FBI’s LockBit Takedown Postponed a Ticking Time Bomb in Fulton County, Ga.

The FBI’s takedown of the LockBit ransomware group last week came as LockBit was preparing to release sensitive data stolen from government computer systems in Fulton County, Ga. But LockBit is now regrouping, and the gang says it will publish the stolen Fulton County data on March 2 unless paid a ransom. LockBit claims the cache includes documents tied to the county’s ongoing criminal prosecution of former President Trump, but court watchers say teaser documents published by the crime gang suggest a total leak of the Fulton County data could put lives at risk and jeopardize a number of other criminal trials.

In early February, Fulton County leaders acknowledged they were responding to an intrusion that caused disruptions for its phone, email and billing systems, as well as a range of county services, including court systems.

On Feb. 13, the LockBit ransomware group posted on its victim shaming blog a new entry for Fulton County, featuring a countdown timer saying the group would publish the data on Feb. 16 unless county leaders agreed to negotiate a ransom.

“We will demonstrate how local structures negligently handled information protection,” LockBit warned. “We will reveal lists of individuals responsible for confidentiality. Documents marked as confidential will be made publicly available. We will show documents related to access to the state citizens’ personal data. We aim to give maximum publicity to this situation; the documents will be of interest to many. Conscientious residents will bring order.”

Yet on Feb. 16, the entry for Fulton County was removed from LockBit’s site without explanation. This usually only happens after the victim in question agrees to pay a ransom demand and/or enters into negotiations with their extortionists.

However, Fulton County Commission Chairman Robb Pitts said the board decided it “could not in good conscience use Fulton County taxpayer funds to make a payment.”

“We did not pay nor did anyone pay on our behalf,” Pitts said at an incident briefing on Feb. 20.

Just hours before that press conference, LockBit’s various websites were seized by the FBI and the U.K.’s National Crime Agency (NCA), which replaced the ransomware group’s homepage with a seizure notice and used the existing design of LockBit’s victim shaming blog to publish press releases about the law enforcement action.

Dubbed “Operation Cronos,” the effort involved the seizure of nearly three-dozen servers; the arrest of two alleged LockBit members; the release of a free LockBit decryption tool; and the freezing of more than 200 cryptocurrency accounts thought to be tied to the gang’s activities. The government says LockBit has claimed more than 2,000 victims worldwide and extorted over $120 million in payments.

UNFOLDING DISASTER

In a lengthy, rambling letter published on Feb. 24 and addressed to the FBI, the ransomware group’s leader LockBitSupp announced that their victim shaming websites were once again operational on the dark web, with fresh countdown timers for Fulton County and a half-dozen other recent victims.

“The FBI decided to hack now for one reason only, because they didn’t want to leak information fultoncountyga.gov,” LockBitSupp wrote. “The stolen documents contain a lot of interesting things and Donald Trump’s court cases that could affect the upcoming US election.”

LockBit has already released roughly two dozen files allegedly stolen from Fulton County government systems, although none of them involve Mr. Trump’s criminal trial. But the documents do appear to include court records that are sealed and shielded from public viewing.

George Chidi writes The Atlanta Objective, a Substack publication on crime in Georgia’s capital city. Chidi says the leaked data so far includes a sealed record related to a child abuse case, and a sealed motion in the murder trial of Juwuan Gaston demanding the state turn over confidential informant identities.

Chidi cites reports from a Fulton County employee who said the confidential material includes the identities of jurors serving on the trial of the rapper Jeffery “Young Thug” Williams, who is charged along with five other defendants in a racketeering and gang conspiracy.

“The screenshots suggest that hackers will be able to give any attorney defending a criminal case in the county a starting place to argue that evidence has been tainted or witnesses intimidated, and that the release of confidential information has compromised cases,” Chidi wrote. “Judge Ural Glanville has, I am told by staff, been working feverishly behind the scenes over the last two weeks to manage the unfolding disaster.”

LockBitSupp also denied assertions made by the U.K.’s NCA that LockBit did not delete stolen data as promised when victims agreed to pay a ransom. The accusation is an explosive one because nobody will pay a ransom if they don’t believe the ransomware group will hold up its end of the bargain.

The ransomware group leader also confirmed information first reported here last week, that federal investigators managed to hack LockBit by exploiting a known vulnerability in PHP, a scripting language that is widely used in Web development.

“Due to my personal negligence and irresponsibility I relaxed and did not update PHP in time,” LockBitSupp wrote. “As a result of which access was gained to the two main servers where this version of PHP was installed.”

LockBitSupp’s FBI letter said the group kept copies of its stolen victim data on servers that did not use PHP, and that consequently it was able to retain copies of files stolen from victims. The letter also listed links to multiple new instances of LockBit dark net websites, including the leak page listing Fulton County’s new countdown timer.

“Even after the FBI hack, the stolen data will be published on the blog, there is no chance of destroying the stolen data without payment,” LockBitSupp wrote. “All FBI actions are aimed at destroying the reputation of my affiliate program, my demoralization, they want me to leave and quit my job, they want to scare me because they can not find and eliminate me, I can not be stopped, you can not even hope, as long as I am alive I will continue to do pentest with postpaid.”

DOX DODGING

In January 2024, LockBitSupp told XSS forum members he was disappointed the FBI hadn’t offered a reward for his doxing and/or arrest, and that in response he was placing a bounty on his own head — offering $10 million to anyone who could discover his real name.

After the NCA and FBI seized LockBit’s site, the group’s homepage was retrofitted with a blog entry titled, “Who is LockBitSupp? The $10M question.” The teaser made use of LockBit’s own countdown timer, and suggested the real identity of LockBitSupp would soon be revealed.

However, after the countdown timer expired the page was replaced with a taunting message from the feds, but it included no new information about LockBitSupp’s identity.

On Feb. 21, the U.S. Department of State announced rewards totaling up to $15 million for information leading to the arrest and/or conviction of anyone participating in LockBit ransomware attacks. The State Department said $10 million of that is for information on LockBit’s leaders, and up to $5 million is offered for information on affiliates.

In an interview with the malware-focused Twitter/X account Vx-Underground, LockBit staff asserted that authorities had arrested a couple of small-time players in their operation, and that investigators still do not know the real-life identities of the core LockBit members, or that of their leader.

“They assert the FBI / NCA UK / EUROPOL do not know their information,” Vx-Underground wrote. “They state they are willing to double the bounty of $10,000,000. They state they will place a $20,000,000 bounty of their own head if anyone can dox them.”

TROUBLE ON THE HOMEFRONT?

In the weeks leading up to the FBI/NCA takedown, LockBitSupp became embroiled in a number of high-profile personal and business disputes on the Russian cybercrime forums.

Earlier this year, someone used LockBit ransomware to infect the networks of AN-Security, a venerated 30-year-old security and technology company based in St. Petersburg, Russia. This violated the golden rule for cybercriminals based in Russia and former soviet nations that make up the Commonwealth of Independent States, which is that attacking your own citizens in those countries is the surest way to get arrested and prosecuted by local authorities.

LockBitSupp later claimed the attacker had used a publicly leaked, older version of LockBit to compromise systems at AN-Security, and said the attack was an attempt to smear their reputation by a rival ransomware group known as “Clop.” But the incident no doubt prompted closer inspection of LockBitSupp’s activities by Russian authorities.

Then in early February, the administrator of the Russian-language cybercrime forum XSS said LockBitSupp had threatened to have him killed after the ransomware group leader was banned by the community. LockBitSupp was excommunicated from XSS after he refused to pay an arbitration amount ordered by the forum administrator. That dispute related to a complaint from another forum member who said LockBitSupp recently stiffed him on his promised share of an unusually large ransomware payout.

INTERVIEW WITH LOCKBITSUPP

KrebsOnSecurity sought comment from LockBitSupp at the ToX instant messenger ID listed in his letter to the FBI. LockBitSupp declined to elaborate on the unreleased documents from Fulton County, saying the files will be available for everyone to see in a few days.

LockBitSupp said his team was still negotiating with Fulton County when the FBI seized their servers, which is why the county has been granted a time extension. He also denied threatening to kill the XSS administrator.

“I have not threatened to kill the XSS administrator, he is blatantly lying, this is to cause self-pity and damage my reputation,” LockBitSupp told KrebsOnSecurity. “It is not necessary to kill him to punish him, there are more humane methods and he knows what they are.”

Asked why he was so certain the FBI doesn’t know his real-life identity, LockBitSupp was more precise.

“I’m not sure the FBI doesn’t know who I am,” he said. “I just believe they will never find me.”

It seems unlikely that the FBI’s seizure of LockBit’s infrastructure was somehow an effort to stave off the disclosure of Fulton County’s data, as LockBitSupp maintains. For one thing, Europol said the takedown was the result of a months-long infiltration of the ransomware group.

Also, in reporting on the attack’s disruption to the office of Fulton County District Attorney Fani Willis on Feb. 14, CNN reported that by then the intrusion by LockBit had persisted for nearly two and a half weeks.

Finally, if the NCA and FBI really believed that LockBit never deleted victim data, they had to assume LockBit would still have at least one copy of all their stolen data hidden somewhere safe.

Fulton County is still trying to recover systems and restore services affected by the ransomware attack. “Fulton County continues to make substantial progress in restoring its systems following the recent ransomware incident resulting in service outages,” reads the latest statement from the county on Feb. 22. “Since the start of this incident, our team has been working tirelessly to bring services back up.”

Update, Feb. 29, 3:22 p.m. ET: Just hours after this story ran, LockBit changed its countdown timer for Fulton County saying they had until the morning of Feb. 29 (today) to pay a ransonm demand. When the official deadline neared today, Fulton County’s listing was removed from LockBit’s victim shaming website. Asked about the removal of the listing, LockBit’s leader “LockBitSupp” told KrebsOnSecurity that Fulton County paid a ransom demand. County officials have scheduled a press conference on the ransomware attack at 4:15 p.m. ET today.

New Leak Shows Business Side of China’s APT Menace

A new data leak that appears to have come from one of China’s top private cybersecurity firms provides a rare glimpse into the commercial side of China’s many state-sponsored hacking groups. Experts say the leak illustrates how Chinese government agencies increasingly are contracting out foreign espionage campaigns to the nation’s burgeoning and highly competitive cybersecurity industry.

A large cache of more than 500 documents published to GitHub last week indicate the records come from i-SOON, a technology company headquartered in Shanghai that is perhaps best known for providing cybersecurity training courses throughout China. But the leaked documents, which include candid employee chat conversations and images, show a less public side of i-SOON, one that frequently initiates and sustains cyberespionage campaigns commissioned by various Chinese government agencies.

The leaked documents suggest i-SOON employees were responsible for a raft of cyber intrusions over many years, infiltrating government systems in the United Kingdom and countries throughout Asia. Although the cache does not include raw data stolen from cyber espionage targets, it features numerous documents listing the level of access gained and the types of data exposed in each intrusion.

Security experts who reviewed the leaked data say they believe the information is legitimate, and that i-SOON works closely with China’s Ministry of Public Security and the military. In 2021, the Sichuan provincial government named i-SOON as one of “the top 30 information security companies.”

“The leak provides some of the most concrete details seen publicly to date, revealing the maturing nature of China’s cyber espionage ecosystem,” said Dakota Cary, a China-focused consultant at the security firm SentinelOne. “It shows explicitly how government targeting requirements drive a competitive marketplace of independent contractor hackers-for-hire.”

Mei Danowski is a former intelligence analyst and China expert who now writes about her research in a Substack publication called Natto Thoughts. Danowski said i-SOON has achieved the highest secrecy classification that a non-state-owned company can receive, which qualifies the company to conduct classified research and development related to state security.

i-SOON’s “business services” webpage states that the company’s offerings include public security, anti-fraud, blockchain forensics, enterprise security solutions, and training. Danowski said that in 2013, i-SOON established a department for research on developing new APT network penetration methods.

APT stands for Advanced Persistent Threat, a term that generally refers to state-sponsored hacking groups. Indeed, among the documents apparently leaked from i-SOON is a sales pitch slide boldly highlighting the hacking prowess of the company’s “APT research team” (see screenshot above).

The leaked documents included a lengthy chat conversation between the company’s founders, who repeatedly discuss flagging sales and the need to secure more employees and government contracts. Danowski said the CEO of i-SOON, Wu Haibo (“Shutdown” in the leaked chats) is a well-known first-generation red hacker or “Honker,” and an early member of Green Army — the very first Chinese hacktivist group founded in 1997. Mr. Haibo has not yet responded to a request for comment.

In October 2023, Danowski detailed how i-SOON became embroiled in a software development contract dispute when it was sued by a competing Chinese cybersecurity company called Chengdu 404. In September 2020, the U.S. Department of Justice unsealed indictments against multiple Chengdu 404 employees, charging that the company was a facade that hid more than a decade’s worth of cyber intrusions attributed to a threat actor group known as “APT 41.”

Danowski said the existence of this legal dispute suggests that Chengdu 404 and i-SOON have or at one time had a business relationship, and that one company likely served as a subcontractor to the other.

“From what they chat about we can see this is a very competitive industry, where companies in this space are constantly poaching each others’ employees and tools,” Danowski said. “The infosec industry is always trying to distinguish [the work] of one APT group from another. But that’s getting harder to do.”

It remains unclear if i-SOON’s work has earned it a unique APT designation. But Will Thomas, a cyber threat intelligence researcher at Equinix, found an Internet address in the leaked data that corresponds to a domain flagged in a 2019 Citizen Lab report about one-click mobile phone exploits that were being used to target groups in Tibet. The 2019 report referred to the threat actor behind those attacks as an APT group called Poison Carp.

Several images and chat records in the data leak suggest i-SOON’s clients periodically gave the company a list of targets they wanted to infiltrate, but sometimes employees confused the instructions. One screenshot shows a conversation in which an employee tells his boss they’ve just hacked one of the universities on their latest list, only to be told that the victim in question was not actually listed as a desired target.

The leaked chats show i-SOON continuously tried to recruit new talent by hosting a series of hacking competitions across China. It also performed charity work, and sought to engage employees and sustain morale with various team-building events.

However, the chats include multiple conversations between employees commiserating over long hours and low pay. The overall tone of the discussions indicates employee morale was quite low and that the workplace environment was fairly toxic. In several of the conversations, i-SOON employees openly discuss with their bosses how much money they just lost gambling online with their mobile phones while at work.

Danowski believes the i-SOON data was probably leaked by one of those disgruntled employees.

“This was released the first working day after the Chinese New Year,” Danowski said. “Definitely whoever did this planned it, because you can’t get all this information all at once.”

SentinelOne’s Cary said he came to the same conclusion, noting that the Protonmail account tied to the GitHub profile that published the records was registered a month before the leak, on January 15, 2024.

China’s much vaunted Great Firewall not only lets the government control and limit what citizens can access online, but this distributed spying apparatus allows authorities to block data on Chinese citizens and companies from ever leaving the country.

As a result, China enjoys a remarkable information asymmetry vis-a-vis virtually all other industrialized nations. Which is why this apparent data leak from i-SOON is such a rare find for Western security researchers.

“I was so excited to see this,” Cary said. “Every day I hope for data leaks coming out of China.”

That information asymmetry is at the heart of the Chinese government’s cyberwarfare goals, according to a 2023 analysis by Margin Research performed on behalf of the Defense Advanced Research Projects Agency (DARPA).

“In the area of cyberwarfare, the western governments see cyberspace as a ‘fifth domain’ of warfare,” the Margin study observed. “The Chinese, however, look at cyberspace in the broader context of information space. The ultimate objective is, not ‘control’ of cyberspace, but control of information, a vision that dominates China’s cyber operations.”

The National Cybersecurity Strategy issued by the White House last year singles out China as the biggest cyber threat to U.S. interests. While the United States government does contract certain aspects of its cyber operations to companies in the private sector, it does not follow China’s example in promoting the wholesale theft of state and corporate secrets for the commercial benefit of its own private industries.

Dave Aitel, a co-author of the Margin Research report and former computer scientist at the U.S. National Security Agency, said it’s nice to see that Chinese cybersecurity firms have to deal with all of the same contracting headaches facing U.S. companies seeking work with the federal government.

“This leak just shows there’s layers of contractors all the way down,” Aitel said. “It’s pretty fun to see the Chinese version of it.”

U.S. Internet Leaked Years of Internal, Customer Emails

The Minnesota-based Internet provider U.S. Internet Corp. has a business unit called Securence, which specializes in providing filtered, secure email services to businesses, educational institutions and government agencies worldwide. But until it was notified last week, U.S. Internet was publishing more than a decade’s worth of its internal email — and that of thousands of Securence clients — in plain text out on the Internet and just a click away for anyone with a Web browser.

Headquartered in Minnetonka, Minn., U.S. Internet is a regional ISP that provides fiber and wireless Internet service. The ISP’s Securence division bills itself “a leading provider of email filtering and management software that includes email protection and security services for small business, enterprise, educational and government institutions worldwide.”

Roughly a week ago, KrebsOnSecurity was contacted by Hold Security, a Milwaukee-based cybersecurity firm. Hold Security founder Alex Holden said his researchers had unearthed a public link to a U.S. Internet email server listing more than 6,500 domain names, each with its own clickable link.

Drilling down into those individual domain links revealed inboxes for each employee or user of these exposed host names. Some of the emails dated back to 2008; others were as recent as the present day.

Securence counts among its customers dozens of state and local governments, including: nc.gov — the official website of North Carolina; stillwatermn.gov, the website for the city of Stillwater, Minn.; and cityoffrederickmd.gov, the website for the government of Frederick, Md.

Incredibly, included in this giant index of U.S. Internet customer emails were the internal messages for every current and former employee of U.S. Internet and its subsidiary USI Wireless. Since that index also included the messages of U.S. Internet’s CEO Travis Carter, KrebsOnSecurity forwarded one of Mr. Carter’s own recent emails to him, along with a request to understand how exactly the company managed to screw things up so spectacularly.

Within minutes of that notification, U.S. Internet pulled all of the published inboxes offline. Mr. Carter responded and said his team was investigating how it happened. In the same breath, the CEO asked if KrebsOnSecurity does security consulting for hire (I do not).

[Author’s note: Perhaps Mr. Carter was frantically casting about for any expertise he could find in a tough moment. But I found the request personally offensive, because I couldn’t shake the notion that maybe the company was hoping it could buy my silence.]

Earlier this week, Mr. Carter replied with a highly technical explanation that ultimately did little to explain why or how so many internal and customer inboxes were published in plain text on the Internet.

“The feedback from my team was a issue with the Ansible playbook that controls the Nginx configuration for our IMAP servers,” Carter said, noting that this incorrect configuration was put in place by a former employee and never caught. U.S. Internet has not shared how long these messages were exposed.

“The rest of the platform and other backend services are being audited to verify the Ansible playbooks are correct,” Carter said.

Holden said he also discovered that hackers have been abusing a Securence link scrubbing and anti-spam service called Url-Shield to create links that look benign but instead redirect visitors to hacked and malicious websites.

“The bad guys modify the malicious link reporting into redirects to their own malicious sites,” Holden said. “That’s how the bad guys drive traffic to their sites and increase search engine rankings.”

For example, clicking the Securence link shown in the screenshot directly above leads one to a website that tries to trick visitors into allowing site notifications by couching the request as a CAPTCHA request designed to separate humans from bots. After approving the deceptive CAPTCHA/notification request, the link forwards the visitor to a Russian internationalized domain name (рпроаг[.]рф).

U.S. Internet has not responded to questions about how long it has been exposing all of its internal and customer emails, or when the errant configuration changes were made. The company also still has not disclosed the incident on its website. The last press release on the site dates back to March 2020.

KrebsOnSecurity has been writing about data breaches for nearly two decades, but this one easily takes the cake in terms of the level of incompetence needed to make such a huge mistake unnoticed. I’m not sure what the proper response from authorities or regulators should be to this incident, but it’s clear that U.S. Internet should not be allowed to manage anyone’s email unless and until it can demonstrate more transparency, and prove that it has radically revamped its security.

Fat Patch Tuesday, February 2024 Edition

Microsoft Corp. today pushed software updates to plug more than 70 security holes in its Windows operating systems and related products, including two zero-day vulnerabilities that are already being exploited in active attacks.

Top of the heap on this Fat Patch Tuesday is CVE-2024-21412, a “security feature bypass” in the way Windows handles Internet Shortcut Files that Microsoft says is being targeted in active exploits. Redmond’s advisory for this bug says an attacker would need to convince or trick a user into opening a malicious shortcut file.

Researchers at Trend Micro have tied the ongoing exploitation of CVE-2024-21412 to an advanced persistent threat group dubbed “Water Hydra,” which they say has being using the vulnerability to execute a malicious Microsoft Installer File (.msi) that in turn unloads a remote access trojan (RAT) onto infected Windows systems.

The other zero-day flaw is CVE-2024-21351, another security feature bypass — this one in the built-in Windows SmartScreen component that tries to screen out potentially malicious files downloaded from the Web. Kevin Breen at Immersive Labs says it’s important to note that this vulnerability alone is not enough for an attacker to compromise a user’s workstation, and instead would likely be used in conjunction with something like a spear phishing attack that delivers a malicious file.

Satnam Narang, senior staff research engineer at Tenable, said this is the fifth vulnerability in Windows SmartScreen patched since 2022 and all five have been exploited in the wild as zero-days. They include CVE-2022-44698 in December 2022, CVE-2023-24880 in March 2023, CVE-2023-32049 in July 2023 and CVE-2023-36025 in November 2023.

Narang called special attention to CVE-2024-21410, an “elevation of privilege” bug in Microsoft Exchange Server that Microsoft says is likely to be exploited by attackers. Attacks on 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.

“We know that flaws that can disclose sensitive information like NTLM hashes are very valuable to attackers,” Narang said. “A Russian-based threat actor leveraged a similar vulnerability to carry out attacks – CVE-2023-23397 is an Elevation of Privilege vulnerability in Microsoft Outlook patched in March 2023.”

Microsoft notes that prior to its Exchange Server 2019 Cumulative Update 14 (CU14), a security feature called Extended Protection for Authentication (EPA), which provides NTLM credential relay protections, was not enabled by default.

“Going forward, CU14 enables this by default on Exchange servers, which is why it is important to upgrade,” Narang said.

Rapid7’s lead software engineer Adam Barnett highlighted CVE-2024-21413, a critical remote code execution bug in Microsoft Office that could be exploited just by viewing a specially-crafted message in the Outlook Preview pane.

“Microsoft Office typically shields users from a variety of attacks by opening files with Mark of the Web in Protected View, which means Office will render the document without fetching potentially malicious external resources,” Barnett said. “CVE-2024-21413 is a critical RCE vulnerability in Office which allows an attacker to cause a file to open in editing mode as though the user had agreed to trust the file.”

Barnett stressed that administrators responsible for Office 2016 installations who apply patches outside of Microsoft Update should note the advisory lists no fewer than five separate patches which must be installed to achieve remediation of CVE-2024-21413; individual update knowledge base (KB) articles further note that partially-patched Office installations will be blocked from starting until the correct combination of patches has been installed.

It’s a good idea for Windows end-users to stay current with security updates from Microsoft, which can quickly pile up otherwise. That doesn’t mean you have to install them on Patch Tuesday. Indeed, waiting a day or three before updating is a sane response, given that sometimes updates go awry and usually within a few days Microsoft has fixed any issues with its patches. It’s also smart to back up your data and/or image your Windows drive before applying new updates.

For a more detailed breakdown of the individual flaws addressed by Microsoft today, check out the SANS Internet Storm Center’s list. For those admins responsible for maintaining larger Windows environments, it often pays to keep an eye on Askwoody.com, which frequently points out when specific Microsoft updates are creating problems for a number of users.

From Cybercrime Saul Goodman to the Russian GRU

In 2021, the exclusive Russian cybercrime forum Mazafaka was hacked. The leaked user database shows one of the forum’s founders was an attorney who advised Russia’s top hackers on the legal risks of their work, and what to do if they got caught. A review of this user’s hacker identities shows that during his time on the forums he served as an officer in the special forces of the GRU, the foreign military intelligence agency of the Russian Federation.

Launched in 2001 under the tagline “Network terrorism,” Mazafaka would evolve into one of the most guarded Russian-language cybercrime communities. The forum’s member roster included a Who’s Who of top Russian cybercriminals, and it featured sub-forums for a wide range of cybercrime specialities, including malware, spam, coding and identity theft.

In almost any database leak, the first accounts listed are usually the administrators and early core members. But the Mazafaka user information posted online was not a database file per se, and it was clearly edited, redacted and restructured by whoever released it. As a result, it can be difficult to tell which members are the earliest users.

The original Mazafaka is known to have been launched by a hacker using the nickname “Stalker.” However, the lowest numbered (non-admin) user ID in the Mazafaka database belongs to another individual who used the handle “Djamix,” and the email address djamix@mazafaka[.]ru.

From the forum’s inception until around 2008, Djamix was one of its most active and eloquent contributors. Djamix told forum members he was a lawyer, and nearly all of his posts included legal analyses of various public cases involving hackers arrested and charged with cybercrimes in Russia and abroad.

“Hiding with purely technical parameters will not help in a serious matter,” Djamix advised Maza members in September 2007. “In order to ESCAPE the law, you need to KNOW the law. This is the most important thing. Technical capabilities cannot overcome intelligence and cunning.”

Stalker himself credited Djamix with keeping Mazafaka online for so many years. In a retrospective post published to Livejournal in 2014 titled, “Mazafaka, from conception to the present day,” Stalker said Djamix had become a core member of the community.

“This guy is everywhere,” Stalker said of Djamix. “There’s not a thing on [Mazafaka] that he doesn’t take part in. For me, he is a stimulus-irritant and thanks to him, Maza is still alive. Our rallying force!”

Djamix told other forum denizens he was a licensed attorney who could be hired for remote or in-person consultations, and his posts on Mazafaka and other Russian boards show several hackers facing legal jeopardy likely took him up on this offer.

“I have the right to represent your interests in court,” Djamix said on the Russian-language cybercrime forum Verified in Jan. 2011. “Remotely (in the form of constant support and consultations), or in person – this is discussed separately. As well as the cost of my services.”

WHO IS DJAMIX?

A search on djamix@mazafaka[.]ru at DomainTools.com reveals this address has been used to register at least 10 domain names since 2008. Those include several websites about life in and around Sochi, Russia, the site of the 2014 Winter Olympics, as well as a nearby coastal town called Adler. All of those sites say they were registered to an Aleksei Safronov from Sochi who also lists Adler as a hometown.

The breach tracking service Constella Intelligence finds that the phone number associated with those domains — +7.9676442212 — is tied to a Facebook account for an Aleksei Valerievich Safronov from Sochi. Mr. Safronov’s Facebook profile, which was last updated in October 2022, says his ICQ instant messenger number is 53765. This is the same ICQ number assigned to Djamix in the Mazafaka user database.

A “Djamix” account on the forum privetsochi[.]ru (“Hello Sochi”) says this user was born Oct. 2, 1970, and that his website is uposter[.]ru. This Russian language news site’s tagline is, “We Create Communication,” and it focuses heavily on news about Sochi, Adler, Russia and the war in Ukraine, with a strong pro-Kremlin bent.

Safronov’s Facebook profile also gives his Skype username as “Djamixadler,” and it includes dozens of photos of him dressed in military fatigues along with a regiment of soldiers deploying in fairly remote areas of Russia. Some of those photos date back to 2008.

In several of the images, we can see a patch on the arm of Safronov’s jacket that bears the logo of the Spetsnaz GRU, a special forces unit of the Russian military. According to a 2020 report from the Congressional Research Service, the GRU operates both as an intelligence agency — collecting human, cyber, and signals intelligence — and as a military organization responsible for battlefield reconnaissance and the operation of Russia’s Spetsnaz military commando units.

“In recent years, reports have linked the GRU to some of Russia’s most aggressive and public intelligence operations,” the CRS report explains. “Reportedly, the GRU played a key role in Russia’s occupation of Ukraine’s Crimea region and invasion of eastern Ukraine, the attempted assassination of former Russian intelligence officer Sergei Skripal in the United Kingdom, interference in the 2016 U.S. presidential elections, disinformation and propaganda operations, and some of the world’s most damaging cyberattacks.”

According to the Russia-focused investigative news outlet Meduza, in 2014 the Russian Defense Ministry created its “information-operation troops” for action in “cyber-confrontations with potential adversaries.”

“Later, sources in the Defense Ministry explained that these new troops were meant to ‘disrupt the potential adversary’s information networks,'” Meduza reported in 2018. “Recruiters reportedly went looking for ‘hackers who have had problems with the law.'”

Mr. Safronov did not respond to multiple requests for comment. A 2018 treatise written by Aleksei Valerievich Safronov titled “One Hundred Years of GRU Military Intelligence” explains the significance of the bat in the seal of the GRU.

“One way or another, the bat is an emblem that unites all active and retired intelligence officers; it is a symbol of unity and exclusivity,” Safronov wrote. “And, in general, it doesn’t matter who we’re talking about – a secret GRU agent somewhere in the army or a sniper in any of the special forces brigades. They all did and are doing one very important and responsible thing.”

It’s unclear what role Mr. Safronov plays or played in the GRU, but it seems likely the military intelligence agency would have exploited his considerable technical skills, knowledge and connections on the Russian cybercrime forums.

Searching on Safronov’s domain uposter[.]ru in Constella Intelligence reveals that this domain was used in 2022 to register an account at a popular Spanish-language discussion forum dedicated to helping applicants prepare for a career in the Guardia Civil, one of Spain’s two national police forces. Pivoting on that Russian IP in Constella shows three other accounts were created at the same Spanish user forum around the same date.

Mark Rasch is a former cybercrime prosecutor for the U.S. Department of Justice who now serves as chief legal officer for the New York cybersecurity firm Unit 221B. Rasch said there has always been a close relationship between the GRU and the Russian hacker community, noting that in the early 2000s the GRU was soliciting hackers with the skills necessary to hack US banks in order to procure funds to help finance Russia’s war in Chechnya.

“The guy is heavily hooked into the Russian cyber community, and that’s useful for intelligence services,” Rasch said. “He could have been infiltrating the community to monitor it for the GRU. Or he could just be a guy wearing a military uniform.”

Using Google Search to Find Software Can Be Risky

Google continues to struggle with cybercriminals running malicious ads on its search platform to trick people into downloading booby-trapped copies of popular free software applications. The malicious ads, which appear above organic search results and often precede links to legitimate sources of the same software, can make searching for software on Google a dicey affair.

Google says keeping users safe is a top priority, and that the company has a team of thousands working around the clock to create and enforce their abuse policies. And by most accounts, the threat from bad ads leading to backdoored software has subsided significantly compared to a year ago.

But cybercrooks are constantly figuring out ingenious ways to fly beneath Google’s anti-abuse radar, and new examples of bad ads leading to malware are still too common.

For example, a Google search earlier this week for the free graphic design program FreeCAD produced the following result, which shows that a “Sponsored” ad at the top of the search results is advertising the software available from freecad-us[.]org. Although this website claims to be the official FreeCAD website, that honor belongs to the result directly below — the legitimate freecad.org.

How do we know freecad-us[.]org is malicious? A review at DomainTools.com show this domain is the newest (registered Jan. 19, 2024) of more than 200 domains at the Internet address 93.190.143[.]252 that are confusingly similar to popular software titles, including dashlane-project[.]com, filezillasoft[.]com, keepermanager[.]com, and libreofficeproject[.]com.

Some of the domains at this Netherlands host appear to be little more than software review websites that steal content from established information sources in the IT world, including Gartner, PCWorld, Slashdot and TechRadar.

Other domains at 93.190.143[.]252 do serve actual software downloads, but none of them are likely to be malicious if one visits the sites through direct navigation. If one visits openai-project[.]org and downloads a copy of the popular Windows desktop management application Rainmeter, for example, the file that is downloaded has the same exact file signature as the real Rainmeter installer available from rainmeter.net.

But this is only a ruse, says Tom Hegel, principal threat researcher at the security firm Sentinel One. Hegel has been tracking these malicious domains for more than a year, and he said the seemingly benign software download sites will periodically turn evil, swapping out legitimate copies of popular software titles with backdoored versions that will allow cybercriminals to remotely commander the systems.

“They’re using automation to pull in fake content, and they’re rotating in and out of hosting malware,” Hegel said, noting that the malicious downloads may only be offered to visitors who come from specific geographic locations, like the United States. “In the malicious ad campaigns we’ve seen tied to this group, they would wait until the domains gain legitimacy on the search engines, and then flip the page for a day or so and then flip back.”

In February 2023, Hegel co-authored a report on this same network, which Sentinel One has dubbed MalVirt (a play on “malvertising”). They concluded that the surge in malicious ads spoofing various software products was directly responsible for a surge in malware infections from infostealer trojans like IcedID, Redline Stealer, Formbook and AuroraStealer.

Hegel noted that the spike in malicious software-themed ads came not long after Microsoft started blocking by default Office macros in documents downloaded from the Internet. He said the volume of the current malicious ad campaigns from this group appears to be relatively low compared to a year ago.

“It appears to be same campaign continuing,” Hegel said. “Last January, every Google search for ‘Autocad’ led to something bad. Now, it’s like they’re paying Google to get one out of every dozen of searches. My guess it’s still continuing because of the up-and-down [of the] domains hosting malware and then looking legitimate.”

Several of the websites at this Netherlands host (93.190.143[.]252) are currently blocked by Google’s Safebrowsing technology, and labeled with a conspicuous red warning saying the website will try to foist malware on visitors who ignore the warning and continue.

But it remains a mystery why Google has not similarly blocked more than 240+ other domains at this same host, or else removed them from its search index entirely. Especially considering there is nothing else but these domains hosted at that Netherlands IP address, and because they have all remained at that address for the past year.

In response to questions from KrebsOnSecurity, Google said maintaining a safe ads ecosystem and keeping malware off of its platforms is a priority across Google.

“Bad actors often employ sophisticated measures to conceal their identities and evade our policies and enforcement, sometimes showing Google one thing and users something else,” Google said in a written statement. “We’ve reviewed the ads in question, removed those that violated our policies, and suspended the associated accounts. We’ll continue to monitor and apply our protections.”

Google says it removed 5.2 billion ads in 2022, and restricted more than 4.3 billion ads and suspended over 6.7 million advertiser accounts. The company’s latest ad safety report says Google in 2022 blocked or removed 1.36 billion advertisements for violating its abuse policies.

Some of the domains referenced in this story were included in Sentinel One’s February 2023 report, but dozens more have been added since, such as those spoofing the official download sites for Corel Draw, Github Desktop, Roboform and Teamviewer.

This October 2023 report on the FreeCAD user forum came from a user who reported downloading a copy of the software from freecadsoft[.]com after seeing the site promoted at the top of a Google search result for “freecad.” Almost a month later, another FreeCAD user reported getting stung by the same scam.

“This got me,” FreeCAD forum user “Matterform” wrote on Nov. 19, 2023. “Please leave a report with Google so it can flag it. They paid Google for sponsored posts.”

Sentinel One’s report didn’t delve into the “who” behind this ongoing MalVirt campaign, and there are precious few clues that point to attribution. All of the domains in question were registered through webnic.cc, and several of them display a placeholder page saying the site is ready for content. Viewing the HTML source of these placeholder pages shows many of the hidden comments in the code are in Cyrillic.

Trying to track the crooks using Google’s Ad Transparency tools didn’t lead far. The ad transparency record for the malicious ad featuring freecad-us[.]org (in the screenshot above) shows that the advertising account used to pay for the ad has only run one previous ad through Google search: It advertised a wedding photography website in New Zealand.

The apparent owner of that photography website did not respond to requests for comment, but it’s also likely his Google advertising account was hacked and used to run these malicious ads.

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).

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.

ID Theft Service Resold Access to USInfoSearch Data

One of the cybercrime underground’s more active sellers of Social Security numbers, background and credit reports has been pulling data from hacked accounts at the U.S. consumer data broker USinfoSearch, KrebsOnSecurity has learned.

Since at least February 2023, a service advertised on Telegram called USiSLookups has operated an automated bot that allows anyone to look up the SSN or background report on virtually any American. For prices ranging from $8 to $40 and payable via virtual currency, the bot will return detailed consumer background reports automatically in just a few moments.

USiSLookups is the project of a cybercriminal who uses the nicknames JackieChan/USInfoSearch, and the Telegram channel for this service features a small number of sample background reports, including that of President Joe Biden, and podcaster Joe Rogan. The data in those reports includes the subject’s date of birth, address, previous addresses, previous phone numbers and employers, known relatives and associates, and driver’s license information.

JackieChan’s service abuses the name and trademarks of Columbus, OH based data broker USinfoSearch, whose website says it provides “identity and background information to assist with risk management, fraud prevention, identity and age verification, skip tracing, and more.”

“We specialize in non-FCRA data from numerous proprietary sources to deliver the information you need, when you need it,” the company’s website explains. “Our services include API-based access for those integrating data into their product or application, as well as bulk and batch processing of records to suit every client.”

As luck would have it, my report was also listed in the Telegram channel for this identity fraud service, presumably as a teaser for would-be customers. On October 19, 2023, KrebsOnSecurity shared a copy of this file with the real USinfoSearch, along with a request for information about the provenance of the data.

USinfoSearch said it would investigate the report, which appears to have been obtained on or before June 30, 2023. On Nov. 9, 2023, Scott Hostettler, general manager of USinfoSearch parent Martin Data LLC shared a written statement about their investigation that suggested the ID theft service was trying to pass off someone else’s consumer data as coming from USinfoSearch:

Regarding the Telegram incident, we understand the importance of protecting sensitive information and upholding the trust of our users is our top priority. Any allegation that we have provided data to criminals is in direct opposition to our fundamental principles and the protective measures we have established and continually monitor to prevent any unauthorized disclosure. Because Martin Data has a reputation for high-quality data, thieves may steal data from other sources and then disguise it as ours. While we implement appropriate safeguards to guarantee that our data is only accessible by those who are legally permitted, unauthorized parties will continue to try to access our data. Thankfully, the requirements needed to pass our credentialing process is tough even for established honest companies.

USinfoSearch’s statement did not address any questions put to the company, such as whether it requires multi-factor authentication for customer accounts, or whether my report had actually come from USinfoSearch’s systems.

After much badgering, on Nov. 21 Hostettler acknowledged that the USinfoSearch identity fraud service on Telegram was in fact pulling data from an account belonging to a vetted USinfoSearch client.

“I do know 100% that my company did not give access to the group who created the bots, but they did gain access to a client,” Hostettler said of the Telegram-based identity fraud service. “I apologize for any inconvenience this has caused.”

Hostettler said USinfoSearch heavily vets any new potential clients, and that all users are required to undergo a background check and provide certain documents. Even so, he said, several fraudsters each month present themselves as credible business owners or C-level executives during the credentialing process, completing the application and providing the necessary documentation to open a new account.

“The level of skill and craftsmanship demonstrated in the creation of these supporting documents is incredible,” Hostettler said. “The numerous licenses provided appear to be exact replicas of the original document. Fortunately, I’ve discovered several methods of verification that do not rely solely on those documents to catch the fraudsters.”

“These people are unrelenting, and they act without regard for the consequences,” Hostettler continued. “After I deny their access, they will contact us again within the week using the same credentials. In the past, I’ve notified both the individual whose identity is being used fraudulently and the local police. Both are hesitant to act because nothing can be done to the offender if they are not apprehended. That is where most attention is needed.”

SIM SWAPPER’S DELIGHT

JackieChan is most active on Telegram channels focused on “SIM swapping,” which involves bribing or tricking mobile phone company employees into redirecting a target’s phone number to a device the attackers control. SIM swapping allows crooks to temporarily intercept the target’s text messages and phone calls, including any links or one-time codes for authentication that are delivered via SMS.

Reached on Telegram, JackieChan said most of his clients hail from the criminal SIM swapping world, and that the bulk of his customers use his service via an application programming interface (API) that allows customers to integrate the lookup service with other web-based services, databases, or applications.

“Sim channels is where I get most of my customers,” JackieChan told KrebsOnSecurity. “I’m averaging around 100 lookups per day on the [Telegram] bot, and around 400 per day on the API.”

JackieChan claims his USinfoSearch bot on Telegram abuses stolen credentials needed to access an API used by the real USinfoSearch, and that his service was powered by USinfoSearch account credentials that were stolen by malicious software tied to a botnet that he claims to have operated for some time.

This is not the first time USinfoSearch has had trouble with identity thieves masquerading as legitimate customers. In 2013, KrebsOnSecurity broke the news that an identity fraud service in the underground called “SuperGet[.]info” was reselling access to personal and financial data on more than 200 million Americans that was obtained via the big-three credit bureau Experian.

The consumer data resold by Superget was not obtained directly from Experian, but rather via USinfoSearch. At the time, USinfoSearch had a contractual agreement with a California company named Court Ventures, whereby customers of Court Ventures had access to the USinfoSearch data, and vice versa.

When Court Ventures was purchased by Experian in 2012, the proprietor of SuperGet — a Vietnamese hacker named Hieu Minh Ngo who had impersonated an American private investigator — was grandfathered in as a client. The U.S. Secret Service agent who oversaw Ngo’s capture, extradition, prosecution and rehabilitation told KrebsOnSecurity he’s unaware of any other cybercriminal who has caused more material financial harm to more Americans than Ngo.

REAL POLICE, FAKE EDRS

JackieChan also sells access to hacked email accounts belonging to law enforcement personnel in the United States and abroad. Hacked police department emails can come in handy for ID thieves trying to pose as law enforcement officials who wish to purchase consumer data from platforms like USinfoSearch. Hence, Mr. Hostettler’s ongoing battle with fraudsters seeking access to his company’s service.

These police credentials are mainly marketed to criminals seeking fraudulent “Emergency Data Requests,” wherein crooks use compromised government and police department email accounts to rapidly obtain customer account data from mobile providers, ISPs and social media companies.

Normally, these companies will require law enforcement officials to supply a subpoena before turning over customer or user records. But EDRs allow police to bypass that process by attesting that the information sought is related to an urgent matter of life and death, such as an impending suicide or terrorist attack.

In response to an alarming increase in the volume of fraudulent EDRs, many service providers have chosen to require all EDRs be processed through a service called Kodex, which seeks to filter EDRs based on the reputation of the law enforcement entity requesting the information, and other attributes of the requestor.

For example, if you want to send an EDR to Coinbase or Twilio, you’ll first need to have valid law enforcement credentials and create an account at the Kodex online portal at these companies. However, Kodex may still throttle or block any requests from any accounts if they set off certain red flags.

Within their own separate Kodex portals, Twilio can’t see requests submitted to Coinbase, or vice versa. But each can see if a law enforcement entity or individual tied to one of their own requests has ever submitted a request to a different Kodex client, and then drill down further into other data about the submitter, such as Internet address(es) used, and the age of the requestor’s email address.

In August, JackieChan was advertising a working Kodex account for sale on the cybercrime channels, including redacted screenshots of the Kodex account dashboard as proof of access.

Kodex co-founder Matt Donahue told KrebsOnSecurity his company immediately detected that the law enforcement email address used to create the Kodex account pictured in JackieChan’s ad was likely stolen from a police officer in India. One big tipoff, Donahue said, was that the person creating the account did so using an Internet address in Brazil.

“There’s a lot of friction we can put in the way for illegitimate actors,” Donahue said. “We don’t let people use VPNs. In this case we let them in to honeypot them, and that’s how they got that screenshot. But nothing was allowed to be transmitted out from that account.”

Massive amounts of data about you and your personal history are available from USinfoSearch and dozens of other data brokers that acquire and sell “non-FCRA” data — i.e., consumer data that cannot be used for the purposes of determining one’s eligibility for credit, insurance, or employment.

Anyone who works in or adjacent to law enforcement is eligible to apply for access to these data brokers, which often market themselves to police departments and to “skip tracers,” essentially bounty hunters hired to locate others in real life — often on behalf of debt collectors, process servers or a bail bondsman.

There are tens of thousands of police jurisdictions around the world — including roughly 18,000 in the United States alone. And the harsh reality is that all it takes for hackers to apply for access to data brokers (and abuse the EDR process) is illicit access to a single police email account.

The trouble is, compromised credentials to law enforcement email accounts show up for sale with alarming frequency on the Telegram channels where JackieChan and their many clients reside. Indeed, Donahue said Kodex so far this year has identified attempted fake EDRs coming from compromised email accounts for police departments in India, Italy, Thailand and Turkey.

Alleged Extortioner of Psychotherapy Patients Faces Trial

Prosecutors in Finland this week commenced their criminal trial against Julius Kivimäki, a 26-year-old Finnish man charged with extorting a once popular and now-bankrupt online psychotherapy practice and thousands of its patients. In a 2,200-page report, Finnish authorities laid out how they connected the extortion spree to Kivimäki, a notorious hacker who was convicted in 2015 of perpetrating tens of thousands of cybercrimes, including data breaches, payment fraud, operating a botnet and calling in bomb threats.

In November 2022, Kivimäki was charged with attempting to extort money from the Vastaamo Psychotherapy Center. In that breach, which occurred in October 2020, a hacker using the handle “Ransom Man” threatened to publish patient psychotherapy notes if Vastaamo did not pay a six-figure ransom demand.

Vastaamo refused, so Ransom Man shifted to extorting individual patients — sending them targeted emails threatening to publish their therapy notes unless paid a 500-euro ransom. When Ransom Man found little success extorting patients directly, they uploaded to the dark web a large compressed file containing all of the stolen Vastaamo patient records.

Security experts soon discovered Ransom Man had mistakenly included an entire copy of their home folder, where investigators found many clues pointing to Kivimäki’s involvement. By that time, Kivimäki was no longer in Finland, but the Finnish government nevertheless charged Kivimäki in absentia with the Vastaamo hack. The 2,200-page evidence document against Kivimäki suggests he enjoyed a lavish lifestyle while on the lam, frequenting luxury resorts and renting fabulously expensive cars and living quarters.

But in February 2023, Kivimäki was arrested in France after authorities there responded to a domestic disturbance call and found the defendant sleeping off a hangover on the couch of a woman he’d met the night before. The French police grew suspicious when the 6′ 3″ blonde, green-eyed man presented an ID that stated he was of Romanian nationality.

Finnish prosecutors showed that Kivimäki’s credit card had been used to pay for the virtual server that hosted the stolen Vastaamo patient notes. What’s more, the home folder included in the Vastaamo patient data archive also allowed investigators to peer into other cybercrime projects of the accused, including domains that Ransom Man had access to as well as a lengthy history of commands he’d executed on the rented virtual server.

Some of those domains allegedly administered by Kivimäki were set up to smear the reputations of different companies and individuals. One of those was a website that claimed to have been authored by a person who headed up IT infrastructure for a major bank in Norway which discussed the idea of legalizing child sexual abuse.

Another domain hosted a fake blog that besmirched the reputation of a Tulsa, Okla. man whose name was attached to blog posts about supporting the “white pride” movement and calling for a pardon of the Oklahoma City bomber Timothy McVeigh.

Kivimäki appears to have sought to sully the name of this reporter as well. The 2,200-page document shows that Kivimäki owned and operated the domain krebsonsecurity[.]org, which hosted various hacking tools that Kivimäki allegedly used, including programs for mass-scanning the Internet for systems vulnerable to known security flaws, as well as scripts for cracking database server usernames and passwords, and downloading databases.

Mikko Hyppönen, chief research officer at WithSecure (formerly F-Secure), said the Finnish authorities have done “amazing work,” and that “it’s rare to have this much evidence for a cybercrime case.”

Petteri Järvinen is a respected IT expert and author who has been following the trial, and he said the prosecution’s case so far has been strong.

“The National Bureau of Investigation has done a good job and Mr Kivimäki for his part some elementary mistakes,” Järvinen wrote on LinkedIn. “This sends an important message: online crime does not pay. Traces are left in the digital world too, even if it is very tedious for the police to collect them from servers all around the world.”

Antti Kurittu is an information security specialist and a former criminal investigator. In 2013, Kurittu worked on an investigation involving Kivimäki’s use of the Zbot botnet, among other activities Kivimäki engaged in as a member of the hacker group Hack the Planet (HTP). Kurittu said it remains to be seen if the prosecution can make their case, and if the defense has any answers to all of the evidence presented.

“Based on the public pretrial investigation report, it looks like the case has a lot of details that seem very improbable to be coincidental,” Kurittu told KrebsOnSecurity. “For example, a full copy of the Vastaamo patient database was found on a server that belonged to Scanifi, a company with no reasonable business that Kivimäki was affiliated with. The leaked home folder contents were also connected to Kivimäki and were found on servers that were under his control.”

The Finnish daily yle.fi reports that Kivimäki’s lawyers sought to have their client released from confinement for the remainder of his trial, noting that the defendant has already been detained for eight months.

The court denied that request, saying the defendant was still a flight risk. Kivimäki’s trial is expected to continue until February 2024, in part to accommodate testimony from a large number of victims. Prosecutors are seeking a seven-year sentence for Kivimäki.

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.

Who’s Behind the SWAT USA Reshipping Service?

Last week, KrebsOnSecurity broke the news that one of the largest cybercrime services for laundering stolen merchandise was hacked recently, exposing its internal operations, finances and organizational structure. In today’s Part II, we’ll examine clues about the real-life identity of “Fearlless,” the nickname chosen by the proprietor of the SWAT USA Drops service.

Based in Russia, SWAT USA recruits people in the United States to reship packages containing pricey electronics that are purchased with stolen credit cards. As detailed in this Nov. 2 story, SWAT currently employs more than 1,200 U.S. residents, all of whom will be cut loose without a promised payday at the end of their first month reshipping stolen goods.

The current co-owner of SWAT, a cybercriminal who uses the nickname “Fearlless,” operates primarily on the cybercrime forum Verified. This Russian-language forum has tens of thousands of members, and it has suffered several hacks that exposed more than a decade’s worth of user data and direct messages.

January 2021 posts on Verified show that Fearlless and his partner Universalo purchased the SWAT reshipping business from a Verified member named SWAT, who’d been operating the service for years. SWAT agreed to transfer the business in exchange for 30 percent of the net profit over the ensuing six months.

Cyber intelligence firm Intel 471 says Fearlless first registered on Verified in February 2013. The email address Fearlless used on Verified leads nowhere, but a review of Fearlless’ direct messages on Verified indicates this user originally registered on Verified a year earlier as a reshipping vendor, under the alias “Apathyp.”

There are two clues supporting the conclusion that Apathyp and Fearlless are the same person. First, the Verified administrators warned Apathyp he had violated the forum’s rules barring the use of multiple accounts by the same person, and that Verified’s automated systems had detected that Apathyp and Fearlless were logging in from the same device.  Second, in his earliest private messages on Verified, Fearlless told others to contact him on an instant messenger address that Apathyp had claimed as his.

Intel 471 says Apathyp registered on Verified using the email address triploo@mail.ru. A search on that email address at the breach intelligence service Constella Intelligence found that a password commonly associated with it was “niceone.” But the triploo@mail.ru account isn’t connected to much else that’s interesting except a now-deleted account at Vkontakte, the Russian answer to Facebook.

However, in Sept. 2020, Apathyp sent a private message on Verified to the owner of a stolen credit card shop, saying his credentials no longer worked. Apathyp told the proprietor that his chosen password on the service was “12Apathy.”

A search on that password at Constella reveals it was used by just four different email addresses, two of which are particularly interesting: gezze@yandex.ru and gezze@mail.ru. Constella discovered that both of these addresses were previously associated with the same password as triploo@mail.ru — “niceone,” or some variation thereof.

Constella found that years ago gezze@mail.ru was used to create a Vkontakte account under the name Ivan Sherban (former password: “12niceone“) from Magnitogorsk, an industrial city in the southern region of Russia. That same email address is now tied to a Vkontakte account for an Ivan Sherban who lists his home as Saint Petersburg, Russia. Sherban’s profile photo shows a heavily tattooed, muscular and recently married individual with his beautiful new bride getting ready to drive off in a convertible sports car.

A pivotal clue for validating the research into Apathyp/Fearlless came from the identity intelligence firm myNetWatchman, which found that gezze@mail.ru at one time used the passwords “геззи1991” (gezze1991) and “gezze18081991.”

Care to place a wager on when Vkontakte says is Mr. Sherban’s birthday? Ten points if you answered August 18 (18081991).

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

Russian Reshipping Service ‘SWAT USA Drop’ Exposed

One of the largest cybercrime services for laundering stolen merchandise was hacked recently, exposing its internal operations, finances and organizational structure. Here’s a closer look at the Russia-based SWAT USA Drop Service, which currently employs more than 1,200 people across the United States who are knowingly or unwittingly involved in reshipping expensive consumer goods purchased with stolen credit cards.

Among the most common ways that thieves extract cash from stolen credit card accounts is through purchasing pricey consumer goods online and reselling them on the black market. Most online retailers grew wise to these scams years ago and stopped shipping to regions of the world most frequently associated with credit card fraud, including Eastern Europe, North Africa, and Russia.

But such restrictions have created a burgeoning underground market for reshipping scams, which rely on willing or unwitting residents in the United States and Europe to receive stolen goods and relay them to crooks living in the embargoed areas.

Services like SWAT are known as “Drops for stuff” on cybercrime forums. The “drops” are people who have responded to work-at-home package reshipping jobs advertised on craigslist.com and job search sites. Most reshipping scams promise employees a monthly salary and even cash bonuses. In reality, the crooks in charge almost always stop communicating with drops just before the first payday, usually about a month after the drop ships their first package.

The packages arrive with prepaid shipping labels that are paid for with stolen credit card numbers, or with hijacked online accounts at FedEx and the US Postal Service. Drops are responsible for inspecting and verifying the contents of shipments, attaching the correct shipping label to each package, and sending them off via the appropriate shipping company.

SWAT takes a percentage cut (up to 50 percent) where “stuffers” — thieves armed with stolen credit card numbers — pay a portion of each product’s retail value to SWAT as the reshipping fee. The stuffers use stolen cards to purchase high-value products from merchants and have the merchants ship the items to the drops’ address. Once the drops receive and successfully reship the stolen packages, the stuffers then sell the products on the local black market.

The SWAT drop service has been around in various names and under different ownership for almost a decade. But in early October 2023, SWAT’s current co-owner — a Russian-speaking individual who uses the handle “Fearlless” — took to his favorite cybercrime forum to lodge a formal complaint against the owner of a competing reshipping service, alleging his rival had hacked SWAT and was trying to poach his stuffers and reshippers by emailing them directly.

Milwaukee-based security firm Hold Security shared recent screenshots of a working SWAT stuffer’s user panel, and those images show that SWAT currently lists more than 1,200 drops in the United States that are available for stuffers to rent. The contact information for Kareem, a young man from Maryland, was listed as an active drop. Contacted by KrebsOnSecurity, Kareem agreed to speak on condition that his full name not be used in this story.

Kareem said he’d been hired via an online job board to reship packages on behalf of a company calling itself CTSI, and that he’s been receiving and reshipping iPads and Apple watches for several weeks now. Kareem was less than thrilled to learn he would probably not be getting his salary on the promised payday, which was coming up in a few days.

Kareem said he was instructed to create an account at a website called portal-ctsi[.]com, where each day he was expected to log in and check for new messages about pending shipments. Anyone can sign up at this website as a potential reshipping mule, although doing so requires applicants to share a great deal of personal and financial information, as well as copies of an ID or passport matching the supplied name.

On a suspicion that the login page for portal-ctsi[.]com might be a custom coding job, KrebsOnSecurity selected “view source” from the homepage to expose the site’s HTML code. Grabbing a snippet of that code (e.g., “smarty/default/jui/js/jquery-ui-1.9.2.min.js”) and searching on it at publicwww.com reveals more than four dozen other websites running the same login panel. And all of those appear to be geared toward either stuffers or drops.

In fact, more than half of the domains that use this same login panel actually include the word “stuffer” in the login URL, according to publicwww. Each of the domains below that end in “/user/login.php” are sites for active and prospective drops, and each corresponds to a unique fake company that is responsible for managing its own stable of drops:

lvlup-store[.]com/stuffer/login.php
personalsp[.]com/user/login.php
destaf[.]com/stuffer/login.php
jaderaplus[.]com/stuffer/login.php
33cow[.]com/stuffer/login.php
panelka[.]net/stuffer/login.php
aaservice[.]net/stuffer/login.php
re-shipping[.]ru/stuffer/login.php
bashar[.]cc/stuffer/login.php
marketingyoursmall[.]biz/stuffer/login.php
hovard[.]xyz/stuffer/login.php
pullback[.]xyz/stuffer/login.php
telollevoexpress[.]com/stuffer/login.php
postme[.]today/stuffer/login.php
wint-job[.]com/stuffer/login.php
squadup[.]club/stuffer/login.php
mmmpack[.]pro/stuffer/login.php
yoursmartpanel[.]com/user/login.php
opt257[.]org/user/login.php
touchpad[.]online/stuffer/login.php
peresyloff[.]top/stuffer/login.php
ruzke[.]vodka/stuffer/login.php
staf-manager[.]net/stuffer/login.php
data-job[.]club/stuffer/login.php
logistics-services[.]org/user/login.php
swatship[.]club/stuffer/login.php
logistikmanager[.]online/user/login.php
endorphine[.]world/stuffer/login.php
burbon[.]club/stuffer/login.php
bigdropproject[.]com/stuffer/login.php
jobspaket[.]net/user/login.php
yourcontrolboard[.]com/stuffer/login.php
packmania[.]online/stuffer/login.php
shopping-bro[.]com/stuffer/login.php
dash-redtag[.]com/user/login.php
mnger[.]net/stuffer/login.php
begg[.]work/stuffer/login.php
dashboard-lime[.]com/user/login.php
control-logistic[.]xyz/user/login.php
povetru[.]biz/stuffer/login.php
dash-nitrologistics[.]com/user/login.php
cbpanel[.]top/stuffer/login.php
hrparidise[.]pro/stuffer/login.php
d-cctv[.]top/user/login.php
versandproject[.]com/user/login.php
packitdash[.]com/user/login.php
avissanti-dash[.]com/user/login.php
e-host[.]life/user/login.php
pacmania[.]club/stuffer/login.php

Why so many websites? In practice, all drops are cut loose within approximately 30 days of their first shipment — just before the promised paycheck is due. Because of this constant churn, each stuff shop operator must be constantly recruiting new drops. Also, with this distributed setup, even if one reshipping operation gets shut down (or exposed online), the rest can keep on pumping out dozens of packages a day.

A 2015 academic study (PDF) on criminal reshipping services found the average financial hit from a reshipping scheme per cardholder was $1,156.93. That study looked into the financial operations of several reshipping schemes, and estimated that approximately 1.6 million credit and debit cards are used to commit at least $1.8 billion in reshipping fraud each year.

It’s not hard to see how reshipping can be a profitable enterprise for card crooks. For example, a stuffer buys a stolen payment card off the black market for $10, and uses that card to purchase more than $1,100 worth of goods. After the reshipping service takes its cut (~$550), and the stuffer pays for his reshipping label (~$100), the stuffer receives the stolen goods and sells them on the black market in Russia for $1,400. He has just turned a $10 investment into more than $700. Rinse, wash, and repeat.

The breach at SWAT exposed not only the nicknames and contact information for all of its stuffers and drops, but also the group’s monthly earnings and payouts. SWAT apparently kept its books in a publicly accessible Google Sheets document, and that document reveals Fearlless and his business partner each routinely made more than $100,000 every month operating their various reshipping businesses.

The exposed SWAT financial records show this crime group has tens of thousands of dollars worth of expenses each month, including payments for the following recurring costs:

-advertising the service on crime forums and via spam;
-people hired to re-route packages, usually by voice over the phone;
-third-party services that sell hacked/stolen USPS/Fedex labels;
-“drops test” services, contractors who will test the honesty of drops by sending them fake jewelry;
-“documents,” e.g. sending drops to physically pick up legal documents for new phony front companies.

The spreadsheet also included the cryptocurrency account numbers that were to be credited each month with SWAT’s earnings. Unsurprisingly, a review of the blockchain activity tied to the bitcoin addresses listed in that document shows that many of them have a deep association with cybercrime, including ransomware activity and transactions at darknet sites that peddle stolen credit cards and residential proxy services.

The information leaked from SWAT also has exposed the real-life identity and financial dealings of its principal owner — Fearlless, a.k.a. “SwatVerified.” We’ll hear more about Fearlless in Part II of this story. Stay tuned.

.US Harbors Prolific Malicious Link Shortening Service

The top-level domain for the United States — .US — is home to thousands of newly-registered domains tied to a malicious link shortening service that facilitates malware and phishing scams, new research suggests. The findings come close on the heels of a report that identified .US domains as among the most prevalent in phishing attacks over the past year.

Researchers at Infoblox say they’ve been tracking what appears to be a three-year-old link shortening service that is catering to phishers and malware purveyors. Infoblox found the domains involved are typically three to seven characters long, and hosted on bulletproof hosting providers that charge a premium to ignore any abuse or legal complaints. The short domains don’t host any content themselves, but are used to obfuscate the real address of landing pages that try to phish users or install malware.

Infoblox says it’s unclear how the phishing and malware landing pages tied to this service are being initially promoted, although they suspect it is mainly through scams targeting people on their phones via SMS. A new report says the company mapped the contours of this link shortening service thanks in part to pseudo-random patterns in the short domains, which all appear on the surface to be a meaningless jumble of letters and numbers.

“This came to our attention because we have systems that detect registrations that use domain name generation algorithms,” said Renee Burton, head of threat intelligence at Infoblox. “We have not found any legitimate content served through their shorteners.”

Infoblox determined that until May 2023, domains ending in .info accounted for the bulk of new registrations tied to the malicious link shortening service, which Infoblox has dubbed “Prolific Puma.” Since then, they found that whoever is responsible for running the service has used .US for approximately 55 percent of the total domains created, with several dozen new malicious .US domains registered daily.

.US is overseen by the National Telecommunications and Information Administration (NTIA), an executive branch agency of the U.S. Department of Commerce. But Uncle Sam has long outsourced the management of .US to various private companies, which have gradually allowed the United States’s top-level domain to devolve into a cesspool of phishing activity.

Or so concludes The Interisle Consulting Group, which gathers phishing data from multiple industry sources and publishes an annual report on the latest trends. 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.

Interisle’s newest study examined six million phishing reports between May 1, 2022 and April 30, 2023, and identified approximately 30,000 .US phishing domains. 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. Others were used to impersonate or attack U.S. government agencies.

Under NTIA regulations, domain registrars processing .US domain registrations must take certain steps (PDF) to verify that those customers actually reside in the United States, or else own organizations based in the U.S. However, if one registers a .US domain through GoDaddy — the largest domain registrar and the current administrator of the .US contract — the way one “proves” their U.S. nexus is simply by choosing from one of three pre-selected affirmative responses.

In an age when most domain registrars are automatically redacting customer information from publicly accessible registration records to avoid running afoul of European privacy laws, .US has remained something of an outlier because its charter specifies that all registration records be made public. However, Infoblox said it found more than 2,000 malicious link shortener domains ending in .US registered since October 2023 through NameSilo that have somehow subverted the transparency requirements for the usTLD and converted to private registrations.

“Through our own experience with NameSilo, it is not possible to select private registration for domains in the usTLD through their interface,” Infoblox wrote. “And yet, it was done. Of the total domains with private records, over 99% were registered with NameSilo. At this time, we are not able to explain this behavior.”

NameSilo CEO Kristaps Ronka said the company actively responds to reports about abusive domains, but that it hasn’t seen any abuse reports related to Infoblox’s findings.

“We take down hundreds to thousands of domains, lots of them proactively to combat abuse,” Ronka said. “Our current abuse rate on abuseIQ for example is currently at 0%. AbuseIQ receives reports from countless sources and we are yet to see these ‘Puma’ abuse reports.”

Experts who track domains associated with malware and phishing say even phony information supplied at registration is useful in identifying potentially malicious or phishous domains before they can be used for abuse.

For example, when it was registered through NameSilo in July 2023, the domain 1ox[.]us — like thousands of others — listed its registrant as “Leila Puma” at a street address in Poland, and the email address blackpumaoct33@ukr.net. But according to DomainTools.com, on Oct. 1, 2023 those records were redacted and hidden by NameSilo.

Infoblox notes that the username portion of the email address appears to be a reference to the song October 33 by the Black Pumas, an Austin, Texas based psychedelic soul band. The Black Pumas aren’t exactly a household name, but they did recently have a popular Youtube video that featured a cover of the Kinks song “Strangers,” which included an emotional visual narrative about Ukrainians seeking refuge from the Russian invasion, titled “Ukraine Strangers.” Also, Leila Puma’s email address is at a Ukrainian email provider.

DomainTools shows that hundreds of other malicious domains tied to Prolific Puma previously were registered through NameCheap to a “Josef Bakhovsky” at a different street address in Poland. According to ancestry.com, the anglicized version of this surname — Bakovski — is the traditional name for someone from Bakowce, which is now known as Bakivtsi and is in Ukraine.

This possible Polish and/or Ukrainian connection may or may not tell us something about the “who” behind this link shortening service, but those details are useful for identifying and grouping these malicious short domains. However, even this meager visibility into .US registration data is now under threat.

The NTIA recently published a proposal that would allow registrars to redact all registrant data from WHOIS registration records for .US domains. A broad array of industry groups have filed comments opposing the proposed changes, saying they threaten to remove the last vestiges of accountability for a top-level domain that is already overrun with cybercrime activity.

Infoblox’s Burton says Prolific Puma is remarkable because they’ve been able to facilitate malicious activities for years while going largely unnoticed by the security industry.

“This exposes how persistent the criminal economy can be at a supply chain level,” Burton said. “We’re always looking at the end malware or phishing page, but what we’re finding here is that there’s this middle layer of DNS threat actors persisting for years without notice.”

Infoblox’s full report on Prolific Puma is here.

NJ Man Hired Online to Firebomb, Shoot at Homes Gets 13 Years in Prison

A 22-year-old New Jersey man has been sentenced to more than 13 years in prison for participating in a firebombing and a shooting at homes in Pennsylvania last year. Patrick McGovern-Allen was the subject of a Sept. 4, 2022 story here about the emergence of “violence-as-a-service” offerings, where random people from the Internet hire themselves out to perform a variety of local, physical attacks, including firebombing a home, “bricking” windows, slashing tires, or performing a drive-by shooting at someone’s residence.

McGovern-Allen, of Egg Harbor Township, N.J., was arrested Aug. 12, 2022 on an FBI warrant, which showed he was part of a group of cybercriminals who are settling scores with one another by hiring people to carry out violent attacks on their rivals.

That Sept. 2022 story about his arrest included links to two videos released on Telegram that were recorded and shared by McGovern-Allen and/or a co-conspirator as “proof” that they had carried out the attacks as hired.

The first showed two young men tossing a Molotov Cocktail at the side of a residence in Abington Township, Pa, setting it ablaze. The second featured two men with handguns unloading multiple rounds haphazardly into the first story of a house in West Chester, Pa. Fortunately in both cases, the occupants of the homes were unharmed in the attacks.

Federal prosecutors said McGovern-Allen went by the alias “Tongue” on Discord, and that in one chat he was quite explicit about his violence-as-a-service offering.

“In the chats, [Tongue] tells other Discord users that he was the person who shot K.M.’s house and that he was willing to commit firebombings using Molotov Cocktails,” the complaint against McGovern-Allen explains. “For example, in one Discord chat from March 2022, [the defendant] states ‘if you need anything done for $ lmk [“let me know”]/I did a shooting/Molotov/but I can also do things for ur entertainment.”

The chat channels that Tongue frequented have hundreds to thousands of members each, and some of the more interesting solicitations on these communities are job offers for in-person assignments and tasks that can be found if one searches for posts titled, “If you live near,” or “IRL job” — short for “in real life” job. A number of these classified ads are in service of performing “brickings,” where someone is hired to visit a specific address and toss a brick through the target’s window.

McGovern-Allen was in the news not long ago. According to a Sept. 2020 story from The Press of Atlantic City, a then 19-year-old Patrick McGovern-Allen was injured after driving into a building and forcing residents from their home.

“Police found a 2007 Lexus, driven by Patrick McGovern-Allen, 19, that had lost control and left the road, crashing into the eastern end of the 1600 building,” the story recounted. “The car was driven through the steps that provide access to the second-floor apartments, destroying them, and also caused damage to the outer wall.”

A copy of McGovern-Allen’s sentencing statement says he pleaded guilty to three criminal counts, including two for stalking, and one for the use of fire in commission of a federal felony. The judge in the case gave McGovern-Allen 160 months in prison — about 13.3 years. After completing his sentence, McGovern-Allen will be on supervised release for three years.

The Fake Browser Update Scam Gets a Makeover

One of the oldest malware tricks in the book — hacked websites claiming visitors need to update their Web browser before they can view any content — has roared back to life in the past few months. New research shows the attackers behind one such scheme have developed an ingenious way of keeping their malware from being taken down by security experts or law enforcement: By hosting the malicious files on a decentralized, anonymous cryptocurrency blockchain.

In August 2023, security researcher Randy McEoin blogged about a scam he dubbed ClearFake, which uses hacked WordPress sites to serve visitors with a page that claims you need to update your browser before you can view the content.

The fake browser alerts are specific to the browser you’re using, so if you’re surfing the Web with Chrome, for example, you’ll get a Chrome update prompt. Those who are fooled into clicking the update button will have a malicious file dropped on their system that tries to install an information stealing trojan.

Earlier this month, researchers at the Tel Aviv-based security firm Guardio said they tracked an updated version of the ClearFake scam that included an important evolution. Previously, the group had stored its malicious update files on Cloudflare, Guardio said.

But when Cloudflare blocked those accounts the attackers began storing their malicious files as cryptocurrency transactions in the Binance Smart Chain (BSC), a technology designed to run decentralized apps and “smart contracts,” or coded agreements that execute actions automatically when certain conditions are met.

Nati Tal, head of security at Guardio Labs, the research unit at Guardio, said the malicious scripts stitched into hacked WordPress sites will create a new smart contract on the BSC Blockchain, starting with a unique, attacker-controlled blockchain address and a set of instructions that defines the contract’s functions and structure. When that contract is queried by a compromised website, it will return an obfuscated and malicious payload.

“These contracts offer innovative ways to build applications and processes,” Tal wrote along with his Guardio colleague Oleg Zaytsev. “Due to the publicly accessible and unchangeable nature of the blockchain, code can be hosted ‘on-chain’ without the ability for a takedown.”

Tal said hosting malicious files on the Binance Smart Chain is ideal for attackers because retrieving the malicious contract is a cost-free operation that was originally designed for the purpose of debugging contract execution issues without any real-world impact.

“So you get a free, untracked, and robust way to get your data (the malicious payload) without leaving traces,” Tal said.

In response to questions from KrebsOnSecurity, the BNB Smart Chain (BSC) said its team is aware of the malware abusing its blockchain, and is actively addressing the issue. The company said all addresses associated with the spread of the malware have been blacklisted, and that its technicians had developed a model to detect future smart contracts that use similar methods to host malicious scripts.

“This model is designed to proactively identify and mitigate potential threats before they can cause harm,” BNB Smart Chain wrote. “The team is committed to ongoing monitoring of addresses that are involved in spreading malware scripts on the BSC. To enhance their efforts, the tech team is working on linking identified addresses that spread malicious scripts to centralized KYC [Know Your Customer] information, when possible.”

Guardio says the crooks behind the BSC malware scheme are using the same malicious code as the attackers that McEoin wrote about in August, and are likely the same group. But a report published today by email security firm Proofpoint says the company is currently tracking at least four distinct threat actor groups that use fake browser updates to distribute malware.

Proofpoint notes that the core group behind the fake browser update scheme has been using this technique to spread malware for the past five years, primarily because the approach still works well.

“Fake browser update lures are effective because threat actors are using an end-user’s security training against them,” Proofpoint’s Dusty Miller wrote. “In security awareness training, users are told to only accept updates or click on links from known and trusted sites, or individuals, and to verify sites are legitimate. The fake browser updates abuse this training because they compromise trusted sites and use JavaScript requests to quietly make checks in the background and overwrite the existing website with a browser update lure. To an end user, it still appears to be the same website they were intending to visit and is now asking them to update their browser.”

More than a decade ago, this site published Krebs’s Three Rules for Online Safety, of which Rule #1 was, “If you didn’t go looking for it, don’t install it.” It’s nice to know that this technology-agnostic approach to online safety remains just as relevant today.

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.

A Closer Look at the Snatch Data Ransom Group

Earlier this week, KrebsOnSecurity revealed that the darknet website for the Snatch ransomware group was leaking data about its users and the crime gang’s internal operations. Today, we’ll take a closer look at the history of Snatch, its alleged founder, and their claims that everyone has confused them with a different, older ransomware group by the same name.

According to a September 20, 2023 joint advisory from the FBI and the U.S. Cybersecurity and Infrastructure Security Administration (CISA), Snatch was originally named Team Truniger, based on the nickname of the group’s founder and organizer — Truniger.

The FBI/CISA report says Truniger previously operated as an affiliate of GandCrab, an early ransomware-as-a-service offering that closed up shop after several years and claims to have extorted more than $2 billion from victims. GandCrab dissolved in July 2019, and is thought to have become “REvil,” one of the most ruthless and rapacious Russian ransomware groups of all time.

The government says Snatch used a customized ransomware variant notable for rebooting Microsoft Windows devices into Safe Mode — enabling the ransomware to circumvent detection by antivirus or endpoint protection — and then encrypting files when few services are running.

“Snatch threat actors have been observed purchasing previously stolen data from other ransomware variants in an attempt to further exploit victims into paying a ransom to avoid having their data released on Snatch’s extortion blog,” the FBI/CISA alert reads. It continues:

“Prior to deploying the ransomware, Snatch threat actors were observed spending up to three months on a victim’s system. Within this timeframe, Snatch threat actors exploited the victim’s network moving laterally across the victim’s network with RDP for the largest possible deployment of ransomware and searching for files and folders for data exfiltration followed by file encryption.”

New York City-based cyber intelligence firm Flashpoint said the Snatch ransomware group was created in 2018, based on Truniger’s recruitment both on Russian language cybercrime forums and public Russian programming boards. Flashpoint said Truniger recruited “pen testers” for a new, then-unnamed cybercrime group, by posting their private Jabber instant messenger contact details on multiple Russian language coding forums, as well as on Facebook.

“The command requires Windows system administrators,” Truniger’s ads explained. “Experience in backup, increase privileges, mikicatz, network. Details after contacting on jabber: truniger@xmpp[.]jp.”

In at least some of those recruitment ads — like one in 2018 on the forum sysadmins[.]ru –the username promoting Truniger’s contact information was Semen7907. In April 2020, Truniger was banned from two of the top Russian cybercrime forums, where members from both forums confirmed that Semen7907 was one of Truniger’s known aliases.

[SIDE NOTE: Truniger was banned because he purchased credentials to a company from a network access broker on the dark web, and although he promised to share a certain percentage of whatever ransom amount Truniger’s group extracted from the victim, Truniger paid the access broker just a few hundred dollars off of a six-figure ransom].

According to Constella Intelligence, a data breach and threat actor research platform, a user named Semen7907 registered in 2017 on the Russian-language programming forum pawno[.]ru using the email address tretyakov-files@yandex.ru.

That same email address was assigned to the user “Semen-7907” on the now defunct gaming website tunngle.net, which suffered a data breach in 2020. Semen-7907 registered at Tunngle from the Internet address 31.192.175[.]63, which is in Yekaterinburg, RU.

Constella reports that tretyakov-files@yandex.ru was also used to register an account at the online game stalker[.]so with the nickname Trojan7907.

There is a Skype user by the handle semen7907, and which has the name Semyon Tretyakov from Yekaterinburg, RU. Constella also found a breached record from the Russian mobile telephony site tele2[.]ru, which shows that a user from Yekaterinburg registered in 2019 with the name Semyon Sergeyvich Tretyakov and email address tretyakov-files@ya.ru.

The above accounts, as well as the email address semen_7907@mail.ru, were all registered or accessed from the same Yekaterinburg Internet address mentioned previously: 31.192.175.63. The Russian mobile phone number associated with that tele2[.]ru account is connected to the Telegram account “Perchatka,” (“glove” in Russian).

BAD BEATS

Reached via Telegram, Perchatka (a.k.a. Mr. Tretyakov) said he was not a cybercriminal, and that he currently has a full-time job working in IT at a major company (he declined to specify which).

Presented with the information gathered for this report (and more that is not published here), Mr. Tretyakov acknowledged that Semen7907 was his account on sysadmins[.]ru, the very same account Truniger used to recruit hackers for the Snatch Ransomware group back in 2018.

However, he claims that he never made those posts, and that someone else must have assumed control over his sysadmins[.]ru account and posted as him. Mr. Tretyakov said that KrebsOnSecurity’s outreach this week was the first time he became aware that his sysadmins[.]ru account was used without his permission.

Mr. Tretyakov suggested someone may have framed him, pointing to an August 2023 story at a Russian news outlet about the reported hack and leak of the user database from sysadmins[.]ru, allegedly at the hands of a pro-Ukrainian hacker group called CyberSec.

“Recently, because of the war in Ukraine, a huge number of databases have been leaked and finding information about a person is not difficult,” Tretyakov said. “I’ve been using this login since about 2013 on all the forums where I register, and I don’t always set a strong password. If I had done something illegal, I would have hidden much better :D.”

[For the record, KrebsOnSecurity does not generally find this to be the case, as the ongoing Breadcrumbs series will attest.]

A Semyon Sergeyvich Tretyakov is listed as the composer of a Russian-language rap song called “Parallels,” which seems to be about the pursuit of a high-risk lifestyle online. A snippet of the song goes:

“Someone is on the screen, someone is on the blacklist
I turn on the timer and calculate the risks
I don’t want to stay broke And in the pursuit of money
I can’t take these zeros Life is like a zebra –
everyone wants to be first Either the stripes are white,
or we’re moving through the wilds I won’t waste time.”

Mr. Tretyakov said he was not the author of that particular rhyme, but that he has been known to record his own rhythms.

“Sometimes I make bad beats,” he said. “Soundcloud.”

NEVER MIND THE DOMAIN NAME

The FBI/CISA alert on Snatch Ransomware (PDF) includes an interesting caveat: It says Snatch actually deploys ransomware on victim systems, but it also acknowledges that the current occupants of Snatch’s dark and clear web domains call themselves Snatch Team, and maintain that they are not the same people as Snatch Ransomware from 2018.

Here’s the interesting bit from the FBI/CISA report:

“Since November 2021, an extortion site operating under the name Snatch served as a clearinghouse for data exfiltrated or stolen from victim companies on Clearnet and TOR hosted by a bulletproof hosting service. In August 2023, individuals claiming to be associated with the blog gave a media interview claiming the blog was not associated with Snatch ransomware and “none of our targets has been attacked by Ransomware Snatch…”, despite multiple confirmed Snatch victims’ data appearing on the blog alongside victims associated with other ransomware groups, notably Nokoyawa and Conti.”

Avid readers will recall a story here earlier this week about Snatch Team’s leaky darknet website based in Yekaterinburg, RU that exposed their internal operations and Internet addresses of their visitors. 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.

Snatch Team claims to deal only in stolen data — not in deploying ransomware malware to hold systems hostage.

Representatives of the Snatch Team recently answered questions from Databreaches.net about the claimed discrepancy in the FBI/CISA report.

“First of all, we repeat once again that we have nothing to do with Snatch Ransomware, we are Security Notification Attachment, and we have never violated the terms of the concluded transactions, because our honesty and openness is the guarantee of our income,” the Snatch Team wrote to Databreaches.net in response to questions.

But so far the Snatch Team has not been able to explain why it is using the very same domain names that the Snatch ransomware group used?

Their claim is even more unbelievable because the Snatch Team members told Databreaches.net they didn’t even know that a ransomware group with that name already existed when they initially formed just two years ago.

This is difficult to swallow because even if they were a separate group, they’d still need to somehow coordinate the transfer of the Ransomware group’s domains on the clear and dark webs. If they were hoping for a fresh start or separation, why not just pick a new name and new web destination?

“Snatchteam[.]cc is essentially a data market,” they continued. “The only thing to underline is that we are against selling leaked information, sticking to the idea of free access. Absolutely any team can come to us and offer information for publication. Even more, we have heard rumors that a number of ransomware teams scare their clients that they will post leaked information on our resource. We do not have our own ransomware, but we are open to cooperation on placement and monetization of dates (sic).”

Maybe Snatch Team does not wish to be associated with Snatch Ransomware because they currently believe stealing data and then extorting victim companies for money is somehow less evil than infecting all of the victim’s servers and backups with ransomware.

It is also likely that Snatch Team is well aware of how poorly some of their founders covered their tracks online, and are hoping for a do-over on that front.

‘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

Who’s Behind the 8Base Ransomware Website?

The victim shaming website operated by the cybercriminals behind 8Base — currently one of the more active ransomware groups — was until earlier today leaking quite a bit of information that the crime group probably did not intend to be made public. The leaked data suggests that at least some of website’s code was written by a 36-year-old programmer residing in the capital city of Moldova.

8Base maintains a darknet website that is only reachable via Tor, a freely available global anonymity network. The site lists hundreds of victim organizations and companies — all allegedly hacking victims that refused to pay a ransom to keep their stolen data from being published.

The 8Base darknet site also has a built-in chat feature, presumably so that 8Base victims can communicate and negotiate with their extortionists. This chat feature, which runs on the Laravel web application framework, works fine as long as you are *sending* information to the site (i.e., by making a “POST” request).

However, if one were to try to fetch data from the same chat service (i.e., by making a “GET” request), the website until quite recently generated an extremely verbose error message:

That error page revealed the true Internet address of the Tor hidden service that houses the 8Base website: 95.216.51[.]74, which according to DomainTools.com is a server in Finland that is tied to the Germany-based hosting giant Hetzner.

But that’s not the interesting part: Scrolling down the lengthy error message, we can see a link to a private Gitlab server called Jcube-group: gitlab[.]com/jcube-group/clients/apex/8base-v2. Digging further into this Gitlab account, we can find some curious data points available in the JCube Group’s public code repository.

For example, this “status.php” page, which was committed to JCube Group’s Gitlab repository roughly one month ago, includes code that makes several mentions of the term “KYC” (e.g. KYC_UNVERIFIED, KYC_VERIFIED, and KYC_PENDING).

This is curious because a FAQ on the 8Base darknet site includes a section on “special offers for journalists and reporters,” which says the crime group is open to interviews but that journalists will need to prove their identity before any interview can take place. The 8base FAQ refers to this vetting process as “KYC,” which typically stands for “Know Your Customer.”

“We highly respect the work of journalists and consider information to be our priority,” the 8Base FAQ reads. “We have a special program for journalists which includes sharing information a few hours or even days before it is officially published on our news website and Telegram channel: you would need to go through a KYC procedure to apply. Journalists and reporters can contact us via our PR Telegram channel with any questions.”

The 8Base darknet site also has a publicly accessible “admin” login page, which features an image of a commercial passenger plane parked at what appears to be an airport. Next to the airplane photo is a message that reads, “Welcome to 8Base. Admin Login to 8Base dashboard.”

Right-clicking on the 8Base admin page and selecting “View Source” produces the page’s HTML code. That code is virtually identical to a “login.blade.php” page that was authored and committed to JCube Group’s Gitlab repository roughly three weeks ago.

It appears the person responsible for the JCube Group’s code is a 36-year-old developer from Chisinau, Moldova named Andrei Kolev. Mr. Kolev’s LinkedIn page says he’s a full-stack developer at JCube Group, and that he’s currently looking for work. The homepage for Jcubegroup[.]com lists an address and phone number that Moldovan business records confirm is tied to Mr. Kolev.

The posts on the Twitter account for Mr. Kolev (@andrewkolev) are all written in Russian, and reference several now-defunct online businesses, including pluginspro[.]ru.

Reached for comment via LinkedIn, Mr. Kolev said he had no idea why the 8Base darknet site was pulling code from the “clients” directory of his private JCube Group Gitlab repository, or how the 8Base name was even included.

“I [don’t have] a clue, I don’t have that project in my repo,” Kolev explained. “They [aren’t] my clients. Actually we currently have just our own projects.”

Mr. Kolev shared a screenshot of his current projects, but very quickly after that deleted it. However, KrebsOnSecurity captured a copy of the image before it was removed:

Within minutes of explaining why I was reaching out to Mr. Kolev and walking him through the process of finding this connection, the 8Base website was changed, and the error message that linked to the JCube Group private Gitlab repository no longer appeared. Instead, trying the same “GET” method described above caused the 8Base website to return a “405 Method Not Allowed” error page:

Mr. Kolev claimed he didn’t know anything about the now-removed error page on 8Base’s site that referenced his private Gitlab repo, and said he deleted the screenshot from our LinkedIn chat because it contained private information.

Ransomware groups are known to remotely hire developers for specific projects without disclosing exactly who they are or how the new hire’s code is intended to be used, and it is possible that one of Mr. Kolev’s clients is merely a front for 8Base. But despite 8Base’s statement that they are happy to correspond with journalists, KrebsOnSecurity is still waiting for a reply from the group via their Telegram channel.

The tip about the leaky 8Base website was provided by a reader who asked to remain anonymous. That reader, a legitimate security professional and researcher who goes by the handle @htmalgae on Twitter, said it is likely that whoever developed the 8Base website inadvertently left it in “development mode,” which is what caused the site to be so verbose with its error messages.

“If 8Base was running the app in production mode instead of development mode, this Tor de-anonymization would have never been possible,” @htmalgae said.

A recent blog post from VMware/Carbon Black called the 8Base ransomware group “a heavy hitter” that has remained relatively unknown despite the massive spike in activity in Summer of 2023.

“8Base is a Ransomware group that has been active since March 2022 with a significant spike in activity in June of 2023,” Carbon Black researchers wrote. “Describing themselves as ‘simple pen testers,’ their leak site provided victim details through Frequently Asked Questions and Rules sections as well as multiple ways to contact them. ”

According to VMware, what’s particularly interesting about 8Base’s communication style is the use of verbiage that is strikingly familiar to another known cybercriminal group: RansomHouse.

“The group utilizes encryption paired with ‘name-and-shame’ techniques to compel their victims to pay their ransoms,” VMware researchers wrote. “8Base has an opportunistic pattern of compromise with recent victims spanning across varied industries. Despite the high amount of compromises, the information regarding identities, methodology, and underlying motivation behind these incidents still remains a mystery.”

Update, Sept. 21, 10:43 a.m. ET: The author of Databreaches.net was lurking in the 8Base Telegram channel when I popped in to ask the crime group a question, and reports that 8Base did eventually reply: ““hi at the moment we r not doing interviews. we have nothing to say. we r a little busy.”

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.”

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

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.

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.

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.”

U.K. Cyber Thug “PlugwalkJoe” Gets 5 Years in Prison

Joseph James “PlugwalkJoe” O’Connor, a 24-year-old from the United Kingdom who earned his 15 minutes of fame by participating in the July 2020 hack of Twitter, has been sentenced to five years in a U.S. prison. That may seem like harsh punishment for a brief and very public cyber joy ride. But O’Connor also pleaded guilty in a separate investigation involving a years-long spree of cyberstalking and cryptocurrency theft enabled by “SIM swapping,” a crime wherein fraudsters trick a mobile provider into diverting a customer’s phone calls and text messages to a device they control.

On July 16, 2020 — the day after some of Twitter’s most recognizable and popular users had their accounts hacked and used to tweet out a bitcoin scam —  KrebsOnSecurity observed that several social media accounts tied to O’Connor appeared to have inside knowledge of the intrusion. That story also noted that thanks to COVID-19 lockdowns at the time, O’Connor was stuck on an indefinite vacation at a popular resort in Spain.

Not long after the Twitter hack, O’Connor was quoted in The New York Times denying any involvement. “I don’t care,” O’Connor told The Times. “They can come arrest me. I would laugh at them. I haven’t done anything.”

Speaking with KrebsOnSecurity via Instagram instant message just days after the Twitter hack, PlugwalkJoe demanded that his real name be kept out of future blog posts here. After he was told that couldn’t be promised, he remarked that some people in his circle of friends had been known to hire others to deliver physical beatings on people they didn’t like.

O’Connor was still in Spain a year later when prosecutors in the Northern District of California charged him with conspiring to hack Twitter. At the same time, prosecutors in the Southern District of New York charged O’Connor with an impressive array of cyber offenses involving the exploitation of social media accounts, online extortion, cyberstalking, and the theft of cryptocurrency then valued at nearly USD $800,000.

In late April 2023, O’Connor was extradited from Spain to face charges in the United States. Two weeks later, he entered guilty pleas in both California and New York, admitting to all ten criminal charges levied against him. On June 23, O’Connor was sentenced to five years in prison.

PlugwalkJoe was part of a community that specialized in SIM-swapping victims to take over their online identities. Unauthorized SIM swapping is a scheme in which fraudsters trick or bribe employees at wireless phone companies into redirecting the target’s text messages and phone calls to a device they control.

From there, the attackers can reset the password for any of the victim’s online accounts that allow password resets via SMS. SIM swapping also lets attackers intercept one-time passwords needed for SMS-based multi-factor authentication (MFA).

O’Connor admitted to conducting SIM swapping attacks to take control over financial accounts tied to several cryptocurrency executives in May 2019, and to stealing digital currency currently valued at more than $1.6 million.

PlugwalkJoe also copped to SIM-swapping his way into the Snapchat accounts of several female celebrities and threatening to release nude photos found on their phones.

Victims who refused to give up social media accounts or submit to extortion demands were often visited with “swatting attacks,” wherein O’Connor and others would falsely report a shooting or hostage situation in the hopes of tricking police into visiting potentially lethal force on a target’s address.

Prosecutors said O’Connor even swatted and cyberstalked a 16-year-old girl, sending her nude photos and threatening to rape and/or murder her and her family.

In the case of the Twitter hack, O’Connor pleaded guilty to conspiracy to commit computer intrusions, conspiracy to commit wire fraud, and conspiracy to commit money laundering.

To resolve the case against him in New York, O’Connor pleaded guilty to conspiracy to commit computer intrusion, two counts of committing computer intrusions, making extortive communications, two counts of stalking, and making threatening communications.

In addition to the prison term, O’Connor was sentenced to three years of supervised release, and ordered to pay $794,012.64 in forfeiture.

To be clear, the Twitter hack of July 2020 did not involve SIM-swapping. Rather, Twitter said the intruders tricked a Twitter employee over the phone into providing access to internal tools.

Three others were charged along with O’Connor in the Twitter compromise. The alleged mastermind of the hack, then 17-year-old Graham Ivan Clarke from Tampa, Fla., pleaded guilty in 2021 and agreed to serve three years in prison, followed by three years probation.

This story is good reminder about the need to minimize your reliance on the mobile phone companies for securing your online identity. This means reducing the number of ways your life could be turned upside down if someone were to hijack your mobile phone number.

Most online services require users to validate a mobile phone number as part of setting up an account, but some services will let you remove your phone number after the fact. Those services that do you let you remove your phone number or disable SMS/phone calls for account recovery probably also offer more secure multi-factor authentication options, such as app-based one-time passwords and security keys. Check out 2fa.directory for a list of multi-factor options available across hundreds of popular sites and services.

SMS Phishers Harvested Phone Numbers, Shipment Data from UPS Tracking Tool

The United Parcel Service (UPS) says fraudsters have been harvesting phone numbers and other information from its online shipment tracking tool in Canada to send highly targeted SMS phishing (a.k.a. “smishing”) messages that spoofed UPS and other top brands. The missives addressed recipients by name, included details about recent orders, and warned that those orders wouldn’t be shipped unless the customer paid an added delivery fee.

In a snail mail letter sent this month to Canadian customers, UPS Canada Ltd. said it is aware that some package recipients have received fraudulent text messages demanding payment before a package can be delivered, and that it has been working with partners in its delivery chain to try to understand how the fraud was occurring.

“During that review, UPS discovered a method by which a person who searched for a particular package or misused a package look-up tool could obtain more information about the delivery, potentially including a recipient’s phone number,” the letter reads. “Because this information could be misused by third parties, including potentially in a smishing scheme, UPS has taken steps to limit access to that information.”

The written notice goes on to say UPS believes the data exposure “affected packages for a small group of shippers and some of their customers from February 1, 2022 to April 24, 2023.”

As early as April 2022, KrebsOnSecurity began receiving tips from Canadian readers who were puzzling over why they’d just received one of these SMS phishing messages that referenced information from a recent order they’d legitimately placed at an online retailer.

In March, 2023, a reader named Dylan from British Columbia wrote in to say he’d received one of these shipping fee scam messages not long after placing an order to buy gobs of building blocks directly from Lego.com. The message included his full name, phone number, and postal code, and urged him to click a link to mydeliveryfee-ups[.]info and pay a $1.55 delivery fee that was supposedly required to deliver his Legos.

“From searching the text of this phishing message, I can see that a lot of people have experienced this scam, which is more convincing because of the information the phishing text contains,” Dylan wrote. “It seems likely to me that UPS is leaking information somehow about upcoming deliveries.”

Josh is a reader who works for a company that ships products to Canada, and in early January 2023 he inquired whether there was any information about a breach at UPS Canada.

“We’ve seen many of our customers targeted with a fraudulent UPS text message scheme after placing an order,” Josh said. “A link is provided (often only after the customer responds to the text) which takes you to a captcha page, followed by a fraudulent payment collection page.”

Pivoting on the domain in the smishing message sent to Dylan shows the phishing domain shared an Internet host in Russia [91.215.85-166] with nearly two dozen other smishing related domains, including upsdelivery[.]info, legodelivery[.]info, adidascanadaltd[.]com, crocscanadafee[.]info, refw0234apple[.]info, vista-printcanada[.]info and telus-ca[.]info.

The inclusion of big-name brands in the domains of these UPS smishing campaigns suggests the perpetrators had the ability to focus their lookups on UPS customers who had recently ordered items from specific companies.

Attempts to visit these domains with a web browser failed, but loading them in a mobile device (or in my case, emulating a mobile device using a virtual machine and Developer Tools in Firefox) revealed the first stage of this smishing attack. As Josh mentioned, what first popped up was a CAPTCHA; after the visitor solved the CAPTCHA, they were taken through several more pages that requested the user’s full name, date of birth, credit card number, address, email and phone number.

In April 2022, KrebsOnSecurity heard from Alex, the CEO of a technology company in Canada who asked to leave his last name out of this story. Alex reached out when he began receiving the smishing messages almost immediately after ordering two sets of Airpods directly from Apple’s website.

What puzzled Alex most was that he’d instructed Apple to send the Airpods as a gift to two different people, and less than 24 hours later the phone number he uses for his Apple account received two of the phishing messages, both of which contained salutations that included the names of the people for whom he’d bought Airpods.

“I’d put the recipient as different people on my team, but because it was my phone number on both orders I was the one getting the texts,” Alex explained. “That same day, I got text messages referring to me as two different people, neither of whom were me.”

Alex said he believes UPS Canada either doesn’t fully understand what happened yet, or it is being coy about what it knows. He said the wording of UPS’s response misleadingly suggests the smishing attacks were somehow the result of hackers randomly looking up package information via the company’s tracking website.

Alex said it’s likely that whoever is responsible figured out how to query the UPS Canada website for only pending orders from specific brands, perhaps by exploiting some type of application programming interface (API) that UPS Canada makes or made available to its biggest retail partners.

“It wasn’t like I put the order through [on Apple.ca] and some days or weeks later I got a targeted smishing attack,” he said. “It was more or less the same day. And it was as if [the phishers] were being notified the order existed.”

The letter to UPS Canada customers does not mention whether any other customers in North America were affected, and it remains unclear whether any UPS customers outside of Canada may have been targeted.

In a statement provided to KrebsOnSecurity, Sandy Springs, Ga. based UPS [NYSE:UPS] said the company has been working with partners in the delivery chain to understand how that fraud was being perpetrated, as well as with law enforcement and third-party experts to identify the cause of this scheme and to put a stop to it.

“Law enforcement has indicated that there has been an increase in smishing impacting a number of shippers and many different industries,” reads an email from Brian Hughes, director of financial and strategy communications at UPS.

“Out of an abundance of caution, UPS is sending privacy incident notification letters to individuals in Canada whose information may have been impacted,” Hughes said. “We encourage our customers and general consumers to learn about the ways they can stay protected against attempts like this by visiting the UPS Fight Fraud website.”

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.

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.

Russian Hacker “Wazawaka” Indicted for Ransomware

A Russian man identified by KrebsOnSecurity in January 2022 as a prolific and vocal member of several top ransomware groups was the subject of two indictments unsealed by the Justice Department today. U.S. prosecutors say Mikhail Pavolovich Matveev, a.k.a. “Wazawaka” and “Boriselcin” worked with three different ransomware gangs that extorted hundreds of millions of dollars from companies, schools, hospitals and government agencies.

Indictments returned in New Jersey and the District of Columbia allege that Matveev was involved in a conspiracy to distribute ransomware from three different strains or affiliate groups, including Babuk, Hive and LockBit.

The indictments allege that on June 25, 2020, Matveev and his LockBit co-conspirators deployed LockBit ransomware against a law enforcement agency in Passaic County, New Jersey. Prosecutors say that on May 27, 2022, Matveev conspired with Hive to ransom a nonprofit behavioral healthcare organization headquartered in Mercer County, New Jersey. And on April 26, 2021, Matveev and his Babuk gang allegedly deployed ransomware against the Metropolitan Police Department in Washington, D.C.

Meanwhile, the U.S. Department of Treasury has added Matveev to its list of persons with whom it is illegal to transact financially. Also, the U.S. State Department is offering a $10 million reward for the capture and/or prosecution of Matveev, although he is unlikely to face either as long as he continues to reside in Russia.

In a January 2021 discussion on a top Russian cybercrime forum, Matveev’s alleged alter ego Wazawaka said he had no plans to leave the protection of “Mother Russia,” and that traveling abroad was not an option for him.

“Mother Russia will help you,” Wazawaka concluded. “Love your country, and you will always get away with everything.”

In January 2022, KrebsOnSecurity published Who is the Network Access Broker ‘Wazawaka,’ which followed clues from Wazawaka’s many pseudonyms and contact details on the Russian-language cybercrime forums back to a 33-year-old Mikhail Matveev from Abaza, RU (the FBI says his date of birth is Aug. 17, 1992).

A month after that story ran, a man who appeared identical to the social media photos for Matveev began posting on Twitter a series of bizarre selfie videos in which he lashed out at security journalists and researchers (including this author), while using the same Twitter account to drop exploit code for a widely-used virtual private networking (VPN) appliance.

“Hello Brian Krebs! You did a really great job actually, really well, fucking great — it’s great that journalism works so well in the US,” Matveev said in one of the videos. “By the way, it is my voice in the background, I just love myself a lot.”

Prosecutors allege Matveev used a dizzying stream of monikers on the cybercrime forums, including “Boriselcin,” a talkative and brash personality who was simultaneously the public persona of Babuk, a ransomware affiliate program that surfaced on New Year’s Eve 2020.

Previous reporting here revealed that Matveev’s alter egos included “Orange,” the founder of the RAMP ransomware forum. RAMP stands for “Ransom Anon Market Place, and analysts at the security firm Flashpoint say the forum was created “directly in response to several large Dark Web forums banning ransomware collectives on their site following the Colonial Pipeline attack by ransomware group ‘DarkSide.”

As noted in last year’s investigations into Matveev, his alleged cybercriminal handles all were driven by a uniquely communitarian view that when organizations being held for ransom decline to cooperate or pay up, any data stolen from the victim should be published on the Russian cybercrime forums for all to plunder — not privately sold to the highest bidder.

In thread after thread on the crime forum XSS, Matveev’s alleged alias “Uhodiransomwar” could be seen posting download links to databases from companies that have refused to negotiate after five days.

Matveev is charged with conspiring to transmit ransom demands, conspiring to damage protected computers, and intentionally damaging protected computers. If convicted, he faces more than 20 years in prison.

Further reading:

Who is the Network Access Broker “Wazawaka?”

Wazawaka Goes Waka Waka

The New Jersey indictment against Matveev (PDF)

The indictment from the U.S. attorney’s office in Washington, D.C. (PDF)

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

$10M Is Yours If You Can Get This Guy to Leave Russia

The U.S. government this week put a $10 million bounty on a Russian man who for the past 18 years operated Try2Check, one of the cybercrime underground’s most trusted services for checking the validity of stolen credit card data. U.S. authorities say 43-year-old Denis Kulkov‘s card-checking service made him at least $18 million, which he used to buy a Ferrari, Land Rover, and other luxury items.

Launched in 2005, Try2Check soon was processing more than a million card-checking transactions per month — charging 20 cents per transaction. Cybercriminals turned to services like this after purchasing stolen credit card data from an underground shop, with an eye toward minimizing the number of cards that are inactive by the time they are put to criminal use.

Try2Check was so reliable that it eventually became the official card-checking service for some of the underground’s most bustling crime bazaars, including Vault Market, Unicc, and Joker’s Stash. Customers of these carding shops who chose to use the shop’s built-in (but a-la-carte) card checking service from Try2Check could expect automatic refunds on any cards that were found to be inactive or canceled at the time of purchase.

Many established stolen card shops will allow customers to request refunds on dead cards based on official reports from trusted third-party checking services. But in general, the bigger shops have steered customers toward using their own white-labeled version of the Try2Check service — primarily to help minimize disputes over canceled cards.

On Wednesday, May 3, Try2Check’s websites were replaced with a domain seizure notice from the U.S. Secret Service and U.S. Department of Justice, as prosecutors in the Eastern District of New York unsealed an indictment and search warrant naming Denis Gennadievich Kulkov of Samara, Russia as the proprietor.

At the same time, the U.S. Department of State issued a $10 million reward for information leading to the arrest or conviction of Kulkov. In November 2021, the State Department began offering up to to $10 million for the name or location of any key leaders of REvil, a major Russian ransomware gang.

As noted in the Secret Service’s criminal complaint (PDF), the Try2Check service was first advertised on the closely-guarded Russian cybercrime forum Mazafaka, by someone using the handle “KreenJo.” That handle used the same ICQ instant messenger account number (555724) as a Mazafaka denizen named “Nordex.”

In February 2005, Nordex posted to Mazafaka that he was in the market for hacked bank accounts, and offered 50 percent of the take. He asked interested partners to contact him at the ICQ number 228427661 or at the email address polkas@bk.ru. As the government noted in its search warrant, Nordex exchanged messages with forum users at the time identifying himself as a then-24-year-old “Denis” from Samara, RU.

In 2017, U.S. law enforcement seized the cryptocurrency exchange BTC-e, and the Secret Service said those records show that a Denis Kulkov from Samara supplied the username “Nordexin,” email address nordexin@ya.ru, and an address in Samara.

Investigators had already found Instagram accounts where Kulkov posted pictures of his Ferrari and his family. Authorities were able to identify that Kulkov had an iCloud account tied to the address nordexin@icloud.com, and upon subpoenaing that found passport photos of Kulkov, and well as more photos of his family and pricey cars.

Like many other top cybercriminals based in Russia or in countries with favorable relations to the Kremlin, the proprietor of Try2Check was not particularly difficult to link to a real-life identity. In Kulkov’s case, it no doubt was critical to U.S. investigators that they had access to a wealth of personal information tied to a cryptocurrency exchange Kulkov had used.

However, the link between Kulkov and Try2Check can be made — ironically — based on records that have been plundered by hackers and published online over the years — including Russian email services, Russian government records, and hacked cybercrime forums.

NORDEX

According to cybersecurity firm Constella Intelligence, the address polkas@bk.ru was used to register an account with the username “Nordex” at bankir[.]com, a now defunct news website that was almost standard reading for Russian speakers interested in news about various Russian financial markets.

Nordex appears to have been a finance nerd. In his early days on the forums, Nordex posted several long threads on his views about the Russian stock market and mutual fund investments.

That Bankir account was registered from the Internet address 193.27.237.66 in Samara, Russia, and included Nordex’s date of birth as April 8, 1980, as well as their ICQ number (228427661).

Cyber intelligence firm Intel 471 found that Internet address also was used to register the account “Nordex” on the Russian hacking forum Exploit back in 2006.

Constella tracked another Bankir[.]com account created from that same Internet address under the username “Polkas.” This account had the same date of birth as Nordex, but a different email address: nordia@yandex.ru. This and other “nordia@” emails shared a password: “anna59.”

NORDIA

Nordia@yandex.ru shares several passwords with nordia@list.ru, which Constella says was used to create an account at a religious website for an Anna Kulikova from Samara. At the Russian home furnishing store Westwing.ru, Ms. Kulikova listed her full name as Anna Vnrhoturkina Kulikova, and her address as 29 Kommunistrecheskya St., Apt. 110.

A search on that address in Constella brings up a record for an Anna Denis Vnrhoturkina Kulkov, and the phone number 879608229389.

Russian vehicle registration records have also been hacked and leaked online over the years. Those records show that Anna’s Apt 110 address is tied to a Denis Gennadyvich Kulkov, born April 8, 1980.

The vehicle Kolkov registered in 2015 at that address was a 2010 Ferrari Italia, with the license plate number K022YB190. The phone number associated with this record — 79608229389 — is exactly like Anna’s, only minus the (mis?)leading “8”. That number also is tied to a now-defunct Facebook account, and to the email addresses nordexin@ya.ru and nordexin@icloud.com.

Kulkov’s Ferrari has been photographed numerous times over the years by Russian car aficionados, including this one with the driver’s face redacted by the photographer:

As the title of this story suggests, the hard part for Western law enforcement isn’t identifying the Russian cybercriminals who are major players in the scene. Rather, it’s finding creative ways to capture high-value suspects if and when they do leave the protection that Russia generally extends to domestic cybercriminals within its borders who do not also harm Russian companies or consumers, or interfere with state interests.

But Russia’s war against Ukraine has caused major fault lines to appear in the cybercrime underground: Cybercriminal syndicates that previously straddled Russia and Ukraine with ease were forced to reevaluate many comrades who were suddenly working for The Other Side.

Many cybercriminals who operated with impunity from Russia and Ukraine prior to the war chose to flee those countries following the invasion, presenting international law enforcement agencies with rare opportunities to catch most-wanted cybercrooks. One of those was Mark Sokolovsky, a 26-year-old Ukrainian man who operated the popular “Raccoon” malware-as-a-service offering; Sokolovsky was apprehended in March 2022 after fleeing Ukraine’s mandatory military service orders.

Also nabbed on the lam last year was Vyacheslav “Tank” Penchukov, a senior Ukrainian member of a transnational cybercrime group that stole tens of millions of dollars over nearly a decade from countless hacked businesses. Penchukov was arrested after leaving Ukraine to meet up with his wife in Switzerland.

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

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.

FBI Seizes Bot Shop ‘Genesis Market’ Amid Arrests Targeting Operators, Suppliers

Several domain names tied to Genesis Market, a bustling cybercrime store that sold access to passwords and other data stolen from millions of computers infected with malicious software, were seized by the Federal Bureau of Investigation (FBI) today. The domain seizures coincided with more than a hundred arrests in the United States and abroad targeting those who allegedly operated the service, as well as suppliers who continuously fed Genesis Market with freshly-stolen data.

Active since 2018, Genesis Market’s slogan was, “Our store sells bots with logs, cookies, and their real fingerprints.” Customers could search for infected systems with a variety of options, including by Internet address or by specific domain names associated with stolen credentials.

But earlier today, multiple domains associated with Genesis had their homepages replaced with a seizure notice from the FBI, which said the domains were seized pursuant to a warrant issued by the U.S. District Court for the Eastern District of Wisconsin.

The U.S. Attorney’s Office for the Eastern District of Wisconsin did not respond to requests for comment. The FBI declined to comment.

Update, April 5, 11:40 a.m. ET: The U.S. Department of Justice just released a statement on its investigation into Genesis Market. In a press briefing this morning, FBI and DOJ officials said the international law enforcement investigation involved 14 countries and resulted in 400 law enforcement actions, including 119 arrests and 208 searches and interviews worldwide. The FBI confirmed that some American suspects are among those arrested, although officials declined to share more details on the arrests.

The DOJ said investigators were able to access the user database for Genesis Market, and found the invite-only service had more than 59,000 registered users. The database contained the purchase and activity history on all users, which the feds say helped them uncover the true identities of many users.

Original story: But sources close to the investigation tell KrebsOnSecurity that law enforcement agencies in the United States, Canada and across Europe are currently serving arrest warrants on dozens of individuals thought to support Genesis, either by maintaining the site or selling the service bot logs from infected systems.

The seizure notice includes the seals of law enforcement entities from several countries, including Australia, Canada, Denmark, Germany, the Netherlands, Spain, Sweden and the United Kingdom.

When Genesis customers purchase a bot, they’re purchasing the ability to have all of the victim’s authentication cookies loaded into their browser, so that online accounts belonging to that victim can be accessed without the need of a password, and in some cases without multi-factor authentication.

“You can buy a bot with a real fingerprint, access to e-mail, social networks, bank accounts, payment systems!,” a cybercrime forum ad for Genesis enthused. “You also get all previous digital life (history) of the bot – most services won’t even ask for login and password and identify you as their returning customer. Purchasing a bot kit with the fingerprint, cookies and accesses, you become the unique user of all his or her services and other web-sites. The other use of our kit of real fingerprints is to cover-up the traces of your real internet activity.”

The pricing for Genesis bots ranged quite a bit, but in general bots with large amounts of passwords and authentication cookies — or those with access to specific financial websites such as PayPal and Coinbase — tended to fetch far higher prices.

New York based cyber intelligence firm Flashpoint says that in addition to containing a large number of resources, the most expensive bots overwhelmingly seem to have access to accounts that are easy to monetize.

“The high incidence of Google and Facebook is expected, as they are such widely used platforms,” Flashpoint noted in an analysis of Genesis Market, observing that all ten of the ten most expensive bots at the time included Coinbase credentials.

Genesis Market has introduced a number of cybercriminal innovations throughout its existence. Probably the best example is Genesis Security, a custom Web browser plugin which can load a Genesis bot profile so that the browser mimics virtually every important aspect of the victim’s device, from screen size and refresh rate to the unique user agent string tied to the victim’s web browser.

Flashpoint said the administrators of Genesis Market claim they are a team of specialists with “extensive experience in the field of systems metrics.” They say they developed the Genesis Security software by analyzing the top forty-seven browser fingerprinting and tracking systems, as well as those utilized by 283 different banking and payment systems.

Cybersecurity experts say Genesis and a handful of other bot shops are also popular among cybercriminals who work to identify and purchase bots inside corporate networks, and then turn around and resell that access to ransomware gangs.

Michael Debolt, chief intelligence officer for Intel 471, said so-called “network access brokers” will scour automated bot shops for high value targets, and then resell them for a bigger profit.

“From ‘used’ or ‘processed’ logs — it is actually quite common for the same log to be used by multiple different actors who are all using it for different purposes – for instance, some actors are only interested in crypto wallet or banking credentials so they bypass credentials that network access brokers are interested in,” Debolt said. “These network access brokers buy these ‘used’ logs for very cheap (or sometimes for free) and search for big fish targets from there.”

In June 2021, hackers who broke into and stole a wealth of source code and game data from the computer gaming giant EA told Motherboard they gained access by purchasing a $10 bot from Genesis Market that let them log into a company Slack account.

One feature of Genesis that sets it apart from other bot shops is that customers can retain access to infected systems in real-time, so that if the rightful owner of an infected system creates a new account online, those new credentials will get stolen and displayed in the web-based panel of the Genesis customer who purchased that bot.

“While some infostealers are designed to remove themselves after execution, others create persistent access,” reads a March 2023 report from cybersecurity firm SpyCloud. “That means bad actors have access to the current data for as long as the device remains infected, even if the user changes passwords.”

SpyCloud says Genesis even advertises its commitment to keep the stolen data and the compromised systems’ fingerprints up to date.

“According to our research, Genesis Market had more than 430,000 stolen identities for sale as of early last year – and there are many other marketplaces like this one,” the SpyCloud report concludes.

It appears this week’s action targeted only the clear web versions of Genesis Market, and that the store is still operating on a dark web address that is only reachable through the Tor network. In today’s press briefing, DOJ officials said their investigation is ongoing, and that actions taken already have allowed them to disrupt Genesis in a way that may not be readily apparent.

In a blog post today, security firm Trellix said it was approached by the Dutch Police, who were seeking assistance with the analysis and detection of the malicious files linked to Genesis Market.

“The primary goal was to render the market’s scripts and binaries useless,” Trellix researchers wrote.

As described in the Trellix blog, a major part of this effort against Genesis Market involves targeting its suppliers, or cybercriminals who are constantly feeding the market with freshly-stolen bot data. The company says Genesis partnered with multiple cybercriminals responsible for selling, distributing and maintaining different strains of infostealer malware, including malware families such as Raccoon Stealer.

“Over the years, Genesis Market has worked with a large variety of malware families to infect victims, where their info stealing scripts were used to steal information, which was used to populate the Genesis Market store,” the Trellix researchers continued. “It comes as no surprise that the malware families linked to Genesis Market belong to the usual suspects of common info-stealers, like AZORult, Raccoon, Redline and DanaBot. In February 2023, Genesis Market started to actively recruit sellers. We believe with a moderate level of confidence that this was done to keep up with the growing demand of their users.”

How does one’s computer become a bot in one of these fraud networks? Infostealers are continuously mass-deployed via several methods, including malicious attachments in email; manipulating search engine results for popular software titles; and malware that is secretly attached to legitimate software made available for download via software crack websites and file-sharing networks.

John Fokker, head of threat intelligence at Trellix, told KrebsOnSecurity that the Dutch Police tracked down several people whose data was for sale on Genesis Market, and discovered that the victims had installed infostealer malware that was bundled with pirated software.

The Dutch Police have stood up a website that lets visitors check whether their information was part of the stolen data for sale on Genesis. Troy Hunt‘s Have I Been Pwned website is also offering a lookup service based on data seized by the FBI.

Ruben van Well, team leader of the Dutch police cybercrime unit in Rotterdam, said more than 800,000 visitors have already checked their website, and that more than 2,000 of those visitors were alerted to active infostealer malware infections.

Van Well said Dutch authorities executed at least 17 arrests in connection with the investigation so far. He added that while the cybercriminals running Genesis Market promised their customers that user account security was a high priority, the service stored all of its data in plain text.

“If users would say can you please delete my account, they’d do it, but we can still see in the logs that they asked for that,” van Well said. “Genesis Market was not very good at protecting the security of its users, which made a mess for them but it’s been great for law enforcement.”

According to the Dutch Police, Microsoft this morning shipped an update to supported Windows computers that can remove infections from infostealer malware families associated with Genesis Market.

The Dutch computer security firm Computest worked with Trellix and the Dutch Police to analyze the Genesis Market malware. Their highly technical deep-dive is available here.

This is a developing story. Any updates will be added with notice and timestamp here.

Apr. 5, 11:00 am ET: Added statement from Justice Department, and background from a press briefing this morning.

Apr. 5, 12:24 pm ET: Added perspective from Trellix, and context from DOJ officials.

Apr. 5, 1:27 pm ET: Added links to lookup services by the Dutch Police and Troy Hunt.

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.

UK Sets Up Fake Booter Sites To Muddy DDoS Market

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

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

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

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

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

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

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

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

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

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

Why You Should Opt Out of Sharing Data With Your Mobile Provider

A new breach involving data from nine million AT&T customers is a fresh reminder that your mobile provider likely collects and shares a great deal of information about where you go and what you do with your mobile device — unless and until you affirmatively opt out of this data collection. Here’s a primer on why you might want to do that, and how.

Telecommunications giant AT&T disclosed this month that a breach at a marketing vendor exposed certain account information for nine million customers. AT&T said the data exposed did not include sensitive information, such as credit card or Social Security numbers, or account passwords, but was limited to “Customer Proprietary Network Information” (CPNI), such as the number of lines on an account.

Certain questions may be coming to mind right now, like “What the heck is CPNI?” And, ‘If it’s so ‘customer proprietary,’ why is AT&T sharing it with marketers?” Also maybe, “What can I do about it?” Read on for answers to all three questions.

AT&T’s disclosure said the information exposed included customer first name, wireless account number, wireless phone number and email address. In addition, a small percentage of customer records also exposed the rate plan name, past due amounts, monthly payment amounts and minutes used.

CPNI refers to customer-specific “metadata” about the account and account usage, and may include:

-Called phone numbers
-Time of calls
-Length of calls
-Cost and billing of calls
-Service features
-Premium services, such as directory call assistance

According to a succinct CPNI explainer at TechTarget, CPNI is private and protected information that cannot be used for advertising or marketing directly.

“An individual’s CPNI can be shared with other telecommunications providers for network operating reasons,” wrote TechTarget’s Gavin Wright. “So, when the individual first signs up for phone service, this information is automatically shared by the phone provider to partner companies.”

Is your mobile Internet usage covered by CPNI laws? That’s less clear, as the CPNI rules were established before mobile phones and wireless Internet access were common. TechTarget’s CPNI primer explains:

“Under current U.S. law, cellphone use is only protected as CPNI when it is being used as a telephone. During this time, the company is acting as a telecommunications provider requiring CPNI rules. Internet use, websites visited, search history or apps used are not protected CPNI because the company is acting as an information services provider not subject to these laws.”

Hence, the carriers can share and sell this data because they’re not explicitly prohibited from doing so. All three major carriers say they take steps to anonymize the customer data they share, but researchers have shown it is not terribly difficult to de-anonymize supposedly anonymous web-browsing data.

“Your phone, and consequently your mobile provider, know a lot about you,” wrote Jack Morse for Mashable. “The places you go, apps you use, and the websites you visit potentially reveal all kinds of private information — e.g. religious beliefs, health conditions, travel plans, income level, and specific tastes in pornography. This should bother you.”

Happily, all of the U.S. carriers are required to offer customers ways to opt out of having data about how they use their devices shared with marketers. Here’s a look at some of the carrier-specific practices and opt-out options.

AT&T

AT&T’s policy says it shares device or “ad ID”, combined with demographics including age range, gender, and ZIP code information with third parties which explicitly include advertisers, programmers, and networks, social media networks, analytics firms, ad networks and other similar companies that are involved in creating and delivering advertisements.

AT&T said the data exposed on 9 million customers was several years old, and mostly related to device upgrade eligibility. This may sound like the data went to just one of its partners who experienced a breach, but in all likelihood it also went to hundreds of AT&T’s partners.

AT&T’s CPNI opt-out page says it shares CPNI data with several of its affiliates, including WarnerMedia, DirecTV and Cricket Wireless. Until recently, AT&T also shared CPNI data with Xandr, whose privacy policy in turn explains that it shares data with hundreds of other advertising firms. Microsoft bought Xandr from AT&T last year.

T-MOBILE

According to the Electronic Privacy Information Center (EPIC), T-Mobile seems to be the only company out of the big three to extend to all customers the rights conferred by the California Consumer Privacy Act (CCPA).

EPIC says T-Mobile customer data sold to third parties uses another unique identifier called mobile advertising IDs or “MAIDs.” T-Mobile claims that MAIDs don’t directly identify consumers, but under the CCPA MAIDs are considered “personal information” that can be connected to IP addresses, mobile apps installed or used with the device, any video or content viewing information, and device activity and attributes.

T-Mobile customers can opt out by logging into their account and navigating to the profile page, then to “Privacy and Notifications.” From there, toggle off the options for “Use my data for analytics and reporting” and “Use my data to make ads more relevant to me.”

VERIZON

Verizon’s privacy policy says it does not sell information that personally identities customers (e.g., name, telephone number or email address), but it does allow third-party advertising companies to collect information about activity on Verizon websites and in Verizon apps, through MAIDs, pixels, web beacons and social network plugins.

According to Wired.com’s tutorial, Verizon users can opt out by logging into their Verizon account through a web browser or the My Verizon mobile app. From there, select the Account tab, then click Account Settings and Privacy Settings on the web. For the mobile app, click the gear icon in the upper right corner and then Manage Privacy Settings.

On the privacy preferences page, web users can choose “Don’t use” under the Custom Experience section. On the My Verizon app, toggle any green sliders to the left.

EPIC notes that all three major carriers say resetting the consumer’s device ID and/or clearing cookies in the browser will similarly reset any opt-out preferences (i.e., the customer will need to opt out again), and that blocking cookies by default may also block the opt-out cookie from being set.

T-Mobile says its opt out is device-specific and/or browser-specific. “In most cases, your opt-out choice will apply only to the specific device or browser on which it was made. You may need to separately opt out from your other devices and browsers.”

Both AT&T and Verizon offer opt-in programs that gather and share far more information, including device location, the phone numbers you call, and which sites you visit using your mobile and/or home Internet connection. AT&T calls this their Enhanced Relevant Advertising Program; Verizon’s is called Custom Experience Plus.

In 2021, multiple media outlets reported that some Verizon customers were being automatically enrolled in Custom Experience Plus — even after those customers had already opted out of the same program under its previous name — “Verizon Selects.”

If none of the above opt out options work for you, at a minimum you should be able to opt out of CPNI sharing by calling your carrier, or by visiting one of their stores.

THE CASE FOR OPTING OUT

Why should you opt out of sharing CPNI data? For starters, some of the nation’s largest wireless carriers don’t have a great track record in terms of protecting the sensitive information that you give them solely for the purposes of becoming a customer — let alone the information they collect about your use of their services after that point.

In January 2023, T-Mobile disclosed that someone stole data on 37 million customer accounts, including customer name, billing address, email, phone number, date of birth, T-Mobile account number and plan details. In August 2021, T-Mobile acknowledged that hackers made off with the names, dates of birth, Social Security numbers and driver’s license/ID information on more than 40 million current, former or prospective customers who applied for credit with the company.

Last summer, a cybercriminal began selling the names, email addresses, phone numbers, SSNs and dates of birth on 23 million Americans. An exhaustive analysis of the data strongly suggested it all belonged to customers of one AT&T company or another. AT&T stopped short of saying the data wasn’t theirs, but said the records did not appear to have come from its systems and may be tied to a previous data incident at another company.

However frequently the carriers may alert consumers about CPNI breaches, it’s probably nowhere near often enough. Currently, the carriers are required to report a consumer CPNI breach only in cases “when a person, without authorization or exceeding authorization, has intentionally gained access to, used or disclosed CPNI.”

But that definition of breach was crafted eons ago, back when the primary way CPNI was exposed was through “pretexting,” such when the phone company’s employees are tricked into giving away protected customer data.

In January, regulators at the U.S. Federal Communications Commission (FCC) proposed amending the definition of “breach” to include things like inadvertent disclosure — such as when companies expose CPNI data on a poorly-secured server in the cloud. The FCC is accepting public comments on the matter until March 24, 2023.

While it’s true that the leak of CPNI data does not involve sensitive information like Social Security or credit card numbers, one thing AT&T’s breach notice doesn’t mention is that CPNI data — such as balances and payments made — can be abused by fraudsters to make scam emails and text messages more believable when they’re trying to impersonate AT&T and phish AT&T customers.

The other problem with letting companies share or sell your CPNI data is that the wireless carriers can change their privacy policies at any time, and you are assumed to be okay with those changes as long as you keep using their services.

For example, location data from your wireless device is most definitely CPNI, and yet until very recently all of the major carriers sold their customers’ real-time location data to third party data brokers without customer consent.

What was their punishment? In 2020, the FCC proposed fines totaling $208 million against all of the major carriers for selling their customers’ real-time location data. If that sounds like a lot of money, consider that all of the major wireless providers reported tens of billions of dollars in revenue last year (e.g., Verizon’s consumer revenue alone was more than $100 billion last year).

If the United States had federal privacy laws that were at all consumer-friendly and relevant to today’s digital economy, this kind of data collection and sharing would always be opt-in by default. In such a world, the enormously profitable wireless industry would likely be forced to offer clear financial incentives to customers who choose to share this information.

But until that day arrives, understand that the carriers can change their data collection and sharing policies when it suits them. And regardless of whether you actually read any notices about changes to their privacy policies, you will have agreed to those changes as long as you continue using their service.

Microsoft Patch Tuesday, March 2023 Edition

Microsoft on Tuesday released updates to quash at least 74 security bugs in its Windows operating systems and software. Two of those flaws are already being actively attacked, including an especially severe weakness in Microsoft Outlook that can be exploited without any user interaction.

The Outlook vulnerability (CVE-2023-23397) affects all versions of Microsoft Outlook from 2013 to the newest. Microsoft said it has seen evidence that attackers are exploiting this flaw, which can be done without any user interaction by sending a booby-trapped email that triggers automatically when retrieved by the email server — before the email is even viewed in the Preview Pane.

While CVE-2023-23397 is labeled as an “Elevation of Privilege” vulnerability, that label doesn’t accurately reflect its severity, said Kevin Breen, director of cyber threat research at Immersive Labs.

Known as an NTLM relay attack, it allows an attacker to get someone’s NTLM hash [Windows account password] and use it in an attack commonly referred to as “Pass The Hash.”

“The vulnerability effectively lets the attacker authenticate as a trusted individual without having to know the person’s password,” Breen said. “This is on par with an attacker having a valid password with access to an organization’s systems.”

Security firm Rapid7 points out that this bug affects self-hosted versions of Outlook like Microsoft 365 Apps for Enterprise, but Microsoft-hosted online services like Microsoft 365 are not vulnerable.

The other zero-day flaw being actively exploited in the wild — CVE-2023-24880 — is a “Security Feature Bypass” in Windows SmartScreen, part of Microsoft’s slate of endpoint protection tools.

Patch management vendor Action1 notes that the exploit for this bug is low in complexity and requires no special privileges. But it does require some user interaction, and can’t be used to gain access to private information or privileges. However, the flaw can allow other malicious code to run without being detected by SmartScreen reputation checks.

Dustin Childs, head of threat awareness at Trend Micro’s Zero Day Initiative, said CVE-2023-24880 allows attackers to create files that would bypass Mark of the Web (MOTW) defenses.

“Protective measures like SmartScreen and Protected View in Microsoft Office rely on MOTW, so bypassing these makes it easier for threat actors to spread malware via crafted documents and other infected files that would otherwise be stopped by SmartScreen,” Childs said.

Seven other vulnerabilities Microsoft patched this week earned its most-dire “critical” severity label, meaning the updates address security holes that could be exploited to give the attacker full, remote control over a Windows host with little or no interaction from the user.

Also this week, Adobe released eight patches addressing a whopping 105 security holes across a variety of products, including Adobe Photoshop, Cold Fusion, Experience Manager, Dimension, Commerce, Magento, Substance 3D Stager, Cloud Desktop Application, and Illustrator.

For a more granular rundown 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.