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Okta, a company that provides identity tools like multi-factor authentication and single sign-on to thousands of businesses, has suffered a security breach involving a compromise of its customer support unit, KrebsOnSecurity has learned. Okta says the incident affected a “very small number” of customers, however it appears the hackers responsible had access to Okta’s support platform for at least two weeks before the company fully contained the intrusion.
In an advisory sent to an undisclosed number of customers on Oct. 19, Okta said it “has identified adversarial activity that leveraged access to a stolen credential to access Okta’s support case management system. The threat actor was able to view files uploaded by certain Okta customers as part of recent support cases.”
Okta explained that when it is troubleshooting issues with customers it will often ask for a recording of a Web browser session (a.k.a. an HTTP Archive or HAR file). These are sensitive files because they can include the customer’s cookies and session tokens, which intruders can then use to impersonate valid users.
“Okta has worked with impacted customers to investigate, and has taken measures to protect our customers, including the revocation of embedded session tokens,” their notice continued. “In general, Okta recommends sanitizing all credentials and cookies/session tokens within a HAR file before sharing it.”
The security firm BeyondTrust is among the Okta customers who received Thursday’s alert from Okta. BeyondTrust Chief Technology Officer Marc Maiffret said that alert came more than two weeks after his company alerted Okta to a potential problem.
Maiffret emphasized that BeyondTrust caught the attack earlier this month as it was happening, and that none of its own customers were affected. He said that on Oct 2., BeyondTrust’s security team detected that someone was trying to use an Okta account assigned to one of their engineers to create an all-powerful administrator account within their Okta environment.
When BeyondTrust reviewed the activity of the employee account that tried to create the new administrative profile, they found that — just 30 minutes prior to the unauthorized activity — one of their support engineers shared with Okta one of these HAR files that contained a valid Okta session token, Maiffret said.
“Our admin sent that [HAR file] over at Okta’s request, and 30 minutes after that the attacker started doing session hijacking, tried to replay the browser session and leverage the cookie in that browser recording to act on behalf of that user,” he said.
Maiffret said BeyondTrust followed up with Okta on Oct. 3 and said they were fairly confident Okta had suffered an intrusion, and that he reiterated that conclusion in a phone call with Okta on October 11 and again on Oct. 13.
In an interview with KrebsOnSecurity, Okta’s Deputy Chief Information Security Officer Charlotte Wylie said Okta initially believed that BeyondTrust’s alert on Oct. 2 was not a result of a breach in its systems. But she said that by Oct. 17, the company had identified and contained the incident — disabling the compromised customer case management account, and invalidating Okta access tokens associated with that account.
Wylie declined to say exactly how many customers received alerts of a potential security issue, but characterized it as a “very, very small subset” of its more than 18,000 customers.
The disclosure from Okta comes just weeks after casino giants Caesar’s Entertainment and MGM Resorts were hacked. In both cases, the attackers managed to social engineer employees into resetting the multi-factor login requirements for Okta administrator accounts.
In March 2022, Okta disclosed a breach from the hacking group LAPSUS$, which specialized in social-engineering employees at targeted companies. An after-action report from Okta on that incident found that LAPSUS$ had social engineered its way onto the workstation of a support engineer at Sitel, a third-party outsourcing company that had access to Okta resources.
Okta’s Wylie declined to answer questions about how long the intruder may have had access to the company’s case management account, or who might have been responsible for the attack. However, she did say the company believes this is an adversary they have seen before.
“This is a known threat actor that we believe has targeted us and Okta-specific customers,” Wylie said.
Update, 2:57 p.m. ET: Okta has published a blog post about this incident that includes some “indicators of compromise” that customers can use to see if they were affected. But the company stressed that “all customers who were impacted by this have been notified. If you’re an Okta customer and you have not been contacted with another message or method, there is no impact to your Okta environment or your support tickets.”
Update, 3:36 p.m. ET: BeyondTrust has published a blog post about their findings.
Update, Oct. 24, 10:20 a.m. ET: 1Password and Cloudflare have disclosed compromises of their Okta authentication platforms as a result of the Okta breach. Both companies say an investigation has determined no customer information or systems were affected. Meanwhile, an Okta spokesperson told TechCrunch that the company notified about 1 percent of its customer base (~170 customers), so we are likely to see more such disclosures in the days and weeks ahead.
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).
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.”
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.
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.
The victim shaming website for the Snatch ransomware gang.
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.
The Snatch ransomware gang’s victim shaming site on the darknet is leaking data about its visitors. This “server status” page says that Snatch’s website is on Central European Summer Time (CEST) and is powered by OpenSSL/1.1.1f, which is no longer supported by security updates.
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.
Image: Spamhaus
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
The password manager service LastPass is now forcing some of its users to pick longer master passwords. LastPass says the changes are needed to ensure all customers are protected by their latest security improvements. But critics say the move is little more than a public relations stunt that will do nothing to help countless early adopters whose password vaults were exposed in a 2022 breach at LastPass.
LastPass sent this notification to users earlier this week.
LastPass told customers this week they would be forced to update their master password if it was less than 12 characters. LastPass officially instituted this change back in 2018, but some undisclosed number of the company’s earlier customers were never required to increase the length of their master passwords.
This is significant because in November 2022, LastPass disclosed a breach in which hackers stole password vaults containing both encrypted and plaintext data for more than 25 million users.
Since then, a steady trickle of six-figure cryptocurrency heists targeting security-conscious people throughout the tech industry has led some security experts to conclude that crooks likely have succeeded at cracking open some of the stolen LastPass vaults.
KrebsOnSecurity last month interviewed a victim who recently saw more than three million dollars worth of cryptocurrency siphoned from his account. That user signed up with LastPass nearly a decade ago, stored their cryptocurrency seed phrase there, and yet never changed his master password — which was just eight characters. Nor was he ever forced to improve his master password.
That story cited research from Adblock Plus creator Wladimir Palant, who said LastPass failed to upgrade many older, original customers to more secure encryption protections that were offered to newer customers over the years.
For example, another important default setting in LastPass is the number of “iterations,” or how many times your master password is run through the company’s encryption routines. The more iterations, the longer it takes an offline attacker to crack your master password.
Palant said that for many older LastPass users, the initial default setting for iterations was anywhere from “1” to “500.” By 2013, new LastPass customers were given 5,000 iterations by default. In February 2018, LastPass changed the default to 100,100 iterations. And very recently, it upped that again to 600,000. Still, Palant and others impacted by the 2022 breach at LastPass say their account security settings were never forcibly upgraded.
Palant called this latest action by LastPass a PR stunt.
“They sent this message to everyone, whether they have a weak master password or not – this way they can again blame the users for not respecting their policies,” Palant said. “But I just logged in with my weak password, and I am not forced to change it. Sending emails is cheap, but they once again didn’t implement any technical measures to enforce this policy change.”
Either way, Palant said, the changes won’t help people affected by the 2022 breach.
“These people need to change all their passwords, something that LastPass still won’t recommend,” Palant said. “But it will somewhat help with the breaches to come.”
LastPass CEO Karim Toubba said changing master password length (or even the master password itself) is not designed to address already stolen vaults that are offline.
“This is meant to better protect customers’ online vaults and encourage them to bring their accounts up to the 2018 LastPass standard default setting of a 12-character minimum (but could opt out from),” Toubba said in an emailed statement. “We know that some customers may have chosen convenience over security and utilized less complex master passwords despite encouragement to use our (or others) password generator to do otherwise.”
A basic functionality of LastPass is that it will pick and remember lengthy, complex passwords for each of your websites or online services. To automatically populate the appropriate credentials at any website going forward, you simply authenticate to LastPass using your master password.
LastPass has always emphasized that if you lose this master password, that’s too bad because they don’t store it and their encryption is so strong that even they can’t help you recover it.
But experts say all bets are off when cybercrooks can get their hands on the encrypted vault data itself — as opposed to having to interact with LastPass via its website. These so-called “offline” attacks allow the bad guys to conduct unlimited and unfettered “brute force” password cracking attempts against the encrypted data using powerful computers that can each try millions of password guesses per second.
A chart on Palant’s blog post offers an idea of how increasing password iterations dramatically increases the costs and time needed by the attackers to crack someone’s master password. Palant said it would take a single high-powered graphics card about a year to crack a password of average complexity with 500 iterations, and about 10 years to crack the same password run through 5,000 iterations.
Image: palant.info
However, these numbers radically come down when a determined adversary also has other large-scale computational assets at their disposal, such as a bitcoin mining operation that can coordinate the password-cracking activity across multiple powerful systems simultaneously.
Meaning, LastPass users whose vaults were never upgraded to higher iterations and whose master passwords were weak (less than 12 characters) likely have been a primary target of distributed password-cracking attacks ever since the LastPass user vaults were stolen late last year.
Asked why some LastPass users were left behind on older security minimums, Toubba said a “small percentage” of customers had corrupted items in their password vaults that prevented those accounts from properly upgrading to the new requirements and settings.
“We have been able to determine that a small percentage of customers have items in their vaults that are corrupt and when we previously utilized automated scripts designed to re-encrypt vaults when the master password or iteration count is changed, they did not complete,” Toubba said. “These errors were not originally apparent as part of these efforts and, as we have discovered them, we have been working to be able to remedy this and finish the re-encryption.”
Nicholas Weaver, a researcher at University of California, Berkeley’s International Computer Science Institute (ICSI) and lecturer at UC Davis, said LastPass made a huge mistake years ago by not force-upgrading the iteration count for existing users.
“And now this is blaming the users — ‘you should have used a longer passphrase’ — not them for having weak defaults that were never upgraded for existing users,” Weaver said. “LastPass in my book is one step above snake-oil. I used to be, ‘Pick whichever password manager you want,’ but now I am very much, ‘Pick any password manager but LastPass.'”
Asked why LastPass isn’t recommending that users change all of the passwords secured by the encrypted master password that was stolen when the company got hacked last year, Toubba said it’s because “the data demonstrates that the majority of our customers follow our recommendations (or greater), and the probability of successfully brute forcing vault encryption is greatly reduced accordingly.”
“We’ve been telling customers since December of 2022 that they should be following recommended guidelines,” Toubba continued. “And if they haven’t followed the guidelines we recommended that they change their downstream passwords.”
In December 2022, KrebsOnSecurity broke the news that a cybercriminal using the handle “USDoD” had infiltrated the FBI‘s vetted information sharing network InfraGard, and was selling the contact information for all 80,000 members. The FBI responded by reverifying InfraGard members and by seizing the cybercrime forum where the data was being sold. But on Sept. 11, 2023, USDoD resurfaced after a lengthy absence to leak sensitive employee data stolen from the aerospace giant Airbus, while promising to visit the same treatment on top U.S. defense contractors.
USDoD’s avatar used to be the seal of the U.S. Department of Defense. Now it’s a charming kitten.
In a post on the English language cybercrime forum BreachForums, USDoD leaked information on roughly 3,200 Airbus vendors, including names, addresses, phone numbers, and email addresses. USDoD claimed they grabbed the data by using passwords stolen from a Turkish airline employee who had third-party access to Airbus’ systems.
USDoD didn’t say why they decided to leak the data on the 22nd anniversary of the 9/11 attacks, but there was definitely an aircraft theme to the message that accompanied the leak, which concluded with the words, “Lockheed martin, Raytheon and the entire defense contractos [sic], I’m coming for you [expletive].”
Airbus has apparently confirmed the cybercriminal’s account to the threat intelligence firm Hudson Rock, which determined that the Airbus credentials were stolen after a Turkish airline employee infected their computer with a prevalent and powerful info-stealing trojan called RedLine.
Info-stealers like RedLine typically are deployed via opportunistic email malware campaigns, and by secretly bundling the trojans with cracked versions of popular software titles made available online. Credentials stolen by info-stealers often end up for sale on cybercrime shops that peddle purloined passwords and authentication cookies (these logs also often show up in the malware scanning service VirusTotal).
Hudson Rock said it recovered the log files created by a RedLine infection on the Turkish airline employee’s system, and found the employee likely infected their machine after downloading pirated and secretly backdoored software for Microsoft Windows.
Hudson Rock says info-stealer infections from RedLine and a host of similar trojans have surged in recent years, and that they remain “a primary initial attack vector used by threat actors to infiltrate organizations and execute cyberattacks, including ransomware, data breaches, account overtakes, and corporate espionage.”
The prevalence of RedLine and other info-stealers means that a great many consequential security breaches begin with cybercriminals abusing stolen employee credentials. In this scenario, the attacker temporarily assumes the identity and online privileges assigned to a hacked employee, and the onus is on the employer to tell the difference.
In addition to snarfing any passwords stored on or transmitted through an infected system, info-stealers also siphon authentication cookies or tokens that allow one to remain signed-in to online services for long periods of time without having to resupply one’s password and multi-factor authentication code. By stealing these tokens, attackers can often reuse them in their own web browser, and bypass any authentication normally required for that account.
Microsoft Corp. this week acknowledged that a China-backed hacking group was able to steal one of the keys to its email kingdom that granted near-unfettered access to U.S. government inboxes. Microsoft’s detailed post-mortem cum mea culpa explained that a secret signing key was stolen from an employee in an unlucky series of unfortunate events, and thanks to TechCrunch we now know that the culprit once again was “token-stealing malware” on the employee’s system.
In April 2023, the FBI seized Genesis Market, a bustling, fully automated cybercrime store that was continuously restocked with freshly hacked passwords and authentication tokens stolen by a network of contractors who deployed RedLine and other info-stealer malware.
In March 2023, the FBI arrested and charged the alleged administrator of BreachForums (aka Breached), the same cybercrime community where USDoD leaked the Airbus data. In June 2023, the FBI seized the BreachForums domain name, but the forum has since migrated to a new domain.
USDoD’s InfraGard sales thread on Breached.
Unsolicited email continues to be a huge vector for info-stealing malware, but lately the crooks behind these schemes have been gaming the search engines so that their malicious sites impersonating popular software vendors actually appear before the legitimate vendor’s website. So take special care when downloading software to ensure that you are in fact getting the program from the original, legitimate source whenever possible.
Also, unless you really know what you’re doing, please don’t download and install pirated software. Sure, the cracked program might do exactly what you expect it to do, but the chances are good that it is also laced with something nasty. And when all of your passwords are stolen and your important accounts have been hijacked or sold, you will wish you had simply paid for the real thing.
In November 2022, the password manager service LastPass disclosed a breach in which hackers stole password vaults containing both encrypted and plaintext data for more than 25 million users. Since then, a steady trickle of six-figure cryptocurrency heists targeting security-conscious people throughout the tech industry has led some security experts to conclude that crooks likely have succeeded at cracking open some of the stolen LastPass vaults.
Taylor Monahan is lead product manager of MetaMask, a popular software cryptocurrency wallet used to interact with the Ethereum blockchain. Since late December 2022, Monahan and other researchers have identified a highly reliable set of clues that they say connect recent thefts targeting more than 150 people. Collectively, these individuals have been robbed of more than $35 million worth of crypto.
Monahan said virtually all of the victims she has assisted were longtime cryptocurrency investors, and security-minded individuals. Importantly, none appeared to have suffered the sorts of attacks that typically preface a high-dollar crypto heist, such as the compromise of one’s email and/or mobile phone accounts.
“The victim profile remains the most striking thing,” Monahan wrote. “They truly all are reasonably secure. They are also deeply integrated into this ecosystem, [including] employees of reputable crypto orgs, VCs [venture capitalists], people who built DeFi protocols, deploy contracts, run full nodes.”
Monahan has been documenting the crypto thefts via Twitter/X since March 2023, frequently expressing frustration in the search for a common cause among the victims. Then on Aug. 28, Monahan said she’d concluded that the common thread among nearly every victim was that they’d previously used LastPass to store their “seed phrase,” the private key needed to unlock access to their cryptocurrency investments.
MetaMask owner Taylor Monahan on Twitter. Image: twitter.com/tayvano_
Armed with your secret seed phrase, anyone can instantly access all of the cryptocurrency holdings tied to that cryptographic key, and move the funds to anywhere they like.
Which is why the best practice for many cybersecurity enthusiasts has long been to store their seed phrases either in some type of encrypted container — such as a password manager — or else inside an offline, special-purpose hardware encryption device, such as a Trezor or Ledger wallet.
“The seed phrase is literally the money,” said Nick Bax, director of analytics at Unciphered, a cryptocurrency wallet recovery company. “If you have my seed phrase, you can copy and paste that into your wallet, and then you can see all my accounts. And you can transfer my funds.”
Bax said he closely reviewed the massive trove of cryptocurrency theft data that Taylor Monahan and others have collected and linked together.
“It’s one of the broadest and most complex cryptocurrency investigations I’ve ever seen,” Bax said. “I ran my own analysis on top of their data and reached the same conclusion that Taylor reported. The threat actor moved stolen funds from multiple victims to the same blockchain addresses, making it possible to strongly link those victims.”
Bax, Monahan and others interviewed for this story say they’ve identified a unique signature that links the theft of more than $35 million in crypto from more than 150 confirmed victims, with roughly two to five high-dollar heists happening each month since December 2022.
KrebsOnSecurity has reviewed this signature but is not publishing it at the request of Monahan and other researchers, who say doing so could cause the attackers to alter their operations in ways that make their criminal activity more difficult to track.
But the researchers have published findings about the dramatic similarities in the ways that victim funds were stolen and laundered through specific cryptocurrency exchanges. They also learned the attackers frequently grouped together victims by sending their cryptocurrencies to the same destination crypto wallet.
A graphic published by @tayvano_ on Twitter depicting the movement of stolen cryptocurrencies from victims who used LastPass to store their crypto seed phrases.
By identifying points of overlap in these destination addresses, the researchers were then able to track down and interview new victims. For example, the researchers said their methodology identified a recent multi-million dollar crypto heist victim as an employee at Chainalysis, a blockchain analysis firm that works closely with law enforcement agencies to help track down cybercriminals and money launderers.
Chainalysis confirmed that the employee had suffered a high-dollar cryptocurrency heist late last month, but otherwise declined to comment for this story.
Bax said the only obvious commonality between the victims who agreed to be interviewed was that they had stored the seed phrases for their cryptocurrency wallets in LastPass.
“On top of the overlapping indicators of compromise, there are more circumstantial behavioral patterns and tradecraft which are also consistent between different thefts and support the conclusion,” Bax told KrebsOnSecuirty. “I’m confident enough that this is a real problem that I’ve been urging my friends and family who use LastPass to change all of their passwords and migrate any crypto that may have been exposed, despite knowing full well how tedious that is.”
LastPass declined to answer questions about the research highlighted in this story, citing an ongoing law enforcement investigation and pending litigation against the company in response to its 2022 data breach.
“Last year’s incident remains the subject of an ongoing investigation by law enforcement and is also the subject of pending litigation,” LastPass said in a written statement provided to KrebsOnSecurity. “Since last year’s attack on LastPass, we have remained in contact with law enforcement and continue to do so.”
Their statement continues:
“We have shared various technical information, Indicators of Compromise (IOCs), and threat actor tactics, techniques, and procedures (TTPs) with our law enforcement contacts as well as our internal and external threat intelligence and forensic partners in an effort to try and help identify the parties responsible. In the meantime, we encourage any security researchers to share any useful information they believe they may have with our Threat Intelligence team by contacting securitydisclosure@lastpass.com.”
On August 25, 2022, LastPass CEO Karim Toubba wrote to users that the company had detected unusual activity in its software development environment, and that the intruders stole some source code and proprietary LastPass technical information. On Sept. 15, 2022, LastPass said an investigation into the August breach determined the attacker did not access any customer data or password vaults.
But on Nov. 30, 2022, LastPass notified customers about another, far more serious security incident that the company said leveraged data stolen in the August breach. LastPass disclosed that criminal hackers had compromised encrypted copies of some password vaults, as well as other personal information.
In February 2023, LastPass disclosed that the intrusion involved a highly complex, targeted attack against a DevOps engineer who was one of only four LastPass employees with access to the corporate vault.
“This was accomplished by targeting the DevOps engineer’s home computer and exploiting a vulnerable third-party media software package, which enabled remote code execution capability and allowed the threat actor to implant keylogger malware,” LastPass officials wrote. “The threat actor was able to capture the employee’s master password as it was entered, after the employee authenticated with MFA, and gain access to the DevOps engineer’s LastPass corporate vault.”
Dan Goodin at Ars Technica reported and then confirmed that the attackers exploited a known vulnerability in a Plex media server that the employee was running on his home network, and succeeded in installing malicious software that stole passwords and other authentication credentials. The vulnerability exploited by the intruders was patched back in 2020, but the employee never updated his Plex software.
As it happens, Plex announced its own data breach one day before LastPass disclosed its initial August intrusion. On August 24, 2022, Plex’s security team urged users to reset their passwords, saying an intruder had accessed customer emails, usernames and encrypted passwords.
A basic functionality of LastPass is that it will pick and remember lengthy, complex passwords for each of your websites or online services. To automatically populate the appropriate credentials at any website going forward, you simply authenticate to LastPass using your master password.
LastPass has always emphasized that if you lose this master password, that’s too bad because they don’t store it and their encryption is so strong that even they can’t help you recover it.
But experts say all bets are off when cybercrooks can get their hands on the encrypted vault data itself — as opposed to having to interact with LastPass via its website. These so-called “offline” attacks allow the bad guys to conduct unlimited and unfettered “brute force” password cracking attempts against the encrypted data using powerful computers that can each try millions of password guesses per second.
“It does leave things vulnerable to brute force when the vaults are stolen en masse, especially if info about the vault HOLDER is available,” said Nicholas Weaver, a researcher at University of California, Berkeley’s International Computer Science Institute (ICSI) and lecturer at UC Davis. “So you just crunch and crunch and crunch with GPUs, with a priority list of vaults you target.”
How hard would it be for well-resourced criminals to crack the master passwords securing LastPass user vaults? Perhaps the best answer to this question comes from Wladimir Palant, a security researcher and the original developer behind the Adblock Plus browser plugin.
In a December 2022 blog post, Palant explained that the crackability of a LastPass master password depends largely on two things: The complexity of the master password, and the default settings for LastPass users, which appear to have varied quite a bit based on when those users began patronizing the service.
LastPass says that since 2018 it has required a twelve-character minimum for master passwords, which the company said “greatly minimizes the ability for successful brute force password guessing.”
But Palant said while LastPass indeed improved its master password defaults in 2018, it did not force all existing customers who had master passwords of lesser lengths to pick new credentials that would satisfy the 12-character minimum.
“If you are a LastPass customer, chances are that you are completely unaware of this requirement,” Palant wrote. “That’s because LastPass didn’t ask existing customers to change their master password. I had my test account since 2018, and even today I can log in with my eight-character password without any warnings or prompts to change it.”
Palant believes LastPass also failed to upgrade many older, original customers to more secure encryption protections that were offered to newer customers over the years. One important setting in LastPass is the number of “iterations,” or how many times your master password is run through the company’s encryption routines. The more iterations, the longer it takes an offline attacker to crack your master password.
Palant noted last year that for many older LastPass users, the initial default setting for iterations was anywhere from “1” to “500.” By 2013, new LastPass customers were given 5,000 iterations by default. In February 2018, LastPass changed the default to 100,100 iterations. And very recently, it upped that again to 600,000.
Palant said the 2018 change was in response to a security bug report he filed about some users having dangerously low iterations in their LastPass settings.
“Worse yet, for reasons that are beyond me, LastPass didn’t complete this migration,” Palant wrote. “My test account is still at 5,000 iterations, as are the accounts of many other users who checked their LastPass settings. LastPass would know how many users are affected, but they aren’t telling that. In fact, it’s painfully obvious that LastPass never bothered updating users’ security settings. Not when they changed the default from 1 to 500 iterations. Not when they changed it from 500 to 5,000. Only my persistence made them consider it for their latest change. And they still failed implementing it consistently.”
A chart on Palant’s blog post offers an idea of how increasing password iterations dramatically increases the costs and time needed by the attackers to crack someone’s master password. Palant said it would take a single GPU about a year to crack a password of average complexity with 500 iterations, and about 10 years to crack the same password run through 5,000 iterations.
Image: palant.info
However, these numbers radically come down when a determined adversary also has other large-scale computational assets at their disposal, such as a bitcoin mining operation that can coordinate the password-cracking activity across multiple powerful systems simultaneously.
Weaver said a password or passphrase with average complexity — such as “Correct Horse Battery Staple” is only secure against online attacks, and that its roughly 40 bits of randomness or “entropy” means a graphics card can blow through it in no time.
“An Nvidia 3090 can do roughly 4 million [password guesses] per second with 1000 iterations, but that would go down to 8 thousand per second with 500,000 iterations, which is why iteration count matters so much,” Weaver said. “So a combination of ‘not THAT strong of a password’ and ‘old vault’ and ‘low iteration count’ would make it theoretically crackable but real work, but the work is worth it given the targets.”
Reached by KrebsOnSecurity, Palant said he never received a response from LastPass about why the company apparently failed to migrate some number of customers to more secure account settings.
“I know exactly as much as everyone else,” Palant wrote in reply. “LastPass published some additional information in March. This finally answered the questions about the timeline of their breach – meaning which users are affected. It also made obvious that business customers are very much at risk here, Federated Login Services being highly compromised in this breach (LastPass downplaying as usual of course).”
Palant said upon logging into his LastPass account a few days ago, he found his master password was still set at 5,000 iterations.
KrebsOnSecurity interviewed one of the victims tracked down by Monahan, a software engineer and startup founder who recently was robbed of approximately $3.4 million worth of different cryptocurrencies. The victim agreed to tell his story in exchange for anonymity because he is still trying to claw back his losses. We’ll refer to him here as “Connor” (not his real name).
Connor said he began using LastPass roughly a decade ago, and that he also stored the seed phrase for his primary cryptocurrency wallet inside of LastPass. Connor chose to protect his LastPass password vault with an eight character master password that included numbers and symbols (~50 bits of entropy).
“I thought at the time that the bigger risk was losing a piece of paper with my seed phrase on it,” Connor said. “I had it in a bank security deposit box before that, but then I started thinking, ‘Hey, the bank might close or burn down and I could lose my seed phrase.'”
Those seed phrases sat in his LastPass vault for years. Then, early on the morning of Sunday, Aug. 27, 2023, Connor was awoken by a service he’d set up to monitor his cryptocurrency addresses for any unusual activity: Someone was draining funds from his accounts, and fast.
Like other victims interviewed for this story, Connor didn’t suffer the usual indignities that typically presage a cryptocurrency robbery, such as account takeovers of his email inbox or mobile phone number.
Connor said he doesn’t know the number of iterations his master password was given originally, or what it was set at when the LastPass user vault data was stolen last year. But he said he recently logged into his LastPass account and the system forced him to upgrade to the new 600,000 iterations setting.
“Because I set up my LastPass account so early, I’m pretty sure I had whatever weak settings or iterations it originally had,” he said.
Connor said he’s kicking himself because he recently started the process of migrating his cryptocurrency to a new wallet protected by a new seed phrase. But he never finished that migration process. And then he got hacked.
“I’d set up a brand new wallet with new keys,” he said. “I had that ready to go two months ago, but have been procrastinating moving things to the new wallet.”
Connor has been exceedingly lucky in regaining access to some of his stolen millions in cryptocurrency. The Internet is swimming with con artists masquerading as legitimate cryptocurrency recovery experts. To make matters worse, because time is so critical in these crypto heists, many victims turn to the first quasi-believable expert who offers help.
Instead, several friends steered Connor to Flashbots.net, a cryptocurrency recovery firm that employs several custom techniques to help clients claw back stolen funds — particularly those on the Ethereum blockchain.
According to Connor, Flashbots helped rescue approximately $1.5 million worth of the $3.4 million in cryptocurrency value that was suddenly swept out of his account roughly a week ago. Lucky for him, Connor had some of his assets tied up in a type of digital loan that allowed him to borrow against his various cryptocurrency assets.
Without giving away too many details about how they clawed back the funds, here’s a high level summary: When the crooks who stole Connor’s seed phrase sought to extract value from these loans, they were borrowing the maximum amount of credit that he hadn’t already used. But Connor said that left open an avenue for some of that value to be recaptured, basically by repaying the loan in many small, rapid chunks.
According to MetaMask’s Monahan, users who stored any important passwords with LastPass — particularly those related to cryptocurrency accounts — should change those credentials immediately, and migrate any crypto holdings to new offline hardware wallets.
“Really the ONLY thing you need to read is this,” Monahan pleaded to her 70,000 followers on Twitter/X: “PLEASE DON’T KEEP ALL YOUR ASSETS IN A SINGLE KEY OR SECRET PHRASE FOR YEARS. THE END. Split up your assets. Get a hw [hardware] wallet. Migrate. Now.”
If you also had passwords tied to banking or retirement accounts, or even just important email accounts — now would be a good time to change those credentials as well.
I’ve never been comfortable recommending password managers, because I’ve never seriously used them myself. Something about putting all your eggs in one basket. Heck, I’m so old-fashioned that most of my important passwords are written down and tucked away in safe places.
But I recognize this antiquated approach to password management is not for everyone. Connor says he now uses 1Password, a competing password manager that recently earned the best overall marks from Wired and The New York Times.
1Password says that three things are needed to decrypt your information: The encrypted data itself, your account password, and your Secret Key. Only you know your account password, and your Secret Key is generated locally during setup.
“The two are combined on-device to encrypt your vault data and are never sent to 1Password,” explains a 1Password blog post ‘What If 1Password Gets Hacked?‘ “Only the encrypted vault data lives on our servers, so neither 1Password nor an attacker who somehow manages to guess or steal your account password would be able to access your vaults – or what’s inside them.
Weaver said that Secret Key adds an extra level of randomness to all user master passwords that LastPass didn’t have.
“With LastPass, the idea is the user’s password vault is encrypted with a cryptographic hash (H) of the user’s passphrase,” Weaver said. “The problem is a hash of the user’s passphrase is remarkably weak on older LastPass vaults with master passwords that do not have many iterations. 1Password uses H(random-key||password) to generate the password, and it is why you have the QR code business when adding a new device.”
Weaver said LastPass deserves blame for not having upgraded iteration counts for all users a long time ago, and called the latest forced upgrades “a stunning indictment of the negligence on the part of LastPass.”
“That they never even notified all those with iteration counts of less than 100,000 — who are really vulnerable to brute force even with 8-character random passwords or ‘correct horse battery staple’ type passphrases — is outright negligence,” Weaver said. “I would personally advocate that nobody ever uses LastPass again: Not because they were hacked. Not because they had an architecture (unlike 1Password) that makes such hacking a problem. But because of their consistent refusal to address how they screwed up and take proactive efforts to protect their customers.”
Bax and Monahan both acknowledged that their research alone can probably never conclusively tie dozens of high-dollar crypto heists over the past year to the LastPass breach. But Bax says at this point he doesn’t see any other possible explanation.
“Some might say it’s dangerous to assert a strong connection here, but I’d say it’s dangerous to assert there isn’t one,” he said. “I was arguing with my fiance about this last night. She’s waiting for LastPass to tell her to change everything. Meanwhile, I’m telling her to do it now.”
Security consulting giant Kroll disclosed today that a SIM-swapping attack against one of its employees led to the theft of user information for multiple cryptocurrency platforms that are relying on Kroll services in their ongoing bankruptcy proceedings. And there are indications that fraudsters may already be exploiting the stolen data in phishing attacks.
Cryptocurrency lender BlockFi and the now-collapsed crypto trading platform FTX each disclosed data breaches this week thanks to a recent SIM-swapping attack targeting an employee of Kroll — the company handling both firms’ bankruptcy restructuring.
In a statement released today, New York City-based Kroll said it was informed that on Aug. 19, 2023, someone targeted a T-Mobile phone number belonging to a Kroll employee “in a highly sophisticated ‘SIM swapping’ attack.”
“Specifically, T-Mobile, without any authority from or contact with Kroll or its employees, transferred that employee’s phone number to the threat actor’s phone at their request,” the statement continues. “As a result, it appears the threat actor gained access to certain files containing personal information of bankruptcy claimants in the matters of BlockFi, FTX and Genesis.”
T-Mobile has not yet responded to requests for comment.
Countless websites and online services use SMS text messages for both password resets and multi-factor authentication. This means that stealing someone’s phone number often can let cybercriminals hijack the target’s entire digital life in short order — including access to any financial, email and social media accounts tied to that phone number.
SIM-swapping groups will often call employees on their mobile devices, pretend to be someone from the company’s IT department, and then try to get the employee to visit a phishing website that mimics the company’s login page.
Multiple SIM-swapping gangs have had great success using this method to target T-Mobile employees for the purposes of reselling a cybercrime service that can be hired to divert any T-Mobile user’s text messages and phone calls to another device.
In February 2023, KrebsOnSecurity chronicled SIM-swapping attacks claimed by these groups against T-Mobile employees in more than 100 separate incidents in the second half of 2022. The average cost to SIM swap any T-Mobile phone number was approximately $1,500.
The unfortunate result of the SIM-swap against the Kroll employee is that people who had financial ties to BlockFi, FTX, or Genesis now face increased risk of becoming targets of SIM-swapping and phishing attacks themselves.
And there is some indication this is already happening. Multiple readers who said they got breach notices from Kroll today also shared phishing emails they received this morning that spoofed FTX and claimed, “You have been identified as an eligible client to begin withdrawing digital assets from your FTX account.”
A phishing message targeting FTX users that went out en masse today.
A major portion of Kroll’s business comes from helping organizations manage cyber risk. Kroll is often called in to investigate data breaches, and it also sells identity protection services to companies that recently experienced a breach and are grasping at ways to demonstrate that they doing something to protect their customers from further harm.
Kroll did not respond to questions. But it’s a good bet that BlockFi, FTX and Genesis customers will soon enjoy yet another offering of free credit monitoring as a result of the T-Mobile SIM swap.
Kroll’s website says it employs “elite cyber risk leaders uniquely positioned to deliver end-to-end cyber security services worldwide.” Apparently, these elite cyber risk leaders did not consider the increased attack surface presented by their employees using T-Mobile for wireless service.
The SIM-swapping attack against Kroll is a timely reminder that you should do whatever you can to minimize your reliance on mobile phone companies for your security. For example, many online services require you to provide a phone number upon registering an account, but that number can often be removed from your profile afterwards.
Why do I suggest this? Many online services allow users to reset their passwords just by clicking a link sent via SMS, and this unfortunately widespread practice has turned mobile phone numbers into de facto identity documents. Which means losing control over your phone number thanks to an unauthorized SIM swap or mobile number port-out, divorce, job termination or financial crisis can be devastating.
If you haven’t done so lately, take a moment to inventory your most important online accounts, and see how many of them can still have their password reset by receiving an SMS at the phone number on file. This may require stepping through the website’s account recovery or lost password flow.
If the account that stores your mobile phone number does not allow you to delete your number, check to see whether there is an option to disallow SMS or phone calls for authentication and account recovery. If more secure options are available, such as a security key or a one-time code from a mobile authentication app, please take advantage of those instead. The website 2fa.directory is a good starting point for this analysis.
Now, you might think that the mobile providers would share some culpability when a customer suffers a financial loss because a mobile store employee got tricked into transferring that customer’s phone number to criminals. But earlier this year, a California judge dismissed a lawsuit against AT&T that stemmed from a 2017 SIM-swapping attack which netted the thieves more than $24 million in cryptocurrency.
[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.
Jordan Evan Bloom, posing in front of his Lamborghini.
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.
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.”
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.
An administrator account Xerx3s on Abusewithus.
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.
Pictrace, one of Jordan Bloom’s early IT successes.
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.”
A scene from the MMORPG RuneScape.
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.”
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
[This is Part II of a story published here last week on reporting that went into a new Hulu documentary series on the 2015 Ashley Madison hack.]
It was around 9 p.m. on Sunday, July 19, when I received a message through the contact form on KrebsOnSecurity.com that the marital infidelity website AshleyMadison.com had been hacked. The message contained links to confidential Ashley Madison documents, and included a manifesto that said a hacker group calling itself the Impact Team was prepared to leak data on all 37 million users unless Ashley Madison and a sister property voluntarily closed down within 30 days.
A snippet of the message left behind by the Impact Team.
The message included links to files containing highly sensitive information, including snippets of leaked user account data, maps of internal AshleyMadison company servers, employee network account information, company bank account data and salary information.
A master employee contact list was among the documents leaked that evening. Helpfully, it included the cell phone number for Noel Biderman, then the CEO of Ashley Madison parent firm Avid Life Media (ALM). To my everlasting surprise, Biderman answered on the first ring and acknowledged they’d been hacked without even waiting to be asked.
“We’re on the doorstep of [confirming] who we believe is the culprit, and unfortunately that may have triggered this mass publication,” Biderman told me on July 19, just minutes before I published the first known public report about the breach. “I’ve got their profile right in front of me, all their work credentials. It was definitely a person here that was not an employee but certainly had touched our technical services.”
On Aug 18, 2015, the Impact Team posted a “Time’s up!” message online, along with links to 60 gigabytes of Ashley Madison user data. The data leak led to the public shaming and extortion of many Ashley Madison users, and to at least two suicides. Many other users lost their jobs or their marriages. To this day, nobody has been charged in the hack, and incredibly Ashley Madison remains a thriving company.
The former employee that Biderman undoubtedly had in mind on July 19, 2015 was William Brewster Harrison, a self-described expert in search engine optimization (SEO) tricks that are designed to help websites increase their rankings for various keywords in Google and other search engines.
It is evident that Harrison was Biderman’s top suspect immediately after the breach became public because — in addition to releasing data on 37 million users a month later in August 2015 — the hackers also dumped three years worth of email they stole from Biderman. And Biderman’s inbox is full of messages about hate-filled personal attacks from Harrison.
A Native of Northern Virginia, Harrison eventually settled in North Carolina, had a son with his then-wife, and started a fence-building business. ALM hired Harrison in March 2010 to promote its various adult brands online, and it is clear that one of his roles was creating and maintaining female profiles on Ashley Madison, and creating blogs that were made to look like they were written by women who’d just joined Ashley Madison.
A selfie that William B. Harrison posted to his Facebook page in 2013 shows him holding a handgun and wearing a bulletproof vest.
It appears Harrison was working as an affiliate of Ashley Madison prior to his official employment with the company, which suggests that Harrison had already demonstrated he could drive signups to the service and help improve its standing in the search engine rankings.
What is less clear is whether anyone at ALM ever performed a basic background check on Harrison before hiring him. Because if they had, the results almost certainly would have given them pause. Virginia prosecutors charged the young 20-something Harrison with a series of misdemeanors, including trespassing, unlawful entry, drunk in public, and making obscene phone calls.
In 2008, North Carolina authorities charged Harrison with criminal extortion, a case that was transferred to South Carolina before ultimately being dismissed. In December 2009, Harrison faced charges of false imprisonment, charges that were also dropped by the local district attorney.
By the time Ashley Madison officially hired him, Harrison’s life was falling apart. His fence business had failed, and he’d just filed for bankruptcy. Also, his marriage had soured, and after a new arrest for driving under the influence, he was in danger of getting divorced, losing access to his son, and/or going to jail.
It also seems likely that nobody at ALM bothered to look at the dozens of domain names registered to Harrison’s various Vistomail.com email addresses, because had they done so they likely would have noticed two things.
One is that Harrison had a history of creating websites to lambaste companies he didn’t like, or that he believed had slighted him or his family in some way. Some of these websites included content that defamed and doxed executives, such as bash-a-business[.]com, google-your-business[.]com, contact-a-ceo[.]com, lowes-is-a-cancer[.]com (according to Harrison, the home improvement chain once employed his wife).
A background check on Harrison’s online footprint also would have revealed he was a self-styled rapper who claimed to be an active menace to corporate America. Harrison’s website lyrical-gangsta[.]com included a number of works, such as “Slim Thug — I Run — Remix Spoof,” which are replete with menacing words for unnamed corporate executives:
[HOOK]
I surf the net all night n day (the web love thug)
cuz I still surf the net all night n day
yuhh I type for my mind, got smart for my ego
still running circles round them, what’s good?
cuz I still surf, the net all night n day,
I cant stay away.
They don’t make to [sic] many hackers like me
bonafide hustler certified G
still pumpin’ the TOP 10 results
if you got the right dough!
think the results are fake? sucka Google ME
smarter than executives, bigger then Wal-Mart
Nelly strugglin’ with the fact that I’m #1 NOW
street boys know me, ain’t nuttin’ new
about to make my mill, with an all new crew
I-95 execs don’t know what to do, or where to go
watchin them stocks evaporate all their dough
I already left the hood, got up off the streets
its in my blood im a gangsta till Im deceased
moving lumber for money or typin’ in a zone
all night hackin’ till 6 in the mornin
that shit im focusin’ on, stronger then cologne
you can prolly smell the jealousy
through your LCD screen
if you still broke– better work for some green
called them Fortune execs on that legal bluff
cuz the Feds busy raidin other stuff
Imma run the Net til im six feet under
I’m a leave my mark — no reason to wonder
(Yea Yea)
Some of the anti-corporate rhymes busted by Harrison’s hacker/rapper alter ego “Chaos Dog.” Image: Archive.org.
The same theme appears in another rap (“The Hacker Backstage”) penned by Harrison’s rapper alter ego — “Chaos Dog:”
…this hacker was born to write
bust off the rhymes and watch em take flight
you know all about them corporate jets
and handing out pinkslips without regrets
oversized companies are the problem
well, I’ve got a solution
It’s called good ol’ fashioned retribution
file bankruptcy, boycott you like Boston colonists
Corporate America cant stop this Eminem style columnist
2pac would have honored my style
Im the next generation of hacker inspiration
Americans don’t want a corporate nation
All that DOW Jones shit is a dying sensation
In addition to pimping Ashley Madison with fake profiles and phony user blogs, it appears Harrison also went after the company’s enemies during the brief time he was an employee. As noted in Part I of this story, Harrison used multiple pseudonymous Vistomail.com email addresses to harass the owners of AshleyMadisonSucks[.]com into selling or shutting down the site.
When the owner of AshleyMadisonSucks[.]com refused to sell the domain, he and his then-girlfriend were subject to an unrelenting campaign of online harassment and blackmail. It now appears those attacks were perpetrated by Harrison, who sent emails from different accounts at the free email service Vistomail pretending to be the domain owner, his then-girlfriend and their friends. Harrison even went after the domain owner’s lawyer and wife, listing them both on his Contact-A-CEO[.]com website.
Things started going sideways for Ashley Madison when Harrison’s employment contract was terminated in November 2011. The leaked emails do not explain why Harrison was fired, but his mercurial temperament likely played a major role. According to Harrison, it was because he had expressed some moral reservations with certain aspects of his duties, although he was not specific on that point and none of this could be confirmed.
Shortly after Harrison was fired, the company’s executives began noticing that Google was auto-completing the words “Jew” and “Jewish” whenever someone searched for Biderman’s name. The results returned when one accepted Google’s recommended search at the time filled the first page with links to Stormfront, a far-right, neo-Nazi hate group. The company strongly suspected someone was using underhanded SEO techniques to slander and attack its CEO.
In July 2022, KrebsOnSecurity published a retrospective on the 2015 Ashley Madison breach which found that Biderman had become the subject of increasing ire from members of Stormfront and other extremists groups in the years leading up to the hack. According to the neo-Nazi groups, Biderman was a worthy target of their harassment not just because he was a successful Jewish CEO, but also because his company was hellbent on destroying Christian morals and families.
Biderman’s leaked emails show that in February 2012 he hired Brian Cuban — the attorney brother of Mark Cuban, the owner of the Dallas Mavericks and one the main “sharks” on the ABC reality television series Shark Tank. Through Cuban, Ashley Madison appealed their case to both Google and to the Anti-Defamation League, but neither was apparently able or willing to help.
Also in early January 2012, Biderman and other Ashley Madison executives found themselves inundated with anonymous Vistomail.com emails that were replete with profanity and slurs against Jews. Although he used fake names and email addresses, Harrison made little effort to hide his identity in several of these nastygrams.
One particularly ugly message from Harrison even included a link to a Youtube video he’d put online of his young son playing basketball for a school team. That Youtube video was included in an email wherein Harrison – then separated from his wife — lamented all the hours he spent working for Ashley Madison up in Canada instead of spending time with his son.
Harrison then turned to making threatening phone calls to Ashley Madison executives. In one incident in March 2012, Harrison called the company’s former director of Human Resources using a caller ID spoofing service to make it look like he was calling from inside the building.
ALM’s lawyers contacted the Toronto police in response to Harrison’s harassment.
“For Will to have disguised his phone number as Mark’s strongly suggest he has hacked my email, legal counsel for the opposing side in a perceived legal dispute,” ALM VP and general counsel Mike Dacks wrote in a letter to a detective at the Toronto Police. “Over the months of his many hundreds of emails he alluded a number of times to undertaking cyberattacks against us and this was noted in my original report to police.”
Based on the exchanges in Bidernman’s inbox it appears those appeals to the Toronto authorities were successful in having Harrison barred from being able to enter Canada.
ALM also contacted a detective in Harrison’s home county in North Carolina. But when the local police paid a visit to Harrison’s home to follow up on the harassment complaints, Harrison fled out his back porch, injuring himself after jumping off the second-story deck.
It is unclear if the police ever succeeded in interviewing Harrison in response to the harassment complaints from ALM. The Raleigh police officer contacted by ALM did not respond to requests for information. But the visit from the local cops only seemed to embolden and anger Harrison even more, and Biderman’s emails indicate the harassment continued after this incident.
Then in August 2012, the former sex worker turned blogger and activist Maggie McNeill published screenshots from an internal system that Ashley Madison used called the “Human Decoy Interface,” which was a fancy way of describing a system built to manage phony female accounts on the service.
The screenshots appeared to show that a great many female accounts were in fact bots designed to bring in paying customers. Ashley Madison was always free to join, but users had to pay if they wished to chat directly with other users.
Although Harrison had been fired nearly a year earlier, Biderman’s leaked emails show that Harrison’s access to Ashley Madison’s internal tools wasn’t revoked until after the screenshots were posted online and the company began reviewing which employee accounts had access to the Human Decoy Interface.
“Who or what is asdfdfsda@asdf.com?,” Biderman asked, after being sent a list of nine email addresses.
“It appears to be the email address Will used for his profiles,” the IT director replied.
“And his access was never shut off until today?,” asked the company’s general counsel Mike Dacks.
Biderman’s leaked emails suggest that Harrison stopped his harassment campaign sometime after 2012. A decade later, KrebsOnSecurity sought to track down and interview Harrison. Finding nobody at his former addresses and phone numbers in North Carolina, KrebsOnSecurity wound up speaking with Will’s stepmother, who lives with Will’s dad in Northern Virginia and asked that her name not be used in this story.
Will’s stepmom quickly dropped two big truth bombs after patiently listening to my spiel about why I was calling and looking for Mr. Harrison. The first was that Will was brought up Jewish, although he did not practice the faith: A local rabbi and friend of the family gave the service at Will’s funeral in 2014.
She also shared that her stepson had killed himself in 2014, shooting himself in the head with a handgun. Will’s mother discovered his body.
“Will committed suicide in March 2014,” Will’s stepmother shared. “I’ve heard all those stories you just mentioned. Will was severely mentally ill. He was probably as close to a sociopath as I can imagine anyone being. He was also a paranoid schizophrenic who wouldn’t take his medication.”
William B. Harrison died on March 5, 2014, nearly 16 months before The Impact Team announced they’d hacked Ashley Madison.
Will’s stepmom said she constantly felt physically threatened when Will was around. But she had trouble believing that her stepson was a raging anti-Semite. She also said she thought the timing of Will’s suicide effectively ruled him out as a suspect in the 2015 Ashley Madison hack.
“Considering the date of death, I’m not sure if he’s your guy,” she offered toward the end of our conversation.
[There is one silver lining to Will Harrison’s otherwise sad tale: His widow has since remarried, and her new husband agreed to adopt their son as his own.]
Does Harrison’s untimely death rule him out as a suspect, as his stepmom suggested? This remains an open question. In a parting email to Biderman in late 2012, Harrison signed his real name and said he was leaving, but not going away.
“So good luck, I’m sure we’ll talk again soon, but for now, I’ve got better things in the oven,” Harrison wrote. “Just remember I outsmarted you last time and I will outsmart you and out maneuver you this time too, by keeping myself far far away from the action and just enjoying the sideline view, cheering for the opposition.”
Nothing in the leaked Biderman emails suggests that Ashley Madison did much to revamp the security of its computer systems in the wake of Harrison’s departure and subsequent campaign of harassment — apart from removing an administrator account of his a year after he’d already left the company.
KrebsOnSecurity found nothing in Harrison’s extensive domain history suggesting he had any real malicious hacking skills. But given the clientele that typically employed his skills — the adult entertainment industry — it seems likely Harrison was at least conversant in the dark arts of “Black SEO,” which involves using underhanded or else downright illegal methods to game search engine results.
Armed with such experience, it would not have been difficult for Harrison to have worked out a way to maintain access to working administrator accounts at Ashley Madison. If that in fact did happen, it would have been trivial for him to sell or give those credentials to someone else.
Or to something else. Like Nazi groups. As KrebsOnSecurity reported last year, in the six months leading up to the July 2015 hack, Ashley Madison and Biderman became a frequent subject of derision across multiple neo-Nazi websites.
On Jan. 14, 2015, a member of the neo-Nazi forum Stormfront posted a lively thread about Ashley Madison in the general discussion area titled, “Jewish owned dating website promoting adultery.”
On July 3, 2015, Andrew Anglin, the editor of the alt-right publication Daily Stormer, posted excerpts about Biderman from a story titled, “Jewish Hyper-Sexualization of Western Culture,” which referred to Biderman as the “Jewish King of Infidelity.”
On July 10, a mocking montage of Biderman photos with racist captions was posted to the extremist website Vanguard News Network, as part of a thread called “Jews normalize sexual perversion.”
Some readers have suggested that the data leaked by the Impact Team could have originally been stolen by Harrison. But that timeline does not add up given what we know about the hack. For one thing, the financial transaction records leaked from Ashley Madison show charges up until mid-2015. Also, the final message in the archive of Biderman’s stolen emails was dated July 7, 2015 — almost two weeks before the Impact Team would announce their hack.
Whoever hacked Ashley Madison clearly wanted to disrupt the company as a business, and disgrace its CEO as the endgame. The Impact Team’s intrusion struck just as Ashley Madison’s parent was preparing go public with an initial public offering (IPO) for investors. Also, the hackers stated that while they stole all employee emails, they were only interested in leaking Biderman’s.
Also, the Impact Team had to know that ALM would never comply with their demands to dismantle Ashley Madison and Established Men. In 2014, ALM reported revenues of $115 million. There was little chance the company was going to shut down some of its biggest money machines.
Hence, it appears the Impact Team’s goal all along was to create prodigious amounts of drama and tension by announcing the hack of a major cheating website, and then let that drama play out over the next few months as millions of exposed Ashley Madison users freaked out and became the targets of extortion attacks and public shaming.
After the Impact Team released Biderman’s email archives, several media outlets pounced on salacious exchanges in those messages as supposed proof he had carried on multiple affairs. Biderman resigned as CEO of Ashley Madison on Aug. 28, 2015.
Complicating things further, it appears more than one malicious party may have gained access to Ashley’s Madison’s network in 2015 or possibly earlier. Cyber intelligence firm Intel 471 recorded a series of posts by a user with the handle “Brutium” on the Russian-language cybercrime forum Antichat between 2014 and 2016.
Brutium routinely advertised the sale of large, hacked databases, and on Jan. 24, 2015, this user posted a thread offering to sell data on 32 million Ashley Madison users. However, there is no indication whether anyone purchased the information. Brutium’s profile has since been removed from the Antichat forum.
I realize this ending may be unsatisfying for many readers, as it is for me. The story I wrote in 2015 about the Ashley Madison hack is still the biggest scoop I’ve published here (in terms of traffic), yet it remains perhaps the single most frustrating investigation I’ve ever pursued. But my hunch is that there is still more to this story that has yet to unfold.
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.
Researchers at ESET say this job offer from a phony HSBC recruiter on LinkedIn was North Korean malware masquerading as a PDF file.
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.
The double supply chain compromise that led to malware being pushed out to some 3CX customers. Image: Mandiant.
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.
Google says it has suspended the app for the Chinese e-commerce giant Pinduoduo after malware was found in versions of the software. The move comes just weeks after Chinese security researchers published an analysis suggesting the popular e-commerce app sought to seize total control over affected devices by exploiting multiple security vulnerabilities in a variety of Android-based smartphones.
In November 2022, researchers at Google’s Project Zero warned about active attacks on Samsung mobile phones which chained together three security vulnerabilities that Samsung patched in March 2021, and which would have allowed an app to add or read any files on the device.
Google said it believes the exploit chain for Samsung devices belonged to a “commercial surveillance vendor,” without elaborating further. The highly technical writeup also did not name the malicious app in question.
On Feb. 28, 2023, researchers at the Chinese security firm DarkNavy published a blog post purporting to show evidence that a major Chinese ecommerce company’s app was using this same three-exploit chain to read user data stored by other apps on the affected device, and to make its app nearly impossible to remove.
DarkNavy likewise did not name the app they said was responsible for the attacks. In fact, the researchers took care to redact the name of the app from multiple code screenshots published in their writeup. DarkNavy did not respond to requests for clarification.
“At present, a large number of end users have complained on multiple social platforms,” reads a translated version of the DarkNavy blog post. “The app has problems such as inexplicable installation, privacy leakage, and inability to uninstall.”
Update, March 27, 1:24 p.m. ET: Dan Goodin over at Ars Technica has an important update on this story that indicates the Pinduoduo code was exploiting a zero-day vulnerability in Android — not Samsung. From that piece:
“A preliminary analysis by Lookout found that at least two off-Play versions of Pinduoduo for Android exploited CVE-2023-20963, the tracking number for an Android vulnerability Google patched in updates that became available to end users two weeks ago. This privilege-escalation flaw, which was exploited prior to Google’s disclosure, allowed the app to perform operations with elevated privileges. The app used these privileges to download code from a developer-designated site and run it within a privileged environment.
“The malicious apps represent “a very sophisticated attack for an app-based malware,” Christoph Hebeisen, one of three Lookout researchers who analyzed the file, wrote in an email. “In recent years, exploits have not usually been seen in the context of mass-distributed apps. Given the extremely intrusive nature of such sophisticated app-based malware, this is an important threat mobile users need to protect against.”
On March 3, 2023, a denizen of the now-defunct cybercrime community BreachForums posted a thread which noted that a unique component of the malicious app code highlighted by DarkNavy also was found in the ecommerce application whose name was apparently redacted from the DarkNavy analysis: Pinduoduo.
A Mar. 3, 2023 post on BreachForums, comparing the redacted code from the DarkNavy analysis with the same function in the Pinduoduo app available for download at the time.
On March 4, 2023, e-commerce expert Liu Huafang posted on the Chinese social media network Weibo that Pinduoduo’s app was using security vulnerabilities to gain market share by stealing user data from its competitors. That Weibo post has since been deleted.
On March 7, the newly created Github account Davinci1010 published a technical analysis claiming that until recently Pinduoduo’s source code included a “backdoor,” a hacking term used to describe code that allows an adversary to remotely and secretly connect to a compromised system at will.
That analysis includes links to archived versions of Pinduoduo’s app released before March 5 (version 6.50 and lower), which is when Davinci1010 says a new version of the app removed the malicious code.
Pinduoduo has not yet responded to requests for comment. Pinduoduo parent company PDD Holdings told Reuters Google has not shared details about why it suspended the app.
The company told CNN that it strongly rejects “the speculation and accusation that Pinduoduo app is malicious just from a generic and non-conclusive response from Google,” and said there were “several apps that have been suspended from Google Play at the same time.”
Pinduoduo is among China’s most popular e-commerce platforms, boasting approximately 900 million monthly active users.
Most of the news coverage of Google’s move against Pinduoduo emphasizes that the malware was found in versions of the Pinduoduo app available outside of Google’s app store — Google Play.
“Off-Play versions of this app that have been found to contain malware have been enforced on via Google Play Protect,” a Google spokesperson said in a statement to Reuters, adding that the Play version of the app has been suspended for security concerns.
However, Google Play is not available to consumers in China. As a result, the app will still be available via other mobile app stores catering to the Chinese market — including those operated by Huawei, Oppo, Tencent and VIVO.
Google said its ban did not affect the PDD Holdings app Temu, which is an online shopping platform in the United States. According to The Washington Post, four of the Apple App Store’s 10 most-downloaded free apps are owned by Chinese companies, including Temu and the social media network TikTok.
The Pinduoduo suspension comes as lawmakers in Congress this week are gearing up to grill the CEO of TikTok over national security concerns. TikTok, which is owned by Beijing-based ByteDance, said last month that it now has roughly 150 million monthly active users in the United States.
A new cybersecurity strategy released earlier this month by the Biden administration singled out China as the greatest cyber threat to the U.S. and Western interests. The strategy says China now presents the “broadest, most active, and most persistent threat to both government and private sector networks,” and says China is “the only country with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do so.”
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.
Image: Shutterstock
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’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.
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’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.
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.
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The U.S. Federal Bureau of Investigation (FBI) this week arrested a New York man on suspicion of running BreachForums, a popular English-language cybercrime forum where some of the world biggest hacked databases routinely show up for sale. The forum’s administrator “Pompompurin” has been a thorn in the side of the FBI for years, and BreachForums is widely considered a reincarnation of RaidForums, a remarkably similar crime forum that the FBI infiltrated and dismantled in 2022.
Federal agents carting items out of Fitzpatrick’s home on March 15. Image: News 12 Westchester.
In an affidavit filed with the District Court for the Southern District of New York, FBI Special Agent John Longmire said that at around 4:30 p.m. on March 15, 2023, he led a team of law enforcement agents that made a probable cause arrest of a Conor Brian Fitzpatrick in Peekskill, NY.
“When I arrested the defendant on March 15, 2023, he stated to me in substance and in part that: a) his name was Conor Brian Fitzpatrick; b) he used the alias ‘pompompurin/’ and c) he was the owner and administrator of ‘BreachForums’ the data breach website referenced in the Complaint,” Longmire wrote.
Pompompurin has been something of a nemesis to the FBI for several years. In November 2021, KrebsOnSecurity broke the news that thousands of fake emails about a cybercrime investigation were blasted out from the FBI’s email systems and Internet addresses.
Pompompurin took credit for that stunt, and said he was able to send the FBI email blast by exploiting a flaw in an FBI portal designed to share information with state and local law enforcement authorities. The FBI later acknowledged that a software misconfiguration allowed someone to send the fake emails.
In December, 2022, KrebsOnSecurity broke the news that hackers active on BreachForums had infiltrated the FBI’s InfraGard program, a vetted FBI program designed to build cyber and physical threat information sharing partnerships with experts in the private sector. The hackers impersonated the CEO of a major financial company, applied for InfraGard membership in the CEO’s name, and were granted admission to the community.
From there, the hackers plundered the InfraGard member database, and proceeded to sell contact information on more than 80,000 InfraGard members in an auction on BreachForums. The FBI responded by disabling the portal for some time, before ultimately forcing all InfraGard members to re-apply for membership.
More recently, BreachForums was the sales forum for data stolen from DC Health Link, a health insurance exchange based in Washington, D.C. that suffered a data breach this month. The sales thread initially said the data included the names, Social Security numbers, dates of birth, health plan and enrollee information and more on 170,000 individuals, although the official notice about the breach says 56,415 people were affected.
In April 2022, U.S. Justice Department seized the servers and domains for RaidForums, an extremely popular English-language cybercrime forum that sold access to more than 10 billion consumer records stolen in some of the world’s largest data breaches since 2015. As part of that operation, the feds also charged the alleged administrator, 21-year-old Diogo Santos Coelho of Portugal, with six criminal counts.
Coelho was arrested in the United Kingdom on Jan. 31, 2022. By that time, the new BreachForums had been live for just under a week, but with a familiar look.
BreachForums remains accessible online, and from reviewing the live chat stream on the site’s home page it appears the forum’s active users are only just becoming aware that their administrator — and the site’s database — is likely now in FBI hands:
Members of BreachForums discuss the arrest of the forum’s alleged owner.
“Wait if they arrested pom then doesn’t the FBI have all of our details we’ve registered with?” asked one worried BreachForums member.
“But we all have good VPNs I guess, right…right guys?” another denizen offered.
“Like pom would most likely do a plea bargain and cooperate with the feds as much as possible,” replied another.
Fitzpatrick could not be immediately reached for comment. The FBI declined to comment for this story.
There is only one page to the criminal complaint against Fitzpatrick (PDF), which charges him with one count of conspiracy to commit access device fraud. The affidavit on his arrest is available here (PDF).
Update: Corrected spelling of FBI agent’s last name.
Two U.S. men have been charged with hacking into a U.S. Drug Enforcement Agency (DEA) online portal that taps into 16 different federal law enforcement databases. Both are alleged to be part of a larger criminal organization that specializes in using fake emergency data requests from compromised police and government email accounts to publicly threaten and extort their victims.
Prosecutors for the Eastern District of New York today unsealed criminal complaints against Sagar Steven Singh — a.k.a “Weep” — a 19-year-old from Pawtucket, Rhode Island; and Nicholas Ceraolo, 25, of Queens, NY, who allegedly went by the handles “Convict” and “Ominus.”
The Justice Department says Singh and Ceraolo belong to a group of cybercriminals known to its members as “ViLE,” who specialize in obtaining personal information about third-party victims, which they then use to harass, threaten or extort the victims, a practice known as “doxing.”
“ViLE is collaborative, and the members routinely share tactics and illicitly obtained information with each other,” prosecutors charged.
The government alleges the defendants and other members of ViLE use various methods to obtain victims’ personal information, including:
-tricking customer service employees;
-submitting fraudulent legal process to social media companies to elicit users’ registration information;
-co-opting and corrupting corporate insiders;
-searching public and private online databases;
-accessing a nonpublic United States government database without authorization
-unlawfully using official email accounts belonging to other countries.
The complaint says once they obtained a victim’s information, Singh and Ceraolo would post the information in an online forum. The government refers to this community only as “Forum-1,” saying that it is administered by the leader of ViLE (referenced in the complaint as “CC-1”).
“Victims are extorted into paying CC-1 to have their information removed from Forum-1,” prosecutors allege. “Singh also uses the threat of revealing personal information to extort victims into giving him access to their social media accounts, which Singh then resells.”
Sources tell KrebsOnSecurity in addition to being members of ViLE, both Weep and Ominous are or were staff members for Doxbin, a highly toxic online community that provides a forum for digging up personal information on people and posting it publicly. This is supported by the Doxbin administrator’s claimed responsibility for a high-profile intrusion at the DEA’s law enforcement data sharing portal last year.
A screenshot of alleged access to the Drug Enforcement Agency’s intelligence sharing portal, shared by “KT,” the current administrator of the doxing and harassment community Doxbin.
The government alleges that on May 7, 2022, Singh used stolen credentials to log into a U.S. federal government portal without authorization. The complaint doesn’t specify which agency portal was hacked, but it does state that the portal included access to law enforcement databases that track narcotics seizures in the United States.
On May 12, 2022, KrebsOnSecurity broke the news that hackers had gained access to a DEA portal that taps into 16 different federal law enforcement databases. As reported at the time, the inside scoop on how that hack went down came from KT, the current administrator of the Doxbin and the individual referenced in the government’s complaint as “CC-1.”
Indeed, a screenshot of the ViLE group website includes the group’s official roster, which lists KT at the top, followed by Weep and Ominus.
A screenshot of the website for the cybercriminal group “ViLE.” Image: USDOJ.
In March 2022, KrebsOnSecurity warned that multiple cybercrime groups were finding success with fraudulent Emergency Data Requests (EDRs), wherein the hackers use compromised police and government email accounts to file warrantless data requests with social media firms and mobile telephony providers, attesting that the information being requested can’t wait for a warrant because it relates to an urgent matter of life and death.
That story showed that the previous owner of the Doxbin also was part of a teenage hacking group that specialized in offering fake EDRs as a service on the dark web.
Prosecutors say they tied Singh to the government portal hack because he connected to it from an Internet address that he’d previously used to access a social media account registered in his name. When they raided Singh’s residence on Sept. 8, 2022 and seized his devices, investigators with Homeland Security found a cellular phone and laptop that allegedly “contained extensive evidence of access to the Portal.”
The complaint alleges that between February 2022 and May 2022, Ceraolo used an official email account belonging to a Bangladeshi police official to pose as a police officer in communication with U.S.-based social media platforms.
“In these communications, Ceraolo requested personal information about users of these platforms, under the false pretense that the users were committing crimes or in life-threatening danger,” the complaint states.
For example, on or about March 13, 2022, Ceraolo allegedly used the Bangladeshi police email account to falsely claim that the target of the EDR had sent bomb threats, distributed child pornography and threatened officials of the Bangladeshi government.
On or about May 9, 2022, the government says, Singh sent a friend screenshots of text messages between himself and someone he had doxed on the Doxbin and was trying to extort for their Instagram handle. The data included the victim’s Social Security number, driver’s license number, cellphone number, and home address.
“Look familiar?” Singh allegedly wrote to the victim. “You’re gonna comply to me if you don’t want anything negative to happen to your parents. . . I have every detail involving your parents . . . allowing me to do whatever I desire to them in malicious ways.”
Neither of the defendants could be immediately reached for comment. KT, the current administrator of Doxbin, declined a request for comment on the charges.
Ceraolo is a self-described security researcher who has been credited in many news stories over the years with discovering security vulnerabilities at AT&T, T-Mobile, Comcast and Cox Communications.
Ceraolo’s stated partner in most of these discoveries — a 30-year-old Connecticut man named Ryan “Phobia” Stevenson — was charged in 2019 with being part of a group that stole millions of dollars worth of cryptocurrencies via SIM-swapping, a crime that involves tricking a mobile provider into routing a target’s calls and text messages to another device.
In 2018, KrebsOnSecurity detailed how Stevenson earned bug bounty rewards and public recognition from top telecom companies for finding and reporting security holes in their websites, all the while secretly peddling those same vulnerabilities to cybercriminals.
According to the Justice Department, if convicted Ceraolo faces up to 20 years’ imprisonment for conspiracy to commit wire fraud; both Ceraolo and Singh face five years’ imprisonment for conspiracy to commit computer intrusions.
A copy of the complaint against Ceraolo and Singh is here (PDF).
The Biden administration today issued its vision for beefing up the nation’s collective cybersecurity posture, including calls for legislation establishing liability for software products and services that are sold with little regard for security. The White House’s new national cybersecurity strategy also envisions a more active role by cloud providers and the U.S. military in disrupting cybercriminal infrastructure, and it names China as the single biggest cyber threat to U.S. interests.
The strategy says the White House will work with Congress and the private sector to develop legislation that would prevent companies from disavowing responsibility for the security of their software products or services.
Coupled with this stick would be a carrot: An as-yet-undefined “safe harbor framework” that would lay out what these companies could do to demonstrate that they are making cybersecurity a central concern of their design and operations.
“Any such legislation should prevent manufacturers and software publishers with market power from fully disclaiming liability by contract, and establish higher standards of care for software in specific high-risk scenarios,” the strategy explains. “To begin to shape standards of care for secure software development, the Administration will drive the development of an adaptable safe harbor framework to shield from liability companies that securely develop and maintain their software products and services.”
Brian Fox, chief technology officer and founder of the software supply chain security firm Sonatype, called the software liability push a landmark moment for the industry.
“Market forces are leading to a race to the bottom in certain industries, while contract law allows software vendors of all kinds to shield themselves from liability,” Fox said. “Regulations for other industries went through a similar transformation, and we saw a positive result — there’s now an expectation of appropriate due care, and accountability for those who fail to comply. Establishing the concept of safe harbors allows the industry to mature incrementally, leveling up security best practices in order to retain a liability shield, versus calling for sweeping reform and unrealistic outcomes as previous regulatory attempts have.”
In 2012 (approximately three national cyber strategies ago), then director of the U.S. National Security Agency (NSA) Keith Alexander made headlines when he remarked that years of successful cyber espionage campaigns from Chinese state-sponsored hackers represented “the greatest transfer of wealth in history.”
The document released today says the People’s Republic of China (PRC) “now presents the broadest, most active, and most persistent threat to both government and private sector networks,” and says China is “the only country with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do so.”
Many of the U.S. government’s efforts to restrain China’s technology prowess involve ongoing initiatives like the CHIPS Act, a new law signed by President Biden last year that sets aside more than $50 billion to expand U.S.-based semiconductor manufacturing and research and to make the U.S. less dependent on foreign suppliers; the National Artificial Intelligence Initiative; and the National Strategy to Secure 5G.
As the maker of most consumer gizmos with a computer chip inside, China is also the source of an incredible number of low-cost Internet of Things (IoT) devices that are not only poorly secured, but are probably more accurately described as insecure by design.
The Biden administration said it would continue its previously announced plans to develop a system of labeling that could be applied to various IoT products and give consumers some idea of how secure the products may be. But it remains unclear how those labels might apply to products made by companies outside of the United States.
One could convincingly make the case that the world has witnessed yet another historic transfer of wealth and trade secrets over the past decade — in the form of ransomware and data ransom attacks by Russia-based cybercriminal syndicates, as well as Russian intelligence agency operations like the U.S. government-wide Solar Winds compromise.
On the ransomware front, the White House strategy seems to focus heavily on building the capability to disrupt the digital infrastructure used by adversaries that are threatening vital U.S. cyber interests. The document points to the 2021 takedown of the Emotet botnet — a cybercrime machine that was heavily used by multiple Russian ransomware groups — as a model for this activity, but says those disruptive operations need to happen faster and more often.
To that end, the Biden administration says it will expand the capacity of the National Cyber Investigative Joint Task Force (NCIJTF), the primary federal agency for coordinating cyber threat investigations across law enforcement agencies, the intelligence community, and the Department of Defense.
“To increase the volume and speed of these integrated disruption campaigns, the Federal Government must further develop technological and organizational platforms that enable continuous, coordinated operations,” the strategy observes. “The NCIJTF will expand its capacity to coordinate takedown and disruption campaigns with greater speed, scale, and frequency. Similarly, DoD and the Intelligence Community are committed to bringing to bear their full range of complementary authorities to disruption campaigns.”
The strategy anticipates the U.S. government working more closely with cloud and other Internet infrastructure providers to quickly identify malicious use of U.S.-based infrastructure, share reports of malicious use with the government, and make it easier for victims to report abuse of these systems.
“Given the interest of the cybersecurity community and digital infrastructure owners and operators in continuing this approach, we must sustain and expand upon this model so that collaborative disruption operations can be carried out on a continuous basis,” the strategy argues. “Threat specific collaboration should take the form of nimble, temporary cells, comprised of a small number of trusted operators, hosted and supported by a relevant hub. Using virtual collaboration platforms, members of the cell would share information bidirectionally and work rapidly to disrupt adversaries.”
But here, again, there is a carrot-and-stick approach: The administration said it is taking steps to implement Executive Order (EO) 13984 –issued by the Trump administration in January 2021 — which requires cloud providers to verify the identity of foreign persons using their services.
“All service providers must make reasonable attempts to secure the use of their infrastructure against abuse or other criminal behavior,” the strategy states. “The Administration will prioritize adoption and enforcement of a risk-based approach to cybersecurity across Infrastructure-as-a-Service providers that addresses known methods and indicators of malicious activity including through implementation of EO 13984.”
Ted Schlein, founding partner of the cybersecurity venture capital firm Ballistic Ventures, said how this gets implemented will determine whether it can be effective.
“Adversaries know the NSA, which is the elite portion of the nation’s cyber defense, cannot monitor U.S.-based infrastructure, so they just use U.S.-based cloud infrastructure to perpetrate their attacks,” Schlein said. “We have to fix this. I believe some of this section is a bit pollyannaish, as it assumes a bad actor with a desire to do a bad thing will self-identify themselves, as the major recommendation here is around KYC (‘know your customer’).”
One brief but interesting section of the strategy titled “Explore a Federal Cyber Insurance Backdrop” contemplates the government’s liability and response to a too-big-to-fail scenario or “catastrophic cyber incident.”
“We will explore how the government can stabilize insurance markets against catastrophic risk to drive better cybersecurity practices and to provide market certainty when catastrophic events do occur,” the strategy reads.
When the Bush administration released the first U.S. national cybersecurity strategy 20 years ago after the 9/11 attacks, the popular term for that same scenario was a “digital Pearl Harbor,” and there was a great deal of talk then about how the cyber insurance market would soon help companies shore up their cybersecurity practices.
In the wake of countless ransomware intrusions, many companies now hold cybersecurity insurance to help cover the considerable costs of responding to such intrusions. Leaving aside the question of whether insurance coverage has helped companies improve security, what happens if every one of these companies has to make a claim at the same time?
The notion of a Digital Pearl Harbor incident struck many experts at the time as a hyperbolic justification for expanding the government’s digital surveillance capabilities, and an overstatement of the capabilities of our adversaries. But back in 2003, most of the world’s companies didn’t host their entire business in the cloud.
Today, nobody questions the capabilities, goals and outcomes of dozens of nation-state level cyber adversaries. And these days, a catastrophic cyber incident could be little more than an extended, simultaneous outage at multiple cloud providers.
The full national cybersecurity strategy is available from the White House website (PDF).
Image: Shutterstock.com
Three different cybercriminal groups claimed access to internal networks at communications giant T-Mobile in more than 100 separate incidents throughout 2022, new data suggests. In each case, the goal of the attackers was the same: Phish T-Mobile employees for access to internal company tools, and then convert that access into a cybercrime service that could be hired to divert any T-Mobile user’s text messages and phone calls to another device.
The conclusions above are based on an extensive analysis of Telegram chat logs from three distinct cybercrime groups or actors that have been identified by security researchers as particularly active in and effective at “SIM-swapping,” which involves temporarily seizing control over a target’s mobile phone number.
Countless websites and online services use SMS text messages for both password resets and multi-factor authentication. This means that stealing someone’s phone number often can let cybercriminals hijack the target’s entire digital life in short order — including access to any financial, email and social media accounts tied to that phone number.
All three SIM-swapping entities that were tracked for this story remain active in 2023, and they all conduct business in open channels on the instant messaging platform Telegram. KrebsOnSecurity is not naming those channels or groups here because they will simply migrate to more private servers if exposed publicly, and for now those servers remain a useful source of intelligence about their activities.
Each advertises their claimed access to T-Mobile systems in a similar way. At a minimum, every SIM-swapping opportunity is announced with a brief “Tmobile up!” or “Tmo up!” message to channel participants. Other information in the announcements includes the price for a single SIM-swap request, and the handle of the person who takes the payment and information about the targeted subscriber.
The information required from the customer of the SIM-swapping service includes the target’s phone number, and the serial number tied to the new SIM card that will be used to receive text messages and phone calls from the hijacked phone number.
Initially, the goal of this project was to count how many times each entity claimed access to T-Mobile throughout 2022, by cataloging the various “Tmo up!” posts from each day and working backwards from Dec. 31, 2022.
But by the time we got to claims made in the middle of May 2022, completing the rest of the year’s timeline seemed unnecessary. The tally shows that in the last seven-and-a-half months of 2022, these groups collectively made SIM-swapping claims against T-Mobile on 104 separate days — often with multiple groups claiming access on the same days.
The 104 days in the latter half of 2022 in which different known SIM-swapping groups claimed access to T-Mobile employee tools.
KrebsOnSecurity shared a large amount of data gathered for this story with T-Mobile. The company declined to confirm or deny any of these claimed intrusions. But in a written statement, T-Mobile said this type of activity affects the entire wireless industry.
“And we are constantly working to fight against it,” the statement reads. “We have continued to drive enhancements that further protect against unauthorized access, including enhancing multi-factor authentication controls, hardening environments, limiting access to data, apps or services, and more. We are also focused on gathering threat intelligence data, like what you have shared, to help further strengthen these ongoing efforts.”
While it is true that each of these cybercriminal actors periodically offer SIM-swapping services for other mobile phone providers — including AT&T, Verizon and smaller carriers — those solicitations appear far less frequently in these group chats than T-Mobile swap offers. And when those offers do materialize, they are considerably more expensive.
The prices advertised for a SIM-swap against T-Mobile customers in the latter half of 2022 ranged between USD $1,000 and $1,500, while SIM-swaps offered against AT&T and Verizon customers often cost well more than twice that amount.
To be clear, KrebsOnSecurity is not aware of specific SIM-swapping incidents tied to any of these breach claims. However, the vast majority of advertisements for SIM-swapping claims against T-Mobile tracked in this story had two things in common that set them apart from random SIM-swapping ads on Telegram.
First, they included an offer to use a mutually trusted “middleman” or escrow provider for the transaction (to protect either party from getting scammed). More importantly, the cybercriminal handles that were posting ads for SIM-swapping opportunities from these groups generally did so on a daily or near-daily basis — often teasing their upcoming swap events in the hours before posting a “Tmo up!” message announcement.
In other words, if the crooks offering these SIM-swapping services were ripping off their customers or claiming to have access that they didn’t, this would be almost immediately obvious from the responses of the more seasoned and serious cybercriminals in the same chat channel.
There are plenty of people on Telegram claiming to have SIM-swap access at major telecommunications firms, but a great many such offers are simply four-figure scams, and any pretenders on this front are soon identified and banned (if not worse).
One of the groups that reliably posted “Tmo up!” messages to announce SIM-swap availability against T-Mobile customers also reliably posted “Tmo down!” follow-up messages announcing exactly when their claimed access to T-Mobile employee tools was discovered and revoked by the mobile giant.
A review of the timestamps associated with this group’s incessant “Tmo up” and “Tmo down” posts indicates that while their claimed access to employee tools usually lasted less than an hour, in some cases that access apparently went undiscovered for several hours or even days.
How could these SIM-swapping groups be gaining access to T-Mobile’s network as frequently as they claim? Peppered throughout the daily chit-chat on their Telegram channels are solicitations for people urgently needed to serve as “callers,” or those who can be hired to social engineer employees over the phone into navigating to a phishing website and entering their employee credentials.
Allison Nixon is chief research officer for the New York City-based cybersecurity firm Unit 221B. Nixon said these SIM-swapping groups will typically call employees on their mobile devices, pretend to be someone from the company’s IT department, and then try to get the person on the other end of the line to visit a phishing website that mimics the company’s employee login page.
Nixon argues that many people in the security community tend to discount the threat from voice phishing attacks as somehow “low tech” and “low probability” threats.
“I see it as not low-tech at all, because there are a lot of moving parts to phishing these days,” Nixon said. “You have the caller who has the employee on the line, and the person operating the phish kit who needs to spin it up and down fast enough so that it doesn’t get flagged by security companies. Then they have to get the employee on that phishing site and steal their credentials.”
In addition, she said, often there will be yet another co-conspirator whose job it is to use the stolen credentials and log into employee tools. That person may also need to figure out how to make their device pass “posture checks,” a form of device authentication that some companies use to verify that each login is coming only from employer-issued phones or laptops.
For aspiring criminals with little experience in scam calling, there are plenty of sample call transcripts available on these Telegram chat channels that walk one through how to impersonate an IT technician at the targeted company — and how to respond to pushback or skepticism from the employee. Here’s a snippet from one such tutorial that appeared recently in one of the SIM-swapping channels:
“Hello this is James calling from Metro IT department, how’s your day today?”
(yea im doing good, how r u)
i’m doing great, thank you for asking
i’m calling in regards to a ticket we got last week from you guys, saying you guys were having issues with the network connectivity which also interfered with [Microsoft] Edge, not letting you sign in or disconnecting you randomly. We haven’t received any updates to this ticket ever since it was created so that’s why I’m calling in just to see if there’s still an issue or not….”
The TMO UP data referenced above, combined with comments from the SIM-swappers themselves, indicate that while many of their claimed accesses to T-Mobile tools in the middle of 2022 lasted hours on end, both the frequency and duration of these events began to steadily decrease as the year wore on.
T-Mobile declined to discuss what it may have done to combat these apparent intrusions last year. However, one of the groups began to complain loudly in late October 2022 that T-Mobile must have been doing something that was causing their phished access to employee tools to die very soon after they obtained it.
One group even remarked that they suspected T-Mobile’s security team had begun monitoring their chats.
Indeed, the timestamps associated with one group’s TMO UP/TMO DOWN notices show that their claimed access was often limited to less than 15 minutes throughout November and December of 2022.
Whatever the reason, the calendar graphic above clearly shows that the frequency of claimed access to T-Mobile decreased significantly across all three SIM-swapping groups in the waning weeks of 2022.
T-Mobile US reported revenues of nearly $80 billion last year. It currently employs more than 71,000 people in the United States, any one of whom can be a target for these phishers.
T-Mobile declined to answer questions about what it may be doing to beef up employee authentication. But Nicholas Weaver, a researcher and lecturer at University of California, Berkeley’s International Computer Science Institute, said T-Mobile and all the major wireless providers should be requiring employees to use physical security keys for that second factor when logging into company resources.
A U2F device made by Yubikey.
“These breaches should not happen,” Weaver said. “Because T-Mobile should have long ago issued all employees security keys and switched to security keys for the second factor. And because security keys provably block this style of attack.”
The most commonly used security keys are inexpensive USB-based devices. A security key implements a form of multi-factor authentication known as Universal 2nd Factor (U2F), which allows the user to complete the login process simply by inserting the USB key and pressing a button on the device. The key works without the need for any special software drivers.
The allure of U2F devices for multi-factor authentication is that even if an employee who has enrolled a security key for authentication tries to log in at an impostor site, the company’s systems simply refuse to request the security key if the user isn’t on their employer’s legitimate website, and the login attempt fails. Thus, the second factor cannot be phished, either over the phone or Internet.
Nixon said one confounding aspect of SIM-swapping is that these criminal groups tend to recruit teenagers to do their dirty work.
“A huge reason this problem has been allowed to spiral out of control is because children play such a prominent role in this form of breach,” Nixon said.
Nixon said SIM-swapping groups often advertise low-level jobs on places like Roblox and Minecraft, online games that are extremely popular with young adolescent males.
“Statistically speaking, that kind of recruiting is going to produce a lot of people who are underage,” she said. “They recruit children because they’re naive, you can get more out of them, and they have legal protections that other people over 18 don’t have.”
For example, she said, even when underage SIM-swappers are arrested, the offenders tend to go right back to committing the same crimes as soon as they’re released.
In January 2023, T-Mobile disclosed that a “bad actor” stole records on roughly 37 million current customers, including their name, billing address, email, phone number, date of birth, and T-Mobile account number.
In August 2021, T-Mobile acknowledged that hackers made off with the names, dates of birth, Social Security numbers and driver’s license/ID information on more than 40 million current, former or prospective customers who applied for credit with the company. That breach came to light after a hacker began selling the records on a cybercrime forum.
In the shadow of such mega-breaches, any damage from the continuous attacks by these SIM-swapping groups can seem insignificant by comparison. But Nixon says it’s a mistake to dismiss SIM-swapping as a low volume problem.
“Logistically, you may only be able to get a few dozen or a hundred SIM-swaps in a day, but you can pick any customer you want across their entire customer base,” she said. “Just because a targeted account takeover is low volume doesn’t mean it’s low risk. These guys have crews that go and identify people who are high net worth individuals and who have a lot to lose.”
Nixon said another aspect of SIM-swapping that causes cybersecurity defenders to dismiss the threat from these groups is the perception that they are full of low-skilled “script kiddies,” a derisive term used to describe novice hackers who rely mainly on point-and-click hacking tools.
“They underestimate these actors and say this person isn’t technically sophisticated,” she said. “But if you’re rolling around in millions worth of stolen crypto currency, you can buy that sophistication. I know for a fact some of these compromises were at the hands of these ‘script kiddies,’ but they’re not ripping off other people’s scripts so much as hiring people to make scripts for them. And they don’t care what gets the job done, as long as they get to steal the money.”
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