiple organized cybercrime groups. All four pleaded guilty to conspiracy and racketeering charges. But there is a fascinating and untold backstory behind the two Russian men involved, who co-ran the world’s top spam forum and worked closely with Russia’s most dangerous cybercriminals.

From January 2005 to April 2013, there were two primary administrators of the cybercrime forum Spamdot (a.k.a Spamit), an invite-only community for Russian-speaking people in the businesses of sending spam and building botnets of infected computers to relay said spam. The Spamdot admins went by the nicknames Icamis (a.k.a. Ika), and Salomon (a.k.a. Sal).

As detailed in my 2014 book, Spam Nation, Spamdot was home to crooks controlling some of the world’s nastiest botnets, global malware contagions that went by exotic names like Rustock, Cutwail, Mega-D, Festi, Waledac, and Grum.

Icamis and Sal were in daily communications with these botmasters, via the Spamdot forum and private messages. Collectively in control over millions of spam-spewing zombies, those botmasters also continuously harvested passwords and other data from infected machines.

As we’ll see in a moment, Salomon is now behind bars, in part because he helped to rob dozens of small businesses in the United States using some of those same harvested passwords. He is currently housed in a federal prison in Michigan, serving the final stretch of a 60-month sentence.

But the identity and whereabouts of Icamis have remained a mystery to this author until recently. For years, security experts — and indeed, many top cybercriminals in the Spamit affiliate program — have expressed the belief that Sal and Icamis were likely the same person using two different identities. And there were many good reasons to support this conclusion.

For example, in 2010 Spamdot and its spam affiliate program Spamit were hacked, and its user database shows Sal and Icamis often accessed the forum from the same Internet address — usually from Cherepovets, an industrial town situated approximately 230 miles north of Moscow. Also, it was common for Icamis to reply when Spamdot members communicated a request or complaint to Sal, and vice versa.

Still, other clues suggested Icamis and Sal were two separate individuals. For starters, they frequently changed the status on their instant messenger clients at different times. Also, they each privately discussed with others having attended different universities.

KrebsOnSecurity began researching Icamis’s real-life identity in 2012, but failed to revisit any of that research until recently. In December 2023, KrebsOnSecurity published new details about the identity of “Rescator,” a Russian cybercriminal who is thought to be closely connected to the 2013 data breach at Target.

That story mentioned Rescator’s real-life identity was exposed by Icamis in April 2013, as part of a lengthy farewell letter Ika wrote to Spamdot members wherein Ika said he was closing the forum and quitting the cybercrime business entirely.

To no one’s shock, Icamis didn’t quit the business: He simply became more quiet and circumspect about his work, which increasingly was focused on helping crime groups siphon funds from U.S. bank accounts. But the Rescator story was a reminder that 10 years worth of research on who Ika/Icamis is in real life had been completely set aside. This post is an attempt to remedy that omission.

GENTLEMEN SCAMMERS

Icamis and Sal offered a comprehensive package of goods and services that any aspiring or accomplished spammer would need on a day-to-day basis: Virtually unlimited bulletproof domain registration and hosting services, as well as services that helped botmasters evade spam block lists generated by anti-spam groups like Spamhaus.org. Here’s snippet of Icamis’s ad on Spamdot from Aug. 2008, wherein he addresses forum members with the salutation, “Hello Gentlemen Scammers.”

We are glad to present you our services!
Many are already aware (and are our clients), but publicity is never superfluous.

Domains.
– all major gtlds (com, net, org, info, biz)
– many interesting and uninteresting cctlds
– options for any topic
– processing of any quantities
– guarantees
– exceptionally low prices for domains for white and gray schemes (including any SEO and affiliate spam )
– control panel with balances and auto-registration
– all services under the Ikamis brand, proven over the years;)

Servers.
– long-term partnerships with several [data centers] in several parts of the world for any topic
– your own data center (no longer in Russia ;)) for gray and white topics
– any configuration and any hardware
– your own IP networks (PI, not PA) and full legal support
– realtime backups to neutral sites
– guarantees and full responsibility for the services provided
– non-standard equipment on request
– our own admins to resolve any technical issues (services are free for clients)
– hosting (shared and vps) is also possible

Non-standard and related services.
– ssl certificates signed by geotrust and thawte
– old domains (any year, any quantity)
– beautiful domains (keyword, short, etc.)
– domains with indicators (any, for SEO, etc.)
– making unstable gtld domains stable
– interception and hijacking of custom domains (expensive)
– full domain posting via web.archive.org with restoration of native content (preliminary applications)
– any updates to our panels to suit your needs upon request (our own coders)

All orders for the “Domains” sections and “Servers” are carried out during the day (depending on our workload).
For non-standard and related services, a preliminary application is required 30 days in advance (except for ssl certificates – within 24 hours).

Icamis and Sal frequently claimed that their service kept Spamhaus and other anti-spam groups several steps behind their operations. But it’s clear that those anti-spam operations had a real and painful impact on spam revenues, and Salomon was obsessed with striking back at anti-spam groups, particularly Spamhaus.

In 2007, Salomon collected more than $3,000 from botmasters affiliated with competing spam affiliate programs that wanted to see Spamhaus suffer, and the money was used to fund a week-long distributed denial-of-service (DDoS) attack against Spamhaus and its online infrastructure. But rather than divert their spam botnets from their normal activity and thereby decrease sales, the botmasters voted to create a new DDoS botnet by purchasing installations of DDoS malware on thousands of already-hacked PCs (at a rate of $25 per 1,000 installs).

SALOMON

As an affiliate of Spamdot, Salomon used the email address ad1@safe-mail.net, and the password 19871987gr. The breach tracking service Constella Intelligence found the password 19871987gr was used by the email address grichishkin@gmail.com. Multiple accounts are registered to that email address under the name Alexander Valerievich Grichishkin, from Cherepovets.

In 2020, Grichishkin was arrested outside of Russia on a warrant for providing bulletproof hosting services to cybercriminal gangs. The U.S. government said Grichishkin and three others set up the infrastructure used by cybercriminals between 2009 to 2015 to distribute malware and attack financial institutions and victims throughout the United States.

Those clients included crooks using malware like Zeus, SpyEye, Citadel and the Blackhole exploit kit to build botnets and steal banking credentials.

“The Organization and its members helped their clients to access computers without authorization, steal financial information (including banking credentials), and initiate unauthorized wire transfers from victims’ financial accounts,” the government’s complaint stated.

Grichishkin pleaded guilty to conspiracy charges and was sentenced to four years in prison. He is 36 years old, has a wife and kids in Thailand, and is slated for release on February 8, 2024.

ICAMIS, THE PHANTOM GRADUATE

The identity of Icamis came into view when KrebsOnSecurity began focusing on clues that might connect Icamis to Cherepovets (Ika’s apparent hometown based on the Internet addresses he regularly used to access Spamdot).

Historic domain ownership records from DomainTools.com reveal that many of the email addresses and domains connected to Icamis invoke the name “Andrew Artz,” including icamis[.]ws, icamis[.]ru, and icamis[.]biz. Icamis promoted his services in 2003 — such as bulk-domains[.]info — using the email address icamis@4host.info. From one of his ads in 2005:

Domains For Projects Advertised By Spam

I can register bulletproof domains for sites and projects advertised by spam(of course they must be legal). I can not provide DNS for u, only domains. The price will be:

65$ for domain[if u will buy less than 5 domains]

50$ for domain[more than 5 domains]

45$ for domain[more than 10 domains]

These prices are for domains in the .net & .com zones.

If u want to order domains write me to: icamis@4host.info

In 2009, an “Andrew Artz” registered at the hosting service FirstVDS.com using the email address icamis@4host.info, with a notation saying the company name attached to the account was “WMPay.” Likewise, the bulletproof domain service icamis[.]ws was registered to an Andrew Artz.

The domain wmpay.ru is registered to the phonetically similar name “Andrew Hertz,” at andrew@wmpay.ru. A search on “icamis.ru” in Google brings up a 2003 post by him on a discussion forum designed by and for students of Amtek, a secondary school in Cherepovets (Icamis was commenting from an Internet address in Cherepovets).

The website amtek-foreva-narod.ru is still online, and it links to several yearbooks for Amtek graduates. It states that the yearbook for the Amtek class of 2004 is hosted at 41.wmpay[.]com.

The yearbook photos for the Amtek class of 2004 are not indexed in the Wayback Machine at archive.org, but the names and nicknames of 16 students remain. However, it appears that the entry for one student — the Wmpay[.]com site administrator — was removed at some point.

In 2004, the administrator of the Amtek discussion forum — a 2003 graduate who used the handle “Grand” — observed that there were three people named Andrey who graduated from Amtek in 2004, but one of them was conspicuously absent from the yearbook at wmpay[.]ru: Andrey Skvortsov.

To bring this full circle, Icamis was Andrey Skvortsov, the other Russian man charged alongside Grichiskin (the two others who pleaded guilty to conspiracy charges were from Estonia and Lithuania). All of the defendants in that case pleaded guilty to conspiracy to engage in a Racketeer Influenced Corrupt Organization (RICO).

[Author’s note: No doubt government prosecutors had their own reasons for omitting the nicknames of the defendants in their press releases, but that information sure would have saved me a lot of time and effort].

SKVORTSOV AND THE JABBERZEUS CREW

Skvortsov was sentenced to time served, and presumably deported. His current whereabouts are unknown and he was not reachable for comment via his known contact addresses.

The government says Ika and Sal’s bulletproof hosting empire provided extensive support for a highly damaging cybercrime group known as the JabberZeus Crew, which worked closely with the author of the Zeus Trojan — Evgeniy Mikhailovich Bogachev — to develop a then-advanced strain of the Zeus malware that was designed to defeat one-time codes for authentication. Bogachev is a top Russian cybercriminal with a standing $3 million bounty on his head from the FBI.

The JabberZeus Crew stole money by constantly recruiting money mules, people in the United States and in Europe who could be enticed or tricked into forwarding money stolen from cybercrime victims. Interestingly, Icamis’s various email addresses are connected to websites for a vast network of phony technology companies that claimed they needed people with bank accounts to help pay their overseas employees.

Icamis used the email address tech@safe-mail.net on Spamdot, and this email address is tied to the registration records for multiple phony technology companies that were set up to recruit money mules.

One such site — sun-technology[.]net — advertised itself as a Hong Kong-based electronics firm that was looking for “honest, responsible and motivated people in UK, USA, AU and NZ to be Sales Representatives in your particular region and receive payments from our clients. Agent commission is 5 percent of total amount received to the personal bank account. You may use your existing bank account or open a new one for these purposes.”

In January 2010, KrebsOnSecurity broke the news that the JabberZeus crew had just used money mules to steal $500,000 from tiny Duanesburg Central School District in upstate New York. As part of his sentence, Skvortsov was ordered to pay $497,200 in restitution to the Duanesburg Central School District.

The JabberZeus Crew operated mainly out of the eastern Ukraine city of Donetsk, which was always pro-Russia and is now occupied by Russian forces. But when Russia invaded Ukraine in February 2022, the alleged leader of the notorious cybercrime gang — Vyacheslav Igoravich Andreev (a.ka. Penchukov) — fled his mandatory military service orders and was arrested in Geneva, Switzerland. He is currently in federal custody awaiting trial, and is slated to be arraigned in U.S. federal court tomorrow (Jan. 9, 2024). A copy of the indictment against Andreev is here (PDF).

BlackCat Ransomware Raises Ante After FBI Disruption

The U.S. Federal Bureau of Investigation (FBI) disclosed today that it infiltrated the world’s second most prolific ransomware gang, a Russia-based criminal group known as ALPHV and BlackCat. The FBI said it seized the gang’s darknet website, and released a decryption tool that hundreds of victim companies can use to recover systems. Meanwhile, BlackCat responded by briefly “unseizing” its darknet site with a message promising 90 percent commissions for affiliates who continue to work with the crime group, and open season on everything from hospitals to nuclear power plants.

Whispers of a possible law enforcement action against BlackCat came in the first week of December, after the ransomware group’s darknet site went offline and remained unavailable for roughly five days. BlackCat eventually managed to bring its site back online, blaming the outage on equipment malfunctions.

But earlier today, the BlackCat website was replaced with an FBI seizure notice, while federal prosecutors in Florida released a search warrant explaining how FBI agents were able to gain access to and disrupt the group’s operations.

A statement on the operation from the U.S. Department of Justice says the FBI developed a decryption tool that allowed agency field offices and partners globally to offer more than 500 affected victims the ability to restore their systems.

“With a decryption tool provided by the FBI to hundreds of ransomware victims worldwide, businesses and schools were able to reopen, and health care and emergency services were able to come back online,” Deputy Attorney General Lisa O. Monaco said. “We will continue to prioritize disruptions and place victims at the center of our strategy to dismantle the ecosystem fueling cybercrime.”

The DOJ reports that since BlackCat’s formation roughly 18 months ago, the crime group has targeted the computer networks of more than 1,000 victim organizations. BlackCat attacks usually involve encryption and theft of data; if victims refuse to pay a ransom, the attackers typically publish the stolen data on a BlackCat-linked darknet site.

BlackCat formed by recruiting operators from several competing or disbanded ransomware organizations — including REvil, BlackMatter and DarkSide. The latter group was responsible for the Colonial Pipeline attack in May 2021 that caused nationwide fuel shortages and price spikes.

Like many other ransomware operations, BlackCat operates under the “ransomware-as-a-service” model, where teams of developers maintain and update the ransomware code, as well as all of its supporting infrastructure. Affiliates are incentivized to attack high-value targets because they generally reap 60-80 percent of any payouts, with the remainder going to the crooks running the ransomware operation.

BlackCat was able to briefly regain control over their darknet server today. Not long after the FBI’s seizure notice went live the homepage was “unseized” and retrofitted with a statement about the incident from the ransomware group’s perspective.

BlackCat claimed that the FBI’s operation only touched a portion of its operations, and that as a result of the FBI’s actions an additional 3,000 victims will no longer have the option of receiving decryption keys. The group also said it was formally removing any restrictions or discouragement against targeting hospitals or other critical infrastructure.

“Because of their actions, we are introducing new rules, or rather, we are removing ALL rules except one, you cannot touch the CIS [a common restriction against attacking organizations in Russia or the Commonwealth of Independent States]. You can now block hospitals, nuclear power plants, anything, anywhere.”

The crime group also said it was setting affiliate commissions at 90 percent, presumably to attract interest from potential affiliates who might otherwise be spooked by the FBI’s recent infiltration. BlackCat also promised that all “advertisers” under this new scheme would manage their affiliate accounts from data centers that are completely isolated from each other.

BlackCat’s darknet site currently displays the FBI seizure notice. But as BleepingComputer founder Lawrence Abrams explained on Mastodon, both the FBI and BlackCat have the private keys associated with the Tor hidden service URL for BlackCat’s victim shaming and data leak site.

“Whoever is the latest to publish the hidden service on Tor (in this case the BlackCat data leak site), will resume control over the URL,” Abrams said. “Expect to see this type of back and forth over the next couple of days.”

The DOJ says anyone with information about BlackCat affiliates or their activities may be eligible for up to a $10 million reward through the State Department’s “Rewards for Justice” program, which accepts submissions through a Tor-based tip line (visiting the site is only possible using the Tor browser).

Further reading: CISA StopRansomware Alert on the tools, techniques and procedures used by ALPHV/BlackCat.

Ten Years Later, New Clues in the Target Breach

On Dec. 18, 2013, KrebsOnSecurity broke the news that U.S. retail giant Target was battling a wide-ranging computer intrusion that compromised more than 40 million customer payment cards over the previous month. The malware used in the Target breach included the text string “Rescator,” which also was the handle chosen by the cybercriminal who was selling all of the cards stolen from Target customers. Ten years later, KrebsOnSecurity has uncovered new clues about the real-life identity of Rescator.

Shortly after breaking the Target story, KrebsOnSecurity reported that Rescator appeared to be a hacker from Ukraine. Efforts to confirm my reporting with that individual ended when they declined to answer questions, and after I declined to accept a bribe of $10,000 not to run my story.

That reporting was based on clues from an early Russian cybercrime forum in which a hacker named Rescator — using the same profile image that Rescator was known to use on other forums — claimed to have originally been known as “Helkern,” the nickname chosen by the administrator of a cybercrime forum called Darklife.

KrebsOnSecurity began revisiting the research into Rescator’s real-life identity in 2018, after the U.S. Department of Justice unsealed an indictment that named a different Ukrainian man as Helkern.

It may be helpful to first recap why Rescator is thought to be so closely tied to the Target breach. For starters, the text string “Rescator” was found in some of the malware used in the Target breach. Investigators would later determine that a variant of the malware used in the Target breach was used in 2014 to steal 56 million payment cards from Home Depot customers. And once again, cards stolen in the Home Depot breach were sold exclusively at Rescator’s shops.

On Nov. 25, 2013, two days before Target said the breach officially began, Rescator could be seen in instant messages hiring another forum member to verify 400,000 payment cards that Rescator claimed were freshly stolen.

By the first week of December 2013, Rescator’s online store — rescator[.]la — was selling more than six million payment card records stolen from Target customers. Prior to the Target breach, Rescator had mostly sold much smaller batches of stolen card and identity data, and the website allowed cybercriminals to automate the sending of fraudulent wire transfers to money mules based in Lviv, Ukraine.

Finally, there is some honor among thieves, and in the marketplace for stolen payment card data it is considered poor form to advertise a batch of cards as “yours” if you are merely reselling cards sold to you by a third-party card vendor or thief. When serious stolen payment card shop vendors wish to communicate that a batch of cards is uniquely their handiwork or that of their immediate crew, they refer to it as “our base.” And Rescator was quite clear in his advertisements that these millions of cards were obtained firsthand.

FLASHBACK

The new clues about Rescator’s identity came into focus when I revisited the reporting around an April 2013 story here that identified the author of the OSX Flashback Trojan, an early Mac malware strain that quickly spread to more than 650,000 Mac computers worldwide in 2012.

That story about the Flashback author was possible because a source had obtained a Web browser authentication cookie for a founding member of a Russian cybercrime forum called BlackSEO. Anyone in possession of that cookie could then browse the invite-only BlackSEO forum and read the user’s private messages without having to log in.

The legitimate owner of that BlackSEO user cookie went by the nickname Ika, and Ika’s private messages on the forum showed he was close friends with the Flashback author. At the time, Ika also was the administrator of Pustota[.]pw — a closely-guarded Russian forum that counted among its members some of the world’s most successful and established spammers and malware writers.

For many years, Ika held a key position at one of Russia’s largest Internet service providers, and his (mostly glowing) reputation as a reliable provider of web hosting to the Russian cybercrime community gave him an encyclopedic knowledge about nearly every major player in that scene at the time.

The story on the Flashback author featured redacted screenshots that were taken from Ika’s BlackSEO account (see image above). The day after that story ran, Ika posted a farewell address to his mates, expressing shock and bewilderment over the apparent compromise of his BlackSEO account.

In a lengthy post on April 4, 2013 titled “I DON’T UNDERSTAND ANYTHING,” Ika told Pustota forum members he was so spooked by recent events that he was closing the forum and quitting the cybercrime business entirely. Ika recounted how the Flashback story had come the same week that rival cybercriminals tried to “dox” him (their dox named the wrong individual, but included some of Ika’s more guarded identities).

“It’s no secret that karma farted in my direction,” Ika said at the beginning of his post. Unbeknownst to Ika at the time, his Pustota forum also had been completely hacked that week, and a copy of its database shared with this author.

Ika said the two individuals who tried to dox him did so on an even more guarded Russian language forum — DirectConnection[.]ws, perhaps the most exclusive Russian cybercrime community ever created. New applicants of this forum had to pay a non-refundable deposit, and receive vouches by three established cybercriminals already on the forum. Even if one managed to steal (or guess) a user’s DirectConnection password, the login page could not be reached unless the visitor also possessed a special browser certificate that the forum administrator gave only to approved members.

In no uncertain terms, Ika declared that Rescator went by the nickname MikeMike on DirectConnection:

“I did not want to bring any of this to real life. Especially since I knew the patron of the clowns – specifically Pavel Vrublevsky. Yes, I do state with confidence that the man with the nickname Rescator a.k.a. MikeMike with his partner Pipol have been Pavel Vrublevsky’s puppets for a long time.”

Pavel Vrublevsky is a convicted cybercriminal who became famous as the CEO of the Russian e-payments company ChronoPay, which specialized in facilitating online payments for a variety of “high-risk” businesses, including gambling, pirated Mp3 files, rogue antivirus software and “male enhancement” pills.

As detailed in my 2014 book Spam Nation, Vrublevsky not-so-secretly ran a pharmacy affiliate spam program called Rx-Promotion, which paid spammers and virus writers to blast out tens of billions of junk emails advertising generic Viagra and controlled pharmaceuticals like pain relief medications. Much of my reporting on Vrublevsky’s cybercrime empire came from several years worth of internal ChronoPay emails and documents that were leaked online in 2010 and 2011.

ZAXVATMIRA

In 2014, KrebsOnSecurity learned from a trusted source close to the Target breach investigation that the user MikeMike on DirectConnection — the same account that Ika said belonged to Rescator — used the email address “zaxvatmira@gmail.com.”

At the time, KrebsOnSecurity could not connect that email address to anything or anyone. However, a recent search on zaxvatmira@gmail.com at the breach tracking service Constella Intelligence returns just one result: An account created in November 2010 at the site searchengines[.]ru under the handle  “r-fac1.”

A search on “r-fac1” at cyber intelligence firm Intel 471 revealed that this user’s introductory post on searchengines[.]ru advertised musictransferonline[.]com, an affiliate program that paid people to drive traffic to sites that sold pirated music files for pennies apiece.

According to leaked ChronoPay emails from 2010, this domain was registered and paid for by ChronoPay. Those missives also show that in August 2010 Vrublevsky authorized a payment of ~$1,200 for a multi-user license of an Intranet service called MegaPlan.

ChronoPay used the MegaPlan service to help manage the sprawling projects that Vrublevsky referred to internally as their “black” payment processing operations, including pirated pills, porn, Mp3s, and fake antivirus products. ChronoPay employees used their MegaPlan accounts to track payment disputes, order volumes, and advertising partnerships for these high-risk programs.

Borrowing a page from the Quentin Tarantino movie Reservoir Dogs, the employees adopted nicknames like “Mr. Kink,” “Mr. Heppner,” and “Ms. Nati.” However, in a classic failure of operational security, many of these employees had their MegaPlan account messages automatically forwarded to their real ChronoPay email accounts.

When ChronoPay’s internal emails were leaked in 2010, the username and password for its MegaPlan subscription were still working and valid. An internal user directory for that subscription included the personal (non-ChronoPay) email address tied to each employee Megaplan nickname. That directory listing said the email address zaxvatmira@gmail.com was assigned to the head of the Media/Mp3 division for ChronoPay, pictured at the top left of the organizational chart above as “Babushka Vani and Koli.”

[Author’s note: I initially overlooked the presence of the email address zaxvatmira@gmail.com in my notes because it did not show up in text searches of my saved emails, files or messages. I rediscovered it recently when a text search for zaxvatmira@gmail.com on my Mac found the address in a screenshot of the ChronoPay MegaPlan interface.]

The nickname two rungs down from “Babushka” in the ChronoPay org chart is “Lev Tolstoy,” which the MegaPlan service showed was picked by someone who used the email address v.zhabukin@freefrog-co-ru.

ChronoPay’s emails show that this Freefrog email address belongs to a Vasily Borisovich Zhabykin from Moscow. The Russian business tracking website rusprofile[.]ru reports that Zhabykin is or was the supervisor or owner of three Russian organizations, including one called JSC Hot Spot.

[Author’s note: The word “babushka” means “grandma” in Russian, and it could be that this nickname is a nod to the ChronoPay CEO’s wife, Vera. The leaked ChronoPay emails show that Vera Vrublevsky managed a group of hackers working with their media division, and was at least nominally in charge of MP3 projects for ChronoPay. Indeed, in messages exposed by the leaked ChronoPay email cache, Zhabykin stated that he was “directly subordinate” to Mrs. Vrublevsky].

CYBERCRIME HOTSPOT

JSC Hot Spot is interesting because its co-founder is another ChronoPay employee: 37-year-old Mikhail “Mike” Shefel. A Facebook profile for Mr. Shefel says he is or was vice president of payment systems at ChronoPay. However, the last update on that profile is from 2018, when Shefel appears to have legally changed his last name.

Archive.org shows that Hot Spot’s website — myhotspot[.]ru — sold a variety of consulting services, including IT security assessments, code and system audits, and email marketing. The earliest recorded archive of the Hot Spot website listed three clients on its homepage, including ChronoPay and Freefrog.

ChronoPay internal emails show that Freefrog was one of its investment projects that facilitated the sale of pirated Mp3 files. Rusprofile[.]ru reports that Freefrog’s official company name — JSC Freefrog — is incorporated by a thinly-documented entity based in the Seychelles called Impex Consulting Ltd., and it is unclear who its true owners are.

However, a search at DomainTools.com on the phone number listed on the homepage of myhotspot[.]ru (74957809554) reveals that number is associated with eight domain names.

Six of those domains are some variation of FreeFrog. Another domain registered to that phone number is bothunter[.]me, which included a copyright credit to “Hot Spot 2011.” At the annual Russian Internet Week IT convention in Moscow in 2012, Mr. Shefel gave a short presentation about bothunter, which he described as a service he designed to identify inauthentic (bot) accounts on Russian social media networks.

Interestingly, one of r-fac1’s first posts to Searchengines[.]ru a year earlier saw this user requesting help from other members who had access to large numbers of hacked social media accounts. R-fac1 told forum members that he was only looking to use those accounts to post harmless links and comments to the followers of the hacked profiles, and his post suggested he was testing something.

“Good afternoon,” r-fac1 wrote on Dec. 20, 2010. “I’m looking for people with their own not-recently-registered accounts on forums, (except for search) Social networks, Twitter, blogs, their websites. Tasks, depending on your accounts, post text and a link, sometimes just a link. Most often the topic is chatter, relaxation, discussion. Posting my links in your profiles, on your walls. A separate offer for people with a large set of contacts in instant messengers to try to use viral marketing.”

Neither Mr. Shefel nor Mr. Zhabykin responded to requests for comment.

WHERE ARE THEY NOW?

Mr. Zhabykin soon moved on to bigger ventures, co-founding a cryptocurrency exchange based in Moscow’s financial center called Suex. In September 2021, Suex earned the distinction of becoming the first crypto firm to be sanctioned by the U.S. Department of the Treasury, which effectively blocked Suex from the global financial system. The Treasury alleged Suex helped to process millions in criminal transactions, including the proceeds of numerous ransomware attacks.

“I don’t understand how I got mixed up in this,” Zhabykin told The New York Times in 2021. Zhabykin said Suex, which is registered in the Czech Republic, was mostly a failure and had conducted only a half dozen or so transactions since 2019.

The Russian business tracking service Rusprofile says Zhabykin also is the owner of a company based in the United Kingdom called RideWithLocal; the company’s website says it specializes in arranging excursions for extreme sports, including snowboarding, skiing, surfing and parasailing. Images from the RideWithLocal Facebook page show helicopters dropping snowboarders and skiers atop some fairly steep mountains.

Constella Intelligence found a cached copy of a now-deleted LinkedIn profile for Mr. Zhabykin, who described himself as a “sporttech/fintech specialist and mentor.”

“I create products and services worldwide, focusing on innovation and global challenges,” his LinkedIn profile said. “I’ve started my career in 2002 and since then I worked in Moscow, different regions of Russia, including Siberia and in Finland, Brazil, United Kingdom, Sri Lanka. Over the last 15 years I contributed to many amazing products in the following industries: sports, ecology, sport tech, fin tech, electronic payments, big data, telecommunications, pulp and paper industry, wood processing and travel. My specialities are Product development, Mentorship, Strategy and Business development.”

Rusprofile reports that Mikhail Borisovich Shefel is associated with at least eight current or now-defunct companies in Russia, including Dengi IM (Money IM), Internet Capital, Internet Lawyer, Internet 2, Zao Hot Spot, and (my personal favorite) an entity incorporated in 2021 called “All the Money in the World.”

Constella Intelligence found several official documents for Mr. Shefel that came from hacked Russian phone, automobile and residence records. They indicate Mr. Shefel is the registrant of a black Porsche Cayenne (Plate:X537SR197) and a Mercedes (Plate:P003PX90). Those vehicle records show Mr. Shefel was born on May 28, 1986.

Rusprofile reveals that at some point near the end of 2018, Shefel changed his last name to Lenin. DomainTools reports that in 2018, Mr. Shefel’s company Internet 2 LLC registered the domain name Lenin[.]me. This now-defunct service sold physical USSR-era Ruble notes that bear the image of Vladimir Lenin, the founding father of the Soviet Union.

Meanwhile, Pavel Vrublevsky remains imprisoned in Russia, awaiting trial on fraud charges levied against the payment company CEO in March 2022. Authorities allege Vrublevsky operated several fraudulent SMS-based payment schemes. They also accused Vrublevsky of facilitating money laundering for Hydra, the largest Russian darknet market. Hydra trafficked in illegal drugs and financial services, including cryptocurrency tumbling for money laundering, exchange services between cryptocurrency and Russian rubles, and the sale of falsified documents and hacking services.

In 2013, Vrublevsky was sentenced to 2.5 years in a Russian penal colony for convincing one of his top spammers and botmasters to launch a distributed denial-of-service (DDoS) attack against a ChronoPay competitor that shut down the ticketing system for the state-owned Aeroflot airline.

Following his release, Vrublevsky began working on a new digital payments platform based in Hong Kong called HPay Ltd (a.k.a. Hong Kong Processing Corporation). HPay appears to have had a great number of clients that were running schemes which bamboozled people with fake lotteries and prize contests.

KrebsOnSecurity sought comment on this research from the Federal Bureau of Investigation (FBI) and the U.S. Secret Service, both of which have been involved in the Target breach investigation over the years. The FBI declined to comment. The Secret Service declined to confirm or dispute any of the findings, but said it is still interested in hearing from anyone who might have more information.

“The U.S. Secret Service does not comment on any open investigation and won’t confirm or deny the accuracy in any reporting related to a criminal manner,” the agency said in a written statement. “However, If you have any information relating to the subjects referenced in this article, please contact the U.S. Secret Service at mostwanted@usss.dhs.gov. The Secret Service pays a reward for information leading to the arrest of cybercriminals.”

Microsoft Patch Tuesday, December 2023 Edition

The final Patch Tuesday of 2023 is upon us, with Microsoft Corp. today releasing fixes for a relatively small number of security holes in its Windows operating systems and other software. Even more unusual, there are no known “zero-day” threats targeting any of the vulnerabilities in December’s patch batch. Still, four of the updates pushed out today address “critical” vulnerabilities that Microsoft says can be exploited by malware or malcontents to seize complete control over a vulnerable Windows device with little or no help from users.

Among the critical bugs quashed this month is CVE-2023-35628, a weakness present in Windows 10 and later versions, as well as Microsoft Server 2008 and later. Kevin Breen, senior director of threat research at Immersive Labs, said the flaw affects MSHTML, a core component of Windows that is used to render browser-based content. Breen notes that MSHTML also can be found in a number of Microsoft applications, including Office, Outlook, Skype and Teams.

“In the worst-case scenario, Microsoft suggests that simply receiving an email would be enough to trigger the vulnerability and give an attacker code execution on the target machine without any user interaction like opening or interacting with the contents,” Breen said.

Another critical flaw that probably deserves priority patching is CVE-2023-35641, a remote code execution weakness in a built-in Windows feature called the Internet Connection Sharing (ICS) service that lets multiple devices share an Internet connection. While CVE-2023-35641 earned a high vulnerability severity score (a CVSS rating of 8.8), the threat from this flaw may be limited somewhat because an attacker would need to be on the same network as the target. Also, while ICS is present in all versions of Windows since Windows 7, it is not on by default (although some applications may turn it on).

Satnam Narang, senior staff research engineer at Tenable, notes that a number of the non-critical patches released today were identified by Microsoft as “more likely to be exploited.” For example, CVE-2023-35636, which Microsoft says is an information disclosure vulnerability in Outlook. An attacker could exploit this flaw by convincing a potential victim to open a specially crafted file delivered via email or hosted on a malicious website.

Narang said what makes this one stand out is that exploitation of this flaw would lead to the disclosure of NTLM hashes, which could be leveraged as part of an NTLM relay or “pass the hash” attack, which lets an attacker masquerade as a legitimate user without ever having to log in.

”It is reminiscent of CVE-2023-23397, an elevation of privilege vulnerability in Microsoft Outlook that was exploited in the wild as a zero day and patched in the March 2023 Patch Tuesday release,” Narang said. “However, unlike CVE-2023-23397, CVE-2023-35636 is not exploitable via Microsoft’s Preview Pane, which lowers the severity of this flaw.”

As usual, the SANS Internet Storm Center has a good roundup on all of the patches released today and indexed by severity. Windows users, please consider backing up your data and/or imaging your system before applying any updates. And feel free to sound off in the comments if you experience any difficulties as a result of these patches.

ICANN Launches Service to Help With WHOIS Lookups

More than five years after domain name registrars started redacting personal data from all public domain registration records, the non-profit organization overseeing the domain industry has introduced a centralized online service designed to make it easier for researchers, law enforcement and others to request the information directly from registrars.

In May 2018, the Internet Corporation for Assigned Names and Numbers (ICANN) — the nonprofit entity that manages the global domain name system — instructed all registrars to redact the customer’s name, address, phone number and email from WHOIS, the system for querying databases that store the registered users of domain names and blocks of Internet address ranges.

ICANN made the policy change in response to the General Data Protection Regulation (GDPR), a law enacted by the European Parliament that requires companies to gain affirmative consent for any personal information they collect on people within the European Union. In the meantime, registrars were to continue collecting the data but not publish it, and ICANN promised it would develop a system that facilitates access to this information.

At the end of November 2023, ICANN launched the Registration Data Request Service (RDRS), which is designed as a one-stop shop to submit registration data requests to participating registrars. This video from ICANN walks through how the system works.

Accredited registrars don’t have to participate, but ICANN is asking all registrars to join and says participants can opt out or stop using it at any time. ICANN contends that the use of a standardized request form makes it easier for the correct information and supporting documents to be provided to evaluate a request.

ICANN says the RDRS doesn’t guarantee access to requested registration data, and that all communication and data disclosure between the registrars and requestors takes place outside of the system. The service can’t be used to request WHOIS data tied to country-code top level domains (CCTLDs), such as those ending in .de (Germany) or .nz (New Zealand), for example.

As Catalin Cimpanu writes for Risky Business News, currently investigators can file legal requests or abuse reports with each individual registrar, but the idea behind the RDRS is to create a place where requests from “verified” parties can be honored faster and with a higher degree of trust.

The registrar community generally views public WHOIS data as a nuisance issue for their domain customers and an unwelcome cost-center. Privacy advocates maintain that cybercriminals don’t provide their real information in registration records anyway, and that requiring WHOIS data to be public simply causes domain registrants to be pestered by spammers, scammers and stalkers.

Meanwhile, security experts argue that even in cases where online abusers provide intentionally misleading or false information in WHOIS records, that information is still extremely useful in mapping the extent of their malware, phishing and scamming operations. What’s more, the overwhelming majority of phishing is performed with the help of compromised domains, and the primary method for cleaning up those compromises is using WHOIS data to contact the victim and/or their hosting provider.

Anyone looking for copious examples of both need only to search this Web site for the term “WHOIS,” which yields dozens of stories and investigations that simply would not have been possible without the data available in the global WHOIS records.

KrebsOnSecurity remains doubtful that participating registrars will be any more likely to share WHOIS data with researchers just because the request comes through ICANN. But I look forward to being wrong on this one, and will certainly mention it in my reporting if the RDRS proves useful.

Regardless of whether the RDRS succeeds or fails, there is another European law that takes effect in 2024 which is likely to place additional pressure on registrars to respond to legitimate WHOIS data requests. The new Network and Information Security Directive (NIS2), which EU member states have until October 2024 to implement, requires registrars to keep much more accurate WHOIS records, and to respond within as little as 24 hours to WHOIS data requests tied everything from phishing, malware and spam to copyright and brand enforcement.

Okta: Breach Affected All Customer Support Users

When KrebsOnSecurity broke the news on Oct. 20, 2023 that identity and authentication giant Okta had suffered a breach in its customer support department, Okta said the intrusion allowed hackers to steal sensitive data from fewer than one percent of its 18,000+ customers. But today, Okta revised that impact statement, saying the attackers also stole the name and email address for nearly all of its customer support users.

Okta acknowledged last month that for several weeks beginning in late September 2023, intruders had access to its customer support case management system. That access allowed the hackers to steal authentication tokens from some Okta customers, which the attackers could then use to make changes to customer accounts, such as adding or modifying authorized users.

In its initial incident reports about the breach, Okta said the hackers gained unauthorized access to files inside Okta’s customer support system associated with 134 Okta customers, or less than 1% of Okta’s customer base.

But in an updated statement published early this morning, Okta said it determined the intruders also stole the names and email addresses of all Okta customer support system users.

“All Okta Workforce Identity Cloud (WIC) and Customer Identity Solution (CIS) customers are impacted except customers in our FedRamp High and DoD IL4 environments (these environments use a separate support system NOT accessed by the threat actor),” Okta’s advisory states. “The Auth0/CIC support case management system was also not impacted by this incident.”

Okta said that for nearly 97 percent of users, the only contact information exposed was full name and email address. That means about three percent of Okta customer support accounts had one or more of the following data fields exposed (in addition to email address and name): last login; username; phone number; SAML federation ID; company name; job role; user type; date of last password change or reset.

Okta notes that a large number of the exposed accounts belong to Okta administrators — IT people responsible for integrating Okta’s authentication technology inside customer environments — and that these individuals should be on guard for targeted phishing attacks.

“Many users of the customer support system are Okta administrators,” Okta pointed out. “It is critical that these users have multi-factor authentication (MFA) enrolled to protect not only the customer support system, but also to secure access to their Okta admin console(s).”

While it may seem completely bonkers that some companies allow their IT staff to operate company-wide authentication systems using an Okta administrator account that isn’t protected with MFA, Okta said fully six percent of its customers (more than 1,000) persist in this dangerous practice.

In a previous disclosure on Nov. 3, Okta blamed the intrusion on an employee who saved the credentials for a service account in Okta’s customer support infrastructure to their personal Google account, and said it was likely those credentials were stolen when the employee’s personal device using the same Google account was compromised.

Unlike standard user accounts, which are accessed by humans, service accounts are mostly reserved for automating machine-to-machine functions, such as performing data backups or antivirus scans every night at a particular time. For this reason, they can’t be locked down with multifactor authentication the way user accounts can.

Dan Goodin over at Ars Technica reckons this explains why MFA wasn’t set up on the compromised Okta service account. But as he rightly points out, if a transgression by a single employee breaches your network, you’re doing it wrong.

“Okta should have put access controls in place besides a simple password to limit who or what could log in to the service account,” Goodin wrote on Nov. 4. “One way of doing this is to put a limit or conditions on the IP addresses that can connect. Another is to regularly rotate access tokens used to authenticate to service accounts. And, of course, it should have been impossible for employees to be logged in to personal accounts on a work machine. These and other precautions are the responsibility of senior people inside Okta.”

Goodin suggested that people who want to delve further into various approaches for securing service accounts should read this thread on Mastodon.

“A fair number of the contributions come from security professionals with extensive experience working in sensitive cloud environments,” Goodin wrote.

Microsoft Patch Tuesday, November 2023 Edition

Microsoft today released updates to fix more than five dozen security holes in its Windows operating systems and related software, including three “zero day” vulnerabilities that Microsoft warns are already being exploited in active attacks.

The zero-day threats targeting Microsoft this month include CVE-2023-36025, a weakness that allows malicious content to bypass the Windows SmartScreen Security feature. SmartScreen is a built-in Windows component that tries to detect and block malicious websites and files. Microsoft’s security advisory for this flaw says attackers could exploit it by getting a Windows user to click on a booby-trapped link to a shortcut file.

Kevin Breen, senior director of threat research at Immersive Labs, said emails with .url attachments or logs with processes spawning from .url files “should be a high priority for threat hunters given the active exploitation of this vulnerability in the wild.”

The second zero day this month is CVE-2023-36033, which is a vulnerability in the “DWM Core Library” in Microsoft Windows that was exploited in the wild as a zero day and publicly disclosed prior to patches being available. It affects Microsoft Windows 10 and later, as well as Microsoft Windows Server 2019 and subsequent versions.

“This vulnerability can be exploited locally, with low complexity and without needing high-level privileges or user interaction,” said Mike Walters, president and co-founder of the security firm Action1. “Attackers exploiting this flaw could gain SYSTEM privileges, making it an efficient method for escalating privileges, especially after initial access through methods like phishing.”

The final zero day in this month’s Patch Tuesday is a problem in the “Windows Cloud Files Mini Filter Driver” tracked as CVE-2023-36036 that affects Windows 10 and later, as well as Windows Server 2008 at later. Microsoft says it is relatively straightforward for attackers to exploit CVE-2023-36036 as a way to elevate their privileges on a compromised PC.

Beyond the zero day flaws, Breen said organizations running Microsoft Exchange Server should prioritize several new Exchange patches, including CVE-2023-36439, which is a bug that would allow attackers to install malicious software on an Exchange server. This weakness technically requires the attacker to be authenticated to the target’s local network, but Breen notes that a pair of phished Exchange credentials will provide that access nicely.

“This is typically achieved through social engineering attacks with spear phishing to gain initial access to a host before searching for other vulnerable internal targets – just because your Exchange Server doesn’t have internet-facing authentication doesn’t mean it’s protected,” Breen said.

Breen said this vulnerability goes hand in hand with three other Exchange bugs that Microsoft designated as “exploitation more likely:” CVE-2023-36050, CVE-2023-36039 and CVE-2023-36035.

Finally, the SANS Internet Storm Center points to two additional bugs patched by Microsoft this month that aren’t yet showing signs of active exploitation but that were made public prior to today and thus deserve prioritization. Those include: CVE-2023-36038, a denial of service vulnerability in ASP.NET Core, with a CVSS score of 8.2; and CVE-2023-36413: A Microsoft Office security feature bypass. Exploiting this vulnerability will bypass the protected mode when opening a file received via the web.

Windows users, please consider backing up your data and/or imaging your system before applying any updates. And feel free to sound off in the comments if you experience any difficulties as a result of these patches.

Patch Tuesday, October 2023 Edition

Microsoft today issued security updates for more than 100 newly-discovered vulnerabilities in its Windows operating system and related software, including four flaws that are already being exploited. In addition, Apple recently released emergency updates to quash a pair of zero-day bugs in iOS.

Apple last week shipped emergency updates in iOS 17.0.3 and iPadOS 17.0.3 in response to active attacks. The patch fixes CVE-2023-42724, which attackers have been using in targeted attacks to elevate their access on a local device.

Apple said it also patched CVE-2023-5217, which is not listed as a zero-day bug. However, as Bleeping Computer pointed out, this flaw is caused by a weakness in the open-source “libvpx” video codec library, which was previously patched as a zero-day flaw by Google in the Chrome browser and by Microsoft in Edge, Teams, and Skype products. For anyone keeping count, this is the 17th zero-day flaw that Apple has patched so far this year.

Fortunately, the zero-days affecting Microsoft customers this month are somewhat less severe than usual, with the exception of CVE-2023-44487. This weakness is not specific to Windows but instead exists within the HTTP/2 protocol used by the World Wide Web: Attackers have figured out how to use a feature of HTTP/2 to massively increase the size of distributed denial-of-service (DDoS) attacks, and these monster attacks reportedly have been going on for several weeks now.

Amazon, Cloudflare and Google all released advisories today about how they’re addressing CVE-2023-44487 in their cloud environments. Google’s Damian Menscher wrote on Twitter/X that the exploit — dubbed a “rapid reset attack” — works by sending a request and then immediately cancelling it (a feature of HTTP/2). “This lets attackers skip waiting for responses, resulting in a more efficient attack,” Menscher explained.

Natalie Silva, lead security engineer at Immersive Labs, said this flaw’s impact to enterprise customers could be significant, and lead to prolonged downtime.

“It is crucial for organizations to apply the latest patches and updates from their web server vendors to mitigate this vulnerability and protect against such attacks,” Silva said. In this month’s Patch Tuesday release by Microsoft, they have released both an update to this vulnerability, as well as a temporary workaround should you not be able to patch immediately.”

Microsoft also patched zero-day bugs in Skype for Business (CVE-2023-41763) and Wordpad (CVE-2023-36563). The latter vulnerability could expose NTLM hashes, which are used for authentication in Windows environments.

“It may or may not be a coincidence that Microsoft announced last month that WordPad is no longer being updated, and will be removed in a future version of Windows, although no specific timeline has yet been given,” said Adam Barnett, lead software engineer at Rapid7. “Unsurprisingly, Microsoft recommends Word as a replacement for WordPad.”

Other notable bugs addressed by Microsoft include CVE-2023-35349, a remote code execution weakness in the Message Queuing (MSMQ) service, a technology that allows applications across multiple servers or hosts to communicate with each other. This vulnerability has earned a CVSS severity score of 9.8 (10 is the worst possible). Happily, the MSMQ service is not enabled by default in Windows, although Immersive Labs notes that Microsoft Exchange Server can enable this service during installation.

Speaking of Exchange, Microsoft also patched CVE-2023-36778,  a vulnerability in all current versions of Exchange Server that could allow attackers to run code of their choosing. Rapid7’s Barnett said successful exploitation requires that the attacker be on the same network as the Exchange Server host, and use valid credentials for an Exchange user in a PowerShell session.

For a more detailed breakdown on the updates released today, see the SANS Internet Storm Center roundup. If today’s updates cause any stability or usability issues in Windows, AskWoody.com will likely have the lowdown on that.

Please consider backing up your data and/or imaging your system before applying any updates. And feel free to sound off in the comments if you experience any difficulties as a result of these patches.

Phishers Spoof USPS, 12 Other Natl’ Postal Services

Recent weeks have seen a sizable uptick in the number of phishing scams targeting U.S. Postal Service (USPS) customers. Here’s a look at an extensive SMS phishing operation that tries to steal personal and financial data by spoofing the USPS, as well as postal services in at least a dozen other countries.

KrebsOnSecurity recently heard from a reader who received an SMS purporting to have been sent by the USPS, saying there was a problem with a package destined for the reader’s address. Clicking the link in the text message brings one to the domain usps.informedtrck[.]com.

The landing page generated by the phishing link includes the USPS logo, and says “Your package is on hold for an invalid recipient address. Fill in the correct address info by the link.” Below that message is a “Click update” button that takes the visitor to a page that asks for more information.

The remaining buttons on the phishing page all link to the real USPS.com website. After collecting your address information, the fake USPS site goes on to request additional personal and financial data.

This phishing domain was recently registered and its WHOIS ownership records are basically nonexistent. However, we can find some compelling clues about the extent of this operation by loading the phishing page in Developer Tools, a set of debugging features built into Firefox, Chrome and Safari that allow one to closely inspect a webpage’s code and operations.

Check out the bottom portion of the screenshot below, and you’ll notice that this phishing site fails to load some external resources, including an image from a link called fly.linkcdn[.]to.

A search on this domain at the always-useful URLscan.io shows that fly.linkcdn[.]to is tied to a slew of USPS-themed phishing domains. Here are just a few of those domains (links defanged to prevent accidental clicking):

usps.receivepost[.]com
usps.informedtrck[.]com
usps.trckspost[.]com
postreceive[.]com
usps.trckpackages[.]com
usps.infortrck[.]com
usps.quicktpos[.]com
usps.postreceive].]com
usps.revepost[.]com
trackingusps.infortrck[.]com
usps.receivepost[.]com
usps.trckmybusi[.]com
postreceive[.]com
tackingpos[.]com
usps.trckstamp[.]com
usa-usps[.]shop
usps.infortrck[.]com
unlistedstampreceive[.]com
usps.stampreceive[.]com
usps.stamppos[.]com
usps.stampspos[.]com
usps.trckmypost[.]com
usps.trckintern[.]com
usps.tackingpos[.]com
usps.posinformed[.]com

As we can see in the screenshot below, the developer tools console for informedtrck[.]com complains that the site is unable to load a Google Analytics code — UA-80133954-3 — which apparently was rejected for pointing to an invalid domain.

The valid domain for that Google Analytics code is the official usps.com website. According to dnslytics.com, that same analytics code has shown up on at least six other nearly identical USPS phishing pages dating back nearly as many years, including onlineuspsexpress[.]com, which DomainTools.com says was registered way back in September 2018 to an individual in Nigeria.

A different domain with that same Google Analytics code that was registered in 2021 is peraltansepeda[.]com, which archive.org shows was running a similar set of phishing pages targeting USPS users. DomainTools.com indicates this website name was registered by phishers based in Indonesia.

DomainTools says the above-mentioned USPS phishing domain stamppos[.]com was registered in 2022 via Singapore-based Alibaba.com, but the registrant city and state listed for that domain says “Georgia, AL,” which is not a real location.

Alas, running a search for domains registered through Alibaba to anyone claiming to reside in Georgia, AL reveals nearly 300 recent postal phishing domains ending in “.top.” These domains are either administrative domains obscured by a password-protected login page, or are .top domains phishing customers of the USPS as well as postal services serving other countries.

Those other nations include the Australia Post, An Post (Ireland), Correos.es (Spain), the Costa Rican post, the Chilean Post, the Mexican Postal Service, Poste Italiane (Italy), PostNL (Netherlands), PostNord (Denmark, Norway and Sweden), and Posti (Finland). A complete list of these domains is available here (PDF).

The Georgia, AL domains at Alibaba also encompass several that spoof sites claiming to collect outstanding road toll fees and fines on behalf of the governments of Australia, New Zealand and Singapore.

An anonymous reader wrote in to say they submitted fake information to the above-mentioned phishing site usps.receivepost[.]com via the malware sandbox any.run. A video recording of that analysis shows that the site sends any submitted data via an automated bot on the Telegram instant messaging service.

The traffic analysis just below the any.run video shows that any data collected by the phishing site is being sent to the Telegram user @chenlun, who offers to sell customized source code for phishing pages. From a review of @chenlun’s other Telegram channels, it appears this account is being massively spammed at the moment — possibly thanks to public attention brought by this story.

Meanwhile, researchers at DomainTools recently published a report on an apparently unrelated but equally sprawling SMS-based phishing campaign targeting USPS customers that appears to be the work of cybercriminals based in Iran.

Phishers tend to cast a wide net and often spoof entities that are broadly used by the local population, and few brands are going to have more household reach than domestic mail services. In June, the United Parcel Service (UPS) disclosed that fraudsters were abusing an online shipment tracking tool in Canada to send highly targeted SMS phishing messages that spoofed the UPS and other brands.

With the holiday shopping season nearly upon us, now is a great time to remind family and friends about the best advice to sidestep phishing scams: Avoid clicking on links or attachments that arrive unbidden in emails, text messages and other mediums. Most phishing scams invoke a temporal element that warns of negative consequences should you fail to respond or act quickly.

If you’re unsure whether the message is legitimate, take a deep breath and visit the site or service in question manually — ideally, using a browser bookmark so as to avoid potential typosquatting sites.

Update: Added information about the Telegram bot and any.run analysis.

Don’t Let Zombie Zoom Links Drag You Down

Many organizations — including quite a few Fortune 500 firms — have exposed web links that allow anyone to initiate a Zoom video conference meeting as a valid employee. These company-specific Zoom links, which include a permanent user ID number and an embedded passcode, can work indefinitely and expose an organization’s employees, customers or partners to phishing and other social engineering attacks.

At issue is the Zoom Personal Meeting ID (PMI), which is a permanent identification number linked to your Zoom account and serves as your personal meeting room available around the clock. The PMI portion forms part of each new meeting URL created by that account, such as:

zoom.us/j/5551112222

Zoom has an option to include an encrypted passcode within a meeting invite link, which simplifies the process for attendees by eliminating the need to manually enter the passcode. Following the previous example, such a link might look something like this:

zoom.us/j/5551112222/pwd=jdjsklskldklsdksdklsdkll

Using your PMI to set up new meetings is convenient, but of course convenience often comes at the expense of security. Because the PMI remains the same for all meetings, anyone with your PMI link can join any ongoing meeting unless you have locked the meeting or activated Zoom’s Waiting Room feature.

Including an encrypted passcode in the Zoom link definitely makes it easier for attendees to join, but it might open your meetings to unwanted intruders if not handled responsibly. Particularly if that Zoom link is somehow indexed by Google or some other search engine, which happens to be the case for thousands of organizations.

Armed with one of these links, an attacker can create meetings and invite others using the identity of the authorized employee. And many companies using Zoom have made it easy to find recently created meeting links that include encrypted passcodes, because they have dedicated subdomains at Zoom.us.

Using the same method, KrebsOnSecurity also found working Zoom meeting links for The National Football League (NFL), LinkedIn, Oracle, Humana, Disney, Warner Bros, and Uber. And that was from just a few minutes of searching. And to illustrate the persistence of some of these Zoom links, Archive.org says several of the links were first created as far back as 2020 and 2021.

KrebsOnSecurity received a tip about the Zoom exposures from Charan Akiri, a researcher and security engineer at Reddit. In April 2023, this site featured research by Akiri showing that many public Salesforce websites were leaking private data, including banks and healthcare organizations (Akiri said Salesforce also had these open Zoom meeting links before he notified them).

Akiri said the misuse of PMI links, particularly those with passcodes embedded, can give unauthorized individuals access to meetings.

“These one-click links, which are not subject to expiration or password requirement, can be exploited by attackers for impersonation,” Akiri said. “Attackers exploiting these vulnerabilities can impersonate companies, initiating meetings unknowingly to users. They can contact other employees or customers while posing as the company, gaining unauthorized access to confidential information, potentially for financial gain, recruitment, or fraudulent advertising campaigns.”

Akiri said he built a simple program to crawl the web for working Zoom meeting links from different organizations, and so far it has identified thousands of organizations with these perfectly functional zombie Zoom links.

According to Akiri, here are several tips for using Zoom links more safely:

Don’t Use Personal Meeting ID for Public Meetings: Your Personal Meeting ID (PMI) is the default meeting that launches when you start an ad hoc meeting. Your PMI doesn’t change unless you change it yourself, which makes it very useful if people need a way to reach you. But for public meetings, you should always schedule new meetings with randomly generated meeting IDs. That way, only invited attendees will know how to join your meeting. You can also turn off your PMI when starting an instant meeting in your profile settings.

Require a Passcode to Join: You can take meeting security even further by requiring a passcode to join your meetings. This feature can be applied to both your Personal Meeting ID, so only those with the passcode will be able to reach you, and to newly scheduled meetings. To learn all the ways to add a passcode for your meetings, see this support article.

Only Allow Registered or Domain Verified Users: Zoom can also give you peace of mind by letting you know exactly who will be attending your meeting. When scheduling a meeting, you can require attendees to register with their email, name, and custom questions. You can even customize your registration page with a banner and logo. By default, Zoom also restricts participants to those who are logged into Zoom, and you can even restrict it to Zoom users whose email address uses a certain domain.

Further reading: How to Keep Uninvited Guests Out of Your Zoom Meeting

Update 12:33 p.m.: The list of affected organizations was updated, because several companies listed apparently only exposed links that let anyone connect to existing, always-on meeting rooms — not initiate and completely control a Zoom meeting. The real danger with the zombie links described above is that anyone can find and use them to create new meetings and invite others.

‘Snatch’ Ransom Group Exposes Visitor IP Addresses

The victim shaming site operated by the Snatch ransomware group is leaking data about its true online location and internal operations, as well as the Internet addresses of its visitors, KrebsOnSecurity has found. The leaked data suggest that Snatch is one of several ransomware groups using paid ads on Google.com to trick people into installing malware disguised as popular free software, such as Microsoft Teams, Adobe Reader, Mozilla Thunderbird, and Discord.

First spotted in 2018, the Snatch ransomware group has published data stolen from hundreds of organizations that refused to pay a ransom demand. Snatch publishes its stolen data at a website on the open Internet, and that content is mirrored on the Snatch team’s darknet site, which is only reachable using the global anonymity network Tor.

KrebsOnSecurity has learned that Snatch’s darknet site exposes its “server status” page, which includes information about the true Internet addresses of users accessing the website.

Refreshing this page every few seconds shows that the Snatch darknet site generates a decent amount of traffic, often attracting thousands of visitors each day. But by far the most frequent repeat visitors are coming from Internet addresses in Russia that either currently host Snatch’s clear web domain names or recently did.

Probably the most active Internet address accessing Snatch’s darknet site is 193.108.114[.]41, which is a server in Yekaterinburg, Russia that hosts several Snatch domains, including snatchteam[.]top, sntech2ch[.]top, dwhyj2[.]top and sn76930193ch[.]top. It could well be that this Internet address is showing up frequently because Snatch’s clear-web site features a toggle button at the top that lets visitors switch over to accessing the site via Tor.

Another Internet address that showed up frequently in the Snatch server status page was 194.168.175[.]226, currently assigned to Matrix Telekom in Russia. According to DomainTools.com, this address also hosts or else recently hosted the usual coterie of Snatch domains, as well as quite a few domains phishing known brands such as Amazon and Cashapp.

The Moscow Internet address 80.66.64[.]15 accessed the Snatch darknet site all day long, and that address also housed the appropriate Snatch clear-web domains. More interestingly, that address is home to multiple recent domains that appear confusingly similar to known software companies, including libreoff1ce[.]com and www-discord[.]com.

This is interesting because the phishing domains associated with the Snatch ransomware gang were all registered to the same Russian name — Mihail Kolesnikov, a name that is somewhat synonymous with recent phishing domains tied to malicious Google ads.

Kolesnikov could be a nod to a Russian general made famous during Boris Yeltsin’s reign. Either way, it’s clearly a pseudonym, but there are some other commonalities among these domains that may provide insight into how Snatch and other ransomware groups are sourcing their victims.

DomainTools says there are more than 1,300 current and former domain names registered to Mihail Kolesnikov between 2013 and July 2023. About half of the domains appear to be older websites advertising female escort services in major cities around the United States (e.g. the now-defunct pittsburghcitygirls[.]com).

The other half of the Kolesnikov websites are far more recent phishing domains mostly ending in “.top” and “.app” that appear designed to mimic the domains of major software companies, including www-citrix[.]top, www-microsofteams[.]top, www-fortinet[.]top, ibreoffice[.]top, www-docker[.]top, www-basecamp[.]top, ccleaner-cdn[.]top, adobeusa[.]top, and www.real-vnc[.]top.

In August 2023, researchers with Trustwave Spiderlabs said they encountered domains registered to Mihail Kolesnikov being used to disseminate the Rilide information stealer trojan.

But it appears multiple crime groups may be using these domains to phish people and disseminate all kinds of information-stealing malware. In February 2023, Spamhaus warned of a huge surge in malicious ads that were hijacking search results in Google.com, and being used to distribute at least five different families of information stealing trojans, including AuroraStealer, IcedID/Bokbot, Meta Stealer, RedLine Stealer and Vidar.

For example, Spamhaus said victims of these malicious ads would search for Microsoft Teams in Google.com, and the search engine would often return a paid ad spoofing Microsoft or Microsoft Teams as the first result — above all other results. The malicious ad would include a logo for Microsoft and at first glance appear to be a safe and trusted place to download the Microsoft Teams client.

However, anyone who clicked on the result was whisked away instead to mlcrosofteams-us[.]top — yet another malicious domain registered to Mr. Kolesnikov. And while visitors to this website may believe they are only downloading the Microsoft Teams client, the installer file includes a copy of the IcedID malware, which is really good at stealing passwords and authentication tokens from the victim’s web browser.

The founder of the Swiss anti-abuse website abuse.ch told Spamhaus it is likely that some cybercriminals have started to sell “malvertising as a service” on the dark web, and that there is a great deal of demand for this service.

In other words, someone appears to have built a very profitable business churning out and promoting new software-themed phishing domains and selling that as a service to other cybercriminals. Or perhaps they are simply selling any stolen data (and any corporate access) to active and hungry ransomware group affiliates.

The tip about the exposed “server status” page on the Snatch darkweb site came from @htmalgae, the same security researcher who alerted KrebsOnSecurity earlier this month that the darknet victim shaming site run by the 8Base ransomware gang was inadvertently left in development mode.

That oversight revealed not only the true Internet address of the hidden 8Base site (in Russia, naturally), but also the identity of a programmer in Moldova who apparently helped to develop the 8Base code.

@htmalgae said the idea of a ransomware group’s victim shaming site leaking data that they did not intend to expose is deliciously ironic.

“This is a criminal group that shames others for not protecting user data,” @htmalgae said. “And here they are leaking their user data.”

All of the malware mentioned in this story is designed to run on Microsoft Windows devices. But Malwarebytes recently covered the emergence of a Mac-based information stealer trojan called AtomicStealer that was being advertised through malicious Google ads and domains that were confusingly similar to software brands.

Please be extra careful when you are searching online for popular software titles. Cracked, pirated copies of major software titles are a frequent source of infostealer infections, as are these rogue ads masquerading as search results. Make sure to double-check you are actually at the domain you believe you’re visiting *before* you download and install anything.

Stay tuned for Part II of this post, which includes a closer look at the Snatch ransomware group and their founder.

Further reading:

@HTMalgae’s list of the top Internet addresses seen accessing Snatch’s darknet site

Ars Technica: Until Further Notice Think Twice Before Using Google to Download Software

Bleeping Computer: Hackers Abuse Google Ads to Spread Malware in Legit Software

LastPass: ‘Horse Gone Barn Bolted’ is Strong Password

The password manager service LastPass is now forcing some of its users to pick longer master passwords. LastPass says the changes are needed to ensure all customers are protected by their latest security improvements. But critics say the move is little more than a public relations stunt that will do nothing to help countless early adopters whose password vaults were exposed in a 2022 breach at LastPass.

LastPass told customers this week they would be forced to update their master password if it was less than 12 characters. LastPass officially instituted this change back in 2018, but some undisclosed number of the company’s earlier customers were never required to increase the length of their master passwords.

This is significant because in November 2022, LastPass disclosed a breach in which hackers stole password vaults containing both encrypted and plaintext data for more than 25 million users.

Since then, a steady trickle of six-figure cryptocurrency heists targeting security-conscious people throughout the tech industry has led some security experts to conclude that crooks likely have succeeded at cracking open some of the stolen LastPass vaults.

KrebsOnSecurity last month interviewed a victim who recently saw more than three million dollars worth of cryptocurrency siphoned from his account. That user signed up with LastPass nearly a decade ago, stored their cryptocurrency seed phrase there, and yet never changed his master password — which was just eight characters. Nor was he ever forced to improve his master password.

That story cited research from Adblock Plus creator Wladimir Palant, who said LastPass failed to upgrade many older, original customers to more secure encryption protections that were offered to newer customers over the years.

For example, another important default setting in LastPass is the number of “iterations,” or how many times your master password is run through the company’s encryption routines. The more iterations, the longer it takes an offline attacker to crack your master password.

Palant said that for many older LastPass users, the initial default setting for iterations was anywhere from “1” to “500.” By 2013, new LastPass customers were given 5,000 iterations by default. In February 2018, LastPass changed the default to 100,100 iterations. And very recently, it upped that again to 600,000. Still, Palant and others impacted by the 2022 breach at LastPass say their account security settings were never forcibly upgraded.

Palant called this latest action by LastPass a PR stunt.

“They sent this message to everyone, whether they have a weak master password or not – this way they can again blame the users for not respecting their policies,” Palant said. “But I just logged in with my weak password, and I am not forced to change it. Sending emails is cheap, but they once again didn’t implement any technical measures to enforce this policy change.”

Either way, Palant said, the changes won’t help people affected by the 2022 breach.

“These people need to change all their passwords, something that LastPass still won’t recommend,” Palant said. “But it will somewhat help with the breaches to come.”

LastPass CEO Karim Toubba said changing master password length (or even the master password itself) is not designed to address already stolen vaults that are offline.

“This is meant to better protect customers’ online vaults and encourage them to bring their accounts up to the 2018 LastPass standard default setting of a 12-character minimum (but could opt out from),” Toubba said in an emailed statement. “We know that some customers may have chosen convenience over security and utilized less complex master passwords despite encouragement to use our (or others) password generator to do otherwise.”

A basic functionality of LastPass is that it will pick and remember lengthy, complex passwords for each of your websites or online services. To automatically populate the appropriate credentials at any website going forward, you simply authenticate to LastPass using your master password.

LastPass has always emphasized that if you lose this master password, that’s too bad because they don’t store it and their encryption is so strong that even they can’t help you recover it.

But experts say all bets are off when cybercrooks can get their hands on the encrypted vault data itself — as opposed to having to interact with LastPass via its website. These so-called “offline” attacks allow the bad guys to conduct unlimited and unfettered “brute force” password cracking attempts against the encrypted data using powerful computers that can each try millions of password guesses per second.

A chart on Palant’s blog post offers an idea of how increasing password iterations dramatically increases the costs and time needed by the attackers to crack someone’s master password. Palant said it would take a single high-powered graphics card about a year to crack a password of average complexity with 500 iterations, and about 10 years to crack the same password run through 5,000 iterations.

However, these numbers radically come down when a determined adversary also has other large-scale computational assets at their disposal, such as a bitcoin mining operation that can coordinate the password-cracking activity across multiple powerful systems simultaneously.

Meaning, LastPass users whose vaults were never upgraded to higher iterations and whose master passwords were weak (less than 12 characters) likely have been a primary target of distributed password-cracking attacks ever since the LastPass user vaults were stolen late last year.

Asked why some LastPass users were left behind on older security minimums, Toubba said a “small percentage” of customers had corrupted items in their password vaults that prevented those accounts from properly upgrading to the new requirements and settings.

“We have been able to determine that a small percentage of customers have items in their vaults that are corrupt and when we previously utilized automated scripts designed to re-encrypt vaults when the master password or iteration count is changed, they did not complete,” Toubba said. “These errors were not originally apparent as part of these efforts and, as we have discovered them, we have been working to be able to remedy this and finish the re-encryption.”

Nicholas Weaver, a researcher at University of California, Berkeley’s International Computer Science Institute (ICSI) and lecturer at UC Davis, said LastPass made a huge mistake years ago by not force-upgrading the iteration count for existing users.

“And now this is blaming the users — ‘you should have used a longer passphrase’ — not them for having weak defaults that were never upgraded for existing users,” Weaver said. “LastPass in my book is one step above snake-oil. I used to be, ‘Pick whichever password manager you want,’ but now I am very much, ‘Pick any password manager but LastPass.'”

Asked why LastPass isn’t recommending that users change all of the passwords secured by the encrypted master password that was stolen when the company got hacked last year, Toubba said it’s because “the data demonstrates that the majority of our customers follow our recommendations (or greater), and the probability of successfully brute forcing vault encryption is greatly reduced accordingly.”

“We’ve been telling customers since December of 2022 that they should be following recommended guidelines,” Toubba continued. “And if they haven’t followed the guidelines we recommended that they change their downstream passwords.”

FBI Hacker Dropped Stolen Airbus Data on 9/11

In December 2022, KrebsOnSecurity broke the news that a cybercriminal using the handle “USDoD” had infiltrated the FBI‘s vetted information sharing network InfraGard, and was selling the contact information for all 80,000 members. The FBI responded by reverifying InfraGard members and by seizing the cybercrime forum where the data was being sold. But on Sept. 11, 2023, USDoD resurfaced after a lengthy absence to leak sensitive employee data stolen from the aerospace giant Airbus, while promising to visit the same treatment on top U.S. defense contractors.

In a post on the English language cybercrime forum BreachForums, USDoD leaked information on roughly 3,200 Airbus vendors, including names, addresses, phone numbers, and email addresses. USDoD claimed they grabbed the data by using passwords stolen from a Turkish airline employee who had third-party access to Airbus’ systems.

USDoD didn’t say why they decided to leak the data on the 22nd anniversary of the 9/11 attacks, but there was definitely an aircraft theme to the message that accompanied the leak, which concluded with the words, “Lockheed martin, Raytheon and the entire defense contractos [sic], I’m coming for you [expletive].”

Airbus has apparently confirmed the cybercriminal’s account to the threat intelligence firm Hudson Rock, which determined that the Airbus credentials were stolen after a Turkish airline employee infected their computer with a prevalent and powerful info-stealing trojan called RedLine.

Info-stealers like RedLine typically are deployed via opportunistic email malware campaigns, and by secretly bundling the trojans with cracked versions of popular software titles made available online. Credentials stolen by info-stealers often end up for sale on cybercrime shops that peddle purloined passwords and authentication cookies (these logs also often show up in the malware scanning service VirusTotal).

Hudson Rock said it recovered the log files created by a RedLine infection on the Turkish airline employee’s system, and found the employee likely infected their machine after downloading pirated and secretly backdoored software for Microsoft Windows.

Hudson Rock says info-stealer infections from RedLine and a host of similar trojans have surged in recent years, and that they remain “a primary initial attack vector used by threat actors to infiltrate organizations and execute cyberattacks, including ransomware, data breaches, account overtakes, and corporate espionage.”

The prevalence of RedLine and other info-stealers means that a great many consequential security breaches begin with cybercriminals abusing stolen employee credentials. In this scenario, the attacker temporarily assumes the identity and online privileges assigned to a hacked employee, and the onus is on the employer to tell the difference.

In addition to snarfing any passwords stored on or transmitted through an infected system, info-stealers also siphon authentication cookies or tokens that allow one to remain signed-in to online services for long periods of time without having to resupply one’s password and multi-factor authentication code. By stealing these tokens, attackers can often reuse them in their own web browser, and bypass any authentication normally required for that account.

Microsoft Corp. this week acknowledged that a China-backed hacking group was able to steal one of the keys to its email kingdom that granted near-unfettered access to U.S. government inboxes. Microsoft’s detailed post-mortem cum mea culpa explained that a secret signing key was stolen from an employee in an unlucky series of unfortunate events, and thanks to TechCrunch we now know that the culprit once again was “token-stealing malware” on the employee’s system.

In April 2023, the FBI seized Genesis Market, a bustling, fully automated cybercrime store that was continuously restocked with freshly hacked passwords and authentication tokens stolen by a network of contractors who deployed RedLine and other info-stealer malware.

In March 2023, the FBI arrested and charged the alleged administrator of BreachForums (aka Breached), the same cybercrime community where USDoD leaked the Airbus data. In June 2023, the FBI seized the BreachForums domain name, but the forum has since migrated to a new domain.

Unsolicited email continues to be a huge vector for info-stealing malware, but lately the crooks behind these schemes have been gaming the search engines so that their malicious sites impersonating popular software vendors actually appear before the legitimate vendor’s website. So take special care when downloading software to ensure that you are in fact getting the program from the original, legitimate source whenever possible.

Also, unless you really know what you’re doing, please don’t download and install pirated software. Sure, the cracked program might do exactly what you expect it to do, but the chances are good that it is also laced with something nasty. And when all of your passwords are stolen and your important accounts have been hijacked or sold, you will wish you had simply paid for the real thing.

Adobe, Apple, Google & Microsoft Patch 0-Day Bugs

Microsoft today issued software updates to fix at least five dozen security holes in Windows and supported software, including patches for two zero-day vulnerabilities that are already being exploited. Also, Adobe, Google Chrome and Apple iOS users may have their own zero-day patching to do.

On Sept. 7, researchers at Citizen Lab warned they were seeing active exploitation of a “zero-click,” zero-day flaw to install spyware on iOS devices without any interaction from the victim.

“The exploit chain was capable of compromising iPhones running the latest version of iOS (16.6) without any interaction from the victim,” the researchers wrote.

According to Citizen Lab, the exploit uses malicious images sent via iMessage, an embedded component of Apple’s iOS that has been the source of previous zero-click flaws in iPhones and iPads.

Apple says the iOS flaw (CVE-2023-41064) does not seem to work against devices that have its ultra-paranoid “Lockdown Mode” enabled. This feature restricts non-essential iOS features to reduce the device’s overall attack surface, and it was designed for users concerned that they may be subject to targeted attacks. Citizen Lab says the bug it discovered was being exploited to install spyware made by the Israeli cyber surveillance company NSO Group.

This vulnerability is fixed in iOS 16.6.1 and iPadOS 16.6.1. To turn on Lockdown Mode in iOS 16, go to Settings, then Privacy and Security, then Lockdown Mode.

Not to be left out of the zero-day fun, Google acknowledged on Sept. 11 that an exploit for a heap overflow bug in Chrome is being exploited in the wild. Google says it is releasing updates to fix the flaw, and that restarting Chrome is the way to apply any pending updates. Interestingly, Google says this bug was reported by Apple and Citizen Lab.

On the Microsoft front, a zero-day in Microsoft Word is among the more concerning bugs fixed today. Tracked as CVE-2023-36761, it is flagged as an “information disclosure” vulnerability. But that description hardly grasps at the sensitivity of the information potentially exposed here.

Tom Bowyer, manager of product security at Automox, said exploiting this vulnerability could lead to the disclosure of Net-NTLMv2 hashes, which are used for authentication in Windows environments.

“If a malicious actor gains access to these hashes, they can potentially impersonate the user, gaining unauthorized access to sensitive data and systems,” Bowyer said, noting that CVE-2023-36761 can be exploited just by viewing a malicious document in the Windows preview pane. “They could also conduct pass-the-hash attacks, where the attacker uses the hashed version of a password to authenticate themselves without needing to decrypt it.”

The other Windows zero-day fixed this month is CVE-2023-36802. This is an “elevation of privilege” flaw in the “Microsoft Streaming Service Proxy,” which is built into Windows 10, 11 and Windows Server versions. Microsoft says an attacker who successfully exploits the bug can gain SYSTEM level privileges on a Windows computer.

Five of the flaws Microsoft fixed this month earned its “critical” rating, which the software giant reserves for vulnerabilities that can be exploited by malware or malcontents with little or no interaction by Windows users.

According to the SANS Internet Storm Center, the most serious critical bug in September’s Patch Tuesday is CVE-2023-38148, which is a weakness in the Internet Connection Sharing service on Windows. Microsoft says an unauthenticated attacker could leverage the flaw to install malware just sending a specially crafted data packet to a vulnerable Windows system.

Finally, Adobe has released critical security updates for its Adobe Reader and Acrobat software that also fixes a zero-day vulnerability (CVE-2023-26369). More details are at Adobe’s advisory.

For a more granular breakdown of the Windows updates pushed out today, check out Microsoft Patch Tuesday by Morphus Labs. In the meantime, consider backing up your data before updating Windows, and keep an eye on AskWoody.com for reports of any widespread problems with any of the updates released as part of September’s Patch Tuesday.

Update: Mozilla also has fixed zero-day flaw in Firefox and Thunderbird, and the Brave browser was updated as well. It appears the common theme here is any software that uses a code library called “libwebp,” and that this vulnerability is being tracked as CVE-2023-4863.

“This includes Electron-based applications, for example – Signal,” writes StackDiary.com. “Electron patched the vulnerability yesterday. Also, software like Honeyview (from Bandisoft) released an update to fix the issue. CVE-2023-4863 was falsely marked as Chrome-only by Mitre and other organizations that track CVE’s and 100% of media reported this issue as “Chrome only”, when it’s not.”

Experts Fear Crooks are Cracking Keys Stolen in LastPass Breach

In November 2022, the password manager service LastPass disclosed a breach in which hackers stole password vaults containing both encrypted and plaintext data for more than 25 million users. Since then, a steady trickle of six-figure cryptocurrency heists targeting security-conscious people throughout the tech industry has led some security experts to conclude that crooks likely have succeeded at cracking open some of the stolen LastPass vaults.

Taylor Monahan is lead product manager of MetaMask, a popular software cryptocurrency wallet used to interact with the Ethereum blockchain. Since late December 2022, Monahan and other researchers have identified a highly reliable set of clues that they say connect recent thefts targeting more than 150 people. Collectively, these individuals have been robbed of more than $35 million worth of crypto.

Monahan said virtually all of the victims she has assisted were longtime cryptocurrency investors, and security-minded individuals. Importantly, none appeared to have suffered the sorts of attacks that typically preface a high-dollar crypto heist, such as the compromise of one’s email and/or mobile phone accounts.

“The victim profile remains the most striking thing,” Monahan wrote. “They truly all are reasonably secure. They are also deeply integrated into this ecosystem, [including] employees of reputable crypto orgs, VCs [venture capitalists], people who built DeFi protocols, deploy contracts, run full nodes.”

Monahan has been documenting the crypto thefts via Twitter/X since March 2023, frequently expressing frustration in the search for a common cause among the victims. Then on Aug. 28, Monahan said she’d concluded that the common thread among nearly every victim was that they’d previously used LastPass to store their “seed phrase,” the private key needed to unlock access to their cryptocurrency investments.

Armed with your secret seed phrase, anyone can instantly access all of the cryptocurrency holdings tied to that cryptographic key, and move the funds to anywhere they like.

Which is why the best practice for many cybersecurity enthusiasts has long been to store their seed phrases either in some type of encrypted container — such as a password manager — or else inside an offline, special-purpose hardware encryption device, such as a Trezor or Ledger wallet.

“The seed phrase is literally the money,” said Nick Bax, director of analytics at Unciphered, a cryptocurrency wallet recovery company. “If you have my seed phrase, you can copy and paste that into your wallet, and then you can see all my accounts. And you can transfer my funds.”

Bax said he closely reviewed the massive trove of cryptocurrency theft data that Taylor Monahan and others have collected and linked together.

“It’s one of the broadest and most complex cryptocurrency investigations I’ve ever seen,” Bax said. “I ran my own analysis on top of their data and reached the same conclusion that Taylor reported. The threat actor moved stolen funds from multiple victims to the same blockchain addresses, making it possible to strongly link those victims.”

Bax, Monahan and others interviewed for this story say they’ve identified a unique signature that links the theft of more than $35 million in crypto from more than 150 confirmed victims, with roughly two to five high-dollar heists happening each month since December 2022.

KrebsOnSecurity has reviewed this signature but is not publishing it at the request of Monahan and other researchers, who say doing so could cause the attackers to alter their operations in ways that make their criminal activity more difficult to track.

But the researchers have published findings about the dramatic similarities in the ways that victim funds were stolen and laundered through specific cryptocurrency exchanges. They also learned the attackers frequently grouped together victims by sending their cryptocurrencies to the same destination crypto wallet.

By identifying points of overlap in these destination addresses, the researchers were then able to track down and interview new victims. For example, the researchers said their methodology identified a recent multi-million dollar crypto heist victim as an employee at Chainalysis, a blockchain analysis firm that works closely with law enforcement agencies to help track down cybercriminals and money launderers.

Chainalysis confirmed that the employee had suffered a high-dollar cryptocurrency heist late last month, but otherwise declined to comment for this story.

Bax said the only obvious commonality between the victims who agreed to be interviewed was that they had stored the seed phrases for their cryptocurrency wallets in LastPass.

“On top of the overlapping indicators of compromise, there are more circumstantial behavioral patterns and tradecraft which are also consistent between different thefts and support the conclusion,” Bax told KrebsOnSecuirty. “I’m confident enough that this is a real problem that I’ve been urging my friends and family who use LastPass to change all of their passwords and migrate any crypto that may have been exposed, despite knowing full well how tedious that is.”

LastPass declined to answer questions about the research highlighted in this story, citing an ongoing law enforcement investigation and pending litigation against the company in response to its 2022 data breach.

“Last year’s incident remains the subject of an ongoing investigation by law enforcement and is also the subject of pending litigation,” LastPass said in a written statement provided to KrebsOnSecurity. “Since last year’s attack on LastPass, we have remained in contact with law enforcement and continue to do so.”

Their statement continues:

“We have shared various technical information, Indicators of Compromise (IOCs), and threat actor tactics, techniques, and procedures (TTPs) with our law enforcement contacts as well as our internal and external threat intelligence and forensic partners in an effort to try and help identify the parties responsible. In the meantime, we encourage any security researchers to share any useful information they believe they may have with our Threat Intelligence team by contacting securitydisclosure@lastpass.com.”

THE LASTPASS BREACH(ES)

On August 25, 2022, LastPass CEO Karim Toubba wrote to users that the company had detected unusual activity in its software development environment, and that the intruders stole some source code and proprietary LastPass technical information. On Sept. 15, 2022, LastPass said an investigation into the August breach determined the attacker did not access any customer data or password vaults.

But on Nov. 30, 2022, LastPass notified customers about another, far more serious security incident that the company said leveraged data stolen in the August breach. LastPass disclosed that criminal hackers had compromised encrypted copies of some password vaults, as well as other personal information.

In February 2023, LastPass disclosed that the intrusion involved a highly complex, targeted attack against a DevOps engineer who was one of only four LastPass employees with access to the corporate vault.

“This was accomplished by targeting the DevOps engineer’s home computer and exploiting a vulnerable third-party media software package, which enabled remote code execution capability and allowed the threat actor to implant keylogger malware,” LastPass officials wrote. “The threat actor was able to capture the employee’s master password as it was entered, after the employee authenticated with MFA, and gain access to the DevOps engineer’s LastPass corporate vault.”

Dan Goodin at Ars Technica reported and then confirmed that the attackers exploited a known vulnerability in a Plex media server that the employee was running on his home network, and succeeded in installing malicious software that stole passwords and other authentication credentials. The vulnerability exploited by the intruders was patched back in 2020, but the employee never updated his Plex software.

As it happens, Plex announced its own data breach one day before LastPass disclosed its initial August intrusion. On August 24, 2022, Plex’s security team urged users to reset their passwords, saying an intruder had accessed customer emails, usernames and encrypted passwords.

OFFLINE ATTACKS

A basic functionality of LastPass is that it will pick and remember lengthy, complex passwords for each of your websites or online services. To automatically populate the appropriate credentials at any website going forward, you simply authenticate to LastPass using your master password.

LastPass has always emphasized that if you lose this master password, that’s too bad because they don’t store it and their encryption is so strong that even they can’t help you recover it.

But experts say all bets are off when cybercrooks can get their hands on the encrypted vault data itself — as opposed to having to interact with LastPass via its website. These so-called “offline” attacks allow the bad guys to conduct unlimited and unfettered “brute force” password cracking attempts against the encrypted data using powerful computers that can each try millions of password guesses per second.

“It does leave things vulnerable to brute force when the vaults are stolen en masse, especially if info about the vault HOLDER is available,” said Nicholas Weaver, a researcher at University of California, Berkeley’s International Computer Science Institute (ICSI) and lecturer at UC Davis. “So you just crunch and crunch and crunch with GPUs, with a priority list of vaults you target.”

How hard would it be for well-resourced criminals to crack the master passwords securing LastPass user vaults? Perhaps the best answer to this question comes from Wladimir Palant, a security researcher and the original developer behind the Adblock Plus browser plugin.

In a December 2022 blog post, Palant explained that the crackability of a LastPass master password depends largely on two things: The complexity of the master password, and the default settings for LastPass users, which appear to have varied quite a bit based on when those users began patronizing the service.

LastPass says that since 2018 it has required a twelve-character minimum for master passwords, which the company said “greatly minimizes the ability for successful brute force password guessing.”

But Palant said while LastPass indeed improved its master password defaults in 2018, it did not force all existing customers who had master passwords of lesser lengths to pick new credentials that would satisfy the 12-character minimum.

“If you are a LastPass customer, chances are that you are completely unaware of this requirement,” Palant wrote. “That’s because LastPass didn’t ask existing customers to change their master password. I had my test account since 2018, and even today I can log in with my eight-character password without any warnings or prompts to change it.”

Palant believes LastPass also failed to upgrade many older, original customers to more secure encryption protections that were offered to newer customers over the years. One important setting in LastPass is the number of “iterations,” or how many times your master password is run through the company’s encryption routines. The more iterations, the longer it takes an offline attacker to crack your master password.

Palant noted last year that for many older LastPass users, the initial default setting for iterations was anywhere from “1” to “500.” By 2013, new LastPass customers were given 5,000 iterations by default. In February 2018, LastPass changed the default to 100,100 iterations. And very recently, it upped that again to 600,000.

Palant said the 2018 change was in response to a security bug report he filed about some users having dangerously low iterations in their LastPass settings.

“Worse yet, for reasons that are beyond me, LastPass didn’t complete this migration,” Palant wrote. “My test account is still at 5,000 iterations, as are the accounts of many other users who checked their LastPass settings. LastPass would know how many users are affected, but they aren’t telling that. In fact, it’s painfully obvious that LastPass never bothered updating users’ security settings. Not when they changed the default from 1 to 500 iterations. Not when they changed it from 500 to 5,000. Only my persistence made them consider it for their latest change. And they still failed implementing it consistently.”

A chart on Palant’s blog post offers an idea of how increasing password iterations dramatically increases the costs and time needed by the attackers to crack someone’s master password. Palant said it would take a single GPU about a year to crack a password of average complexity with 500 iterations, and about 10 years to crack the same password run through 5,000 iterations.

However, these numbers radically come down when a determined adversary also has other large-scale computational assets at their disposal, such as a bitcoin mining operation that can coordinate the password-cracking activity across multiple powerful systems simultaneously.

Weaver said a password or passphrase with average complexity — such as “Correct Horse Battery Staple” is only secure against online attacks, and that its roughly 40 bits of randomness or “entropy” means a graphics card can blow through it in no time.

“An Nvidia 3090 can do roughly 4 million [password guesses] per second with 1000 iterations, but that would go down to 8 thousand per second with 500,000 iterations, which is why iteration count matters so much,” Weaver said. “So a combination of ‘not THAT strong of a password’ and ‘old vault’ and ‘low iteration count’ would make it theoretically crackable but real work, but the work is worth it given the targets.”

Reached by KrebsOnSecurity, Palant said he never received a response from LastPass about why the company apparently failed to migrate some number of customers to more secure account settings.

“I know exactly as much as everyone else,” Palant wrote in reply. “LastPass published some additional information in March. This finally answered the questions about the timeline of their breach – meaning which users are affected. It also made obvious that business customers are very much at risk here, Federated Login Services being highly compromised in this breach (LastPass downplaying as usual of course).”

Palant said upon logging into his LastPass account a few days ago, he found his master password was still set at 5,000 iterations.

INTERVIEW WITH A VICTIM

KrebsOnSecurity interviewed one of the victims tracked down by Monahan, a software engineer and startup founder who recently was robbed of approximately $3.4 million worth of different cryptocurrencies. The victim agreed to tell his story in exchange for anonymity because he is still trying to claw back his losses. We’ll refer to him here as “Connor” (not his real name).

Connor said he began using LastPass roughly a decade ago, and that he also stored the seed phrase for his primary cryptocurrency wallet inside of LastPass. Connor chose to protect his LastPass password vault with an eight character master password that included numbers and symbols (~50 bits of entropy).

“I thought at the time that the bigger risk was losing a piece of paper with my seed phrase on it,” Connor said. “I had it in a bank security deposit box before that, but then I started thinking, ‘Hey, the bank might close or burn down and I could lose my seed phrase.'”

Those seed phrases sat in his LastPass vault for years. Then, early on the morning of Sunday, Aug. 27, 2023, Connor was awoken by a service he’d set up to monitor his cryptocurrency addresses for any unusual activity: Someone was draining funds from his accounts, and fast.

Like other victims interviewed for this story, Connor didn’t suffer the usual indignities that typically presage a cryptocurrency robbery, such as account takeovers of his email inbox or mobile phone number.

Connor said he doesn’t know the number of iterations his master password was given originally, or what it was set at when the LastPass user vault data was stolen last year. But he said he recently logged into his LastPass account and the system forced him to upgrade to the new 600,000 iterations setting.

“Because I set up my LastPass account so early, I’m pretty sure I had whatever weak settings or iterations it originally had,” he said.

Connor said he’s kicking himself because he recently started the process of migrating his cryptocurrency to a new wallet protected by a new seed phrase. But he never finished that migration process. And then he got hacked.

“I’d set up a brand new wallet with new keys,” he said. “I had that ready to go two months ago, but have been procrastinating moving things to the new wallet.”

Connor has been exceedingly lucky in regaining access to some of his stolen millions in cryptocurrency. The Internet is swimming with con artists masquerading as legitimate cryptocurrency recovery experts. To make matters worse, because time is so critical in these crypto heists, many victims turn to the first quasi-believable expert who offers help.

Instead, several friends steered Connor to Flashbots.net, a cryptocurrency recovery firm that employs several custom techniques to help clients claw back stolen funds — particularly those on the Ethereum blockchain.

According to Connor, Flashbots helped rescue approximately $1.5 million worth of the $3.4 million in cryptocurrency value that was suddenly swept out of his account roughly a week ago. Lucky for him, Connor had some of his assets tied up in a type of digital loan that allowed him to borrow against his various cryptocurrency assets.

Without giving away too many details about how they clawed back the funds, here’s a high level summary: When the crooks who stole Connor’s seed phrase sought to extract value from these loans, they were borrowing the maximum amount of credit that he hadn’t already used. But Connor said that left open an avenue for some of that value to be recaptured, basically by repaying the loan in many small, rapid chunks.

WHAT SHOULD LASTPASS USERS DO?

According to MetaMask’s Monahan, users who stored any important passwords with LastPass — particularly those related to cryptocurrency accounts — should change those credentials immediately, and migrate any crypto holdings to new offline hardware wallets.

“Really the ONLY thing you need to read is this,” Monahan pleaded to her 70,000 followers on Twitter/X: “PLEASE DON’T KEEP ALL YOUR ASSETS IN A SINGLE KEY OR SECRET PHRASE FOR YEARS. THE END. Split up your assets. Get a hw [hardware] wallet. Migrate. Now.”

If you also had passwords tied to banking or retirement accounts, or even just important email accounts — now would be a good time to change those credentials as well.

I’ve never been comfortable recommending password managers, because I’ve never seriously used them myself. Something about putting all your eggs in one basket. Heck, I’m so old-fashioned that most of my important passwords are written down and tucked away in safe places.

But I recognize this antiquated approach to password management is not for everyone. Connor says he now uses 1Password, a competing password manager that recently earned the best overall marks from Wired and The New York Times.

1Password says that three things are needed to decrypt your information: The encrypted data itself, your account password, and your Secret Key. Only you know your account password, and your Secret Key is generated locally during setup.

“The two are combined on-device to encrypt your vault data and are never sent to 1Password,” explains a 1Password blog post ‘What If 1Password Gets Hacked?‘ “Only the encrypted vault data lives on our servers, so neither 1Password nor an attacker who somehow manages to guess or steal your account password would be able to access your vaults – or what’s inside them.

Weaver said that Secret Key adds an extra level of randomness to all user master passwords that LastPass didn’t have.

“With LastPass, the idea is the user’s password vault is encrypted with a cryptographic hash (H) of the user’s passphrase,” Weaver said. “The problem is a hash of the user’s passphrase is remarkably weak on older LastPass vaults with master passwords that do not have many iterations. 1Password uses H(random-key||password) to generate the password, and it is why you have the QR code business when adding a new device.”

Weaver said LastPass deserves blame for not having upgraded iteration counts for all users a long time ago, and called the latest forced upgrades “a stunning indictment of the negligence on the part of LastPass.”

“That they never even notified all those with iteration counts of less than 100,000 — who are really vulnerable to brute force even with 8-character random passwords or ‘correct horse battery staple’ type passphrases — is outright negligence,” Weaver said. “I would personally advocate that nobody ever uses LastPass again: Not because they were hacked. Not because they had an architecture (unlike 1Password) that makes such hacking a problem. But because of their consistent refusal to address how they screwed up and take proactive efforts to protect their customers.”

Bax and Monahan both acknowledged that their research alone can probably never conclusively tie dozens of high-dollar crypto heists over the past year to the LastPass breach. But Bax says at this point he doesn’t see any other possible explanation.

“Some might say it’s dangerous to assert a strong connection here, but I’d say it’s dangerous to assert there isn’t one,” he said. “I was arguing with my fiance about this last night. She’s waiting for LastPass to tell her to change everything. Meanwhile, I’m telling her to do it now.”

Why is .US Being Used to Phish So Many of Us?

Domain names ending in “.US” — the top-level domain for the United States — are among the most prevalent in phishing scams, new research shows. This is noteworthy because .US is overseen by the U.S. government, which is frequently the target of phishing domains ending in .US. Also, .US domains are only supposed to be available to U.S. citizens and to those who can demonstrate that they have a physical presence in the United States.

.US is the “country code top-level domain” or ccTLD of the United States. Most countries have their own ccTLDs: .MX for Mexico, for example, or .CA for Canada. But few other major countries in the world have anywhere near as many phishing domains each year as .US.

That’s according to The Interisle Consulting Group, which gathers phishing data from multiple industry sources and publishes an annual report on the latest trends. Interisle’s newest study examined six million phishing reports between May 1, 2022 and April 30, 2023, and found 30,000 .US phishing domains.

.US is overseen by the National Telecommunications and Information Administration (NTIA), an executive branch agency of the U.S. Department of Commerce. However, NTIA currently contracts out the management of the .US domain to GoDaddy, by far the world’s largest domain registrar.

Under NTIA regulations, the administrator of the .US registry must take certain steps to verify that their customers actually reside in the United States, or own organizations based in the U.S. But Interisle found that whatever GoDaddy was doing to manage that vetting process wasn’t working.

“The .US ‘nexus’ requirement theoretically limits registrations to parties with a national connection, but .US had very high numbers of phishing domains,” Interisle wrote. “This indicates a possible problem with the administration or application of the nexus requirements.”

Dean Marks is emeritus executive director for a group called the Coalition for Online Accountability, which has been critical of the NTIA’s stewardship of .US. Marks says virtually all European Union member state ccTLDs that enforce nexus restrictions also have massively lower levels of abuse due to their policies and oversight.

“Even very large ccTLDs, like .de for Germany — which has a far larger market share of domain name registrations than .US — have very low levels of abuse, including phishing and malware,” Marks told KrebsOnSecurity. “In my view, this situation with .US should not be acceptable to the U.S. government overall, nor to the US public.”

Marks said there are very few phishing domains ever registered in other ccTLDs that also restrict registrations to their citizens, such as .HU (Hungary), .NZ (New Zealand), and .FI (Finland), where a connection to the country, a proof of identity, or evidence of incorporation are required.

“Or .LK (Sri Lanka), where the acceptable use policy includes a ‘lock and suspend’ if domains are reported for suspicious activity,” Marks said. “These ccTLDs make a strong case for validating domain registrants in the interest of public safety.”

Sadly, .US has been a cesspool of phishing activity for many years. As far back as 2018, Interisle found .US domains were the worst in the world for spam, botnet (attack infrastructure for DDOS etc.) and illicit or harmful content. Back then, .US was being operated by a different contractor.

In response to questions from KrebsOnSecurity, GoDaddy said all .US registrants must certify that they meet the NTIA’s nexus requirements. But this appears to be little more than an affirmative response that is already pre-selected for all new registrants.

Attempting to register a .US domain through GoDaddy, for example, leads to a U.S. Registration Information page that auto-populates the nexus attestation field with the response, “I am a citizen of the US.” Other options include, “I am a permanent resident of the US,” and “My primary domicile is in the US.” It currently costs just $4.99 to obtain a .US domain through GoDaddy.

GoDaddy said it also conducts a scan of selected registration request information, and conducts “spot checks” on registrant information.

“We conduct regular reviews, per policy, of registration data within the Registry database to determine Nexus compliance with ongoing communications to registrars and registrants,” the company said in a written statement.

GoDaddy says it “is committed to supporting a safer online environment and proactively addressing this issue by assessing it against our own anti-abuse mitigation system.”

“We stand against DNS abuse in any form and maintain multiple systems and protocols to protect all the TLDs we operate,” the statement continued. “We will continue to work with registrars, cybersecurity firms and other stakeholders to make progress with this complex challenge.”

Interisle found significant numbers of .US domains were registered to attack some of the United States’ most prominent companies, including Bank of America, Amazon, Apple, AT&T, Citi, Comcast, Microsoft, Meta, and Target.

“Ironically, at least 109 of the .US domains in our data were used to attack the United States government, specifically the United States Postal Service and its customers,” Interisle wrote. “.US domains were also used to attack foreign government operations: six .US domains were used to attack Australian government services, six attacked Great’s Britain’s Royal Mail, one attacked Canada Post, and one attacked the Denmark Tax Authority.”

The NTIA recently published a proposal that would allow GoDaddy to redact registrant data from WHOIS registration records. The current charter for .US specifies that all .US registration records be public.

Interisle argues that without more stringent efforts to verify a United States nexus for new .US domain registrants, the NTIA’s proposal will make it even more difficult to identify phishers and verify registrants’ identities and nexus qualifications.

In a written statement, the NTIA said DNS abuse is a priority issue for the agency, and that NTIA supports “evidence-based policymaking.”

“We look forward to reviewing the report and will engage with our contractor for the .US domain on steps that we can take not only to address phishing, but the other forms of DNS abuse as well,” the statement reads.

Interisle sources its phishing data from several places, including the Anti-Phishing Working Group (APWG), OpenPhish, PhishTank, and Spamhaus. For more phishing facts, see Interisle’s 2023 Phishing Landscape report (PDF).’

Update, Sept. 5, 1:44 p.m. ET: Updated story with statement provided today by the NTIA.

U.S. Hacks QakBot, Quietly Removes Botnet Infections

The U.S. government today announced a coordinated crackdown against QakBot, a complex malware family used by multiple cybercrime groups to lay the groundwork for ransomware infections. The international law enforcement operation involved seizing control over the botnet’s online infrastructure, and quietly removing the Qakbot malware from tens of thousands of infected Microsoft Windows computers.

In an international operation announced today dubbed “Duck Hunt,” the U.S. Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) said they obtained court orders to remove Qakbot from infected devices, and to seize servers used to control the botnet.

“This is the most significant technological and financial operation ever led by the Department of Justice against a botnet,” said Martin Estrada, the U.S. attorney for the Southern District of California, at a press conference this morning in Los Angeles.

Estrada said Qakbot has been implicated in 40 different ransomware attacks over the past 18 months, intrusions that collectively cost victims more than $58 million in losses.

Emerging in 2007 as a banking trojan, QakBot (a.k.a. Qbot and Pinkslipbot) has morphed into an advanced malware strain now used by multiple cybercriminal groups to prepare newly compromised networks for ransomware infestations. QakBot is most commonly delivered via email phishing lures disguised as something legitimate and time-sensitive, such as invoices or work orders.

Don Alway, assistant director in charge of the FBI’s Los Angeles field office, said federal investigators gained access to an online panel that allowed cybercrooks to monitor and control the actions of the botnet. From there, investigators obtained court-ordered approval to instruct all infected systems to uninstall Qakbot and to disconnect themselves from the botnet, Alway said.

The DOJ says their access to the botnet’s control panel revealed that Qakbot had been used to infect more than 700,000 machines in the past year alone, including 200,000 systems in the United States.

Working with law enforcement partners in France, Germany, Latvia, the Netherlands, Romania and the United Kingdom, the DOJ said it was able to seize more than 50 Internet servers tied to the malware network, and nearly $9 million in ill-gotten cryptocurrency from QakBot’s cybercriminal overlords. The DOJ declined to say whether any suspects were questioned or arrested in connection with Qakbot, citing an ongoing investigation.

According to recent figures from the managed security firm Reliaquest, QakBot is by far the most prevalent malware “loader” — malicious software used to secure access to a hacked network and help drop additional malware payloads. Reliaquest says QakBot infections accounted for nearly one-third of all loaders observed in the wild during the first six months of this year.

Researchers at AT&T Alien Labs say the crooks responsible for maintaining the QakBot botnet have rented their creation to various cybercrime groups over the years. More recently, however, QakBot has been closely associated with ransomware attacks from Black Basta, a prolific Russian-language criminal group that was thought to have spun off from the Conti ransomware gang in early 2022.

Today’s operation is not the first time the U.S. government has used court orders to remotely disinfect systems compromised with malware. In May 2023, the DOJ quietly removed malware from computers around the world infected by the “Snake” malware, an even older malware family that has been tied to Russian intelligence agencies.

Documents published by the DOJ in support of today’s takedown state that beginning on Aug. 25, 2023, law enforcement gained access to the Qakbot botnet, redirected botnet traffic to and through servers controlled by law enforcement, and instructed Qakbot-infected computers to download a Qakbot Uninstall file that uninstalled Qakbot malware from the infected computer.

“The Qakbot Uninstall file did not remediate other malware that was already installed on infected computers,” the government explained. “Instead, it was designed to prevent additional Qakbot malware from being installed on the infected computer by untethering the victim computer from the Qakbot botnet.”

The DOJ said it also recovered more than 6.5 million stolen passwords and other credentials, and that it has shared this information with two websites that let users check to see if their credentials were exposed: Have I Been Pwned, and a “Check Your Hack” website erected by the Dutch National Police.

Further reading:

–The DOJ’s application for a search warrant application tied to Qakbot uninstall file (PDF)
–The search warrant application connected to QakBot server infrastructure in the United States (PDF)
–The government’s application for a warrant to seize virtual currency from the QakBot operators (PDF)
–A technical breakdown from SecureWorks

Tourists Give Themselves Away by Looking Up. So Do Most Network Intruders.

In large metropolitan areas, tourists are often easy to spot because they’re far more inclined than locals to gaze upward at the surrounding skyscrapers. Security experts say this same tourist dynamic is a dead giveaway in virtually all computer intrusions that lead to devastating attacks like data theft and ransomware, and that more organizations should set simple virtual tripwires that sound the alarm when authorized users and devices are spotted exhibiting this behavior.

In a blog post published last month, Cisco Talos said it was seeing a worrisome “increase in the rate of high-sophistication attacks on network infrastructure.” Cisco’s warning comes amid a flurry of successful data ransom and state-sponsored cyber espionage attacks targeting some of the most well-defended networks on the planet.

But despite their increasing complexity, a great many initial intrusions that lead to data theft could be nipped in the bud if more organizations started looking for the telltale signs of newly-arrived cybercriminals behaving like network tourists, Cisco says.

“One of the most important things to talk about here is that in each of the cases we’ve seen, the threat actors are taking the type of ‘first steps’ that someone who wants to understand (and control) your environment would take,” Cisco’s Hazel Burton wrote. “Examples we have observed include threat actors performing a ‘show config,’ ‘show interface,’ ‘show route,’ ‘show arp table’ and a ‘show CDP neighbor.’ All these actions give the attackers a picture of a router’s perspective of the network, and an understanding of what foothold they have.”

Cisco’s alert concerned espionage attacks from China and Russia that abused vulnerabilities in aging, end-of-life network routers. But at a very important level, it doesn’t matter how or why the attackers got that initial foothold on your network.

It might be zero-day vulnerabilities in your network firewall or file-transfer appliance. Your more immediate and primary concern has to be: How quickly can you detect and detach that initial foothold?

The same tourist behavior that Cisco described attackers exhibiting vis-a-vis older routers is also incredibly common early on in ransomware and data ransom attacks — which often unfurl in secret over days or weeks as attackers methodically identify and compromise a victim’s key network assets.

These virtual hostage situations usually begin with the intruders purchasing access to the target’s network from dark web brokers who resell access to stolen credentials and compromised computers. As a result, when those stolen resources first get used by would-be data thieves, almost invariably the attackers will run a series of basic commands asking the local system to confirm exactly who and where they are on the victim’s network.

This fundamental reality about modern cyberattacks — that cybercriminals almost always orient themselves by “looking up” who and where they are upon entering a foreign network for the first time — forms the business model of an innovative security company called Thinkst, which gives away easy-to-use tripwires or “canaries” that can fire off an alert whenever all sorts of suspicious activity is witnessed.

“Many people have pointed out that there are a handful of commands that are overwhelmingly run by attackers on compromised hosts (and seldom ever by regular users/usage),” the Thinkst website explains. “Reliably alerting when a user on your code-sign server runs whoami.exe can mean the difference between catching a compromise in week-1 (before the attackers dig in) and learning about the attack on CNN.”

These canaries — or “canary tokens” — are meant to be embedded inside regular files, acting much like a web beacon or web bug that tracks when someone opens an email.

“Imagine doing that, but for file reads, database queries, process executions or patterns in log files,” the Canary Tokens documentation explains. “Canarytokens does all this and more, letting you implant traps in your production systems rather than setting up separate honeypots.”

Thinkst operates alongside a burgeoning industry offering so-called “deception” or “honeypot” services — those designed to confuse, disrupt and entangle network intruders. But in an interview with KrebsOnSecurity, Thinkst founder and CEO Haroon Meer said most deception techniques involve some degree of hubris.

“Meaning, you’ll have deception teams in your network playing spy versus spy with people trying to break in, and it becomes this whole counterintelligence thing,” Meer said. “Nobody really has time for that. Instead, we are saying literally the opposite: That you’ve probably got all these [security improvement] projects that are going to take forever. But while you’re doing all that, just drop these 10 canaries, because everything else is going to take a long time to do.”

The idea here is to lay traps in sensitive areas of your network or web applications where few authorized users should ever trod. Importantly, the canary tokens themselves are useless to an attacker. For example, that AWS canary token sure looks like the digital keys to your cloud, but the token itself offers no access. It’s just a lure for the bad guys, and you get an alert when and if it is ever touched.

One nice thing about canary tokens is that Thinkst gives them away for free. Head over to canarytokens.org, and choose from a drop-down menu of available tokens, including:

-a web bug / URL token, designed to alert when a particular URL is visited;
-a DNS token, which alerts when a hostname is requested;
-an AWS token, which alerts when a specific Amazon Web Services key is used;
-a “custom exe” token, to alert when a specific Windows executable file or DLL is run;
-a “sensitive command” token, to alert when a suspicious Windows command is run.
-a Microsoft Excel/Word token, which alerts when a specific Excel or Word file is accessed.

Much like a “wet paint” sign often encourages people to touch a freshly painted surface anyway, attackers often can’t help themselves when they enter a foreign network and stumble upon what appear to be key digital assets, Meer says.

“If an attacker lands on your server and finds a key to your cloud environment, it’s really hard for them not to try it once,” Meer said. “Also, when these sorts of actors do land in a network, they have to orient themselves, and while doing that they are going to trip canaries.”

Meer says canary tokens are as likely to trip up attackers as they are “red teams,” security experts hired or employed by companies seeking to continuously probe their own computer systems and networks for security weaknesses.

“The concept and use of canary tokens has made me very hesitant to use credentials gained during an engagement, versus finding alternative means to an end goal,” wrote Shubham Shah, a penetration tester and co-founder of the security firm Assetnote. “If the aim is to increase the time taken for attackers, canary tokens work well.”

Thinkst makes money by selling Canary Tools, which are honeypots that emulate full blown systems like Windows servers or IBM mainframes. They deploy in minutes and include a personalized, private Canarytoken server.

“If you’ve got a sophisticated defense team, you can start putting these things in really interesting places,” Meer said. “Everyone says their stuff is simple, but we obsess over it. It’s really got to be so simple that people can’t mess it up. And if it works, it’s the best bang for your security buck you’re going to get.”

Further reading:

Dark Reading: Credential Canaries Create Minefield for Attackers
NCC Group: Extending a Thinkst Canary to Become an Interactive Honeypot
Cruise Automation’s experience deploying canary tokens

Diligere, Equity-Invest Are New Firms of U.K. Con Man

John Clifton Davies, a convicted fraudster estimated to have bilked dozens of technology startups out of more than $30 million through phony investment schemes, has a brand new pair of scam companies that are busy dashing startup dreams: A fake investment firm called Equity-Invest[.]ch, and Diligere[.]co.uk, a scam due diligence company that Equity-Invest insists all investment partners use.

A native of the United Kingdom, Mr. Davies absconded from justice before being convicted on multiple counts of fraud in 2015. Prior to his conviction, Davies served 16 months in jail before being cleared on suspicion of murdering his third wife on their honeymoon in India.

John Clifton Davies was convicted in 2015 of swindling businesses throughout the U.K. that were struggling financially and seeking to restructure their debt. For roughly six years, Davies ran a series of firms that pretended to offer insolvency services. Instead, he simply siphoned what little remaining money these companies had, spending the stolen funds on lavish cars, home furnishings, vacations and luxury watches.

In a three-part series published in 2020, KrebsOnSecurity exposed how Davies — wanted by authorities in the U.K. — had fled the country, taken on the surname Bernard, remarried, and moved to his new (and fourth) wife’s hometown in Ukraine.

After eluding justice in the U.K., Davies reinvented himself as The Private Office of John Bernard, pretending to be a billionaire Swiss investor who made his fortunes in the dot-com boom 20 years ago and who was seeking private equity investment opportunities.

In case after case, Bernard would promise to invest millions in hi-tech startups, only to insist that companies pay tens of thousands of dollars worth of due diligence fees up front. However, the due diligence company he insisted on using — another Swiss firm called The Inside Knowledge — also was secretly owned by Bernard, who would invariably pull out of the deal after receiving the due diligence money.

Bernard found a constant stream of new marks by offering extraordinarily generous finders fees to investment brokers who could introduce him to companies seeking an infusion of cash. Inside Knowledge and The Private Office both closed up shop not long after being exposed here in 2020.

In April 2023, KrebsOnSecurity wrote about Codes2You, a recent Davies venture which purports to be a “full cycle software development company” based in the U.K. The company’s website no longer lists any of Davies’ known associates, but the site does still reference software and cloud services tied to those associates — including MySolve, a “multi-feature platform for insolvency practitioners.”

Earlier this month, KrebsOnSecurity heard from an investment broker who found out his client had paid more than $50,000 in due diligence fees related to a supposed multi-million dollar investment offer from a Swiss concern called Equity-Invest[.]ch.

The investment broker, who spoke on condition that neither he nor his client be named, said Equity-Invest began getting cold feet after his client plunked down the due diligence fees.

“Things started to go sideways when the investor purportedly booked a trip to the US to meet the team but canceled last minute because ‘his pregnant wife got in a car accident,'” the broker explained. “After that, he was radio silent until the contract expired.”

The broker said he grew suspicious when he learned that the Equity-Invest domain name was less than six months old. The broker’s suspicions were confirmed after he discovered the due diligence company that Equity-Invest insisted on using — Diligere[.]co.uk — included an email address on its homepage for another entity called Ardelis Solutions.

A corporate entity in the UK called Ardelis Solutions was key to showing the connection to Davies’ former scam investment and due diligence firms in the Codes2You investigation published earlier this year.

Although Diligere’s website claims the due diligence firm has “13 years of experiance” [sic], its domain name was only registered in April 2023. What’s more, virtually all of the vapid corporate-speak published on Diligere’s homepage is identical to text on the now-defunct InsideKnowledge[.]ch — the fake due diligence firm secretly owned for many years by The Private Office of John Bernard (John Clifton Davies).

“Our steadfast conviction and energy for results is what makes us stand out,” both sites state. “We care for our clients’ and their businesses, we share their ambitions and align our goals to complement their objectives. Our clients know we’re in this together. We work in close partnership with our clients to deliver palpable results regardless of geography, complexity or controversy.”

Requests for comment sent to the contact address listed on Diligere — info@ardelissolutions[.]com — went unreturned. Equity-Invest did not respond to requests for comment.

Microsoft Patch Tuesday, August 2023 Edition

Microsoft Corp. today issued software updates to plug more than 70 security holes in its Windows operating systems and related products, including multiple zero-day vulnerabilities currently being exploited in the wild.

Six of the flaws fixed today earned Microsoft’s “critical” rating, meaning malware or miscreants could use them to install software on a vulnerable Windows system without any help from users.

Last month, Microsoft acknowledged a series of zero-day vulnerabilities in a variety of Microsoft products that were discovered and exploited in-the-wild attacks. They were assigned a single placeholder designation of CVE-2023-36884.

Satnam Narang, senior staff research engineer at Tenable, said the August patch batch addresses CVE-2023-36884, which involves bypassing the Windows Search Security feature.

“Microsoft also released ADV230003, a defense-in-depth update designed to stop the attack chain associated that leads to the exploitation of this CVE,” Narang said. “Given that this has already been successfully exploited in the wild as a zero-day, organizations should prioritize patching this vulnerability and applying the defense-in-depth update as soon as possible.”

Redmond patched another flaw that is already seeing active attacks — CVE-2023-38180 — a weakness in .NET and Visual Studio that leads to a denial-of-service condition on vulnerable servers.

“Although the attacker would need to be on the same network as the target system, this vulnerability does not require the attacker to have acquired user privileges,” on the target system, wrote Nikolas Cemerikic, cyber security engineer at Immersive Labs.

Narang said the software giant also patched six vulnerabilities in Microsoft Exchange Server, including CVE-2023-21709, an elevation of privilege flaw that was assigned a CVSSv3 (threat) score of 9.8 out of a possible 10, even though Microsoft rates it as an important flaw, not critical.

“An unauthenticated attacker could exploit this vulnerability by conducting a brute-force attack against valid user accounts,” Narang said. “Despite the high rating, the belief is that brute-force attacks won’t be successful against accounts with strong passwords. However, if weak passwords are in use, this would make brute-force attempts more successful. The remaining five vulnerabilities range from a spoofing flaw and multiple remote code execution bugs, though the most severe of the bunch also require credentials for a valid account.”

Experts at security firm Automox called attention to CVE-2023-36910, a remote code execution bug in the Microsoft Message Queuing service that can be exploited remotely and without privileges to execute code on vulnerable Windows 10, 11 and Server 2008-2022 systems. Microsoft says it considers this vulnerability “less likely” to be exploited, and Automox says while the message queuing service is not enabled by default in Windows and is less common today, any device with it enabled is at critical risk.

Separately, Adobe has issued a critical security update for Acrobat and Reader that resolves at least 30 security vulnerabilities in those products. Adobe said it is not aware of any exploits in the wild targeting these flaws. The company also issued security updates for Adobe Commerce and Adobe Dimension.

If you experience glitches or problems installing any of these patches this month, please consider leaving a comment about it below; there’s a fair chance other readers have experienced the same and may chime in here with useful tips.

Additional reading:

-SANS Internet Storm Center listing of each Microsoft vulnerability patched today, indexed by severity and affected component.

–AskWoody.com, which keeps tabs on any developing problems related to the availability or installation of these updates.

Meet the Brains Behind the Malware-Friendly AI Chat Service ‘WormGPT’

WormGPT, a private new chatbot service advertised as a way to use Artificial Intelligence (AI) to write malicious software without all the pesky prohibitions on such activity enforced by the likes of ChatGPT and Google Bard, has started adding restrictions of its own on how the service can be used. Faced with customers trying to use WormGPT to create ransomware and phishing scams, the 23-year-old Portuguese programmer who created the project now says his service is slowly morphing into “a more controlled environment.”

The large language models (LLMs) made by ChatGPT parent OpenAI or Google or Microsoft all have various safety measures designed to prevent people from abusing them for nefarious purposes — such as creating malware or hate speech. In contrast, WormGPT has promoted itself as a new, uncensored LLM that was created specifically for cybercrime activities.

WormGPT was initially sold exclusively on HackForums, a sprawling, English-language community that has long featured a bustling marketplace for cybercrime tools and services. WormGPT licenses are sold for prices ranging from 500 to 5,000 Euro.

“Introducing my newest creation, ‘WormGPT,’ wrote “Last,” the handle chosen by the HackForums user who is selling the service. “This project aims to provide an alternative to ChatGPT, one that lets you do all sorts of illegal stuff and easily sell it online in the future. Everything blackhat related that you can think of can be done with WormGPT, allowing anyone access to malicious activity without ever leaving the comfort of their home.”

In July, an AI-based security firm called SlashNext analyzed WormGPT and asked it to create a “business email compromise” (BEC) phishing lure that could be used to trick employees into paying a fake invoice.

“The results were unsettling,” SlashNext’s Daniel Kelley wrote. “WormGPT produced an email that was not only remarkably persuasive but also strategically cunning, showcasing its potential for sophisticated phishing and BEC attacks.”

A review of Last’s posts on HackForums over the years shows this individual has extensive experience creating and using malicious software. In August 2022, Last posted a sales thread for “Arctic Stealer,” a data stealing trojan and keystroke logger that he sold there for many months.

“I’m very experienced with malwares,” Last wrote in a message to another HackForums user last year.

Last has also sold a modified version of the information stealer DCRat, as well as an obfuscation service marketed to malicious coders who sell their creations and wish to insulate them from being modified or copied by customers.

Shortly after joining the forum in early 2021, Last told several different Hackforums users his name was Rafael and that he was from Portugal. HackForums has a feature that allows anyone willing to take the time to dig through a user’s postings to learn when and if that user was previously tied to another account.

That account tracing feature reveals that while Last has used many pseudonyms over the years, he originally used the nickname “ruiunashackers.” The first search result in Google for that unique nickname brings up a TikTok account with the same moniker, and that TikTok account says it is associated with an Instagram account for a Rafael Morais from Porto, a coastal city in northwest Portugal.

AN OPEN BOOK

Reached via Instagram and Telegram, Morais said he was happy to chat about WormGPT.

“You can ask me anything,” Morais said. “I’m an open book.”

Morais said he recently graduated from a polytechnic institute in Portugal, where he earned a degree in information technology. He said only about 30 to 35 percent of the work on WormGPT was his, and that other coders are contributing to the project. So far, he says, roughly 200 customers have paid to use the service.

“I don’t do this for money,” Morais explained. “It was basically a project I thought [was] interesting at the beginning and now I’m maintaining it just to help [the] community. We have updated a lot since the release, our model is now 5 or 6 times better in terms of learning and answer accuracy.”

WormGPT isn’t the only rogue ChatGPT clone advertised as friendly to malware writers and cybercriminals. According to SlashNext, one unsettling trend on the cybercrime forums is evident in discussion threads offering “jailbreaks” for interfaces like ChatGPT.

“These ‘jailbreaks’ are specialised prompts that are becoming increasingly common,” Kelley wrote. “They refer to carefully crafted inputs designed to manipulate interfaces like ChatGPT into generating output that might involve disclosing sensitive information, producing inappropriate content, or even executing harmful code. The proliferation of such practices underscores the rising challenges in maintaining AI security in the face of determined cybercriminals.”

Morais said they have been using the GPT-J 6B model since the service was launched, although he declined to discuss the source of the LLMs that power WormGPT. But he said the data set that informs WormGPT is enormous.

“Anyone that tests wormgpt can see that it has no difference from any other uncensored AI or even chatgpt with jailbreaks,” Morais explained. “The game changer is that our dataset [library] is big.”

Morais said he began working on computers at age 13, and soon started exploring security vulnerabilities and the possibility of making a living by finding and reporting them to software vendors.

“My story began in 2013 with some greyhat activies, never anything blackhat tho, mostly bugbounty,” he said. “In 2015, my love for coding started, learning c# and more .net programming languages. In 2017 I’ve started using many hacking forums because I have had some problems home (in terms of money) so I had to help my parents with money… started selling a few products (not blackhat yet) and in 2019 I started turning blackhat. Until a few months ago I was still selling blackhat products but now with wormgpt I see a bright future and have decided to start my transition into whitehat again.”

WormGPT sells licenses via a dedicated channel on Telegram, and the channel recently lamented that media coverage of WormGPT so far has painted the service in an unfairly negative light.

“We are uncensored, not blackhat!” the WormGPT channel announced at the end of July. “From the beginning, the media has portrayed us as a malicious LLM (Language Model), when all we did was use the name ‘blackhatgpt’ for our Telegram channel as a meme. We encourage researchers to test our tool and provide feedback to determine if it is as bad as the media is portraying it to the world.”

It turns out, when you advertise an online service for doing bad things, people tend to show up with the intention of doing bad things with it. WormGPT’s front man Last seems to have acknowledged this at the service’s initial launch, which included the disclaimer, “We are not responsible if you use this tool for doing bad stuff.”

But lately, Morais said, WormGPT has been forced to add certain guardrails of its own.

“We have prohibited some subjects on WormGPT itself,” Morais said. “Anything related to murders, drug traffic, kidnapping, child porn, ransomwares, financial crime. We are working on blocking BEC too, at the moment it is still possible but most of the times it will be incomplete because we already added some limitations. Our plan is to have WormGPT marked as an uncensored AI, not blackhat. In the last weeks we have been blocking some subjects from being discussed on WormGPT.”

Still, Last has continued to state on HackForums — and more recently on the far more serious cybercrime forum Exploit — that WormGPT will quite happily create malware capable of infecting a computer and going “fully undetectable” (FUD) by virtually all of the major antivirus makers (AVs).

“You can easily buy WormGPT and ask it for a Rust malware script and it will 99% sure be FUD against most AVs,” Last told a forum denizen in late July.

Asked to list some of the legitimate or what he called “white hat” uses for WormGPT, Morais said his service offers reliable code, unlimited characters, and accurate, quick answers.

“We used WormGPT to fix some issues on our website related to possible sql problems and exploits,” he explained. “You can use WormGPT to create firewalls, manage iptables, analyze network, code blockers, math, anything.”

Morais said he wants WormGPT to become a positive influence on the security community, not a destructive one, and that he’s actively trying to steer the project in that direction. The original HackForums thread pimping WormGPT as a malware writer’s best friend has since been deleted, and the service is now advertised as “WormGPT – Best GPT Alternative Without Limits — Privacy Focused.”

“We have a few researchers using our wormgpt for whitehat stuff, that’s our main focus now, turning wormgpt into a good thing to [the] community,” he said.

It’s unclear yet whether Last’s customers share that view.

Teach a Man to Phish and He’s Set for Life

One frustrating aspect of email phishing is the frequency with which scammers fall back on tried-and-true methods that really have no business working these days. Like attaching a phishing email to a traditional, clean email message, or leveraging link redirects on LinkedIn, or abusing an encoding method that makes it easy to disguise booby-trapped Microsoft Windows files as relatively harmless documents.

KrebsOnSecurity recently heard from a reader who was puzzled over an email he’d just received saying he needed to review and complete a supplied W-9 tax form. The missive was made to appear as if it were part of a mailbox delivery report from Microsoft 365 about messages that had failed to deliver.

The reader, who asked to remain anonymous, said the phishing message contained an attachment that appeared to have a file extension of “.pdf,” but something about it seemed off. For example, when he downloaded and tried to rename the file, the right arrow key on the keyboard moved his cursor to the left, and vice versa.

The file included in this phishing scam uses what’s known as a “right-to-left override” or RLO character. RLO is a special character within unicode — an encoding system that allows computers to exchange information regardless of the language used — that supports languages written from right to left, such as Arabic and Hebrew.

Look carefully at the screenshot below and you’ll notice that while Microsoft Windows says the file attached to the phishing message is named “lme.pdf,” the full filename is “fdp.eml” spelled backwards. In essence, this is a .eml file — an electronic mail format or email saved in plain text — masquerading as a .PDF file.

“The email came through Microsoft Office 365 with all the detections turned on and was not caught,” the reader continued. “When the same email is sent through Mimecast, Mimecast is smart enough to detect the encoding and it renames the attachment to ‘___fdp.eml.’ One would think Microsoft would have had plenty of time by now to address this.”

Indeed, KrebsOnSecurity first covered RLO-based phishing attacks back in 2011, and even then it wasn’t a new trick.

Opening the .eml file generates a rendering of a webpage that mimics an alert from Microsoft about wayward messages awaiting restoration to your inbox. Clicking on the “Restore Messages” link there bounces you through an open redirect on LinkedIn before forwarding to the phishing webpage.

As noted here last year, scammers have long taken advantage of a marketing feature on the business networking site which lets them create a LinkedIn.com link that bounces your browser to other websites, such as phishing pages that mimic top online brands (but chiefly Linkedin’s parent firm Microsoft).

The landing page after the LinkedIn redirect displays what appears to be an Office 365 login page, which is naturally a phishing website made to look like an official Microsoft Office property.

In summary, this phishing scam uses an old RLO trick to fool Microsoft Windows into thinking the attached file is something else, and when clicked the link uses an open redirect on a Microsoft-owned website (LinkedIn) to send people to a phishing page that spoofs Microsoft and tries to steal customer email credentials.

According to the latest figures from Check Point Software, Microsoft was by far the most impersonated brand for phishing scams in the second quarter of 2023, accounting for nearly 30 percent of all brand phishing attempts.

An unsolicited message that arrives with one of these .eml files as an attachment is more than likely to be a phishing lure. The best advice to sidestep phishing scams is to avoid clicking on links that arrive unbidden in emails, text messages and other mediums. Most phishing scams invoke a temporal element that warns of dire consequences should you fail to respond or act quickly.

If you’re unsure whether a message is legitimate, take a deep breath and visit the site or service in question manually — ideally, using a browser bookmark to avoid potential typosquatting sites.

How Malicious Android Apps Slip Into Disguise

Researchers say mobile malware purveyors have been abusing a bug in the Google Android platform that lets them sneak malicious code into mobile apps and evade security scanning tools. Google says it has updated its app malware detection mechanisms in response to the new research.

At issue is a mobile malware obfuscation method identified by researchers at ThreatFabric, a security firm based in Amsterdam. Aleksandr Eremin, a senior malware analyst at the company, told KrebsOnSecurity they recently encountered a number of mobile banking trojans abusing a bug present in all Android OS versions that involves corrupting components of an app so that its new evil bits will be ignored as invalid by popular mobile security scanning tools, while the app as a whole gets accepted as valid by Android OS and successfully installed.

“There is malware that is patching the .apk file [the app installation file], so that the platform is still treating it as valid and runs all the malicious actions it’s designed to do, while at the same time a lot of tools designed to unpack and decompile these apps fail to process the code,” Eremin explained.

Eremin said ThreatFabric has seen this malware obfuscation method used a few times in the past, but in April 2023 it started finding many more variants of known mobile malware families leveraging it for stealth. The company has since attributed this increase to a semi-automated malware-as-a-service offering in the cybercrime underground that will obfuscate or “crypt” malicious mobile apps for a fee.

Eremin said Google flagged their initial May 9, 2023 report as “high” severity. More recently, Google awarded them a $5,000 bug bounty, even though it did not technically classify their finding as a security vulnerability.

“This was a unique situation in which the reported issue was not classified as a vulnerability and did not impact the Android Open Source Project (AOSP), but did result in an update to our malware detection mechanisms for apps that might try to abuse this issue,” Google said in a written statement.

Google also acknowledged that some of the tools it makes available to developers — including APK Analyzer — currently fail to parse such malicious applications and treat them as invalid, while still allowing them to be installed on user devices.

“We are investigating possible fixes for developer tools and plan to update our documentation accordingly,” Google’s statement continued.

According to ThreatFabric, there are a few telltale signs that app analyzers can look for that may indicate a malicious app is abusing the weakness to masquerade as benign. For starters, they found that apps modified in this way have Android Manifest files that contain newer timestamps than the rest of the files in the software package.

More critically, the Manifest file itself will be changed so that the number of “strings” — plain text in the code, such as comments — specified as present in the app does match the actual number of strings in the software.

One of the mobile malware families known to be abusing this obfuscation method has been dubbed Anatsa, which is a sophisticated Android-based banking trojan that typically is disguised as a harmless application for managing files. Last month, ThreatFabric detailed how the crooks behind Anatsa will purchase older, abandoned file managing apps, or create their own and let the apps build up a considerable user base before updating them with malicious components.

ThreatFabric says Anatsa poses as PDF viewers and other file managing applications because these types of apps already have advanced permissions to remove or modify other files on the host device. The company estimates the people behind Anatsa have delivered more than 30,000 installations of their banking trojan via ongoing Google Play Store malware campaigns.

Google has come under fire in recent months for failing to more proactively police its Play Store for malicious apps, or for once-legitimate applications that later go rogue. This May 2023 story from Ars Technica about a formerly benign screen recording app that turned malicious after garnering 50,000 users notes that Google doesn’t comment when malware is discovered on its platform, beyond thanking the outside researchers who found it and saying the company removes malware as soon as it learns of it.

“The company has never explained what causes its own researchers and automated scanning process to miss malicious apps discovered by outsiders,” Ars’ Dan Goodin wrote. “Google has also been reluctant to actively notify Play users once it learns they were infected by apps promoted and made available by its own service.”

The Ars story mentions one potentially positive change by Google of late: A preventive measure available in Android versions 11 and higher that implements “app hibernation,” which puts apps that have been dormant into a hibernation state that removes their previously granted runtime permissions.

Russia Sends Cybersecurity CEO to Jail for 14 Years

The Russian government today handed down a treason conviction and 14-year prison sentence on Iyla Sachkov, the former founder and CEO of one of Russia’s largest cybersecurity firms. Sachkov, 37, has been detained for nearly two years under charges that the Kremlin has kept classified and hidden from public view, and he joins a growing roster of former Russian cybercrime fighters who are now serving hard time for farcical treason convictions.

In 2003, Sachkov founded Group-IB, a cybersecurity and digital forensics company that quickly earned a reputation for exposing and disrupting large-scale cybercrime operations, including quite a few that were based in Russia and stealing from Russian companies and citizens.

In September 2021, the Kremlin issued treason charges against Sachkov, although it has refused to disclose any details about the allegations. Sachkov pleaded not guilty. After a three-week “trial” that was closed to the public, Sachkov was convicted of treason and sentenced to 14 years in prison. Prosecutors had asked for 18 years.

Group-IB relocated its headquarters to Singapore several years ago, although it did not fully exit the Russian market until April 2023. In a statement, Group-IB said that during their founder’s detainment, he was denied the right to communicate — no calls, no letters — with the outside world for the first few months, and was deprived of any visits from family and friends.

“Ultimately, Ilya has been denied a chance for an impartial trial,” reads a blog post on the company’s site. “All the materials of the case are kept classified, and all hearings were held in complete secrecy with no public scrutiny. As a result, we might never know the pretext for his conviction.”

Prior to his arrest in 2021, Sachkov publicly chastised the Kremlin for turning a blind eye to the epidemic of ransomware attacks coming from Russia. In a speech covered by the Financial Times in 2021, Sachkov railed against the likes of Russian hacker Maksim Yakubets, the accused head of a hacking group called Evil Corp. that U.S. officials say has stolen hundreds of millions of dollars over the past decade.

“Yakubets has been spotted driving around Moscow in a fluorescent camouflage Lamborghini, with a custom licence plate that reads ‘THIEF,'” FT’s Max Seddon wrote. “He also ‘provides direct assistance to the Russian government’s malicious cyber efforts,’ according to US Treasury sanctions against him.”

In December 2021, Bloomberg reported that Sachkov was alleged to have given the United States information about the Russian “Fancy Bear” operation that sought to influence the 2016 U.S. election. Fancy Bear is one of several names (e.g., APT28) for an advanced Russian cyber espionage group that has been linked to the Russian military intelligence agency GRU.

In 2019, a Moscow court meted out a 22-year prison sentence for alleged treason charges against Sergei Mikhailov, formerly deputy chief of Russia’s top anti-cybercrime unit. The court also levied a 14-year sentence against Ruslan Stoyanov, a senior employee at Kaspersky Lab. Both men maintained their innocence throughout the trial, and the supposed reason for the treason charges has never been disclosed.

Following their dramatic arrests in 2016, some media outlets reported that the men were suspected of having tipped off American intelligence officials about those responsible for Russian hacking activities tied to the 2016 U.S. presidential election.

That’s because two others arrested for treason at the same time — Mikhailov subordinates Georgi Fomchenkov and Dmitry Dokuchaev — were reported by Russian media to have helped the FBI investigate Russian servers linked to the 2016 hacking of the Democratic National Committee.

Who and What is Behind the Malware Proxy Service SocksEscort?

Researchers this month uncovered a two-year-old Linux-based remote access trojan dubbed AVrecon that enslaves Internet routers into botnet that bilks online advertisers and performs password-spraying attacks. Now new findings reveal that AVrecon is the malware engine behind a 12-year-old service called SocksEscort, which rents hacked residential and small business devices to cybercriminals looking to hide their true location online.

In a report released July 12, researchers at Lumen’s Black Lotus Labs called the AVrecon botnet “one of the largest botnets targeting small-office/home-office (SOHO) routers seen in recent history,” and a crime machine that has largely evaded public attention since first being spotted in mid-2021.

“The malware has been used to create residential proxy services to shroud malicious activity such as password spraying, web-traffic proxying and ad fraud,” the Lumen researchers wrote.

Malware-based anonymity networks are a major source of unwanted and malicious web traffic directed at online retailers, Internet service providers (ISPs), social networks, email providers and financial institutions. And a great many of these “proxy” networks are marketed primarily to cybercriminals seeking to anonymize their traffic by routing it through an infected PC, router or mobile device.

Proxy 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 make it difficult to trace malicious traffic to its original source. Proxy services also let users appear to be getting online from nearly anywhere in the world, which is useful if you’re a cybercriminal who is trying to impersonate someone from a specific place.

Spur.us, a startup that tracks proxy services, told KrebsOnSecurity that the Internet addresses Lumen tagged as the AVrecon botnet’s “Command and Control” (C2) servers all tie back to a long-running proxy service called SocksEscort.

SocksEscort[.]com, is what’s known as a “SOCKS Proxy” service. The SOCKS (or SOCKS5) protocol allows Internet users to channel their Web traffic through a proxy server, which then passes the information on to the intended destination. From a website’s perspective, the traffic of the proxy network customer appears to originate from a rented/malware-infected PC tied to a residential ISP customer, not from the proxy service customer.

Spur tracks SocksEscort as a malware-based proxy offering, which means the machines doing the proxying of traffic for SocksEscort customers have been infected with malicious software that turns them into a traffic relay. Usually, these users have no idea their systems are compromised.

Spur says the SocksEscort proxy service requires customers to install a Windows based application in order to access a pool of more than 10,000 hacked devices worldwide.

“We created a fingerprint to identify the call-back infrastructure for SocksEscort proxies,” Spur co-founder Riley Kilmer said. “Looking at network telemetry, we were able to confirm that we saw victims talking back to it on various ports.”

According to Kilmer, AVrecon is the malware that gives SocksEscort its proxies.

“When Lumen released their report and IOCs [indicators of compromise], we queried our system for which proxy service call-back infrastructure overlapped with their IOCs,” Kilmer continued. “The second stage C2s they identified were the same as the IPs we labeled for SocksEscort.”

Lumen’s research team said the purpose of AVrecon appears to be stealing bandwidth – without impacting end-users – in order to create a residential proxy service to help launder malicious activity and avoid attracting the same level of attention from Tor-hidden services or commercially available VPN services.

“This class of cybercrime activity threat may evade detection because it is less likely than a crypto-miner to be noticed by the owner, and it is unlikely to warrant the volume of abuse complaints that internet-wide brute-forcing and DDoS-based botnets typically draw,” Lumen’s Black Lotus researchers wrote.

Preserving bandwidth for both customers and victims was a primary concern for SocksEscort in July 2022, when 911S5 — at the time the world’s largest known malware proxy network — got hacked and imploded just days after being exposed in a story here. Kilmer said after 911’s demise, SocksEscort closed its registration for several months to prevent an influx of new users from swamping the service.

Danny Adamitis, principal information security researcher at Lumen and co-author of the report on AVrecon, confirmed Kilmer’s findings, saying the C2 data matched up with what Spur was seeing for SocksEscort dating back to September 2022.

Adamitis said that on July 13 — the day after Lumen published research on AVrecon and started blocking any traffic to the malware’s control servers — the people responsible for maintaining the botnet reacted quickly to transition infected systems over to a new command and control infrastructure.

“They were clearly reacting and trying to maintain control over components of the botnet,” Adamitis said. “Probably, they wanted to keep that revenue stream going.”

Frustratingly, Lumen was not able to determine how the SOHO devices were being infected with AVrecon. Some possible avenues of infection include exploiting weak or default administrative credentials on routers, and outdated, insecure firmware that has known, exploitable security vulnerabilities.

WHO’S BEHIND SOCKSESCORT?

KrebsOnSecurity briefly visited SocksEscort last year and promised a follow-up on the history and possible identity of its proprietors. A review of the earliest posts about this service on Russian cybercrime forums suggests the 12-year-old malware proxy network is tied to a Moldovan company that also offers VPN software on the Apple Store and elsewhere.

SocksEscort began in 2009 as “super-socks[.]com,” a Russian-language service that sold access to thousands of compromised PCs that could be used to proxy traffic. Someone who picked the nicknames “SSC” and “super-socks” and email address “michvatt@gmail.com” registered on multiple cybercrime forums and began promoting the proxy service.

According to DomainTools.com, the apparently related email address “michdomain@gmail.com” was used to register SocksEscort[.]com, super-socks[.]com, and a few other proxy-related domains, including ip-score[.]com, segate[.]org seproxysoft[.]com, and vipssc[.]us. Cached versions of both super-socks[.]com and vipssc[.]us show these sites sold the same proxy service, and both displayed the letters “SSC” prominently at the top of their homepages.

According to cyber intelligence firm Intel 471, the very first “SSC” identity registered on the cybercrime forums happened in 2009 at the Russian language hacker community Antichat, where SSC asked fellow forum members for help in testing the security of a website they claimed was theirs: myiptest[.]com, which promised to tell visitors whether their proxy address was included on any security or anti-spam block lists.

Myiptest[.]com is no longer responding, but a cached copy of it from Archive.org shows that for about four years it included in its HTML source a Google Analytics code of US-2665744, which was also present on more than a dozen other websites.

Most of the sites that once bore that Google tracking code are no longer online, but nearly all of them centered around services that were similar to myiptest[.]com, such as abuseipdb[.]com, bestiptest[.]com, checkdnslbl[.]com, dnsbltools[.]com and dnsblmonitor[.]com.

Each of these services were designed to help visitors quickly determine whether the Internet address they were visiting the site from was listed by any security firms as spammy, malicious or phishous. In other words, these services were designed so that proxy service users could easily tell if their rented Internet address was still safe to use for online fraud.

Another domain with the Google Analytics code US-2665744 was sscompany[.]net. An archived copy of the site says SSC stands for “Server Support Company,” which advertised outsourced solutions for technical support and server administration.

Leaked copies of the hacked Antichat forum indicate the SSC identity registered on the forum using the IP address 71.229.207.214. That same IP was used to register the nickname “Deem3n®,” a prolific poster on Antichat between 2005 and 2009 who served as a moderator on the forum.

There was a Deem3n® user on the webmaster forum Searchengines.guru whose signature in their posts says they run a popular community catering to programmers in Moldova called sysadmin[.]md, and that they were a systems administrator for sscompany[.]net.

That same Google Analytics code is also now present on the homepages of wiremo[.]co and a VPN provider called HideIPVPN[.]com.

Wiremo sells software and services to help website owners better manage their customer reviews. Wiremo’s Contact Us page lists a “Server Management LLC” in Wilmington, DE as the parent company. Server Management LLC is currently listed in Apple’s App Store as the owner of a “free” VPN app called HideIPVPN.

“The best way to secure the transmissions of your mobile device is VPN,” reads HideIPVPN’s description on the Apple Store. “Now, we provide you with an even easier way to connect to our VPN servers. We will hide your IP address, encrypt all your traffic, secure all your sensitive information (passwords, mail credit card details, etc.) form [sic] hackers on public networks.”

When asked about the company’s apparent connection to SocksEscort, Wiremo responded, “We do not control this domain and no one from our team is connected to this domain.” Wiremo did not respond when presented with the findings in this report.

Few Fortune 100 Firms List Security Pros in Their Executive Ranks

Many things have changed since 2018, such as the names of the companies in the Fortune 100 list. But one aspect of that vaunted list that hasn’t shifted much since is that very few of these companies list any security professionals within their top executive ranks.

The next time you receive a breach notification letter that invariably says a company you trusted places a top priority on customer security and privacy, consider this: Only five of the Fortune 100 companies currently list a security professional in the executive leadership pages of their websites. This is largely unchanged from five of the Fortune 100 in 2018, the last time KrebsOnSecurity performed this analysis.

A review of the executives pages published by the 2022 list of Fortune 100 companies found only five — BestBuy, Cigna, Coca-Cola, Disney and Walmart — that listed a Chief Security Officer (CSO) or Chief Information Security Officer (CISO) in their highest corporate ranks.

One-third of last year’s Fortune 100 companies included a Chief Technology Officer (CTO) in their executive stables; 40 listed Chief Information Officer (CIO) roles, but just 21 included a Chief Risk Officer (CRO).

As I noted in 2018, this is not to say that 95 percent of the Fortune 100 companies don’t have a CISO or CSO in their employ: A review of LinkedIn suggests that most of them in fact do have people in those roles, and experts say some of the largest multinational companies will have multiple people in these positions.

But it is interesting to note which executive positions the top companies deem worth publishing in their executive leadership pages. For example, 88 percent listed a Director of Human Resources (or “Chief People Officer”), and 37 out of 100 included a Chief Marketing Officer.

Not that these roles are somehow more or less important than that of a CISO/CSO within the organization. Nor is the average pay hugely different among all these roles. Yet, considering how much marketing (think consumer/customer data) and human resources (think employee personal/financial data) are impacted by your average data breach, it’s somewhat remarkable that more companies don’t list their chief security personnel among their top ranks.

One likely explanation as to why a great many companies still don’t include their security leaders within their highest echelons is that these employees do not report directly to the company’s CEO, board of directors, or Chief Risk Officer.

The CSO or CISO position traditionally has reported to an executive in a technical role, such as the CTO or CIO. But workforce experts say placing the CISO/CSO on unequal footing with the organization’s top leaders makes it more likely that cybersecurity and risk concerns will take a backseat to initiatives designed to increase productivity and generally grow the business.

“Separation of duties is a fundamental concept of security, whether we’re talking about cyber threats, employee fraud, or physical theft,” said Tari Schreider, an analyst with Datos Insights. “But that critical separation is violated every day with the CISO or CSO reporting to the heads of technology.”

IANS, an organization geared toward CISOs/CSOs and their teams, surveyed more than 500 organizations last year and found roughly 65 percent of CISOs still report to a technical leader, such as the CTO or CIO: IANS found 46 percent of CISOs reported to a CIO, with 15 percent reporting directly to a CTO.

Schreider said one big reason many CISOs and CSOs aren’t listed in corporate executive biographies at major companies is that these positions often do not enjoy the same legal and insurance protections afforded to other officers within the company.

Typically, larger companies will purchase a “Directors and Officers” liability policy that covers legal expenses should one of the organization’s top executives find themselves dragged into court over some business failing on the part of their employer. But organizations that do not offer this coverage to their security leaders are unlikely to list those positions in their highest ranks, Schreider said.

“It’s frankly shocking,” Schreider said, upon hearing that only four of the Fortune 100 listed any security personnel in their top executive hierarchies. “If the company isn’t going to give them legal cover, then why give them the responsibility for security? Especially when CISOs and CSOs shouldn’t own the risk, yet the majority of them carry the mantle of responsibility and they tend to be scapegoats” when the organization eventually gets hacked, he said.

Schreider said while Datos Insights focuses mostly on the financial and insurance industries, a recent Datos survey echoes the IANS findings from last year. Datos surveyed 25 of the largest financial institutions by asset size (two of which are no longer in existence), and found just 22 percent of CSOs/CISOs reported to the CEO. A majority — 65 percent — had their CSOs/CISOs reporting to either a CTO or CIO.

“I’ve looked at these types of statistics for years and they’ve never really changed that much,” Schreider said. “The CISO or CSO is in the purview of the technical stack from a management perspective. Right, wrong or indifferent, that’s what’s happening.”

Earlier this year, IT consulting firm Accenture released results from surveying more than 3,000 respondents from 15 industries across 14 countries about their security maturity levels. Accenture found that only about one-third of the organizations they surveyed had enough security maturity under their belts to have integrated security into virtually every aspect of their businesses — and this includes having CISOs or CSOs report to someone in charge of overseeing risk for the business as a whole.

Not surprisingly, Accenture also found that only a third of respondents considered cybersecurity risk “to a great extent” when evaluating overall enterprise risk.

“This highlights there is still some way to go to make cybersecurity a proactive, strategic necessity within the business,” the report concluded.

A spreadsheet tracking the prevalence of security leaders on the executive pages of the 2022 Fortune 100 firms is available here.

Update, July 23: Somehow overlooked Disney’s CSO listed on their leadership page. The story copy above has been updated to reflect that.

LeakedSource Owner Quit Ashley Madison a Month Before 2015 Hack

[This is Part III in a series on research conducted for a recent Hulu documentary on the 2015 hack of marital infidelity website AshleyMadison.com.]

In 2019, a Canadian company called Defiant Tech Inc. pleaded guilty to running LeakedSource[.]com, a service that sold access to billions of passwords and other data exposed in countless data breaches. KrebsOnSecurity has learned that the owner of Defiant Tech, a 32-year-old Ontario man named Jordan Evan Bloom, was hired in late 2014 as a developer for the marital infidelity site AshleyMadison.com. Bloom resigned from AshleyMadison citing health reasons in June 2015 — less than one month before unidentified hackers stole data on 37 million users — and launched LeakedSource three months later.

On Jan. 15, 2018, the Royal Canadian Mounted Police (RCMP) charged then 27-year-old Bloom, of Thornhill, Ontario, with selling stolen personal identities online through the website LeakedSource[.]com.

LeakedSource was advertised on a number of popular cybercrime forums as a service that could help hackers break into valuable or high-profile accounts. LeakedSource also tried to pass itself off as a legal, legitimate business that was marketing to security firms and professionals.

The RCMP arrested Bloom in December 2017, and said he made approximately $250,000 selling hacked data, which included information on 37 million user accounts leaked in the 2015 Ashley Madison breach.

Subsequent press releases from the RCMP about the LeakedSource investigation omitted any mention of Bloom, and referred to the defendant only as Defiant Tech. In a legal settlement that is quintessentially Canadian, the matter was resolved in 2019 after Defiant Tech agreed to plead guilty. The RCMP declined to comment for this story.

A GREY MARKET

The Impact Team, the hacker group that claimed responsibility for stealing and leaking the AshleyMadison user data, also leaked several years worth of email from then-CEO Noel Biderman. A review of those messages shows that Ashley Madison hired Jordan Evan Bloom as a PHP developer in December 2014 — even though the company understood that Bloom’s success as a programmer and businessman was tied to shady and legally murky enterprises.

Bloom’s recommendation came to Biderman via Trevor Sykes, then chief technology officer for Ashley Madison parent firm Avid Life Media (ALM). The following is an email from Sykes to Biderman dated Nov. 14, 2014:

“Greetings Noel,

“We’d like to offer Jordan Bloom the position of PHP developer reporting to Mike Morris for 75k CAD/Year. He did well on the test, but he also has a great understanding of the business side of things having run small businesses himself. This was an internal referral.”

When Biderman responded that he needed more information about the candidate, Sykes replied that Bloom was independently wealthy as a result of his forays into the shadowy world of “gold farming”  — the semi-automated use of large numbers of player accounts to win some advantage that is usually related to cashing out game accounts or inventory. Gold farming is particularly prevalent in massively multiplayer online role-playing games (MMORPGs), such as RuneScape and World of Warcraft.

“In his previous experience he had been doing RMT (Real Money Trading),” Sykes wrote. “This is the practice of selling virtual goods in games for real world money. This is a grey market, which is usually against the terms and services of the game companies.” Here’s the rest of his message to Biderman:

“RMT sellers traditionally have a lot of problems with chargebacks, and payment processor compliance. During my interview with him, I spent some time focusing in on this. He had to demonstrate to the processor, Paypal, at the time he had a business and technical strategy to address his charge back rate.”

“He ran this company himself, and did all the coding, including the integration with the processors,” Sykes continued in his assessment of Bloom. “Eventually he was squeezed out by Chinese gold farmers, and their ability to market with much more investment than he could. In addition the cost of ‘farming’ the virtual goods was cheaper in China to do than in North America.”

COME, ABUSE WITH US

The gold farming reference is fascinating because in 2017 KrebsOnSecurity published Who Ran LeakedSource?, which examined clues suggesting that one of the administrators of LeakedSource also was the admin of abusewith[.]us, a site unabashedly dedicated to helping people hack email and online gaming accounts.

Abusewith[.]us began in September 2013 as a forum for learning and teaching how to hack accounts at Runescape, an MMORPG set in a medieval fantasy realm where players battle for kingdoms and riches.

The currency with which Runescape players buy and sell weapons, potions and other in-game items are virtual gold coins, and many of Abusewith[dot]us’s early members traded in a handful of commodities: Phishing kits and exploits that could be used to steal Runescape usernames and passwords from fellow players; virtual gold plundered from hacked accounts; and databases from hacked forums and websites related to Runescape and other online games.

That 2017 report here interviewed a Michigan man who acknowledged being administrator of Abusewith[.]us, but denied being the operator of LeakedSource. Still, the story noted that LeakedSource likely had more than one operator, and breached records show Bloom was a prolific member of Abusewith[.]us.

In an email to all employees on Dec. 1, 2014, Ashley Madison’s director of HR said Bloom graduated from York University in Toronto with a degree in theoretical physics, and that he has been an active programmer since high school.

“He’s a proprietor of a high traffic multiplayer game and developer/publisher of utilities such as PicTrace,” the HR director enthused. “He will be a great addition to the team.”

PicTrace appears to have been a service that allowed users to glean information about anyone who viewed an image hosted on the platform, such as their Internet address, browser type and version number. A copy of pictrace[.]com from Archive.org in 2012 redirects to the domain qksnap.com, which DomainTools.com says was registered to a Jordan Bloom from Thornhill, ON that same year.

The street address listed in the registration records for qksnap.com — 204 Beverley Glen Blvd — also shows up in the registration records for leakadvisor[.]com, a domain registered in 2017 just months after Canadian authorities seized the servers running LeakedSource.

A review of passive DNS records from DomainTools indicates that in 2013 pictrace[.]com shared a server with just a handful of other domains, including Near-Reality[.]com — a popular RuneScape Private Server (RSPS) game based on the RuneScape MMORPG.

Copies of near-reality[.]com from 2013 via Archive.org show the top of the community’s homepage was retrofitted with a message saying Near Reality was no longer available due to a copyright dispute. Although the site doesn’t specify the other party to the copyright dispute, it appears Near-Reality got sued by Jagex, the owner of RuneScape.

The message goes on to say the website will no longer “encourage, facilitate, enable or condone (i) any infringement of copyright in RuneScape or any other Jagex product; nor (ii) any breach of the terms and conditions of RuneScape or any other Jagex product.”

AGENTJAGS

Near Reality also has a Facebook page that was last updated in 2019, when its owner posted a link to a news story about Defiant Tech’s guilty plea in the LeakedSource investigation. That Facebook page indicates Bloom also went by the nickname “Agentjags.”

“Just a quick PSA,” reads a post to the Near Reality Facebook page dated Jan. 21, 2018, which linked to a story about the charges against Bloom and a photo of Bloom standing in front of his lime-green Lamborghini. “Agentjags has got involved in some shady shit that may have compromised your personal details. I advise anyone who is using an old NR [Near Reality] password for anything remotely important should change it ASAP.”

By the beginning of 2016, Bloom was nowhere to be found, and was suspected of having fled his country for the Caribbean, according to the people commenting on the Near Reality Facebook page:

“Jordan aka Agentjags has gone missing,” wrote a presumed co-owner of the Facebook page. “He is supposedly hiding in St. Lucia, doing what he loved, scuba-diving. Any information to his whereabouts will be appreciated.”

KrebsOnSecurity ran the unusual nickname “AgentJags” through a search at Constella Intelligence, a commercial service that tracks breached data sets. That search returned just a few dozen results — and virtually all were accounts at various RuneScape-themed sites, including a half-dozen accounts at Abusewith[.]us.

Constella found other “AgentJags” accounts tied to the email address ownagegaming1@gmail.com. The marketing firm Apollo.io experienced a data breach several years back, and according to Apollo the email address ownagegaming1@gmail.com belongs to Jordan Bloom in Ontario.

Constella also revealed that the password frequently used by ownagegaming1@gmail.com across many sites was some variation on “niggapls,” which my 2017 report found was also the password used by the administrator of LeakedSource.

Constella discovered that the email eric.malek@rogers.com comes up when one searches for “AgentJags.” This is curious because emails leaked from Ashley Madison’s then-CEO Biderman show that Eric Malek from Toronto was the Ashley Madison employee who initially recommended Bloom for the PHP developer job.

According to DomainTools.com, Eric.Malek@rogers.com was used to register the domain devjobs.ca, which previously advertised “the most exciting developer jobs in Canada, delivered to you weekly.” Constella says eric.malek@rogers.com also had an account at Abusewith[.]us — under the nickname “Jags.”

Biderman’s email records show Eric Malek was also a PHP developer for Ashley Madison, and that he was hired into this position just a few months before Bloom — on Sept. 2, 2014. The CEO’s leaked emails show Eric Malek resigned from his developer position at Ashley Madison on June 19, 2015.

“Please note that Eric Malek has resigned from this position with Avid and his last day will be June 19th,” read a June 5, 2015 email from ALM’s HR director. “He is resigning to deal with some personal issues which include health issues. Because he is not sure how much time it will take to resolve, he is not requesting a leave of absence (his time off will be indefinite). Overall, he likes the company and plans to reach out to Trevor or I when the issues are resolved to see what is available at that time.”

A follow-up email from Biderman demanded, “want to know where he’s truly going….,” and it’s unclear whether there was friction with Malek’s departure. But ALM General Counsel Avi Weisman replied indicating that Malek probably would not sign an “Exit Acknowledgment Form” prior to leaving, and that the company had unanswered questions for Malek.

“Aneka should dig during exit interview,” Weisman wrote. “Let’s see if he balks at signing the Acknowledgment.”

Bloom’s departure notice from Ashley Madison’s HR person, dated June 23, 2015, read:

“Please note that Jordan Bloom has resigned from his position as PHP Developer with Avid. He is leaving for personal reasons. He has a neck issue that will require surgery in the upcoming months and because of his medical appointment schedule and the pain he is experiencing he can no longer commit to a full-time schedule. He may pick up contract work until he is back to 100%.”

A follow-up note to Biderman about this announcement read:

“Note that he has disclosed that he is independently wealthy so he can get by without FT work until he is on the mend. He has signed the Exit Acknowledgement Form already without issue. He also says he would consider reapplying to Avid in the future if we have opportunities available at that time.”

Perhaps Mr. Bloom hurt his neck from craning it around blind spots in his Lamborghini. Maybe it was from a bad scuba outing. Whatever the pain in Bloom’s neck was, it didn’t stop him from launching himself fully into LeakedSource[.]com, which was registered roughly one month after the Impact Team leaked data on 37 million Ashley Madison accounts.

Mr. Malek declined a request for comment. A now-deleted LinkedIn profile for Malek from December 2018 listed him as a “technical recruiter” from Toronto who also attended Mr. Bloom’s alma mater — York University. That resume did not mention Mr. Malek’s brief stint as a PHP developer at Ashley Madison.

“Developer, entrepreneur, and now technical recruiter of the most uncommon variety!” Mr. Malek’s LinkedIn profile enthused. “Are you a developer, or other technical specialist, interested in working with a recruiter who can properly understand your concerns and aspirations, technical, environmental and financial? Don’t settle for a ‘hack’; this is your career, let’s do it right! Connect with me on LinkedIn. Note: If you are not a resident of Canada/Toronto, I cannot help you.”

INTERVIEW WITH BLOOM

Mr. Bloom told KrebsOnSecurity he had no role in harming or hacking Ashley Madison. Bloom validated his identity by responding at one of the email addresses mentioned above, and agreed to field questions so long as KrebsOnSecurity agreed to publish our email conversation in full (PDF).

Bloom said Mr. Malek did recommend him for the Ashley Madison job, but that Mr. Malek also received a $5,000 referral bonus for doing so. Given Mr. Malek’s stated role as a technical recruiter, it seems likely he also recommended several other employees to Ashley Madison.

Bloom was asked whether anyone at the RCMP, Ashley Madison or any authority anywhere ever questioned him in connection with the July 2015 hack of Ashley Madison. He replied that he was called once by someone claiming to be from the Toronto Police Service asking if he knew anything about the Ashley Madison hack.

“The AM situation was not something they pursued according to the RCMP disclosure,” Bloom wrote. “Learning about the RCMP’s most advanced cyber investigative techniques and capabilities was very interesting though. I was eventually told information by a third party which included knowledge that law enforcement effectively knew who the hacker was, but didn’t have enough evidence to proceed with a case. That is the extent of my involvement with any authorities.”

As to his company’s guilty plea for operating LeakedSource, Bloom maintains that the judge at his preliminary inquiry found that even if everything the Canadian government alleged was true it would not constitute a violation of any law in Canada with respect the charges the RCMP leveled against him, which included unauthorized use of a computer and “mischief to data.”

“In Canada at the lower court level we are allowed to possess stolen information and manipulate our copies of them as we please,” Bloom said. “The judge however decided that a trial was required to determine whether any activities of mine were reckless, as the other qualifier of intentionally criminal didn’t apply. I will note here that nothing I was accused of doing would have been illegal if done in the United States of America according to their District Attorney. +1 for free speech in America vs freedom of expression in Canada.”

“Shortly after their having most of their case thrown out, the Government proposed an offer during a closed door meeting where they would drop all charges against me, provide full and complete personal immunity, and in exchange the Corporation which has since been dissolved would plead guilty,” Bloom continued. “The Corporation would also pay a modest fine.”

Bloom said he left Ashley Madison because he was bored, but he acknowledged starting LeakedSource partly in response to the Ashley Madison hack.

“I intended to leverage my gaming connections to get into security work including for other private servers such as Minecraft communities and others,” Bloom said. “After months of asking management for more interesting tasks, I became bored. Some days I had virtually nothing to do except spin in my chair so I would browse the source code for security holes to fix because I found it enjoyable.”

“I believe the decision to start LS [LeakedSource] was partly inspired by the AM hack itself, and the large number of people from a former friend group messaging me asking if XYZ person was in the leak after I revealed to them that I downloaded a copy and had the ability to browse it,” Bloom continued. “LS was never my idea – I was just a builder, and the only Canadian. In other countries it was never thought to be illegal on closer examination of their laws.”

Bloom said he still considers himself independently wealthy, and that still has the lime green Lambo. But he said he’s currently unemployed and can’t seem to land a job in what he views as his most promising career path: Information security.

“As I’m sure you’re aware, having negative media attention associated with alleged (key word) criminal activity can have a detrimental effect on employment, banking and relationships,” Bloom wrote. “I have no current interest in being a business owner, nor do I have any useful business ideas to be honest. I was and am interested in interesting Information Security/programming work but it’s too large of a risk for any business to hire someone who was formerly accused of a crime.”

If you liked this story, please consider reading the first two pieces in this series:

SEO Expert Hired and Fired by Ashley Madison Turned on Company, Promising Revenge

Top Suspect in 2015 Ashley Madison Hack Committed Suicide in 2014

Apple & Microsoft Patch Tuesday, July 2023 Edition

Microsoft Corp. today released software updates to quash 130 security bugs in its Windows operating systems and related software, including at least five flaws that are already seeing active exploitation. Meanwhile, Apple customers have their own zero-day woes again this month: On Monday, Apple issued (and then quickly pulled) an emergency update to fix a zero-day vulnerability that is being exploited on MacOS and iOS devices.

On July 10, Apple pushed a “Rapid Security Response” update to fix a code execution flaw in the Webkit browser component built into iOS, iPadOS, and macOS Ventura. Almost as soon as the patch went out, Apple pulled the software because it was reportedly causing problems loading certain websites. MacRumors says Apple will likely re-release the patches when the glitches have been addressed.

Launched in May, Apple’s Rapid Security Response updates are designed to address time-sensitive vulnerabilities, and this is the second month Apple has used it. July marks the sixth month this year that Apple has released updates for zero-day vulnerabilities — those that get exploited by malware or malcontents before there is an official patch available.

If you rely on Apple devices and don’t have automatic updates enabled, please take a moment to check the patch status of your various iDevices. The latest security update that includes the fix for the zero-day bug should be available in iOS/iPadOS 16.5.1, macOS 13.4.1, and Safari 16.5.2.

On the Windows side, there are at least four vulnerabilities patched this month that earned high CVSS (badness) scores and that are already being exploited in active attacks, according to Microsoft. They include CVE-2023-32049, which is a hole in Windows SmartScreen that lets malware bypass security warning prompts; and CVE-2023-35311 allows attackers to bypass security features in Microsoft Outlook.

The two other zero-day threats this month for Windows are both privilege escalation flaws. CVE-2023-32046 affects a core Windows component called MSHTML, which is used by Windows and other applications, like Office, Outlook and Skype. CVE-2023-36874 is an elevation of privilege bug in the Windows Error Reporting Service.

Many security experts expected Microsoft to address a fifth zero-day flaw — CVE-2023-36884 — a remote code execution weakness in Office and Windows.

“Surprisingly, there is no patch yet for one of the five zero-day vulnerabilities,” said Adam Barnett, lead software engineer at Rapid7. “Microsoft is actively investigating publicly disclosed vulnerability, and promises to update the advisory as soon as further guidance is available.”

Barnett notes that Microsoft links exploitation of this vulnerability with Storm-0978, the software giant’s name for a cybercriminal group based out of Russia that is identified by the broader security community as RomCom.

“Exploitation of CVE-2023-36884 may lead to installation of the eponymous RomCom trojan or other malware,” Barnett said. “[Microsoft] suggests that RomCom / Storm-0978 is operating in support of Russian intelligence operations. The same threat actor has also been associated with ransomware attacks targeting a wide array of victims.”

Microsoft’s advisory on CVE-2023-36884 is pretty sparse, but it does include a Windows registry hack that should help mitigate attacks on this vulnerability. Microsoft has also published a blog post about phishing campaigns tied to Storm-0978 and to the exploitation of this flaw.

Barnett said it’s while it’s possible that a patch will be issued as part of next month’s Patch Tuesday, Microsoft Office is deployed just about everywhere, and this threat actor is making waves.

“Admins should be ready for an out-of-cycle security update for CVE-2023-36884,” he said.

Microsoft also today released new details about how it plans to address the existential threat of malware that is cryptographically signed by…wait for it….Microsoft.

In late 2022, security experts at Sophos, Trend Micro and Cisco warned that ransomware criminals were using signed, malicious drivers in an attempt to evade antivirus and endpoint detection and response (EDR) tools.

In a blog post today, Sophos’s Andrew Brandt wrote that Sophos identified 133 malicious Windows driver files that were digitally signed since April 2021, and found 100 of those were actually signed by Microsoft. Microsoft said today it is taking steps to ensure those malicious driver files can no longer run on Windows computers.

As KrebsOnSecurity noted in last month’s story on malware signing-as-a-service, code-signing certificates are supposed to help authenticate the identity of software publishers, and provide cryptographic assurance that a signed piece of software has not been altered or tampered with. Both of these qualities make stolen or ill-gotten code-signing certificates attractive to cybercriminal groups, who prize their ability to add stealth and longevity to malicious software.

Dan Goodin at Ars Technica contends that whatever Microsoft may be doing to keep maliciously signed drivers from running on Windows is being bypassed by hackers using open source software that is popular with video game cheaters.

“The software comes in the form of two software tools that are available on GitHub,” Goodin explained. “Cheaters use them to digitally sign malicious system drivers so they can modify video games in ways that give the player an unfair advantage. The drivers clear the considerable hurdle required for the cheat code to run inside the Windows kernel, the fortified layer of the operating system reserved for the most critical and sensitive functions.”

Meanwhile, researchers at Cisco’s Talos security team found multiple Chinese-speaking threat groups have repurposed the tools—one apparently called “HookSignTool” and the other “FuckCertVerifyTimeValidity.”

“Instead of using the kernel access for cheating, the threat actors use it to give their malware capabilities it wouldn’t otherwise have,” Goodin said.

For a closer look at the patches released by Microsoft today, check out the always-thorough Patch Tuesday roundup from the SANS Internet Storm Center. And it’s not a bad idea to hold off updating for a few days until Microsoft works out any kinks in the updates: AskWoody.com usually has the lowdown on any patches that may be causing problems for Windows users.

And as ever, please consider backing up your system or at least your important documents and data before applying system updates. If you encounter any problems with these updates, please drop a note about it here in the comments.

Top Suspect in 2015 Ashley Madison Hack Committed Suicide in 2014

When the marital infidelity website AshleyMadison.com learned in July 2015 that hackers were threatening to publish data stolen from 37 million users, the company’s then-CEO Noel Biderman was quick to point the finger at an unnamed former contractor. But as a new documentary series on Hulu reveals [SPOILER ALERT!], there was just one problem with that theory: Their top suspect had killed himself more than a year before the hackers began publishing stolen user data.

The new documentary, The Ashley Madison Affair, begins airing today on Hulu in the United States and on Disney+ in the United Kingdom. The series features interviews with security experts and journalists, Ashley Madison executives, victims of the breach and jilted spouses.

The series also touches on shocking new details unearthed by KrebsOnSecurity and Jeremy Bullock, a data scientist who worked with the show’s producers at the Warner Bros. production company Wall to Wall Media. Bullock had spent many hours poring over the hundreds of thousands of emails that the Ashley Madison hackers stole from Biderman and published online in 2015.

Wall to Wall reached out in July 2022 about collaborating with Bullock after KrebsOnSecurity published A Retrospective on the 2015 Ashley Madison Breach. That piece explored how Biderman — who is Jewish — had become the target of concerted harassment campaigns by anti-Semitic and far-right groups online in the months leading up to the hack.

Whoever hacked Ashley Madison had access to all employee emails, but they only released Biderman’s messages — three years worth. Apropos of my retrospective report, Bullock found that a great many messages in Biderman’s inbox were belligerent and anti-Semitic screeds from a former Ashley Madison employee named William Brewster Harrison.

The messages show that Harrison was hired in March 2010 to help promote Ashley Madison online, but the messages also reveal Harrison was heavily involved in helping to create and cultivate phony female accounts on the service.

There is evidence to suggest that in 2010 Harrison was directed to harass the owner of Ashleymadisonsucks.com into closing the site or selling the domain to Ashley Madison.

Ashley Madison’s parent company — Toronto-based Avid Life Media — filed a trademark infringement complaint in 2010 that succeeded in revealing a man named Dennis Bradshaw as the owner. But after being informed that Bradshaw was not subject to Canadian trademark laws, Avid Life offered to buy AshleyMadisonSucks.com for $10,000.

When Bradshaw refused to sell the domain, he and his then-girlfriend were subject to an unrelenting campaign of online harassment and blackmail. It now appears those attacks were perpetrated by Harrison, who sent emails from different accounts at the free email service Vistomail pretending to be Bradshaw, his then-girlfriend and their friends.

[As the documentary points out, the domain AshleyMadisonSucks.com was eventually transferred to Ashley Madison, which then shrewdly used it for advertising and to help debunk theories about why its service was supposedly untrustworthy].

Harrison even went after Bradshaw’s lawyer and wife, listing them both on a website he created called Contact-a-CEO[.]com, which Harrison used to besmirch the name of major companies — including several past employers — all entities he believed had slighted him or his family in some way. The site also claimed to include the names, addresses and phone numbers of top CEOs.

An exhaustive analysis of domains registered to the various Vistomail pseudonyms used by Harrison shows he also ran Bash-a-Business[.]com, which Harrison dedicated to “all those sorry ass corporate executives out there profiting from your hard work, organs, lives, ideas, intelligence, and wallets.” Copies of the site at archive.org show it was the work of someone calling themselves “The Chaos Creator.”

Will Harrison was terminated as an Ashley Madison employee in November 2011, and by early 2012 he’d turned his considerable harassment skills squarely against the company. Ashley Madison’s long-suspected army of fake female accounts came to the fore in August 2012 after the former sex worker turned activist and blogger Maggie McNeill published screenshots apparently taken from Ashley Madison’s internal systems suggesting that a large percentage of the female accounts on the service were computer-operated bots.

Ashley Madison’s executives understood that only a handful of employees at the time would have had access to the systems needed to produce the screenshots McNeill published online. In one exchange on Aug. 16, 2012, Ashley Madison’s director of IT was asked to produce a list of all company employees with all-powerful administrator access.

“Who or what is asdfdfsda@asdf.com?,” Biderman asked, after being sent a list of nine email addresses.

“It appears to be the email address Will used for his profiles,” the IT director replied.

“And his access was never shut off until today?,” asked the company’s general counsel Mike Dacks.

What prompted the data scientist Bullock to reach out were gobs of anti-Semitic diatribes from Harrison, who had taken to labeling Biderman and others “greedy Jew bastards.”

“So good luck, I’m sure we’ll talk again soon, but for now, Ive got better things in the oven,” Harrison wrote to Biderman after his employment contract with Ashley Madison was terminated. “Just remember I outsmarted you last time and I will outsmart and out maneuver you this time too, by keeping myself far far away from the action and just enjoying the sideline view, cheering for the opposition.”

Harrison signed his threatening missive with the salutation, “We are legion,” suggesting that whatever comeuppance he had in store for Ashley Madison would come from a variety of directions and anonymous hackers.

The leaked Biderman emails show that Harrison made good on his threats, and that in the months that followed Harrison began targeting Biderman and other Ashley Madison executives with menacing anonymous emails and spoofed phone calls laced with profanity and anti-Semitic language.

But on Mar. 5, 2014, Harrison committed suicide by shooting himself in the head with a handgun. This fact was apparently unknown to Biderman and other Ashley Madison executives more than a year later when their July 2015 hack was first revealed.

Does Harrison’s untimely suicide rule him out as a suspect in the 2015 hack? Who is The Chaos Creator, and what else transpired between Harrison and Ashley Madison prior to his death? We’ll explore these questions in Part II of this story, to be published early next week.

Who’s Behind the DomainNetworks Snail Mail Scam?

If you’ve ever owned a domain name, the chances are good that at some point you’ve received a snail mail letter which appears to be a bill for a domain or website-related services. In reality, these misleading missives try to trick people into paying for useless services they never ordered, don’t need, and probably will never receive. Here’s a look at the most recent incarnation of this scam — DomainNetworks — and some clues about who may be behind it.

The DomainNetworks mailer may reference a domain that is or was at one point registered to your name and address. Although the letter includes the words “marketing services” in the upper right corner, the rest of the missive is deceptively designed to look like a bill for services already rendered.

DomainNetworks claims that listing your domain with their promotion services will result in increased traffic to your site. This is a dubious claim for a company that appears to be a complete fabrication, as we’ll see in a moment.  But happily, the proprietors of this enterprise were not so difficult to track down.

The website Domainnetworks[.]com says it is a business with a post office box in Hendersonville, N.C., and another address in Santa Fe, N.M. There are a few random, non-technology businesses tied to the phone number listed for the Hendersonville address, and the New Mexico address was used by several no-name web hosting companies.

However, there is little connected to these addresses and phone numbers that get us any closer to finding out who’s running Domainnetworks[.]com. And neither entity appears to be an active, official company in their supposed state of residence, at least according to each state’s Secretary of State database.

The Better Business Bureau listing for DomainNetworks gives it an “F” rating, and includes more than 100 reviews by people angry at receiving one of these scams via snail mail. Helpfully, the BBB says DomainNetworks previously operated under a different name: US Domain Authority LLC.

Copies of snail mail scam letters from US Domain Authority posted online show that this entity used the domain usdomainauthority[.]com, registered in May 2022. The Usdomainauthority mailer also featured a Henderson, NC address, albeit at a different post office box.

Usdomainauthority[.]com is no longer online, and the site seems to have blocked its pages from being indexed by the Wayback Machine at archive.org. But searching on a long snippet of text from DomainNetworks[.]com about refund requests shows that this text was found on just one other active website, according to publicwww.com, a service that indexes the HTML code of existing websites and makes it searchable.

That other website is a domain registered in January 2023 called thedomainsvault[.]com, and its registration details are likewise hidden behind privacy services. Thedomainsvault’s “Frequently Asked Questions” page is quite similar to the one on the DomainNetworks website; both begin with the question of why the company is sending a mailer that looks like a bill for domain services.

Thedomainsvault[.]com includes no useful information about the entity or people who operate it; clicking the “Contact-us” link on the site brings up a page with placeholder Lorem Ipsum text, a contact form, and a phone number of 123456789.

However, searching passive DNS records at DomainTools.com for thedomainsvault[.]com shows that at some point whoever owns the domain instructed incoming email to be sent to ubsagency@gmail.com.

The first result that currently pops up when searching for “ubsagency” in Google is ubsagency[.]com, which says it belongs to a Las Vegas-based Search Engine Optimization (SEO) and digital marketing concern generically named both United Business Service and United Business Services. UBSagency’s website is hosted at the same Ann Arbor, Mich. based hosting firm (A2 Hosting Inc) as thedomainsvault[.]com.

UBSagency’s LinkedIn page says the company has offices in Vegas, Half Moon Bay, Calif., and Renton, Wash. But once again, none of the addresses listed for these offices reveal any obvious clues about who runs UBSagency. And once again, none of these entities appear to exist as official businesses in their claimed state of residence.

Searching on ubsagency@gmail.com in Constella Intelligence shows the address was used sometime before February 2019 to create an account under the name “Sammy\Sam_Alon” at the interior decorating site Houzz.com. In January 2019, Houzz acknowledged that a data breach exposed account information on an undisclosed number of customers, including user IDs, one-way encrypted passwords, IP addresses, city and ZIP codes, as well as Facebook information.

Sammy\Sam_Alon registered at Houzz using an Internet address in Huntsville, Ala. (68.35.149.206). Constella says this address was associated with the email tropicglobal@gmail.com, which also is tied to several other “Sammy” accounts at different stores online.

Constella also says a highly unique password re-used by tropicglobal@gmail.com across numerous sites was used in connection with just a few other email accounts, including shenhavgroup@gmail.com, and distributorinvoice@mail.com.

The shenhavgroup@gmail.com address was used to register a Twitter account for a Sam Orit Alon in 2013, whose account says they are affiliated with the Shenhav Group. According to DomainTools, shenhavgroup@gmail.com was responsible for registering roughly two dozen domains, including the now-defunct unitedbusinessservice[.]com.

Constella further finds that the address distributorinvoice@mail.com was used to register an account at whmcs.com, a web hosting platform that suffered a breach of its user database several years back. The name on the WHMCS account was Shmuel Orit Alon, from Kidron, Israel.

UBSagency also has a Facebook page, or maybe “had” is the operative word because someone appears to have defaced it. Loading the Facebook page for UBSagency shows several of the images have been overlaid or replaced with a message from someone who is really disappointed with Sam Alon.

“Sam Alon is a LIAR, THIEF, COWARD AND HAS A VERY SMALL D*CK,” reads one of the messages:

The logo in the UBSagency profile photo includes a graphic of what appears to be a magnifying glass with a line that zig-zags through bullet points inside and outside the circle, a unique pattern that is remarkably similar to the logo for DomainNetworks:

Constella also found that the same Huntsville IP address used by Sam Alon at Houzz was associated with yet another Houzz account, this one for someone named “Eliran.”

The UBSagency Facebook page features several messages from an Eliran “Dani” Benz, who is referred to by commenters as an employee or partner with UBSagency. The last check-in on Benz’s profile is from a beach at Rishon Letziyon in Israel earlier this year.

Neither Mr. Alon nor Mr. Benz responded to multiple requests for comment.

It may be difficult to believe that anyone would pay an invoice for a domain name or SEO service they never ordered. However, there is plenty of evidence that these phony bills often get processed by administrative personnel at organizations that end up paying the requested amount because they assume it was owed for some services already provided.

In 2018, KrebsOnSecurity published How Internet Savvy are Your Leaders?, which examined public records to show that dozens of cities, towns, school districts and even political campaigns across the United States got snookered into paying these scam domain invoices from a similar scam company called WebListings Inc.

In 2020, KrebsOnSecurity featured a deep dive into who was likely behind the WebListings scam, which had been sending out these snail mail scam letters for over a decade. That investigation revealed the scam’s connection to a multi-level marketing operation run out of the U.K., and to two brothers living in Scotland.

Russian Cybersecurity Executive Arrested for Alleged Role in 2012 Megahacks

Nikita Kislitsin, formerly the head of network security for one of Russia’s top cybersecurity firms, was arrested last week in Kazakhstan in response to 10-year-old hacking charges from the U.S. Department of Justice. Experts say Kislitsin’s prosecution could soon put the Kazakhstan government in a sticky diplomatic position, as the Kremlin is already signaling that it intends to block his extradition to the United States.

Kislitsin is accused of hacking into the now-defunct social networking site Formspring in 2012, and conspiring with another Russian man convicted of stealing tens of millions of usernames and passwords from LinkedIn and Dropbox that same year.

In March 2020, the DOJ unsealed two criminal hacking indictments against Kislitsin, who was then head of security at Group-IB, a cybersecurity company that was founded in Russia in 2003 and operated there for more than a decade before relocating to Singapore.

Prosecutors in Northern California indicted Kislitsin in 2014 for his alleged role in stealing account data from Formspring. Kislitsin also was indicted in Nevada in 2013, but the Nevada indictment does not name his alleged victim(s) in that case.

However, documents unsealed in the California case indicate Kislitsin allegedly conspired with Yevgeniy Nikulin, a Russian man convicted in 2020 of stealing 117 million usernames and passwords from Dropbox, Formspring and LinkedIn in 2012. Nikulin is currently serving a seven-year sentence in the U.S. prison system.

As first reported by Cyberscoop in 2020, a trial brief in the California investigation identified Nikulin, Kislitsin and two alleged cybercriminals — Oleg Tolstikh and Oleksandr Vitalyevich Ieremenko — as being present during a 2012 meeting at a Moscow hotel, where participants allegedly discussed starting an internet café business.

A 2010 indictment out of New Jersey accuses Ieremenko and six others with siphoning nonpublic information from the U.S. Securities & Exchange Commission (SEC) and public relations firms, and making $30 million in illegal stock trades based on the proprietary information they stole.

[The U.S. Secret Service has an outstanding $1 million reward for information leading to the arrest of Ieremenko (Александр Витальевич Еременко), who allegedly went by the hacker handles “Zl0m” and “Lamarez.”]

Kislitsin was hired by Group-IB in January 2013, nearly six months after the Formspring hack. Group-IB has since moved its headquarters to Singapore, and in April 2023 the company announced it had fully exited the Russian market.

In a statement provided to KrebsOnSecurity, Group-IB said Mr. Kislitsin is no longer an employee, and that he now works for a Russian organization called FACCT, which stands for “Fight Against Cybercrime Technologies.”

“Dmitry Volkov, co-founder and CEO, sold his stake in Group-IB’s Russia-based business to the company’s local management,” the statement reads. “The stand-alone business in Russia has been operating under the new brand FACCT ever since and will continue to operate as a separate company with no connection to Group-IB.”

FACCT says on its website that it is a “Russian developer of technologies for combating cybercrime,” and that it works with clients to fight targeted attacks, data leaks, fraud, phishing and brand abuse. In a statement published online, FACCT said Kislitsin is responsible for developing its network security business, and that he remains under temporary detention in Kazakhstan “to study the basis for extradition arrest at the request of the United States.”

“According to the information we have, the claims against Kislitsin are not related to his work at FACCT, but are related to a case more than 10 years ago when Nikita worked as a journalist and independent researcher,” FACCT wrote.

From 2006 to 2012, Kislitsin was editor-in-chief of “Hacker,” a popular Russian-language monthly magazine that includes articles on information and network security, programming, and frequently features interviews with and articles penned by notable or wanted Russian hackers.

“We are convinced that there are no legal grounds for detention on the territory of Kazakhstan,” the FACCT statement continued. “The company has hired lawyers who have been providing Nikita with all the necessary assistance since last week, and we have also sent an appeal to the Consulate General of the Russian Federation in Kazakhstan to assist in protecting our employee.”

FACCT indicated that the Kremlin has already intervened in the case, and the Russian government claims Kislitsin is wanted on criminal charges in Russia and must instead be repatriated to his homeland.

“The FACCT emphasizes that the announcement of Nikita Kislitsin on the wanted list in the territory of the Russian Federation became known only today, June 28, 6 days after the arrest in Kazakhstan,” FACCT wrote. “The company is monitoring developments.”

The Kremlin followed a similar playbook in the case of Aleksei Burkov, a cybercriminal who long operated two of Russia’s most exclusive underground hacking forums. Burkov was arrested in 2015 by Israeli authorities, and the Russian government fought Burkov’s extradition to the U.S. for four years — even arresting and jailing an Israeli woman on phony drug charges to force a prisoner swap.

That effort ultimately failed: Burkov was sent to America, pleaded guilty, and was sentenced to nine years in prison.

Arkady Bukh is a U.S. attorney who has represented dozens of accused hackers from Russia and Eastern Europe who were extradited to the United States over the years. Bukh said Moscow is likely to turn the Kislitsin case into a diplomatic time bomb for Kazakhstan, which shares an enormous border and a great deal of cultural ties with Russia. A 2009 census found that Russians make up about 24 percent of the population of Kazakhstan.

“That would put Kazakhstan at a crossroads to choose between unity with Russia or going with the West,” Bukh said. “If that happens, Kazakhstan may have to make some very unpleasant decisions.”

Group-IB’s exodus from Russia comes as its former founder and CEO Ilya Sachkov remains languishing in a Russian prison, awaiting a farcical trial and an inevitable conviction on charges of treason. In September 2021, the Kremlin issued treason charges against Sachkov, although it has so far refused to disclose any details about the allegations.

Sachkov’s pending treason trial has been the subject of much speculation among denizens of Russian cybercrime forums, and the consensus seems to be that Sachkov and Group-IB were seen as a little too helpful to the DOJ in its various investigations involving top Russian hackers.

Indeed, since its inception in 2003, Group-IB’s researchers have helped to identify, disrupt and even catch a number of high-profile Russian hackers, most of whom got busted after years of criminal hacking because they made the unforgivable mistake of stealing from their own citizens.

When the indictments against Kislitsin were unsealed in 2020, Group-IB issued a lengthy statement attesting to his character and saying they would help him with his legal defense. As part of that statement, Group-IB noted that “representatives of the Group-IB company and, in particular, Kislitsin, in 2013, on their own initiative, met with employees of the US Department of Justice to inform them about the research work related to the underground, which was carried out by Kislitsin in 2012.”

Why Malware Crypting Services Deserve More Scrutiny

If you operate a cybercrime business that relies on disseminating malicious software, you probably also spend a good deal of time trying to disguise or “crypt” your malware so that it appears benign to antivirus and security products. In fact, the process of “crypting” malware is sufficiently complex and time-consuming that most serious cybercrooks will outsource this critical function to a handful of trusted third parties. This story explores the history and identity behind Cryptor[.]biz, a long-running crypting service that is trusted by some of the biggest names in cybercrime.

Virtually all malware that is deployed for use in data stealing at some point needs to be crypted. This highly technical, laborious process involves iteratively altering the appearance and behavior of a malicious file until it no longer sets off alarm bells when scanned by different antivirus tools.

Experienced malware purveyors understand that if they’re not continuously crypting their malware before sending it out, then a lot more of whatever digital disease they are trying to spread is going to get flagged by security tools. In short, if you are running a cybercrime enterprise and you’re not equipped to handle this crypting process yourself, you probably need to pay someone else to do it for you.

Thanks to the high demand for reliable crypting services, there are countless cybercriminals who’ve hung out their shingles as crypting service providers. However, most of these people do not appear to be very good at what they do, because most are soon out of business.

One standout is Cryptor[.]biz. This service is actually recommended by the purveyors of the RedLine information stealer malware, which is a popular and powerful malware kit that specializes in stealing victim data and is often used to lay the groundwork for ransomware attacks. Cryptor[.]biz also has been recommended to customers of the Vidar information stealer malware family (via the malware’s Telegram support channels).

WHO RUNS CRYPTOR[.]BIZ?

As good as Cryptor[.]biz may be at obfuscating malware, its proprietor does not appear to have done a great job covering his own tracks. The registration records for the website Cryptor[.]biz are hidden behind privacy protection services, but the site’s homepage says potential customers should register by visiting the domain crypt[.]guru, or by sending a Jabber instant message to the address “masscrypt@exploit.im.”

Crypt[.]guru’s registration records also are hidden, yet passive domain name system (DNS) records for both cryptor[.]biz and crypt[.]guru show that in 2018 the domains were forwarding incoming email to the address obelisk57@gmail.com.

Cyber intelligence firm Intel 471 reports that obelisk57@gmail.com was used to register an account on the forum Blacksoftware under the nickname “Kerens.” Meanwhile, the Jabber address masscrypt@exploit.im has been associated with the user Kerens on the Russian hacking forum Exploit from 2011 to the present day.

The very first post by Kerens on Exploit in 2011 was a negative review of a popular crypting service that predated Cryptor[.]biz called VIP Crypt, which Kerens accused of being “shitty” and unreliable. But Intel 471 finds that after his critical review of VIP Crypt, Kerens did not post publicly on Exploit again for another four years until October 2016, when they suddenly began advertising Cryptor[.]biz.

Intel 471 found that Kerens used the email address pepyak@gmail.com, which also was used to register Kerens accounts on the Russian language hacking forums Verified and Damagelab.

Ironically, Verified has itself been hacked multiple times over the years, with its private messages and user registration details leaked online. Those records indicate the user Kerens registered on Verified in March 2009 from an Internet address in Novosibirsk, a city in the southern Siberian region of Russia.

In 2010, someone with the username Pepyak on the Russian language affiliate forum GoFuckBiz[.]com shared that they typically split their time during the year between living in Siberia (during the milder months) and Thailand (when Novosibirsk is typically -15 °C/°5F).

For example, in one conversation about the best car to buy for navigating shoddy roads, Pepyak declared, “We have shitty roads in Siberia.” In January 2010, Pepyak asked the GoFuckBiz community where one might find a good USB-based modem in Phuket, Thailand.

DomainTools.com says the email address pepyak@gmail.com was used to register 28 domain names over the years, including a now-defunct Russian automobile sales website called “autodoska[.]biz.” DomainTools shows this website was registered in 2008 to a Yuri Churnov from Sevastpol, Crimea (prior to Russia’s annexation of Crimea in 2014, the peninsula was part of Ukraine).

The WHOIS records for autodoska[.]biz were changed in 2010 to Sergey Purtov (pepyak@gmail.com) from Yurga, a town in Russia’s Kemerovo Oblast, which is a relatively populous area in Western Siberia that is adjacent to Novosibirsk.

Many of the 28 domains registered to pepyak@gmail.com have another email address in their registration records: unforgiven57@mail.ru. According to DomainTools, the Unforgiven email address was used to register roughly a dozen domains, including three that were originally registered to Keren’s email address — pepyak@gmail.com (e.g., antivirusxp09[.]com).

One of the domains registered in 2006 to the address unforgiven57@mail.ru was thelib[.]ru, which for many years was a place to download pirated e-books. DomainTools says thelib[.]ru was originally registered to a Sergey U Purtov.

Most of the two-dozen domains registered to pepyak@gmail.com shared a server at one point with a small number of other domains, including mobile-soft[.]su, which was registered to the email address spurtov@gmail.com.

CDEK, an express delivery company based in Novosibirsk, was apparently hacked at some point because cyber intelligence firm Constella Intelligence found that its database shows the email address spurtov@gmail.com was assigned to a Sergey Yurievich Purtov (Сергей Юрьевич Пуртов).

DomainTools says the same phone number in the registration records for autodoska[.]biz (+7.9235059268) was used to secure two other domains — bile[.]ru and thelibrary[.]ru, both of which were registered to a Sergey Y Purtov.

A search on the phone number 79235059268 in Skype reveals these digits belong to a “Sergey” from Novosibirsk with the now-familiar username  — Pepyak.

Bringing things full circle, Constella Intelligence shows that various online accounts tied to the email address unforgiven57@mail.ru frequently relied on the somewhat unique password, “plk139t51z.” Constella says that same password was used for just a handful of other email addresses, including gumboldt@gmail.com.

Hacked customer records from CDEK show gumboldt@gmail.com was tied to a customer named Sergey Yurievich Purtov. DomainTools found that virtually all of the 15 domain names registered to gumboldt@gmail.com (including the aforementioned mobile-soft[.]su) were at one point registered to spurtov@gmail.com.

Intel 471 reports that gumboldt@gmail.com was used in 2009 to register a user by the nickname “Kolumb” on the Russian hacking forum Antichat. From Kolumb’s posts on Antichat, it seems this user was mostly interested in buying access to compromised computers inside of Russia.

Then in December 2009, Kolumb said they were in desperate need of a reliable crypting service or full-time cryptor.

“We need a person who will crypt software every day, sometimes even a couple of times a day,” Kolumb wrote on Antichat.

Mr. Purtov did not respond to requests for comment sent to any of the email addresses referenced in this report. Mail.ru responded that the email address spurtov@mail.ru is no longer active.

ANALYSIS

As KrebsOnSecurity opined on Mastodon earlier this week, it makes a lot of sense for cybersecurity researchers and law enforcement alike to focus attention on the top players in the crypting space — for several reasons. Most critically, the cybercriminals offering time-tested crypting services also tend to be among the most experienced and connected malicious coders on the planet.

Think of it this way: By definition, a crypting service scans and examines all types of malware before those new nasties are first set loose in the wild. This fact alone should make these criminal enterprises a primary target of cybersecurity firms looking to gain more timely intelligence about new malware.

Also, a review of countless posts and private messages from Pepyak and other crypting providers shows that a successful crypting service will have direct and frequent contact with some of the world’s most advanced malware authors.

In short, infiltrating or disrupting a trusted crypting service can be an excellent way to slow down or even sideline a large number of cybercrime operations all at once.

Further reading on the crypting industry:

This Service Helps Malware Authors Fix Flaws in Their Code
Antivirus is Dead: Long Live Antivirus!

CISA Order Highlights Persistent Risk at Network Edge

The U.S. government agency in charge of improving the nation’s cybersecurity posture is ordering all federal agencies to take new measures to restrict access to Internet-exposed networking equipment. The directive comes amid a surge in attacks targeting previously unknown vulnerabilities in widely used security and networking appliances.

Under a new order from the Cybersecurity and Infrastructure Security Agency (CISA), federal agencies will have 14 days to respond to any reports from CISA about misconfigured or Internet-exposed networking equipment. The directive applies to any networking devices — such as firewalls, routers and load balancers — that allow remote authentication or administration.

The order requires federal departments to limit access so that only authorized users on an agency’s local or internal network can reach the management interfaces of these devices. CISA’s mandate follows a slew of recent incidents wherein attackers exploited zero-day flaws in popular networking products to conduct ransomware and cyber espionage attacks on victim organizations.

Earlier today, incident response firm Mandiant revealed that since at least October 2022, Chinese cyber spies have been exploiting a zero-day vulnerability in many email security gateway (ESG) appliances sold by California-based Barracuda Networks to hoover up email from organizations using these devices.

Barracuda was alerted to the exploitation of a zero-day in its products in mid-May, and two days later the company pushed a security update to address the flaw in all affected devices. But last week, Barracuda took the highly unusual step of offering to replace compromised ESGs, evidently in response to malware that altered the systems in such a fundamental way that they could no longer be secured remotely with software updates.

According to Mandiant, a previously unidentified Chinese hacking group was responsible for exploiting the Barracuda flaw, and appeared to be searching through victim organization email records for accounts “belonging to individuals working for a government with political or strategic interest to [China] while this victim government was participating in high-level, diplomatic meetings with other countries.”

When security experts began raising the alarm about a possible zero-day in Barracuda’s products, the Chinese hacking group altered their tactics, techniques and procedures (TTPs) in response to Barracuda’s efforts to contain and remediate the incident, Mandiant found.

Mandiant said the attackers will continue to change their tactics and malware, “especially as network defenders continue to take action against this adversary and their activity is further exposed by the infosec community.”

Meanwhile, this week we learned more details about the ongoing exploitation of a zero-day flaw in a broad range of virtual private networking (VPN) products made by Fortinet — devices many organizations rely on to facilitate remote network access for employees.

On June 11, Fortinet released a half-dozen security updates for its FortiOS firmware, including a weakness that researchers said allows an attacker to run malware on virtually any Fortinet SSL VPN appliance. The researchers found that just being able to reach the management interface for a vulnerable Fortinet SSL VPN appliance was enough to completely compromise the devices.

“This is reachable pre-authentication, on every SSL VPN appliance,” French vulnerability researcher Charles Fol tweeted. “Patch your #Fortigate.”

In details published on June 12, Fortinet confirmed that one of the vulnerabilities (CVE-2023-27997) is being actively exploited. The company said it discovered the weakness in an internal code audit that began in January 2023 — when it learned that Chinese hackers were exploiting a different zero-day flaw in its products.

Shodan.io, the search engine made for finding Internet of Things devices, reports that there are currently more than a half-million vulnerable Fortinet devices reachable via the public Internet.

The new cybersecurity directive from CISA orders agencies to remove any networking device management interfaces from the internet by making them only accessible from an internal enterprise network (CISA recommends an isolated management network). CISA also says agencies should “deploy capabilities, as part of a Zero Trust Architecture, that enforce access control to the interface through a policy enforcement point separate from the interface itself (preferred action).”

Security experts say CISA’s directive highlights the reality that cyberspies and ransomware gangs are making it increasingly risky for organizations to expose any devices to the public Internet, because these groups have strong incentives to probe such devices for previously unknown security vulnerabilities.

The most glaring example of this dynamic can be seen in the frequency with which ransomware groups have discovered and pounced on zero-day flaws in widely-used file transfer applications. One ransomware gang in particular — Cl0p — has repeatedly exploited zero day bugs in various file transfer appliances to extort tens of millions of dollars from hundreds of ransomware victims.

On February 2, KrebsOnSecurity broke the news that attackers were exploiting a zero-day vulnerability in the GoAnywhere file transfer appliance by Fortra. By the time security updates were available to fix the vulnerability, Cl0p had already used it to steal data from more than a hundred organizations running Fortra’s appliance.

According to CISA, on May 27, Cl0p began exploiting a previously unknown flaw in MOVEit Transfer, a popular Internet-facing file transfer application. MOVEit parent Progress Software has since released security updates to address the weakness, but Cl0p claims to have already used it to compromise hundreds of victim organizations. TechCrunch has been tracking the fallout from victim organizations, which range from banks and insurance providers to universities and healthcare entities.

The always on-point weekly security news podcast Risky Business has recently been urging organizations to jettison any and all FTP appliances, noting that Cl0p (or another crime gang) is likely to visit the same treatment on other FTP appliance vendors.

But that sound advice doesn’t exactly scale for mid-tier networking devices like Barracuda ESGs or Fortinet SSL VPNs, which are particularly prominent in small to mid-sized organizations.

“It’s not like FTP services, you can’t tell an enterprise [to] turn off the VPN [because] the productivity hit of disconnecting the VPN is terminal, it’s a non-starter,” Risky Business co-host Adam Boileau said on this week’s show. “So how to mitigate the impact of having to use a domain-joined network appliance at the edge of your network that is going to get zero-day in it? There’s no good answer.”

Risky Business founder Patrick Gray said the COVID-19 pandemic breathed new life into entire classes of networking appliances that rely on code which was never designed with today’s threat models in mind.

“In the years leading up to the pandemic, the push towards identity-aware proxies and zero trust everything and moving away from this type of equipment was gradual, but it was happening,” Gray said. “And then COVID-19 hit and everybody had to go work from home, and there really was one option to get going quickly — which was to deploy VPN concentrators with enterprise features.”

Gray said the security industry had been focused on building the next generation of remote access tools that are more security-hardened, but when the pandemic hit organizations scrambled to cobble together whatever they could.

“The only stuff available in the market was all this old crap that is not QA’d properly, and every time you shake them CVEs fall out,” Gray remarked, calling the pandemic, “a shot in the arm” to companies like Fortinet and Barracuda.

“They sold so many VPNs through the pandemic and this is the hangover,” Gray said. “COVID-19 extended the life of these companies and technologies, and that’s unfortunate.”

Microsoft Patch Tuesday, June 2023 Edition

Microsoft Corp. today released software updates to fix dozens of security vulnerabilities in its Windows operating systems and other software. This month’s relatively light patch load has another added bonus for system administrators everywhere: It appears to be the first Patch Tuesday since March 2022 that isn’t marred by the active exploitation of a zero-day vulnerability in Microsoft’s products.

June’s Patch Tuesday features updates to plug at least 70 security holes, and while none of these are reported by Microsoft as exploited in-the-wild yet, Redmond has flagged several in particular as “more likely to be exploited.”

Top of the list on that front is CVE-2023-29357, which is a “critical” bug in Microsoft SharePoint Server that can be exploited by an unauthenticated attacker on the same network. This SharePoint flaw earned a CVSS rating of 9.8 (10.0 is the most dangerous).

“An attacker able to gain admin access to an internal SharePoint server could do a lot of harm to an organization,” said Kevin Breen, director of cyber threat research at Immersive Labs. “Gaining access to sensitive and privileged documents, stealing and deleting documents as part of a ransomware attack or replacing real documents with malicious copies to further infect users in the organization.”

There are at least three other vulnerabilities fixed this month that earned a collective 9.8 CVSS score, and they all concern a widely-deployed component called the Windows Pragmatic General Multicast (PGM), which is used for delivering multicast data — such as video streaming or online gaming.

Security firm Action1 says all three bugs (CVE-2023-32015, CVE-2023-32014, and CVE-2023-29363) can be exploited over the network without requiring any privileges or user interaction, and affected systems include all versions of Windows Server 2008 and later, as well as Windows 10 and later.

It wouldn’t be a proper Patch Tuesday if we also didn’t also have scary security updates for organizations still using Microsoft Exchange for email. Breen said this month’s Exchange bugs (CVE-2023-32031 and CVE-2023-28310) closely mirror the vulnerabilities identified as part of ProxyNotShell exploits, where an authenticated user in the network could exploit a vulnerability in the Exchange to gain code execution on the server.

Breen said while Microsoft’s patch notes indicate that an attacker must already have gained access to a vulnerable host in the network, this is typically achieved through social engineering attacks with spear phishing to gain initial access to a host before searching for other internal targets.

“Just because your Exchange server doesn’t have internet-facing authentication doesn’t mean it’s protected,” Breen said, noting that Microsoft says the Exchange flaws are not difficult for attackers to exploit.

For a closer look at the patches released by Microsoft today and indexed by severity and other metrics, check out the always-useful Patch Tuesday roundup from the SANS Internet Storm Center. And it’s not a bad idea to hold off updating for a few days until Microsoft works out any kinks in the updates: AskWoody.com usually has the lowdown on any patches that may be causing problems for Windows users.

As always, please consider backing up your system or at least your important documents and data before applying system updates. And if you run into any problems with these updates, please drop a note about it here in the comments.

Barracuda Urges Replacing — Not Patching — Its Email Security Gateways

It’s not often that a zero-day vulnerability causes a network security vendor to urge customers to physically remove and decommission an entire line of affected hardware — as opposed to just applying software updates. But experts say that is exactly what transpired this week with Barracuda Networks, as the company struggled to combat a sprawling malware threat which appears to have undermined its email security appliances in such a fundamental way that they can no longer be safely updated with software fixes.

Campbell, Calif. based Barracuda said it hired incident response firm Mandiant on May 18 after receiving reports about unusual traffic originating from its Email Security Gateway (ESG) devices, which are designed to sit at the edge of an organization’s network and scan all incoming and outgoing email for malware.

On May 19, Barracuda identified that the malicious traffic was taking advantage of a previously unknown vulnerability in its ESG appliances, and on May 20 the company pushed a patch for the flaw to all affected appliances (CVE-2023-2868).

In its security advisory, Barracuda said the vulnerability existed in the Barracuda software component responsible for screening attachments for malware. More alarmingly, the company said it appears attackers first started exploiting the flaw in October 2022.

But on June 6, Barracuda suddenly began urging its ESG customers to wholesale rip out and replace — not patch — affected appliances.

“Impacted ESG appliances must be immediately replaced regardless of patch version level,” the company’s advisory warned. “Barracuda’s recommendation at this time is full replacement of the impacted ESG.”

In a statement, Barracuda said it will be providing the replacement product to impacted customers at no cost, and that not all ESG appliances were compromised.

“No other Barracuda product, including our SaaS email solutions, were impacted by this vulnerability,” the company said. “If an ESG appliance is displaying a notification in the User Interface, the ESG appliance had indicators of compromise. If no notification is displayed, we have no reason to believe that the appliance has been compromised at this time.”

Nevertheless, the statement says that “out of an abundance of caution and in furtherance of our containment strategy, we recommend impacted customers replace their compromised appliance.”

“As of June 8, 2023, approximately 5% of active ESG appliances worldwide have shown any evidence of known indicators of compromise due to the vulnerability,” the statement continues. “Despite deployment of additional patches based on known IOCs, we continue to see evidence of ongoing malware activity on a subset of the compromised appliances. Therefore, we would like customers to replace any compromised appliance with a new unaffected device.”

Rapid7‘s Caitlin Condon called this remarkable turn of events “fairly stunning,” and said there appear to be roughly 11,000 vulnerable ESG devices still connected to the Internet worldwide.

“The pivot from patch to total replacement of affected devices is fairly stunning and implies the malware the threat actors deployed somehow achieves persistence at a low enough level that even wiping the device wouldn’t eradicate attacker access,” Condon wrote.

Barracuda said the malware was identified on a subset of appliances that allowed the attackers persistent backdoor access to the devices, and that evidence of data exfiltration was identified on some systems.

Rapid7 said it has seen no evidence that attackers are using the flaw to move laterally within victim networks. But that may be small consolation for Barracuda customers now coming to terms with the notion that foreign cyberspies probably have been hoovering up all their email for months.

Nicholas Weaver, a researcher at University of California, Berkeley’s International Computer Science Institute (ICSI), said it is likely that the malware was able to corrupt the underlying firmware that powers the ESG devices in some irreparable way.

“One of the goals of malware is to be hard to remove, and this suggests the malware compromised the firmware itself to make it really hard to remove and really stealthy,” Weaver said. “That’s not a ransomware actor, that’s a state actor. Why? Because a ransomware actor doesn’t care about that level of access. They don’t need it. If they’re going for data extortion, it’s more like a smash-and-grab. If they’re going for data ransoming, they’re encrypting the data itself — not the machines.”

In addition to replacing devices, Barracuda says ESG customers should also rotate any credentials connected to the appliance(s), and check for signs of compromise dating back to at least October 2022 using the network and endpoint indicators the company has released publicly.

Update, June 9, 11:55 a.m. ET: Barracuda has issued an updated statement about the incident, portions of which are now excerpted above.

Service Rents Email Addresses for Account Signups

One of the most expensive aspects of any cybercriminal operation is the time and effort it takes to constantly create large numbers of new throwaway email accounts. Now a new service offers to help dramatically cut costs associated with large-scale spam and account creation campaigns, by paying people to sell their email account credentials and letting customers temporarily rent access to a vast pool of established accounts at major providers.

The service in question — kopeechka[.]store — is perhaps best described as a kind of unidirectional email confirmation-as-a-service that promises to “save your time and money for successfully registering multiple accounts.”

“Are you working on large volumes and are costs constantly growing?” Kopeechka’s website asks. “Our service will solve all your problems.”

As a customer of this service, you don’t get full access to the email inboxes you are renting. Rather, you configure your botnet or spam machine to make an automated application programming interface (API) call to the Kopeechka service, which responds with a working email address at an email provider of your choosing.

Once you’ve entered the supplied email address into the new account registration page at some website or service, you tell Kopeechka which service or website you’re expecting an account confirmation link from, and they will then forward any new messages matching that description to your Kopeechka account panel.

Ensuring that customers cannot control inboxes rented through the service means that Kopeechka can rent the same email address to multiple customers (at least until that email address has been used to register accounts at most of the major online services).

Kopeechka also has multiple affiliate programs, including one that pays app developers for embedding Kopeechka’s API in their software. However, far more interesting is their program for rewarding people who choose to sell Kopeechka usernames and passwords for working email addresses.

Kopeechka means “penny” in Russian, which is generous verbiage (and coinage) for a service that charges a tiny fraction of a penny for access to account confirmation links. Their pricing fluctuates slightly based on which email provider you choose, but a form on the service’s homepage says a single confirmation message from apple.com to outlook.com costs .07 rubles, which is currently equal to about $0.00087 dollars.

“Emails can be uploaded to us for sale, and you will receive a percentage of purchases %,” the service explains. “You upload 1 mailbox of a certain domain, discuss percentage with our technical support (it depends on the liquidity of the domain and the number of downloaded emails).”

We don’t have to look very far for examples of Kopeechka in action. In May, KrebsOnSecurity interviewed a Russian spammer named “Quotpw“ who was mass-registering accounts on the social media network Mastodon in order to conduct a series of huge spam campaigns advertising scam cryptocurrency investment platforms.

Much of the fodder for that story came from Renaud Chaput, a freelance programmer working on modernizing and scaling the Mastodon project infrastructure — including joinmastodon.org, mastodon.online, and mastodon.social. Chaput told KrebsOnSecurity that his team was forced to temporarily halt all new registrations for these communities last month after the number of new registrations from Quotpw’s spam campaign started to overwhelm their systems.

“We suddenly went from like three registrations per minute to 900 a minute,” Chaput said. “There was nothing in the Mastodon software to detect that activity, and the protocol is not designed to handle this.”

After that story ran, Chaput said he discovered that the computer code powering Quotpw’s spam botnet (which has since been released as open source) contained an API call to Kopeechka’s service.

“It allows them to pool many bot-created or compromised emails at various providers and offer them to cyber criminals,” Chaput said of Kopeechka. “This is what they used to create thousands of valid Hotmail (and other) addresses when spamming on Mastodon. If you look at the code, it’s really well done with a nice API that forwards you the confirmation link that you can then fake click with your botnet.”

It’s doubtful anyone will make serious money selling email accounts to Kopeechka, unless of course that person already happens to run a botnet and has access to ridiculous numbers of email credentials. And in that sense, this service is genius: It essentially offers scammers a new way to wring extra income from resources that are already plentiful for them.

One final note about Quotpw and the spam botnet that ravaged Chaput’s Mastodon servers last month: Trend Micro just published a report saying Quotpw was spamming to earn money for a Russian-language affiliate program called “Impulse Team,” which pays people to promote cryptocurrency scams.

Websites under the banner of the Impulse Scam Crypto Project are all essentially “advanced fee” scams that tell people they have earned a cryptocurrency investment credit. Upon registering at the site, visitors are told they need to make a minimum deposit on the service to collect the award. However, those who make the initial investment never hear from the site again, and their money is gone.

Interestingly, Trend Micro says the scammers behind the Impulse Team also appear to be operating a fake reputation service called Scam-Doc[.]com, a website that mimics the legitimate Scamdoc.com for measuring the trustworthiness and authenticity of various sites. Trend notes that the phony reputation site routinely gave high trust ratings to a variety of cryptocurrency scam and casino websites.

“We can only suppose that either the same cybercriminals run operations involving both or that several different cybercriminals share the scam-doc[.]com site,” the Trend researchers wrote.

According to the FBI, financial losses from cryptocurrency investment scams dwarfed losses for all other types of cybercrime in 2022, rising from $907 million in 2021 to $2.57 billion last year.

Ask Fitis, the Bear: Real Crooks Sign Their Malware

Code-signing certificates are supposed to help authenticate the identity of software publishers, and provide cryptographic assurance that a signed piece of software has not been altered or tampered with. Both of these qualities make stolen or ill-gotten code-signing certificates attractive to cybercriminal groups, who prize their ability to add stealth and longevity to malicious software. This post is a deep dive on “Megatraffer,” a veteran Russian hacker who has practically cornered the underground market for malware focused code-signing certificates since 2015.

A review of Megatraffer’s posts on Russian crime forums shows this user began peddling individual stolen code-signing certs in 2015 on the Russian-language forum Exploit, and soon expanded to selling certificates for cryptographically signing applications and files designed to run in Microsoft Windows, Java, Adobe AIR, Mac and Microsoft Office.

Megatraffer explained that malware purveyors need a certificate because many antivirus products will be far more interested in unsigned software, and because signed files downloaded from the Internet don’t tend to get blocked by security features built into modern web browsers. Additionally, newer versions of Microsoft Windows will complain with a bright yellow or red alert message if users try to install a program that is not signed.

“Why do I need a certificate?” Megatraffer asked rhetorically in their Jan. 2016 sales thread on Exploit. “Antivirus software trusts signed programs more. For some types of software, a digital signature is mandatory.”

At the time, Megatraffer was selling unique code-signing certificates for $700 apiece, and charging more than twice that amount ($1,900) for an “extended validation” or EV code-signing cert, which is supposed to only come with additional identity vetting of the certificate holder. According to Megatraffer, EV certificates were a “must-have” if you wanted to sign malicious software or hardware drivers that would reliably work in newer Windows operating systems.

Megatraffer has continued to offer their code-signing services across more than a half-dozen other Russian-language cybercrime forums, mostly in the form of sporadically available EV and non-EV code-signing certificates from major vendors like Thawte and Comodo.

More recently, it appears Megatraffer has been working with ransomware groups to help improve the stealth of their malware. Shortly after Russia invaded Ukraine in February 2022, someone leaked several years of internal chat logs from the Conti ransomware gang, and those logs show Megatraffer was working with the group to help code-sign their malware between July and October 2020.

WHO IS MEGATRAFFER?

According to cyber intelligence firm Intel 471, Megatraffer has been active on more than a half-dozen crime forums from September 2009 to the present day. And on most of these identities, Megatraffer has used the email address 774748@gmail.com. That same email address also is tied to two forum accounts for a user with the handle “O.R.Z.”

Constella Intelligence, a company that tracks exposed databases, finds that 774748@gmail.com was used in connection with just a handful of passwords, but most frequently the password “featar24“. Pivoting off of that password reveals a handful of email addresses, including akafitis@gmail.com.

Intel 471 shows akafitis@gmail.com was used to register another O.R.Z. user account — this one on Verified[.]ru in 2008. Prior to that, akafitis@gmail.com was used as the email address for the account “Fitis,” which was active on Exploit between September 2006 and May 2007. Constella found the password “featar24” also was used in conjunction with the email address spampage@yandex.ru, which is tied to yet another O.R.Z. account on Carder[.]su from 2008.

The email address akafitis@gmail.com was used to create a Livejournal blog profile named Fitis that has a large bear as its avatar. In November 2009, Fitis wrote, “I am the perfect criminal. My fingerprints change beyond recognition every few days. At least my laptop is sure of it.”

Fitis’s real-life identity was exposed in 2010 after two of the biggest sponsors of pharmaceutical spam went to war with each other, and large volumes of internal documents, emails and chat records seized from both spam empires were leaked to this author. That protracted and public conflict formed the backdrop of my 2014 book — “Spam Nation: The Inside Story of Organized Cybercrime, from Global Epidemic to Your Front Door.”

One of the leaked documents included a Microsoft Excel spreadsheet containing the real names, addresses, phone numbers, emails, street addresses and WebMoney addresses for dozens of top earners in Spamit — at the time the most successful pharmaceutical spam affiliate program in the Russian hacking scene and one that employed most of the top Russian botmasters.

That document shows Fitis was one of Spamit’s most prolific recruiters, bringing more than 75 affiliates to the Spamit program over several years prior to its implosion in 2010 (and earning commissions on any future sales from all 75 affiliates).

The document also says Fitis got paid using a WebMoney account that was created when its owner presented a valid Russian passport for a Konstantin Evgenievich Fetisov, born Nov. 16, 1982 and residing in Moscow. Russian motor vehicle records show two different vehicles are registered to this person at the same Moscow address.

The most interesting domain name registered to the email address spampage@yahoo.com, fittingly enough, is fitis[.]ru, which DomainTools.com says was registered in 2005 to a Konstantin E. Fetisov from Moscow.

The Wayback Machine at archive.org has a handful of mostly blank pages indexed for fitis[.]ru in its early years, but for a brief period in 2007 it appears this website was inadvertently exposing all of its file directories to the Internet.

One of the exposed files — Glavmed.html — is a general invitation to the infamous Glavmed pharmacy affiliate program, a now-defunct scheme that paid tens of millions of dollars to affiliates who advertised online pill shops mainly by hacking websites and manipulating search engine results. Glavmed was operated by the same Russian cybercriminals who ran the Spamit program.

Archive.org shows the fitis[.]ru webpage with the Glavmed invitation was continuously updated with new invite codes. In their message to would-be Glavmed affiliates, the program administrator asked applicants to contact them at the ICQ number 165540027, which Intel 471 found was an instant messenger address previously used by Fitis on Exploit.

The exposed files in the archived version of fitis[.]ru include source code for malicious software, lists of compromised websites used for pharmacy spam, and a handful of what are apparently personal files and photos. Among the photos is a 2007 image labeled merely “fitis.jpg,” which shows a bespectacled, bearded young man with a ponytail standing next to what appears to be a newly-married couple at a wedding ceremony.

Mr. Fetisov did not respond to requests for comment.

As a veteran organizer of affiliate programs, Fitis did not waste much time building a new moneymaking collective after Spamit closed up shop. New York City-based cyber intelligence firm Flashpoint found that Megatraffer’s ICQ was the contact number for Himba[.]ru, a cost-per-acquisition (CPA) program launched in 2012 that paid handsomely for completed application forms tied to a variety of financial instruments, including consumer credit cards, insurance policies, and loans.

“Megatraffer’s entrenched presence on cybercrime forums strongly suggests that malicious means are used to source at least a portion of traffic delivered to HIMBA’s advertisers,” Flashpoint observed in a threat report on the actor.

Intel 471 finds that Himba was an active affiliate program until around May 2019, when it stopping paying its associates.

Flashpoint notes that in September 2015, Megatraffer posted a job ad on Exploit seeking experienced coders to work on browser plugins, installers and “loaders” — basically remote access trojans (RATs) that establish communication between the attacker and a compromised system.

“The actor specified that he is looking for full-time, onsite help either in his Moscow or Kiev locations,” Flashpoint wrote.

Discord Admins Hacked by Malicious Bookmarks

A number of Discord communities focused on cryptocurrency have been hacked this past month after their administrators were tricked into running malicious Javascript code disguised as a Web browser bookmark.

According to interviews with victims, several of the attacks began with an interview request from someone posing as a reporter for a crypto-focused news outlet online. Those who take the bait are sent a link to a Discord server that appears to be the official Discord of the crypto news site, where they are asked to complete a verification step to validate their identity.

As shown in this Youtube video, the verification process involves dragging a button from the phony crypto news Discord server to the bookmarks bar in one’s Web browser. From there, the visitor is instructed to go back to discord.com and then click the new bookmark to complete the verification process.

However, the bookmark is actually a clever snippet of Javascript that quietly grabs the user’s Discord token and sends it to the scammer’s website. The attacker then loads the stolen token into their own browser session and (usually late at night after the admins are asleep) posts an announcement in the targeted Discord about an exclusive “airdrop,” “NFT mint event” or some other potential money making opportunity for the Discord members.

The unsuspecting Discord members click the link provided by the compromised administrator account, and are asked to connect their crypto wallet to the scammer’s site, where it asks for unlimited spend approvals on their tokens, and subsequently drains the balance of any valuable accounts.

Meanwhile, anyone in the compromised Discord channel who notices the scam and replies is banned, and their messages are deleted by the compromised admin account.

Nicholas Scavuzzo is an associate at Ocean Protocol, which describes itself as an “open-source protocol that aims to allow businesses and individuals to exchange and monetize data and data-based services.” On May 22, an administrator for Ocean Protocol’s Discord server clicked a link in a direct message from a community member that prompted them to prove their identity by dragging a link to their bookmarks.

Scavuzzo, who is based in Maine, said the attackers waited until around midnight in his timezone time before using the administrator’s account to send out an unauthorized message about a new Ocean airdrop.

Scavuzzo said the administrator’s account was hijacked even though she had multi-factor authentication turned on.

“A CAPTCHA bot that allows Discord cookies to be accessed by the person hosting the CAPTCHA,” was how Scavuzzo described the attack. “I’ve seen all kinds of crypto scams, but I’ve never seen one like this.”

Importantly, the stolen token only works for the attackers as long as its rightful owner doesn’t log out and back in, or else change their credentials.

Assuming the administrator can log in, that is. In Ocean’s case, one of the first things the intruders did once they swiped the administrator’s token was change the server’s access controls and remove all core Ocean team members from the server.

Fortunately for Ocean, Scavuzzo was able to reach the operator of the server that hosts the Discord channel, and have the channel’s settings reverted back to normal.

“Thankfully, we are a globally distributed team, so we have people awake at all hours,” Scavuzzo said, noting that Ocean is not aware of any Discord community members who fell for the phony airdrop offer, which was live for about 30 minutes. “This could have been a lot worse.”

On May 26, Aura Network reported on Twitter that its Discord server was compromised in a phishing attack that resulted in the deletion of Discord channels and the dissemination of fake Aura Network Airdrop Campaign links.

On May 27, Nahmii — a cryptocurrency technology based on the Ethereum blockchain — warned on Twitter that one of its community moderators on Discord was compromised and posting fake airdrop details.

On May 9, MetrixCoin reported that its Discord server was hacked, with fake airdrop details pushed to all users.

KrebsOnSecurity recently heard from a trusted source in the cybersecurity industry who dealt firsthand with one of these attacks and asked to remain anonymous.

“I do pro bono Discord security work for a few Discords, and I was approached by one of these fake journalists,” the source said. “I played along and got the link to their Discord, where they were pretending to be journalists from the Cryptonews website using several accounts.”

The source took note of all the Discord IDs of the admins of the fake Cryptonews Discord, so that he could ensure they were blocked from the Discords he helps to secure.

“Since I’ve been doing this for a while now, I’ve built up a substantial database of Discord users and messages, so often I can see these scammers’ history on Discord,” the source said.

In this case, he noticed a user with the “CEO” role in the fake Cryptonews Discord had been seen previously under another username — “Levatax.” Searching on that Discord ID and username revealed a young Turkish coder named Berk Yilmaz whose Github page linked to the very same Discord ID as the scammer CEO.

Reached via instant message on Telegram, Levatax said he’s had no involvement in such schemes, and that he hasn’t been on Discord since his Microsoft Outlook account was hacked months ago.

“The interesting thing [is] that I didn’t use Discord since few months or even social media because of the political status of Turkey,” Levatax explained, referring to the recent election in his country. “The only thing I confirm is losing my Outlook account which connected to my Discord, and I’m already in touch with Microsoft to recover it.”

The verification method used in the above scam involves a type of bookmark called a “bookmarklet” that stores Javascript code as a clickable link in the bookmarks bar at the top of one’s browser.

While bookmarklets can be useful and harmless, malicious Javascript that is executed in the browser by the user is especially dangerous. So please avoid adding (or dragging) any bookmarks or bookmarklets to your browser unless it was your idea in the first place.

Phishing Domains Tanked After Meta Sued Freenom

The number of phishing websites tied to domain name registrar Freenom dropped precipitously in the months surrounding a recent lawsuit from social networking giant Meta, which alleged the free domain name provider has a long history of ignoring abuse complaints about phishing websites while monetizing traffic to those abusive domains.

Freenom is the domain name registry service provider for five so-called “country code top level domains” (ccTLDs), including .cf for the Central African Republic; .ga for Gabon; .gq for Equatorial Guinea; .ml for Mali; and .tk for Tokelau.

Freenom has always waived the registration fees for domains in these country-code domains, but the registrar also reserves the right to take back free domains at any time, and to divert traffic to other sites — including adult websites. And there are countless reports from Freenom users who’ve seen free domains removed from their control and forwarded to other websites.

By the time Meta initially filed its lawsuit in December 2022, Freenom was the source of well more than half of all new phishing domains coming from country-code top-level domains. Meta initially asked a court to seal its case against Freenom, but that request was denied. Meta withdrew its December 2022 lawsuit and re-filed it in March 2023.

“The five ccTLDs to which Freenom provides its services are the TLDs of choice for cybercriminals because Freenom provides free domain name registration services and shields its customers’ identity, even after being presented with evidence that the domain names are being used for illegal purposes,” Meta’s complaint charged. “Even after receiving notices of infringement or phishing by its customers, Freenom continues to license new infringing domain names to those same customers.”

Meta pointed to research from Interisle Consulting Group, which discovered in 2021 and again last year that the five ccTLDs operated by Freenom made up half of the Top Ten TLDs most abused by phishers.

Interisle partner Dave Piscitello said something remarkable has happened in the months since the Meta lawsuit.

“We’ve observed a significant decline in phishing domains reported in the Freenom commercialized ccTLDs in months surrounding the lawsuit,” Piscitello wrote on Mastodon. “Responsible for over 60% of phishing domains reported in November 2022, Freenom’s percentage has dropped to under 15%.”

Interisle collects data from 12 major blocklists for spam, malware, and phishing, and it receives phishing-specific data from Spamhaus, Phishtank, OpenPhish and the APWG Ecrime Exchange. The company publishes historical data sets quarterly, both on malware and phishing.

Piscitello said it’s too soon to tell the full impact of the Freenom lawsuit, noting that Interisle’s sources of spam and phishing data all have different policies about when domains are removed from their block lists.

“One of the things we don’t have visibility into is how each of the blocklists determine to remove a URL from their lists,” he said. “Some of them time out [listed domains] after 14 days, some do it after 30, and some keep them forever.”

Freenom did not respond to requests for comment.

This is the second time in as many years that a lawsuit by Meta against a domain registrar has disrupted the phishing industry. In March 2020, Meta sued domain registrar giant Namecheap, alleging cybersquatting and trademark infringement.

The two parties settled the matter in April 2022. While the terms of that settlement have not been disclosed, new phishing domains registered through Namecheap declined more than 50 percent the following quarter, Interisle found.

Unfortunately, the lawsuits have had little effect on the overall number of phishing attacks and phishing-related domains, which have steadily increased in volume over the years.  Piscitello said the phishers tend to gravitate toward registrars that offer the least resistance and lowest price per domain. And with new top-level domains constantly being introduced, there is rarely a shortage of super low-priced domains.

“The abuse of a new top-level domain is largely the result of one registrar’s portfolio,” Piscitello told KrebsOnSecurity. “Alibaba or Namecheap or another registrar will run a promotion for a cheap domain, and then we’ll see flocking and migration of the phishers to that TLD. It’s like strip mining, where they’ll buy hundreds or thousands of domains, use those in a campaign, exhaust that TLD and then move on to another provider.”

Piscitello said despite the steep drop in phishing domains coming out of Freenom, the alternatives available to phishers are many. After all, there are more than 2,000 accredited domain registrars, not to mention dozens of services that let anyone set up a website for free without even owning a domain.

“There is no evidence that the trend line is even going to level off,” he said. “I think what the Meta lawsuit tells us is that litigation is like giving someone a standing eight count. It temporarily disrupts a process. And in that sense, litigation appears to be working.”

Interview With a Crypto Scam Investment Spammer

Social networks are constantly battling inauthentic bot accounts that send direct messages to users promoting scam cryptocurrency investment platforms. What follows is an interview with a Russian hacker responsible for a series of aggressive crypto spam campaigns that recently prompted several large Mastodon communities to temporarily halt new registrations. According to the hacker, their spam software has been in private use until the last few weeks, when it was released as open source code.

Renaud Chaput is a freelance programmer working on modernizing and scaling the Mastodon project infrastructure — including joinmastodon.org, mastodon.online, and mastodon.social. Chaput said that on May 4, 2023, someone unleashed a spam torrent targeting users on these Mastodon communities via “private mentions,” a kind of direct messaging on the platform.

The messages said recipients had earned an investment credit at a cryptocurrency trading platform called moonxtrade[.]com. Chaput said the spammers used more than 1,500 Internet addresses across 400 providers to register new accounts, which then followed popular accounts on Mastodon and sent private mentions to the followers of those accounts.

Since then, the same spammers have used this method to advertise more than 100 different crypto investment-themed domains. Chaput said that at one point this month the volume of bot accounts being registered for the crypto spam campaign started overwhelming the servers that handle new signups at Mastodon.social.

“We suddenly went from like three registrations per minute to 900 a minute,” Chaput said. “There was nothing in the Mastodon software to detect that activity, and the protocol is not designed to handle this.”

Seeking to gain a temporary handle on the spam wave, Chaput said he briefly disabled new account registrations on mastodon.social and mastondon.online. Shortly after that, those same servers came under a sustained distributed denial-of-service (DDoS) attack.

Chaput said whoever was behind the DDoS was definitely not using point-and-click DDoS tools, like a booter or stresser service.

“This was three hours non-stop, 200,000 to 400,000 requests per second,” Chaput said of the DDoS. “At first, they were targeting one path, and when we blocked that they started to randomize things. Over three hours the attack evolved several times.”

Chaput says the spam waves have died down since they retrofitted mastodon.social with a CAPTCHA, those squiggly letter and number combinations designed to stymie automated account creation tools. But he’s worried that other Mastodon instances may not be as well-staffed and might be easy prey for these spammers.

“We don’t know if this is the work of one person, or if this is [related to] software or services being sold to others,” Chaput told KrebsOnSecurity. “We’re really impressed by the scale of it — using hundreds of domains and thousands of Microsoft email addresses.”

Chaput said a review of their logs indicates many of the newly registered Mastodon spam accounts were registered using the same 0auth credentials, and that a domain common to those credentials was quot[.]pw.

A DIRECT QUOT

The domain quot[.]pw has been registered and abandoned by several parties since 2014, but the most recent registration data available through DomainTools.com shows it was registered in March 2020 to someone in Krasnodar, Russia with the email address edgard011012@gmail.com.

This email address is also connected to accounts on several Russian cybercrime forums, including “__edman__,” who had a history of selling “logs” — large amounts of data stolen from many bot-infected computers — as well as giving away access to hacked Internet of Things (IoT) devices.

In September 2018, a user by the name “ципа” (phonetically “Zipper” in Russian) registered on the Russian hacking forum Lolzteam using the edgard0111012@gmail.com address. In May 2020, Zipper told another Lolzteam member that quot[.]pw was their domain. That user advertised a service called “Quot Project” which said they could be hired to write programming scripts in Python and C++.

“I make Telegram bots and other rubbish cheaply,” reads one February 2020 sales thread from Zipper.

Clicking the “open chat in Telegram” button on Zipper’s Lolzteam profile page launched a Telegram instant message chat window where the user Quotpw responded almost immediately. Asked if they were aware their domain was being used to manage a spam botnet that was pelting Mastodon instances with crypto scam spam, Quotpw confirmed the spam was powered by their software.

“It was made for a limited circle of people,” Quotpw said, noting that they recently released the bot software as open source on GitHub.

Quotpw went on to say the spam botnet was powered by well more than the hundreds of IP addresses tracked by Chaput, and that these systems were mostly residential proxies. A residential proxy generally refers to a computer or mobile device running some type of software that enables the system to be used as a pass-through for Internet traffic from others.

Very often, this proxy software is installed surreptitiously, such as through a “Free VPN” service or mobile app. Residential proxies also can refer to households protected by compromised home routers running factory-default credentials or outdated firmware.

Quotpw maintains they have earned more than $2,000 sending roughly 100,000 private mentions to users of different Mastodon communities over the past few weeks. Quotpw said their conversion rate for the same bot-powered direct message spam on Twitter is usually much higher and more profitable, although they conceded that recent adjustments to Twitter’s anti-bot CAPTCHA have put a crimp in their Twitter earnings.

“My partners (I’m programmer) lost time and money while ArkoseLabs (funcaptcha) introduced new precautions on Twitter,” Quotpw wrote in a Telegram reply. “On Twitter, more spam and crypto scam.”

Asked whether they felt at all conflicted about spamming people with invitations to cryptocurrency scams, Quotpw said in their hometown “they pay more for such work than in ‘white’ jobs” — referring to legitimate programming jobs that don’t involve malware, botnets, spams and scams.

“Consider salaries in Russia,” Quotpw said. “Any spam is made for profit and brings illegal money to spammers.”

THE VIENNA CONNECTION

Shortly after edgard011012@gmail.com registered quot[.]pw, the WHOIS registration records for the domain were changed again, to msr-sergey2015@yandex.ru, and to a phone number in Austria: +43.6607003748.

Constella Intelligence, a company that tracks breached data, finds that the address msr-sergey2015@yandex.ru has been associated with accounts at the mobile app site aptoide.com (user: CoolappsforAndroid) and vimeworld.ru that were created from different Internet addresses in Vienna, Austria.

A search in Skype on that Austrian phone number shows it belongs to a Sergey Proshutinskiy who lists his location as Vienna, Austria. The very first result that comes up when one searches that unusual name in Google is a LinkedIn profile for a Sergey Proshutinskiy from Vienna, Austria.

Proshutinskiy’s LinkedIn profile says he is a Class of 2024 student at TGM, which is a state-owned, technical and engineering school in Austria. His resume also says he is a data science intern at Mondi Group, an Austrian manufacturer of sustainable packaging and paper.

Mr. Proshutinskiy did not respond to requests for comment.

Quotpw denied being Sergey, and said Sergey was a friend who registered the domain as a birthday present and favor last year.

“Initially, I bought it for 300 rubles,” Quotpw explained. “The extension cost 1300 rubles (expensive). I waited until it expired and forgot to buy it. After that, a friend (Sergey) bought [the] domain and transferred access rights to me.”

“He’s not even an information security specialist,” Quotpw said of Sergey. “My friends do not belong to this field. None of my friends are engaged in scams or other black [hat] activities.”

It may seem unlikely that someone would go to all this trouble to spam Mastodon users over several weeks using an impressive number of resources — all for just $2,000 in profit. But it is likely that whoever is actually running the various crypto scam platforms advertised by Quotpw’s spam messages pays handsomely for any investments generated by their spam.

According to the FBI, financial losses from cryptocurrency investment scams dwarfed losses for all other types of cybercrime in 2022, rising from $907 million in 2021 to $2.57 billion last year.

Update, May 25, 10:30 a.m.:  Corrected attribution of the Austrian school TGM.

Microsoft Patch Tuesday, May 2023 Edition

Microsoft today released software updates to fix at least four dozen security holes in its Windows operating systems and other software, including patches for two zero-day vulnerabilities that are already being exploited in active attacks.

First up in May’s zero-day flaws is CVE-2023-29336, which is an “elevation of privilege” weakness in Windows which has a low attack complexity, requires low privileges, and no user interaction. However, as the SANS Internet Storm Center points out, the attack vector for this bug is local.

“Local Privilege escalation vulnerabilities are a key part of attackers’ objectives,” said Kevin Breen, director of cyber threat research at Immersive Labs. “Once they gain initial access they will seek administrative or SYSTEM-level permissions. This can allow the attacker to disable security tooling and deploy more attacker tools like Mimikatz that lets them move across the network and gain persistence.”

The zero-day patch that has received the most attention so far is CVE-2023-24932, which is a Secure Boot Security Feature Bypass flaw that is being actively exploited by “bootkit” malware known as “BlackLotus.” A bootkit is dangerous because it allows the attacker to load malicious software before the operating system even starts up.

According to Microsoft’s advisory, an attacker would need physical access or administrative rights to a target device, and could then install an affected boot policy. Microsoft gives this flaw a CVSS score of just 6.7, rating it as “Important.”

Adam Barnett, lead software engineer at Rapid7, said CVE-2023-24932 deserves a considerably higher threat score.

“Microsoft warns that an attacker who already has Administrator access to an unpatched asset could exploit CVE-2023-24932 without necessarily having physical access,” Barnett said. “Therefore, the relatively low CVSSv3 base score of 6.7 isn’t necessarily a reliable metric in this case.”

Barnett said Microsoft has provided a supplementary guidance article specifically calling out the threat posed by BlackLotus malware, which loads ahead of the operating system on compromised assets, and provides attackers with an array of powerful evasion, persistence, and Command & Control (C2) techniques, including deploying malicious kernel drivers, and disabling Microsoft Defender or Bitlocker.

“Administrators should be aware that additional actions are required beyond simply applying the patches,” Barnett advised. “The patch enables the configuration options necessary for protection, but administrators must apply changes to UEFI config after patching. The attack surface is not limited to physical assets, either; Windows assets running on some VMs, including Azure assets with Secure Boot enabled, also require these extra remediation steps for protection. Rapid7 has noted in the past that enabling Secure Boot is a foundational protection against driver-based attacks. Defenders ignore this vulnerability at their peril.”

In addition to the two zero-days fixed this month, Microsoft also patched five remote code execution (RCE) flaws in Windows, two of which have notably high CVSS scores.

CVE-2023-24941 affects the Windows Network File System, and can be exploited over the network by making an unauthenticated, specially crafted request. Microsoft’s advisory also includes mitigation advice. The CVSS for this vulnerability is 9.8 – the highest of all the flaws addressed this month.

Meanwhile, CVE-2023-28283 is a critical bug in the Windows Lightweight Directory Access Protocol (LDAP) that allows an unauthenticated attacker to execute malicious code on the vulnerable device. The CVSS for this vulnerability is 8.1, but Microsoft says exploiting the flaw may be tricky and unreliable for attackers.

Another vulnerability patched this month that was disclosed publicly before today (but not yet seen exploited in the wild) is CVE-2023-29325, a weakness in Microsoft Outlook and Explorer that can be exploited by attackers to remotely install malware. Microsoft says this vulnerability can be exploited merely by viewing a specially-crafted email in the Outlook Preview Pane.

“To help protect against this vulnerability, we recommend users read email messages in plain text format,” Microsoft’s writeup on CVE-2023-29325 advises.

“If an attacker were able to exploit this vulnerability, they would gain remote access to the victim’s account, where they could deploy additional malware,” Immersive’s Breen said. “This kind of exploit will be highly sought after by e-crime and ransomware groups where, if successfully weaponized, could be used to target hundreds of organizations with very little effort.”

For more details on the updates released today, check out roundups by Action1, Automox and Qualys, If today’s updates cause any stability or usability issues in Windows, AskWoody.com will likely have the lowdown on that.

Please consider backing up your data and/or imaging your system before applying any updates. And feel free to sound off in the comments if you experience any problems as a result of these patches.

Feds Take Down 13 More DDoS-for-Hire Services

The U.S. Federal Bureau of Investigation (FBI) this week seized 13 domain names connected to “booter” services that let paying customers launch crippling distributed denial-of-service (DDoS) attacks. Ten of the domains are reincarnations of DDoS-for-hire services the FBI seized in December 2022, when it charged six U.S. men with computer crimes for allegedly operating booters.

Booter services are advertised through a variety of methods, including Dark Web forums, chat platforms and even youtube.com. They accept payment via PayPal, Google Wallet, and/or cryptocurrencies, and subscriptions can range in price from just a few dollars to several hundred per month. The services are generally priced according to the volume of traffic to be hurled at the target, the duration of each attack, and the number of concurrent attacks allowed.

The websites that saw their homepages replaced with seizure notices from the FBI this week include booter services like cyberstress[.]org and exoticbooter[.]com, which the feds say were used to launch millions of attacks against millions of victims.

“School districts, universities, financial institutions and government websites are among the victims who have been targeted in attacks launched by booter services,” federal prosecutors in Los Angeles said in a statement.

Purveyors of booters or “stressers” claim they are not responsible for how customers use their services, and that they aren’t breaking the law because — like most security tools — these services can be used for good or bad purposes. Most booter sites employ wordy “terms of use” agreements that require customers to agree they will only stress-test their own networks — and that they won’t use the service to attack others.

But the DOJ says these disclaimers usually ignore the fact that most booter services are heavily reliant on constantly scanning the Internet to commandeer misconfigured devices that are critical for maximizing the size and impact of DDoS attacks. What’s more, none of the services seized by the government required users to demonstrate that they own the Internet addresses being stress-tested, something a legitimate testing service would insist upon.

This is the third in a series of U.S. and international law enforcement actions targeting booter services. In December 2022, the feds seized four-dozen booter domains and charged six U.S. men with computer crimes related to their alleged ownership of the popular DDoS-for-hire services. In December 2018, the feds targeted 15 booter sites, and three booter store defendants who later pleaded guilty.

While the FBI’s repeated seizing of booter domains may seem like an endless game of virtual Whac-a-Mole, continuously taking these services offline imposes high enough costs for the operators that some of them will quit the business altogether, says Richard Clayton, director of Cambridge University’s Cybercrime Centre.

In 2020, Clayton and others published “Cybercrime is Mostly Boring,” an academic study on the quality and types of work needed to build, maintain and defend illicit enterprises that make up a large portion of the cybercrime-as-a-service market. The study found that operating a booter service effectively requires a mind-numbing amount of constant, tedious work that tends to produce high burnout rates for booter service operators — even when the service is operating efficiently and profitably.

For example, running an effective booter service requires a substantial amount of administrative work and maintenance, much of which involves constantly scanning for, commandeering and managing large collections of remote systems that can be used to amplify online attacks, Clayton said. On top of that, building brand recognition and customer loyalty takes time.

“If you’re running a booter and someone keeps taking your domain or hosting away, you have to then go through doing the same boring work all over again,” Clayton told KrebsOnSecurity. “One of the guys the FBI arrested in December [2022] spent six months moaning that he lost his servers, and could people please lend him some money to get it started again.”

In a statement released Wednesday, prosecutors in Los Angeles said four of the six men charged last year for running booter services have since pleaded guilty. However, at least one of the defendants from the 2022 booter bust-up — John M. Dobbs, 32, of Honolulu, HI — has pleaded not guilty and is signaling he intends to take his case to trial.

Dobbs is a computer science graduate student who for the past decade openly ran IPStresser[.]com, a popular and powerful attack-for-hire service that he registered with the state of Hawaii using his real name and address. Likewise, the domain was registered in Dobbs’s name and hometown in Pennsylvania. Prosecutors say Dobbs’ service attracted more than two million registered users, and was responsible for launching a staggering 30 million distinct DDoS attacks.

Many accused stresser site operators have pleaded guilty over the years after being hit with federal criminal charges. But the government’s core claim — that operating a booter site is a violation of U.S. computer crime laws — wasn’t properly tested in the courts until September 2021.

That was when a jury handed down a guilty verdict against Matthew Gatrel, a then 32-year-old St. Charles, Ill. man charged in the government’s first 2018 mass booter bust-up. Despite admitting to FBI agents that he ran two booter services (and turning over plenty of incriminating evidence in the process), Gatrel opted to take his case to trial, defended the entire time by court-appointed attorneys.

Gatrel was convicted on all three charges of violating the Computer Fraud and Abuse Act, including conspiracy to commit unauthorized impairment of a protected computer, conspiracy to commit wire fraud, and unauthorized impairment of a protected computer. He was sentenced to two years in prison.

A copy of the FBI’s booter seizure warrant is here (PDF). According to the DOJ, the defendants who pleaded guilty to operating booter sites include:

–Jeremiah Sam Evans Miller, aka “John The Dev,” 23, of San Antonio, Texas, who pleaded guilty on April 6 to conspiracy and violating the computer fraud and abuse act related to the operation of a booter service named RoyalStresser[.]com (formerly known as Supremesecurityteam[.]com);

–Angel Manuel Colon Jr., aka “Anonghost720” and “Anonghost1337,” 37, of Belleview, Florida, who pleaded guilty on February 13 to conspiracy and violating the computer fraud and abuse act related to the operation of a booter service named SecurityTeam[.]io;

–Shamar Shattock, 19, of Margate, Florida, who pleaded guilty on March 22 to conspiracy to violate the computer fraud and abuse act related to the operation of a booter service known as Astrostress[.]com;

–Cory Anthony Palmer, 23, of Lauderhill, Florida, who pleaded guilty on February 16 to conspiracy to violate the computer fraud and abuse act related to the operation of a booter service known as Booter[.]sx.

All four defendants are scheduled to be sentenced this summer.

The booter domains seized by the FBI this week include:

cyberstress[.]org
exoticbooter[.]com
layerstress[.]net
orbitalstress[.]xyz
redstresser[.]io
silentstress[.]wtf
sunstresser[.]net
silent[.]to
mythicalstress[.]net
dreams-stresser[.]org
stresserbest[.]io
stresserus[.]io
quantum-stress[.]org

Promising Jobs at the U.S. Postal Service, ‘US Job Services’ Leaks Customer Data

A sprawling online company based in Georgia that has made tens of millions of dollars purporting to sell access to jobs at the United States Postal Service (USPS) has exposed its internal IT operations and database of nearly 900,000 customers. The leaked records indicate the network’s chief technology officer in Pakistan has been hacked for the past year, and that the entire operation was created by the principals of a Tennessee-based telemarketing firm that has promoted USPS employment websites since 2016.

KrebsOnSecurity was recently contacted by a security researcher who said he found a huge tranche of full credit card records exposed online, and that at first glance the domain names involved appeared to be affiliated with the USPS.

Further investigation revealed a long-running international operation that has been emailing and text messaging people for years to sign up at a slew of websites that all promise they can help visitors secure employment at the USPS.

Sites like FederalJobsCenter[.]com also show up prominently in Google search results for USPS employment, and steer applicants toward making credit card “registration deposits” to ensure that one’s application for employment is reviewed. These sites also sell training, supposedly to help ace an interview with USPS human resources.

FederalJobsCenter’s website is full of content that makes it appear the site is affiliated with the USPS, although its “terms and conditions” state that it is not. Rather, the terms state that FederalJobsCenter is affiliated with an entity called US Job Services, which says it is based in Lawrenceville, Ga.

“US Job Services provides guidance, coaching, and live assistance to postal job candidates to help them perform better in each of the steps,” the website explains.

The site says applicants need to make a credit card deposit to register, and that this amount is refundable if the applicant is not offered a USPS job within 30 days after the interview process.

But a review of the public feedback on US Job Services and dozens of similar names connected to this entity over the years shows a pattern of activity: Applicants pay between $39.99 and $100 for USPS job coaching services, and receive little if anything in return. Some reported being charged the same amount monthly.

The U.S. Federal Trade Commission (FTC) has sued several times over the years to disrupt various schemes offering to help people get jobs at the Postal Service. Way back in 1998, the FTC and the USPS took action against several organizations that were selling test or interview preparation services for potential USPS employees.

“Companies promising jobs with the U.S. Postal Service are breaking federal law,” the joint USPS-FTC statement said.

In that 1998 case, the defendants behind the scheme were taking out classified ads in newspapers. Ditto for a case the FTC brought in 2005. By 2008, the USPS job exam preppers had shifted to advertising their schemes mostly online. And in 2013, the FTC won a nearly $5 million judgment against a Kentucky company purporting to offer such services.

Tim McKinlay authored a report last year at Affiliateunguru.com on whether the US Job Services website job-postal[.]com was legitimate or a scam. He concluded it was a scam based on several factors, including that the website listed multiple other names (suggesting it had recently switched names), and that he got nothing from the transaction with the job site.

“They openly admit they’re not affiliated with the US Postal Service, but claim to be experts in the field, and that, just by following the steps on their site, you easily pass the postal exams and get a job in no time,” McKinlay wrote. “But it’s really just a smoke and mirrors game. The site’s true purpose is to collect $46.95 from as many people as possible. And considering how popular this job is, they’re probably making a killing.”

US JOB SERVICES

KrebsOnSecurity was alerted to the data exposure by Patrick Barry, chief information officer at Charlotte, NC based Rebyc Security. Barry said he found that not only was US Job Services leaking its customer payment records in real-time and going back to 2016, but its website also leaked a log file from 2019 containing the site administrator’s contact information and credentials to the site’s back-end database.

Barry shared screenshots of that back-end database, which show the email address for the administrator of US Job Services is tab.webcoder@gmail.com. According to cyber intelligence platform Constella Intelligence, that email address is tied to the LinkedIn profile for a developer in Karachi, Pakistan named Muhammed Tabish Mirza.

A search on tab.webcoder@gmail.com at DomainTools.com reveals that email address was used to register several USPS-themed domains, including postal2017[.]com, postaljobscenter[.]com and usps-jobs[.]com.

Mr. Mirza declined to respond to questions, but the exposed database information was removed from the Internet almost immediately after KrebsOnSecurity shared the offending links.

A “Campaigns” tab on that web panel listed several advertising initiatives tied to US Job Services websites, with names like “walmart drip campaign,” “hiring activity due to virus,” “opt-in job alert SMS,” and “postal job opening.”

Another page on the US Job Services panel included a script for upselling people who call in response to email and text message solicitations, with an add-on program that normally sells for $1,200 but is being “practically given away” for a limited time, for just $49.

“There’s something else we have you can take advantage of that can help you make more money,” the script volunteers. “It’s an easy to use 12-month career development plan and program to follow that will result in you getting any job you want, not just at the post office….anywhere…and then getting promoted rapidly.”

It’s bad enough that US Job Services was leaking customer data: Constella Intelligence says the email address tied to Mr. Mirza shows up in more than a year’s worth of “bot logs” created by a malware infection from the Redline infostealer.

Constella reports that for roughly a year between 2021 and 2022, a Microsoft Windows device regularly used by Mr. Mirza and his colleagues was actively uploading all of the device’s usernames, passwords and authentication cookies to cybercriminals based in Russia.

NEXT LEVEL SUPPORT

The web-based backend for US Job Services lists more than 160 people under its “Users & Teams” tab. This page indicates that access to the consumer and payment data collected by US Job Services is currently granted to several other coders who work with Mr. Mirza in Pakistan, and to multiple executives, contractors and employees working for a call center in Murfreesboro, Tennessee.

The call center — which operates as Nextlevelsupportcenters[.]com and thenextlevelsupport[.]com — curiously has several key associates with a history of registering USPS jobs-related domain names.

The website for NextLevelSupport says it was founded in 2017 by a Gary Plott, whose LinkedIn profile describes him as a seasoned telecommunications industry expert. The leaked backend database for US Job Services says Plott is a current administrator on the system, along with several other Nextlevel founders listed on the company’s site.

Reached via telephone, Plott initially said his company was merely a “white label” call center that multiple clients use to interact with customers, and that the content their call center is responsible for selling on behalf of US Job Services was not produced by NextLevelSupport.

“A few years ago, we started providing support for this postal product,” Plott said. “We didn’t develop the content but agreed we would support it.”

Interestingly, DomainTools says the Gmail address used by Plott in the US Jobs system was also used to register multiple USPS job-related domains, including postaljobssite[.]com, postalwebsite[.]com, usps-nlf[.]com, usps-nla[.]com.

Asked to reconcile this with his previous statement, Plott said he never did anything with those sites but acknowledged that his company did decide to focus on the US Postal jobs market from the very beginning.

Plott said his company never refuses to issue a money-back request from a customer, because doing so would result in costly chargebacks for NextLevel (and presumably for the many credit card merchant accounts apparently set up by Mr. Mirza).

“We’ve never been deceptive,” Plott said, noting that customers of the US Job Services product receive a digital download with tips on how to handle a USPS interview, as well as unlimited free telephone support if they need it.

“We’ve never told anyone we were the US Postal Service,” Plott continued. “We make sure people fully understand that they are not required to buy this product, but we think we can help you and we have testimonials from people we have helped. But ultimately you as the customer make that decision.”

An email address in the US Job Services teams page for another user — Stephanie Dayton — was used to register the domains postalhiringreview[.]com, and postalhiringreviewboard[.]org back in 2014. Reached for comment, Ms. Dayton said she has provided assistance to Next Level Support Centers with their training and advertising, but never in the capacity as an employee.

Perhaps the most central NextLevel associate who had access to US Job Services was Russell Ramage, a telemarketer from Warner Robins, Georgia. Ramage is listed in South Carolina incorporation records as the owner of a now-defunct call center service called Smart Logistics, a company whose name appears in the website registration records for several early and long-running US Job Services sites.

The leaked records show the email address used by Ramage also registered multiple USPS jobs-related domains, including postalhiringcenter[.]com, postalhiringreviews[.]com, postaljobs-email[.]com, and postaljobssupport1[.]com.

A review of business incorporation records in Georgia indicate Ramage was the registered agent for at least three USPS-related companies over the years, including Postal Career Placement LLC, Postal Job Services Inc., and Postal Operations Inc. All three companies were founded in 2015, and are now dissolved.

An obituary dated February 2023 says Russell Ramage recently passed away at the age of 41. No cause of death was stated, but the obituary goes on to say that Russ “Rusty” Ramage was “preceded in death by his mother, Anita Lord Ramage, pets, Raine and Nola and close friends, Nicole Reeves and Ryan Rawls.”

In 2014, then 33-year-old Ryan “Jootgater” Rawls of Alpharetta, Georgia pleaded guilty to conspiring to distribute controlled substances. Rawls also grew up in Warner Robins, and was one of eight suspects charged with operating a secret darknet narcotics ring called the Farmer’s Market, which federal prosecutors said trafficked in millions of dollars worth of controlled substances.

Reuters reported that an eighth suspect in that case had died by the time of Rawls’ 2014 guilty plea, although prosecutors declined to offer further details about that. According to his obituary, Ryan Christopher Rawls died at the age of 38 on Jan. 28, 2019.

In a comment on Ramage’s memorial wall, Stephanie Dayton said she began working with Ramage in 2006.

“Our friendship far surpassed a working one, we had a very close bond and became like brother and sister,” Dayton wrote. “I loved Russ deeply and he was like family. He was truly one of the best human beings I have ever known. He was kind and sweet and truly cared about others. Never met anyone like him. He will be truly missed. RIP brother.”

The FTC and USPS note that while applicants for many entry-level postal jobs are required to take a free postal exam, the tests are usually offered only every few years in any particular district, and there are no job placement guarantees based on score.

“If applicants pass the test by scoring at least 70 out of 100, they are placed on a register, ranked by their score,” the FTC explained. “When a position becomes open, the local post office looks to the applicable register for that geographic location and calls the top three applicants. The score is only one of many criteria taken into account for employment. The exams test general aptitude, something that cannot necessarily be increased by studying.”

The FTC says anyone interested in a job at the USPS should inquire at their local postal office, where applicants generally receive a free packet of information about required exams. More information about job opportunities at the postal service is available at the USPS’s careers website.

Michael Martel, spokesperson for the United States Postal Inspection Service, said in a written statement that the USPS has no affiliation with the websites or companies named in this story.

“To learn more about employment with USPS, visit USPS.com/careers,” Martel wrote. “If you are the victim of a crime online report it to the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov. To report fraud committed through or toward the USPS, its employees, or customers, report it to the United States Postal Inspection Service (USPIS) at www.uspis.gov/report.”

According to the leaked back-end server for US Job Services, here is a list of the current sites selling this product:

usjobshelpcenter[.]com
usjobhelpcenter[.]com
job-postal[.]com
localpostalhiring[.]com
uspostalrecruitment[.]com
postalworkerjob[.]com
next-level-now[.]com
postalhiringcenters[.]com
postofficehiring[.]com
postaljobsplacement[.]com
postal-placement[.]com
postofficejobopenings[.]com
postalexamprep[.]com
postaljobssite[.]com
postalwebsite[.]com
postalcareerscenters[.]com
postal-hiring[.]com
postal-careers[.]com
postal-guide[.]com
postal-hiring-guide[.]com
postal-openings[.]com
postal-placement[.]com
postofficeplacements[.]com
postalplacementservices[.]com
postaljobs20[.]com
postal-jobs-placement[.]com
postaljobopenings[.]com
postalemployment[.]com
postaljobcenters[.]com
postalmilitarycareers[.]com
epostaljobs[.]com
postal-job-center[.]com
postalcareercenter[.]com
postalhiringcenters[.]com
postal-job-center[.]com
postalcareercenter[.]com
postalexamprep[.]com
postalplacementcenters[.]com
postalplacementservice[.]com
postalemploymentservices[.]com
uspostalhiring[.]com

Many Public Salesforce Sites are Leaking Private Data

A shocking number of organizations — including banks and healthcare providers — are leaking private and sensitive information from their public Salesforce Community websites, KrebsOnSecurity has learned. The data exposures all stem from a misconfiguration in Salesforce Community that allows an unauthenticated user to access records that should only be available after logging in.

Salesforce Community is a widely-used cloud-based software product that makes it easy for organizations to quickly create websites. Customers can access a Salesforce Community website in two ways: Authenticated access (requiring login), and guest user access (no login required). The guest access feature allows unauthenticated users to view specific content and resources without needing to log in.

However, sometimes Salesforce administrators mistakenly grant guest users access to internal resources, which can cause unauthorized users to access an organization’s private information and lead to potential data leaks.

Until being contacted by this reporter on Monday, the state of Vermont had at least five separate Salesforce Community sites that allowed guest access to sensitive data, including a Pandemic Unemployment Assistance program that exposed the applicant’s full name, Social Security number, address, phone number, email, and bank account number.

Vermont’s Chief Information Security Officer Scott Carbee said his security teams have been conducting a full review of their Salesforce Community sites, and already found one additional Salesforce site operated by the state that was also misconfigured to allow guest access to sensitive information.

“My team is frustrated by the permissive nature of the platform,” Carbee said.

Carbee said the vulnerable sites were all created rapidly in response to the Coronavirus pandemic, and were not subjected to their normal security review process.

“During the pandemic, we were largely standing up tons of applications, and let’s just say a lot of them didn’t have the full benefit of our dev/ops process,” Carbee said. “In our case, we didn’t have any native Salesforce developers when we had to suddenly stand up all these sites.”

Earlier this week, KrebsOnSecurity notified Columbus, Ohio-based Huntington Bank that its recently acquired TCF Bank had a Salesforce Community website that was leaking documents related to commercial loans. The data fields in those loan applications included name, address, full Social Security number, title, federal ID, IP address, average monthly payroll, and loan amount.

Huntington Bank has disabled the leaky TCF Bank Salesforce website. Matthew Jennings, deputy chief information security officer at Huntington, said the company was still investigating how the misconfiguration occurred, how long it lasted, and how many records may have been exposed.

KrebsOnSecurity learned of the leaks from security researcher Charan Akiri, who said he wrote a program that identified hundreds of other organizations running misconfigured Salesforce pages. But Akiri said he’s been wary of probing too far, and has had difficulty getting responses from most of the organizations he has notified to date.

“In January and February 2023, I contacted government organizations and several companies, but I did not receive any response from these organizations,” Akiri said. “To address the issue further, I reached out to several CISOs on LinkedIn and Twitter. As a result, five companies eventually fixed the problem. Unfortunately, I did not receive any responses from government organizations.”

The problem Akiri has been trying to raise awareness about came to the fore in August 2021, when security researcher Aaron Costello published a blog post explaining how misconfigurations in Salesforce Community sites could be exploited to reveal sensitive data (Costello subsequently published a follow-up post detailing how to lock down Salesforce Community sites).

On Monday, KrebsOnSecurity used Akiri’s findings to notify Washington D.C. city administrators that at least five different public DC Health websites were leaking sensitive information. One DC Health Salesforce Community website designed for health professionals seeking to renew licenses with the city leaked documents that included the applicant’s full name, address, Social Security number, date of birth, license number and expiration, and more.

Akiri said he notified the Washington D.C. government in February about his findings, but received no response. Reached by KrebsOnSecurity, interim Chief Information Security Officer Mike Rupert initially said the District had hired a third party to investigate, and that the third party confirmed the District’s IT systems were not vulnerable to data loss from the reported Salesforce configuration issue.

But after being presented with a document including the Social Security number of a health professional in D.C. that was downloaded in real-time from the DC Health public Salesforce website, Rupert acknowledged his team had overlooked some configuration settings.

Washington, D.C. health administrators are still smarting from a data breach earlier this year at the health insurance exchange DC Health Link, which exposed personal information for more than 56,000 users, including many members of Congress.

That data later wound up for sale on a top cybercrime forum. The Associated Press reports that the DC Health Link breach was likewise the result of human error, and said an investigation revealed the cause was a DC Health Link server that was “misconfigured to allow access to the reports on the server without proper authentication.”

Salesforce says the data exposures are not the result of a vulnerability inherent to the Salesforce platform, but they can occur when customers’ access control permissions are misconfigured.

“As previously communicated to all Experience Site and Sites customers, we recommend utilizing the Guest User Access Report Package to assist in reviewing access control permissions for unauthenticated users,” reads a Salesforce advisory from Sept. 2022. “Additionally, we suggest reviewing the following Help article, Best Practices and Considerations When Configuring the Guest User Profile.”

In a written statement, Salesforce said it is actively focused on data security for organizations with guest users, and that it continues to release “robust tools and guidance for our customers,” including:

Guest User Access Report 

Control Which Users Experience Cloud Site Users Can See

Best Practices and Considerations When Configuring the Guest User Profile

“We’ve also continued to update our Guest User security policies, beginning with our Spring ‘21 release with more to come in Summer ‘23,” the statement reads. “Lastly, we continue to proactively communicate with customers to help them understand the capabilities available to them, and how they can best secure their instance of Salesforce to meet their security, contractual, and regulatory obligations.”

3CX Breach Was a Double Supply Chain Compromise

We learned some remarkable new details this week about the recent supply-chain attack on VoIP software provider 3CX. The lengthy, complex intrusion has all the makings of a cyberpunk spy novel: North Korean hackers using legions of fake executive accounts on LinkedIn to lure people into opening malware disguised as a job offer; malware targeting Mac and Linux users working at defense and cryptocurrency firms; and software supply-chain attacks nested within earlier supply chain attacks.

In late March 2023, 3CX disclosed that its desktop applications for both Windows and macOS were compromised with malicious code that gave attackers the ability to download and run code on all machines where the app was installed. 3CX says it has more than 600,000 customers and 12 million users in a broad range of industries, including aerospace, healthcare and hospitality.

3CX hired incident response firm Mandiant, which released a report on Wednesday that said the compromise began in 2022 when a 3CX employee installed a malware-laced software package distributed via an earlier software supply chain compromise that began with a tampered installer for X_TRADER, a software package provided by Trading Technologies.

“This is the first time Mandiant has seen a software supply chain attack lead to another software supply chain attack,” reads the April 20 Mandiant report.

Mandiant found the earliest evidence of compromise uncovered within 3CX’s network was through the VPN using the employee’s corporate credentials, two days after the employee’s personal computer was compromised.

“Eventually, the threat actor was able to compromise both the Windows and macOS build environments,” 3CX said in an April 20 update on their blog.

Mandiant concluded that the 3CX attack was orchestrated by the North Korean state-sponsored hacking group known as Lazarus, a determination that was independently reached earlier by researchers at Kaspersky Lab and Elastic Security.

Mandiant found the compromised 3CX software would download malware that sought out new instructions by consulting encrypted icon files hosted on GitHub. The decrypted icon files revealed the location of the malware’s control server, which was then queried for a third stage of the malware compromise — a password stealing program dubbed ICONICSTEALER.

Meanwhile, the security firm ESET today published research showing remarkable similarities between the malware used in the 3CX supply chain attack and Linux-based malware that was recently deployed via fake job offers from phony executive profiles on LinkedIn. The researchers said this was the first time Lazarus had been spotted deploying malware aimed at Linux users.

As reported in a series last summer here, LinkedIn has been inundated this past year by fake executive profiles for people supposedly employed at a range of technology, defense, energy and financial companies. In many cases, the phony profiles spoofed chief information security officers at major corporations, and some attracted quite a few connections before their accounts were terminated.

Mandiant, Proofpoint and other experts say Lazarus has long used these bogus LinkedIn profiles to lure targets into opening a malware-laced document that is often disguised as a job offer. This ongoing North Korean espionage campaign using LinkedIn was first documented in August 2020 by ClearSky Security, which said the Lazarus group operates dozens of researchers and intelligence personnel to maintain the campaign globally.

Microsoft Corp., which owns LinkedIn, said in September 2022 that it had detected a wide range of social engineering campaigns using a proliferation of phony LinkedIn accounts. Microsoft said the accounts were used to impersonate recruiters at technology, defense and media companies, and to entice people into opening a malicious file. Microsoft found the attackers often disguised their malware as legitimate open-source software like Sumatra PDF and the SSH client Putty.

Microsoft attributed those attacks to North Korea’s Lazarus hacking group, although they’ve traditionally referred to this group as “ZINC“. That is, until earlier this month, when Redmond completely revamped the way it names threat groups; Microsoft now references ZINC as “Diamond Sleet.”

The ESET researchers said they found a new fake job lure tied to an ongoing Lazarus campaign on LinkedIn designed to compromise Linux operating systems. The malware was found inside of a document that offered an employment contract at the multinational bank HSBC.

“A few weeks ago, a native Linux payload was found on VirusTotal with an HSBC-themed PDF lure,” wrote ESET researchers Peter Kalnai and Marc-Etienne M.Leveille. “This completes Lazarus’s ability to target all major desktop operating systems. In this case, we were able to reconstruct the full chain, from the ZIP file that delivers a fake HSBC job offer as a decoy, up until the final payload.”

ESET said the malicious PDF file used in the scheme appeared to have a file extension of “.pdf,” but that this was a ruse. ESET discovered that the dot in the filename wasn’t a normal period but instead a Unicode character (U+2024) representing a “leader dot,” which is often used in tables of contents to connect section headings with the page numbers on which those sections begin.

“The use of the leader dot in the filename was probably an attempt to trick the file manager into treating the file as an executable instead of a PDF,” the researchers continued. “This could cause the file to run when double-clicked instead of opening it with a PDF viewer.”

ESET said anyone who opened the file would see a decoy PDF with a job offer from HSBC, but in the background the executable file would download additional malware payloads. The ESET team also found the malware was able to manipulate the program icon displayed by the malicious PDF, possibly because fiddling with the file extension could cause the user’s system to display a blank icon for the malware lure.

Kim Zetter, a veteran Wired.com reporter and now independent security journalist, interviewed Mandiant researchers who said they expect “many more victims” will be discovered among the customers of Trading Technologies and 3CX now that news of the compromised software programs is public.

“Mandiant informed Trading Technologies on April 11 that its X_Trader software had been compromised, but the software maker says it has not had time to investigate and verify Mandiant’s assertions,” Zetter wrote in her Zero Day newsletter on Substack. For now, it remains unclear whether the compromised X_Trader software was downloaded by people at other software firms.

If there’s a silver lining here, the X_Trader software had been decommissioned in April 2020 — two years before the hackers allegedly embedded malware in it.

“The company hadn’t released new versions of the software since that time and had stopped providing support for the product, making it a less-than-ideal vector for the North Korean hackers to infect customers,” Zetter wrote.

Giving a Face to the Malware Proxy Service ‘Faceless’

For the past seven years, a malware-based proxy service known as “Faceless” has sold anonymity to countless cybercriminals. For less than a dollar per day, Faceless customers can route their malicious traffic through tens of thousands of compromised systems advertised on the service. In this post we’ll examine clues left behind over the past decade by the proprietor of Faceless, including some that may help put a face to the name.

Riley Kilmer is co-founder of Spur.us, a company that tracks thousands of VPN and proxy networks, and helps customers identify traffic coming through these anonymity services. Kilmer said Faceless has emerged as one of the underground’s most reliable malware-based proxy services, mainly because its proxy network has traditionally included a great many compromised “Internet of Things” devices — such as media sharing servers — that are seldom included on malware or spam block lists.

Kilmer said when Spur first started looking into Faceless, they noticed almost every Internet address that Faceless advertised for rent also showed up in the IoT search engine Shodan.io as a media sharing device on a local network that was somehow exposed to the Internet.

“We could reliably look up the [fingerprint] for these media sharing devices in Shodan and find those same systems for sale on Faceless,” Kilmer said.

In January 2023, the Faceless service website said it was willing to pay for information about previously undocumented security vulnerabilities in IoT devices. Those with IoT zero-days could expect payment if their exploit involved at least 5,000 systems that could be identified through Shodan.

Recently, Faceless has shown ambitions beyond just selling access to poorly-secured IoT devices. In February, Faceless re-launched a service that lets users drop an email bomb on someone — causing the target’s inbox to be filled with tens of thousands of junk messages.

And in March 2023, Faceless started marketing a service for looking up Social Security Numbers (SSNs) that claims to provide access to “the largest SSN database on the market with a very high hit rate.”

Kilmer said Faceless wants to become a one-stop-fraud-shop for cybercriminals who are seeking stolen or synthetic identities from which to transact online, and a temporary proxy that is geographically close to the identity being sold. Faceless currently sells this bundled product for $9 — $8 for the identity and $1 for the proxy.

“They’re trying to be this one-stop shop for anonymity and personas,” Kilmer said. “The service basically says ‘here’s an SSN and proxy connection that should correspond to that user’s location and make sense to different websites.'”

MRMURZA

Faceless is a project from MrMurza, a particularly talkative member of more than a dozen Russian-language cybercrime forums over the past decade. According to cyber intelligence firm Flashpoint, MrMurza has been active in the Russian underground since at least September 2012. Flashpoint said MrMurza appears to be extensively involved in botnet activity and “drops” — fraudulent bank accounts created using stolen identity data that are often used in money laundering and cash-out schemes.

Faceless grew out of a popular anonymity service called iSocks, which was launched in 2014 and advertised on multiple Russian crime forums as a proxy service that customers could use to route their malicious Web traffic through compromised computers.

Flashpoint says that in the months before iSocks went online, MrMurza posted on the Russian language crime forum Verified asking for a serious partner to assist in opening a proxy service, noting they had a botnet that was powered by malware that collected proxies with a 70 percent infection rate.

In September 2016, MrMurza sent a message to all iSocks users saying the service would soon be phased out in favor of Faceless, and that existing iSocks users could register at Faceless for free if they did so quickly — before Faceless began charging new users registration fees between $50 and $100.

Verified and other Russian language crime forums where MrMurza had a presence have been hacked over the years, with contact details and private messages leaked online. In a 2014 private message to the administrator of Verified explaining his bona fides, MrMurza said he received years of positive feedback as a seller of stolen Italian credit cards and a vendor of drops services.

MrMurza told the Verified admin that he used the nickname AccessApproved on multiple other forums over the years. MrMurza also told the admin that his account number at the now-defunct virtual currency Liberty Reserve was U1018928.

According to cyber intelligence firm Intel 471, the user AccessApproved joined the Russian crime forum Zloy in Jan. 2012, from an Internet address in Magnitogorsk, RU. In a 2012 private message where AccessApproved was arguing with another cybercriminal over a deal gone bad, AccessApproved asked to be paid at the Liberty Reserve address U1018928.

In 2013, U.S. federal investigators seized Liberty Reserve and charged its founders with facilitating billions of dollars in money laundering tied to cybercrime. The Liberty Reserve case was prosecuted out of the Southern District of New York, which in 2016 published a list of account information (PDF) tied to thousands of Liberty Reserve addresses the government asserts were involved in money laundering.

That document indicates the Liberty Reserve account claimed by MrMurza/AccessApproved — U1018928 — was assigned in 2011 to a “Vadim Panov” who used the email address lesstroy@mgn.ru.

PANOV

Constella Intelligence, a threat intelligence firm that tracks breached databases, says lesstroy@mgn.ru was used for an account “Hackerok” at the accounting service klerk.ru that was created from an Internet address in Magnitogorsk. The password chosen by this user was “1232.”

In addition to selling access to hacked computers and bank accounts, both MrMurza and AccessApproved ran side hustles on the crime forums selling clothing from popular retailers that refused to ship directly to Russia.

On one cybercrime forum where AccessApproved had clothing customers, denizens of the forum created a lengthy discussion thread to help users identify incoming emails associated with various reshipping services advertised within their community. Reshippers tend to rely on a large number of people in the United States and Europe helping to forward packages overseas, but in many cases the notifications about purchases and shipping details would be forwarded to reshipping service customers from a consistent email account.

That thread said AccessApproved’s clothing reshipping service forwarded confirmation emails from the address panov-v@mail.ru. This address is associated with accounts on two Russian cybercrime forums registered from Magnitogorsk in 2010 using the handle “Omega^gg4u.”

This Omega^gg4u identity sold software that can rapidly check the validity of large batches of stolen credit cards. Interestingly, both Omega^gg4u and AccessApproved also had another niche: Reselling heavily controlled substances — such as human growth hormone and anabolic steroids — from chemical suppliers in China.

A search in Constella on the address panov-v@mail.ru and many variations on that address shows these accounts cycled through the same passwords, including 055752403k, asus666, 01091987h, and the relatively weak password 1232 (recall that 1232 was picked by whoever registered the lesstroy@mgn.ru account at Klerk.ru).

Constella says the email address asus666@yandex.ru relied on the passwords asus666 and 01091987h. The 01091987h password also was used by asus666@mail.ru, which also favored the password 24587256.

Constella further reports that whoever owned the much shorter address asus@mail.ru also used the password 24587256. In addition, it found the password 2318922479 was tied to both asus666@mail.ru and asus@mail.ru.

The email addresses asus@mail.ru, asus2504@mail.ru, and zaxar2504@rambler.ru were all used to register Vkontakte social media accounts for a Denis ***@VIP*** Pankov. There are a number of other Vkontakte accounts registered to asus@mail.ru and many variations of this address under a different name. But none of those other profiles appear tied to real-life identities.

PANKOV

Constella’s data shows the email addresses asus2504@mail.ru and zaxar2504@rambler.ru used the rather unique password denis250485, which was also used by the email address denispankov@yandex.ru and almost a dozen variations at other Russian-language email providers.

Russian vehicle registration records from 2016 show the email address denispankov@yandex.ru belongs to Denis Viktorovich Pankov, born on April 25, 1985. That explains the “250485” portion of Pankov’s favored password. The registration records further indicate that in 2016 Pankov’s vehicle was registered in a suburb of Moscow.

Russian incorporation records show that denispankov@yandex.com is tied to IP Pankov Denis Viktorovich, a now-defunct transportation company in the Volograd Oblast, a region in southern Russia that shares a long border with western Kazazkhstan.

More recent records for IP Pankov Denis Viktorovich show a microenterprise with this name in Omsk that described its main activity as “retail sale by mail or via the Internet.” Russian corporate records indicate this entity was liquidated in 2021.

A reverse password search on “denis250485” via Constella shows this password was used by more than 75 email addresses, most of which are some variation of gaihnik@mail.ru — such as gaihnik25@mail.ru, or gaihnik2504@rambler.ru.

In 2012, someone posted answers to a questionnaire on behalf of Denis Viktorovich Pankov to a Russian-language discussion forum on Chinese crested dog breeds. The message said Pankov was seeking a puppy of a specific breed and was a resident of Krasnogorsk, a city that is adjacent to the northwestern boundary of Moscow.

The message said Pankov was a then 27-year-old manager in an advertising company, and could be reached at the email address gaihnik@mail.ru.

GAIHNIK

Constella Intelligence shows gaihnik@mail.ru registered at the now-defunct email marketing service Smart Responder from an address in Gagarin, which is about 115 miles west of Moscow.

Back in 2015, the user Gaihnik25 was banned from the online game World of Tanks for violating the game’s terms that prohibit “bot farming,” or the automated use of large numbers of player accounts to win some advantage that is usually related to cashing out game accounts or inventory.

For the past few years, someone using the nickname Gaihnik25 has been posting messages to the Russian-language hacking forum Gerki[.]pw, on discussion threads regarding software designed to “brute force” or mass-check online accounts for weak or compromised passwords.

A new member of the Russian hacking forum Nohide[.]Space using the handle Gaihnik has been commenting recently about proxy services, credential checking software, and the sale of hacked mailing lists. Gaihnik’s first post on the forum concerned private software for checking World of Tanks accounts.

The address gaihnik@mail.ru shows how so many email addresses tied to Pankov were also connected to apparently misleading identities on Vkontakte and elsewhere. Constella found this address was tied to a Vkontakte account for a Dmitriy Zakarov.

Microsoft’s Bing search engine says gaihnik@mail.ru belongs to 37-year-old Denis Pankov, yet clicking the Mail.ru profile for that user brings up a profile for a much older man by the name Gavril Zakarov. However, when you log in to a Mail.ru account and view that profile, it shows that most of the account’s profile photos are of a much younger man.

Many of those same photos show up in an online dating profile at dating.ru for the user Gaihnik, a.k.a “Denchik,” who says he is a 37-year-old Taurus from Gagarin who enjoys going for walks in nature, staying up late, and being on the Internet.

Mr. Pankov did not respond to multiple requests for comment sent to all of the email addresses mentioned in this story. However, some of those addresses produced detailed error responses; Mail.ru reported that the users panov-v@mail.ru, asus666@mail.ru, and asus2504@mail.ru were terminated, and that gaihnik25@mail.ru is now disabled.

Messages sent to many other email addresses connected via passwords to Pankov and using some variation of asus####@mail.ru also returned similar account termination messages.

Why is ‘Juice Jacking’ Suddenly Back in the News?

KrebsOnSecurity received a nice bump in traffic this week thanks to tweets from the Federal Bureau of Investigation (FBI) and the Federal Communications Commission (FCC) about “juice jacking,” a term first coined here in 2011 to describe a potential threat of data theft when one plugs their mobile device into a public charging kiosk. It remains unclear what may have prompted the alerts, but the good news is that there are some fairly basic things you can do to avoid having to worry about juice jacking.

On April 6, 2023, the FBI’s Denver office issued a warning about juice jacking in a tweet.

“Avoid using free charging stations in airports, hotels or shopping centers,” the FBI’s Denver office warned. “Bad actors have figured out ways to use public USB ports to introduce malware and monitoring software onto devices. Carry your own charger and USB cord and use an electrical outlet instead.”

Five days later, the Federal Communications Commission (FCC) issued a similar warning. “Think twice before using public charging stations,” the FCC tweeted. “Hackers could be waiting to gain access to your personal information by installing malware and monitoring software to your devices. This scam is referred to as juice jacking.”

The FCC tweet also provided a link to the agency’s awareness page on juice jacking, which was originally published in advance of the Thanksgiving Holiday in 2019 but was updated in 2021 and then again shortly after the FBI’s tweet was picked up by the news media. The alerts were so broadly and breathlessly covered in the press that a mention of juice jacking even made it into this week’s Late Late Show with James Corden.

The term juice jacking crept into the collective paranoia of gadget geeks in the summer of 2011, thanks to the headline for a story here about researchers at the DEFCON hacker convention in Vegas who’d set up a mobile charging station designed to educate the unwary to the reality that many mobile devices connected to a computer would sync their data by default.

Since then, Apple, Google and other mobile device makers have changed the way their hardware and software works so that their devices no longer automatically sync data when one plugs them into a computer with a USB charging cable. Instead, users are presented with a prompt asking if they wish to trust a connected computer before any data transfer can take place.

On the other hand, the technology needed to conduct a sneaky juice jacking attack has become far more miniaturized, accessible and cheap. And there are now several products anyone can buy that are custom-built to enable juice jacking attacks.

Probably the best known example is the OMG cable, a $180 hacking device made for professional penetration testers that looks more or less like an Apple or generic USB charging cable. But inside the OMG cable is a tiny memory chip and a Wi-Fi transmitter that creates a Wi-Fi hotspot, to which the attacker can remotely connect using a smartphone app and run commands on the device.

Brian Markus is co-founder of Aries Security, and one of the researchers who originally showcased the threat from juice jacking at the 2011 DEFCON. Markus said he isn’t aware of any public accounts of juice jacking kiosks being found in the wild, and said he’s unsure what prompted the recent FBI alert.

But Markus said juice jacking is still a risk because it is far easier and cheaper these days for would-be attackers to source and build the necessary equipment.

“Since then, the technology and components have become much smaller and very easy to build, which puts this in the hands of less sophisticated threat actors,” Markus said. “Also, you can now buy all this stuff over the counter. I think the risk is possibly higher now than it was a decade ago, because a much larger population of people can now pull this off easily.”

How seriously should we take the recent FBI warning? An investigation by the myth-busting site Snopes suggests the FBI tweet was just a public service announcement based on a dated advisory. Snopes reached out to both the FBI and the FCC to request data about how widespread the threat of juice jacking is in 2023.

“The FBI replied that its tweet was a ‘standard PSA-type post’ that stemmed from the FCC warning,” Snopes reported. “An FCC spokesperson told Snopes that the commission wanted to make sure that their advisory on “juice-jacking,” first issued in 2019 and later updated in 2021, was up-to-date so as to ensure ‘the consumers have the most up-to-date information.’ The official, who requested anonymity, added that they had not seen any rise in instances of consumer complaints about juice-jacking.”

What can you do to avoid juice jacking? Bring your own gear. A general rule of thumb in security is that if an adversary has physical access to your device, you can no longer trust the security or integrity of that device. This also goes for things that plug into your devices.

Juice jacking isn’t possible if a device is charged via a trusted AC adapter, battery backup device, or through a USB cable with only power wires and no data wires present. If you lack these things in a bind and still need to use a public charging kiosk or random computer, at least power your device off before plugging it in.

Microsoft (& Apple) Patch Tuesday, April 2023 Edition

Microsoft today released software updates to plug 100 security holes in its Windows operating systems and other software, including a zero-day vulnerability that is already being used in active attacks. Not to be outdone, Apple has released a set of important updates addressing two zero-day vulnerabilities that are being used to attack iPhones, iPads and Macs.

On April 7, Apple issued emergency security updates to fix two weaknesses that are being actively exploited, including CVE-2023-28206, which can be exploited by apps to seize control over a device. CVE-2023-28205 can be used by a malicious or hacked website to install code.

Both vulnerabilities are addressed in iOS/iPadOS 16.4.1, iOS 15.7.5, and macOS 12.6.5 and 11.7.6. If you use Apple devices and you don’t have automatic updates enabled (they are on by default), you should probably take care of that soon as detailed instructions on how to attack CVE-2023-28206 are now public.

Microsoft’s bevy of 100 security updates released today include CVE-2023-28252, which is a weakness in Windows that Redmond says is under active attack. The vulnerability is in the Windows Common Log System File System (CLFS) driver, a core Windows component that was the source of attacks targeting a different zero-day vulnerability in February 2023.

“If it seems familiar, that’s because there was a similar 0-day patched in the same component just two months ago,” said Dustin Childs at the Trend Micro Zero Day Initiative. “To me, that implies the original fix was insufficient and attackers have found a method to bypass that fix. As in February, there is no information about how widespread these attacks may be. This type of exploit is typically paired with a code execution bug to spread malware or ransomware.”

According to the security firm Qualys, this vulnerability has been leveraged by cyber criminals to deploy Nokoyawa ransomware.

“This is a relatively new strain for which there is some open source intel to suggest that it is possibly related to Hive ransomware – one of the most notable ransomware families of 2021 and linked to breaches of over 300+ organizations in a matter of just a few months,” said Bharat Jogi, director of vulnerability and threat research at Qualys.

Jogi said while it is still unclear which exact threat actor is targeting CVE-2023-28252, targets have been observed in South and North America, regions across Asia and at organizations in the Middle East.

Satnam Narang at Tenable notes that CVE-2023-28252 is also the second CLFS zero-day disclosed to Microsoft by researchers from Mandiant and DBAPPSecurity (CVE-2022-37969), though it is unclear if both of these discoveries are related to the same attacker.

Seven of the 100 vulnerabilities Microsoft fixed today are rated “Critical,” meaning they can be used to install malicious code with no help from the user. Ninety of the flaws earned Redmond’s slightly less-dire “Important” label, which refers to weaknesses that can be used to undermine the security of the system but which may require some amount of user interaction.

Narang said Microsoft has rated nearly 90% of this month’s vulnerabilities as “Exploitation Less Likely,” while just 9.3% of flaws were rated as “Exploitation More Likely.” Kevin Breen at Immersive Labs zeroed in on several notable flaws in that 9.3%, including CVE-2023-28231, a remote code execution vulnerability in a core Windows network process (DHCP) with a CVSS score of 8.8.

“‘Exploitation more likely’ means it’s not being actively exploited but adversaries may look to try and weaponize this one,” Breen said. “Micorosft does note that successful exploitation requires an attacker to have already gained initial access to the network. This could be via social engineering, spear phishing attacks, or exploitation of other services.”

Breen also called attention to CVE-2023-28220 and CVE-2023-28219 — a pair of remote code execution vulnerabilities affecting Windows Remote Access Servers (RAS) that also earned Microsoft’s “exploitation more likely” label.

“An attacker can exploit this vulnerability by sending a specially crafted connection request to a RAS server, which could lead to remote code execution,” Breen said. While not standard in all organizations, RAS servers typically have direct access from the Internet where most users and services are connected. This makes it extremely enticing for attackers as they don’t need to socially engineer their way into an organization. They can simply scan the internet for RAS servers and automate the exploitation of vulnerable devices.”

For more details on the updates released today, see the SANS Internet Storm Center roundup. If today’s updates cause any stability or usability issues in Windows, AskWoody.com will likely have the lowdown on that.

Please consider backing up your data and/or imaging your system before applying any updates. And feel free to sound off in the comments if you experience any problems as a result of these patches.

A Serial Tech Investment Scammer Takes Up Coding?

John Clifton Davies, a 60-year-old con man from the United Kingdom who fled the country in 2015 before being sentenced to 12 years in prison for fraud, has enjoyed a successful life abroad swindling technology startups by pretending to be a billionaire investor. Davies’ newest invention appears to be “CodesToYou,” which purports to be a “full cycle software development company” based in the U.K.

Several articles here have delved into the history of John Bernard, the pseudonym used by a fake billionaire technology investor who tricked dozens of startups into giving him tens of millions of dollars.

John Bernard’s real name is John Clifton Davies, a convicted fraudster from the United Kingdom who is currently a fugitive from justice. For several years until reinventing himself again quite recently, Bernard pretended to be a billionaire Swiss investor who made his fortunes in the dot-com boom 20 years ago.

“The Private Office of John Bernard” let it be known to investment brokers that he had tens of millions of dollars to invest in tech startups, and he attracted a stream of new victims by offering extraordinarily generous finder’s fees to brokers who helped him secure new clients. But those brokers would eventually get stiffed because Bernard’s company would never consummate a deal.

Bernard would promise to invest millions in tech startups, and then insist that companies pay tens of thousands of dollars worth of due diligence fees up front. However, the due diligence company he insisted on using — another Swiss firm called The Inside Knowledge GmbH — also was secretly owned by Bernard, who would invariably pull out of the deal after receiving the due diligence money.

A variety of clues suggest Davies has recently adopted at least one other identity — Alan John Mykhailov — who is listed as chairman of a British concern called CodesToYou LTD, incorporated in May 2022. The CodesToYou website says the company employs talented coders in several countries, and that its programmers offer “your ultimate balance between speed, cost and quality.”

In response to questions from KrebsOnSecurity, CodesToYou’s marketing manager — who gave their name only as “Zhena” — said the company was not affiliated with any John Bernard or John Clifton Davies, and maintained that CodesToYou is a legitimate enterprise.

But publicly available information about this company and its leadership suggests otherwise. Official incorporation documents from the U.K.’s Companies House represent that CodesToYou is headed by an Alan John Mykhailov, a British citizen born in March 1958.

Companies House says Mykhailov is an officer in three other companies, including one called Blackstone Corporate Alliance Ltd. According to the Swiss business tracking service business-monitor.ch, Blackstone Corporate Alliance Ltd. is currently the entity holding a decision-making role in John Bernard’s fake due diligence company — The Inside Knowledge GmbH — which is now in liquidation.

Also listed as a partner in Blackstone Corporate Alliance Limited is Igor Hubskyi (a.k.a. Igor Gubskyi), a Ukrainian man who was previously president of The Inside Knowledge GmbH.

The CodesToYou website says the company’s marketing team lead is Maria Yakovleva, and the photo of this employee matches the profile for the LinkedIn account name “Maria Y.” That same LinkedIn profile and photo previously listed Maria by a different first and last name — Mariya Kulikova; back then, Ms. Kulikova’s LinkedIn profile said she was an executive assistant in The Private Office of Mr. John Bernard.

Companies House lists Alan John Mykhailov as a current officer in two other companies, including Frisor Limited, and Ardelis Solutions Limited. A cached copy of the now-defunct Ardelis Solutions website says it was a private equity firm.

CodesToYou’s Maria also included Ardelis Solutions in the work history section of her LinkedIn resume. That is, until being contacted by this author on LinkedIn, after which Maria’s profile picture and any mention of Ardelis Solutions were deleted.

Listed as head of business development at CodesToYou is David Bruno, a Canadian man whose LinkedIn profile says he is founder of an organization called “World Privacy Resource.” As KrebsOnSecurity reported in 2020, Bruno was at the time promoting himself as the co-CEO of a company called SafeSwiss Secure Communication AG, and the founder of another tech startup called Secure Swiss Data.

Secure Swiss Data’s domain — secureswissdata.com — is a Swiss concern that sells encrypted email and data services. According to DomainTools.com, that website name was registered in 2015 by The Inside Knowledge GmbH. In February 2020, a press release announced that Secure Swiss Data was purchased in an “undisclosed multimillion buyout” by SafeSwiss Secure Communication AG.

When reached in 2020 and asked about his relationship to Mr. Bernard, Mr. Bruno said the two were business partners and that he couldn’t imagine that Mr. Bernard would be involved in anything improper. To this day Mr. Bruno is the only person I’ve spoken to who has had anything positive to say about Mr. Bernard.

Mr. Bruno did not respond to requests for comment this time around, but his LinkedIn profile no longer makes any mention of Secure Swiss Data or SafeSwiss — both companies he claimed to run for many years. Nor does it mention CodesToYou. However, Mr. Bruno’s former company SafeSwiss is listed as one of the six “portfolio” companies whose services are promoted on the CodesToYou website.

In mid-2021, Bruno announced he was running for public office in Ontario.

“The Kenora resident is no stranger to the government as he contributed to Canada’s new Digital Charter, Bill C-11, which is a new Cyber Security policy,” reported Drydennow.com, a news website that covers Northwestern Ontario. Drydennow says the next federal election is expected to be held on or before Oct. 16, 2023.

John Clifton Davies was convicted in 2015 of swindling businesses throughout the U.K. that were struggling financially and seeking to restructure their debt. For roughly six years, Davies ran a series of firms that pretended to offer insolvency services, but instead simply siphoned what little remaining money these companies had.

The very first entity mentioned in the technology portfolio advertised on the CodesToYou website is called “MySolve,” and it purports to offer a “multi-feature platform for insolvency practitioners.”

Mr. Davies’ fourth wife, Iryna Davies, is listed as a director of one of the insolvency consulting businesses in the U.K. that was part of John Davies’ 2015 fraud conviction. Prior to his trial for fraud, Davies served 16 months in jail before being cleared of murdering his third wife on their honeymoon in India: Colette Davies, 39, died after falling 80 feet from a viewing point at a steep gorge in the Himachal Pradesh region of India.

Mr. Davies was charged with murder and fraud after he attempted to collect GBP 132,000 in her life insurance payout, but British prosecutors ultimately conceded they did not have enough evidence to convict him.

The scams favored by Davies and his alter egos are smart because he never approaches investors directly; rather, investors are incentivized to put his portfolio in front of tech firms seeking financial backing. And all the best cons begin as an idea or possibility planted in the target’s mind.

It’s also a reliable scam because companies bilked by small-time investment schemes rarely pursue legal action, mainly because the legal fees involved can quickly surpass the losses. On top of that, many victims will likely be too ashamed to admit their duping. Victims who do press their case in court and win then face the daunting challenge of collecting damages from a slew of ephemeral shell corporations.

The latest Bernard victim to speak publicly — a Norwegian company hoping to build a fleet of environmentally friendly shipping vessels — is now embroiled in a lawsuit over a deal gone bad. As part of that scam, Bernard falsely claimed to have secured $100 million from six other wealthy investors, including the founder of Uber and the artist Abel Makkonen Tesfaye, better known as The Weeknd.