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John Clifton Davies, a 60-year-old con man from the United Kingdom who fled the country in 2015 before being sentenced to 12 years in prison for fraud, has enjoyed a successful life abroad swindling technology startups by pretending to be a billionaire investor. Davies’ newest invention appears to be “CodesToYou,” which purports to be a “full cycle software development company” based in the U.K.
The scam artist John Bernard a.k.a. Alan John Mykailov (left) in a recent Zoom call, and a mugshot of John Clifton Davies from nearly a decade earlier.
Several articles here have delved into the history of John Bernard, the pseudonym used by a fake billionaire technology investor who tricked dozens of startups into giving him tens of millions of dollars.
John Bernard’s real name is John Clifton Davies, a convicted fraudster from the United Kingdom who is currently a fugitive from justice. For several years until reinventing himself again quite recently, Bernard pretended to be a billionaire Swiss investor who made his fortunes in the dot-com boom 20 years ago.
“The Private Office of John Bernard” let it be known to investment brokers that he had tens of millions of dollars to invest in tech startups, and he attracted a stream of new victims by offering extraordinarily generous finder’s fees to brokers who helped him secure new clients. But those brokers would eventually get stiffed because Bernard’s company would never consummate a deal.
John Bernard’s former website, where he pretended to be a billionaire tech investor.
Bernard would promise to invest millions in tech startups, and then insist that companies pay tens of thousands of dollars worth of due diligence fees up front. However, the due diligence company he insisted on using — another Swiss firm called The Inside Knowledge GmbH — also was secretly owned by Bernard, who would invariably pull out of the deal after receiving the due diligence money.
A variety of clues suggest Davies has recently adopted at least one other identity — Alan John Mykhailov — who is listed as chairman of a British concern called CodesToYou LTD, incorporated in May 2022. The CodesToYou website says the company employs talented coders in several countries, and that its programmers offer “your ultimate balance between speed, cost and quality.”
The team from CodesToYou.
In response to questions from KrebsOnSecurity, CodesToYou’s marketing manager — who gave their name only as “Zhena” — said the company was not affiliated with any John Bernard or John Clifton Davies, and maintained that CodesToYou is a legitimate enterprise.
But publicly available information about this company and its leadership suggests otherwise. Official incorporation documents from the U.K.’s Companies House represent that CodesToYou is headed by an Alan John Mykhailov, a British citizen born in March 1958.
Companies House says Mykhailov is an officer in three other companies, including one called Blackstone Corporate Alliance Ltd. According to the Swiss business tracking service business-monitor.ch, Blackstone Corporate Alliance Ltd. is currently the entity holding a decision-making role in John Bernard’s fake due diligence company — The Inside Knowledge GmbH — which is now in liquidation.
A screen shot of the stock photos and corporate-speak on John Bernard’s old website. Image: Archive.org
Also listed as a partner in Blackstone Corporate Alliance Limited is Igor Hubskyi (a.k.a. Igor Gubskyi), a Ukrainian man who was previously president of The Inside Knowledge GmbH.
The CodesToYou website says the company’s marketing team lead is Maria Yakovleva, and the photo of this employee matches the profile for the LinkedIn account name “Maria Y.” That same LinkedIn profile and photo previously listed Maria by a different first and last name — Mariya Kulikova; back then, Ms. Kulikova’s LinkedIn profile said she was an executive assistant in The Private Office of Mr. John Bernard.
Companies House lists Alan John Mykhailov as a current officer in two other companies, including Frisor Limited, and Ardelis Solutions Limited. A cached copy of the now-defunct Ardelis Solutions website says it was a private equity firm.
CodesToYou’s Maria also included Ardelis Solutions in the work history section of her LinkedIn resume. That is, until being contacted by this author on LinkedIn, after which Maria’s profile picture and any mention of Ardelis Solutions were deleted.
Listed as head of business development at CodesToYou is David Bruno, a Canadian man whose LinkedIn profile says he is founder of an organization called “World Privacy Resource.” As KrebsOnSecurity reported in 2020, Bruno was at the time promoting himself as the co-CEO of a company called SafeSwiss Secure Communication AG, and the founder of another tech startup called Secure Swiss Data.
Secure Swiss Data’s domain — secureswissdata.com — is a Swiss concern that sells encrypted email and data services. According to DomainTools.com, that website name was registered in 2015 by The Inside Knowledge GmbH. In February 2020, a press release announced that Secure Swiss Data was purchased in an “undisclosed multimillion buyout” by SafeSwiss Secure Communication AG.
A cached copy of the Ardelis Solutions website, which said it was a private equity firm and included similar stock images as John Bernard’s investment website.
When reached in 2020 and asked about his relationship to Mr. Bernard, Mr. Bruno said the two were business partners and that he couldn’t imagine that Mr. Bernard would be involved in anything improper. To this day Mr. Bruno is the only person I’ve spoken to who has had anything positive to say about Mr. Bernard.
Mr. Bruno did not respond to requests for comment this time around, but his LinkedIn profile no longer makes any mention of Secure Swiss Data or SafeSwiss — both companies he claimed to run for many years. Nor does it mention CodesToYou. However, Mr. Bruno’s former company SafeSwiss is listed as one of the six “portfolio” companies whose services are promoted on the CodesToYou website.
In mid-2021, Bruno announced he was running for public office in Ontario.
“The Kenora resident is no stranger to the government as he contributed to Canada’s new Digital Charter, Bill C-11, which is a new Cyber Security policy,” reported Drydennow.com, a news website that covers Northwestern Ontario. Drydennow says the next federal election is expected to be held on or before Oct. 16, 2023.
John Clifton Davies was convicted in 2015 of swindling businesses throughout the U.K. that were struggling financially and seeking to restructure their debt. For roughly six years, Davies ran a series of firms that pretended to offer insolvency services, but instead simply siphoned what little remaining money these companies had.
The very first entity mentioned in the technology portfolio advertised on the CodesToYou website is called “MySolve,” and it purports to offer a “multi-feature platform for insolvency practitioners.”
Mr. Davies’ fourth wife, Iryna Davies, is listed as a director of one of the insolvency consulting businesses in the U.K. that was part of John Davies’ 2015 fraud conviction. Prior to his trial for fraud, Davies served 16 months in jail before being cleared of murdering his third wife on their honeymoon in India: Colette Davies, 39, died after falling 80 feet from a viewing point at a steep gorge in the Himachal Pradesh region of India.
Mr. Davies was charged with murder and fraud after he attempted to collect GBP 132,000 in her life insurance payout, but British prosecutors ultimately conceded they did not have enough evidence to convict him.
The scams favored by Davies and his alter egos are smart because he never approaches investors directly; rather, investors are incentivized to put his portfolio in front of tech firms seeking financial backing. And all the best cons begin as an idea or possibility planted in the target’s mind.
It’s also a reliable scam because companies bilked by small-time investment schemes rarely pursue legal action, mainly because the legal fees involved can quickly surpass the losses. On top of that, many victims will likely be too ashamed to admit their duping. Victims who do press their case in court and win then face the daunting challenge of collecting damages from a slew of ephemeral shell corporations.
The latest Bernard victim to speak publicly — a Norwegian company hoping to build a fleet of environmentally friendly shipping vessels — is now embroiled in a lawsuit over a deal gone bad. As part of that scam, Bernard falsely claimed to have secured $100 million from six other wealthy investors, including the founder of Uber and the artist Abel Makkonen Tesfaye, better known as The Weeknd.
If you liked this story, check out my previous reporting on John Bernard/Davies:
Due Diligence That Money Can’t Buy
Who is Tech Investor John Bernard?
Promising Infusions of Cash, Fake Investor John Bernard Walked Away With $30 Million
Investment Scammer John Davies Reinvents Himself?
Fake Investor John Bernard Sinks Norwegian Green Shipping Dreams
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Just like the myriad expanding galaxies seen in the latest images from the James Webb space telescope, the cybersecurity landscape consists of a growing number of security technology vendors, each with the goal of addressing the continually evolving threats faced by customers today. In order to be effective, cybersecurity tools have to be collaborative—be it sharing relevant threat intelligence, device & user insights, acting on detection and remediation workflows, and more.
We at Cisco Secure have embraced this concept for a while now with our continually growing ecosystem of multi-vendor technology integrations. At the RSA Conference 2022 earlier this year, Jeetu Patel, Cisco’s Executive Vice President and General Manager of Security and Collaboration, spoke of how the ‘cybersecurity poverty line’ is widening and how malicious actors are taking advantage of this gaping hole to unleash persistent attacks. It is imperative that cybersecurity vendors interact with and collaborate with each other to lower this gap. To do this, security vendors must adopt open ecosystems of APIs to easily integrate with each other to provide effective ways for mutual customers to defend and react to cybersecurity attacks.
Like in prior years, this fiscal year 2022 saw us growing to include new ecosystem partners and integrations. With 22 new partners and 51 new integrations in our ecosystem, Cisco Secure Technical Alliance (CSTA) now boasts over 450 integrations, including technical integrations with Cisco Duo and Cisco Kenna. This allows our mutual customers the freedom to implement the cybersecurity tools of their choice with the knowledge that these tools can integrate with each other if they need to, thus realizing a better return on investment in their cybersecurity spending and improving cybersecurity posture.
In this annual round-up of our ecosystem, we congratulate our new partners in CSTA and existing partners as well, who have either created new integrations across our portfolio or augmented existing ones. For more details on each partner integration in this announcement, please read through the individual partner highlights below.
Happy integrating!
The AlienApp for Cisco Secure Endpoint enables you to automate threat detection and response activities between USM Anywhere and Cisco Secure Endpoint. It also enhances the threat response capabilities of USM Anywhere by providing orchestration and response actions to isolate or un-isolate hosts based on risks identified in USM Anywhere. In addition, it allows you to collect hourly events from Cisco Secure Endpoint through the USM Anywhere Job Scheduler. Read more here.
AttackIQ automates the evaluation of Cisco Secure Endpoint against the tactic categories as outlined by MITRE ATT&CK. The AttackIQ and Cisco partnership and technical integration enables organizations to validate that the Cisco Secure Endpoint is deployed correctly and configured optimally, ensuring protection for your endpoints against the latest threats. Read more here.
With Certego Tactical Response for Cisco Secure Endpoint, monitored endpoints are monitored by the Certego PanOptikon SOAR platform. When Certego IRT detects malicious activities on a specific host in the customer’s network, it can isolate compromised hosts to block the attack, even without requiring the user to access the Cisco Secure Endpoint Console. Read more about the Certego here.
Cisco Secure Endpoint is now certified for the ServiceNow ITSM San Diego release. The Cisco Secure Endpoint App on ServiceNow provides users with the ability to integrate event data from the Cisco Secure Endpoint into ServiceNow by creating ITSM incidents. The app automates the collection of events from Cisco Secure Endpoint and groups them into single incidents. Read more here.
FAMOC manage from Techstep, a Gartner-recognized MMS provider, is an MDM designed to give IT a complete view and absolute control over mobile devices used by the workforce, so that people can work more effectively and securely. With the Cisco Security Connector for iOS integration, FAMOC MDM extends its enterprise mobility management with an extra layer of network security and traffic analysis tool, giving IT admins tools to make actionable decisions and design access control policies. Read more here.
Elastic Security now supports event ingestion from Cisco Umbrella, providing visibility into user activity and attempts to access potentially malicious domains. This new integration supports Umbrella proxy, cloud firewall, IP, and DNS logs. This integration enables security analysts to detect threats and visualize Cisco Umbrella data, and also correlate Umbrella events with other data sources including endpoint, cloud, and network. This integration expands on Elastic’s on-going expansion of Cisco integrations including ASA, Nexus, Meraki, Duo and Secure Firewall Threat Defense. Read more here.
FortiSIEM brings together visibility, correlation, automated response, and remediation in a single, scalable solution. It reduces the complexity of managing network and security operations to effectively free resources, improve breach detection, and even prevent breaches. Read more here.
Hunters ingests Cisco Umbrella log and alert information into our SOC Platform; the Platform then correlates that information with all of the other (vendor agnostic) customer security telemetry, including EDR, Identity and Cloud/Network log data, in the customer’s infrastructure to synthesize and detect incidents with a higher fidelity than any single tool alone can produce. Read more here.
LearnSafe equips school leaders (K-12) with evidence-based information to better understand which students are exhibiting behavioral issues and in need of help based on what they are using, saying, and doing on the school-owned computer. With Cisco Umbrella, LearnSafe administrators are able to block access to domains their students should not be accessing. Read more here.
The Cisco Umbrella solution for Microsoft Azure Sentinel is now live! This integration enables your customers to ingest Cisco Umbrella events stored in Amazon S3 into Microsoft Sentinel using the Amazon S3 REST API. Read more here.
Sumo Logic’s cloud-native collector supports automatic ingestion of logs from Cisco Umbrella’s hosted AWS S3 buckets. Data collected from Umbrella can then be routed to Sumo’s Cloud SIEM, where it is then automatically normalized and applied to our rule’s engine. Several built-in rules for Umbrella have been created that, when triggered, will generate security signals in the platform. These and other security signals are then clustered together based on related entities (IP, email, domain name, URL, etc.) to create insights for review by the SOC. Read more here.
The Secure Firewall team and Alkira have validated Secure Firewall (Virtual) Version 7.1 to run on Alkira’s cloud network as-a-service (CNaaS) platform. The solution offers on-demand hybrid and multi-cloud connectivity, integrated network and security services, end-to-end visibility, controls and governance. Read more here.
The Secure Firewall team has validated Cyware’s STIX 1.2 threat intelligence feed for interoperability with Secure Firewall’s Threat Intelligence Director. Customers can quickly operationalize the inbound data to protect the network from the latest threats. Read more here.
Dragos protects critical infrastructure and has joined the CSTA program. Dragos inventories assets, determines risk and vulnerabilities and generates firewall policy objects that administrators can apply to their Cisco Secure Firewall deployment through its REST API. Read more here.
The Secure Firewall team and Equinix have validated Secure Firewall (Virtual) to run on Equinix’s Network Edge as a Service platform. Equinix Fabric allows you to connect digital infrastructure and services on demand via secure, software-defined interconnection (Ecosystem). Read more here.
Fastvue has joined the CSTA program. The Fastvue Site Clean engine intelligently interprets Cisco Secure Firewall log data so that non-technical employees can easily see what people are actually doing online. The data use to keep companies compliant with workplace and school policies. Read more here.
Alef Nula has developed a new integration with ISE. The Alef Nula Identity Bridge consumes identity updates published by pxGrid and serves them to ASA firewalls using the CDA/Radius protocol. Using pxGrid v2.0, it replaces unsupported Cisco CDA and allows ASA firewalls to become an identity consumer of ISE context. It can read the full identity database and can update registered ASA firewalls in Full Download mode. Read more here.
Forescout’s pxGrid Plugin integrates with existing Cisco ISE deployments so that you can benefit from Forescout visibility and assessment for policy decisions, while continuing to use ISE as an enforcement point. The pxGrid Plugin enables Forescout platform policies to detect ISE-related properties on endpoints, and to apply Cisco ISE ANC policies, including policies that assign Security Groups to devices. Read more here.
FortiManager provides automation-driven centralized management of Fortinet devices from a single console, enabling full administration and visibility of your network devices through streamlined provisioning and innovative automation tools. FortiManager dynamically collects updates from Cisco ISE with pxGrid and forwards them to FortiGate using the Fortinet Single Sign On (FSSO) protocol. This enables the use of session information collected by Cisco ISE to be leveraged in FortiOS security policies. Read more here.
Radiflow provides OT ICS policy creation and enforcement with the Radiflow iSID IDS. They recently completed a new integration with ISE leveraging pxGrid. With this integration Cisco ISE receives enriched data of OT devices from Radiflow iSID and will process it according to the profiles and policies which have been configured. Enriching ISE with OT specific insights available with iSID’s DPI engine enables better decision making within ISE by providing additional context to categorize devices by their type/function within the OT environment. Read more here.
XTENDISE is a simple web application connected to Cisco ISE. It is designed for administrators, helpdesk, operators or anyone who needs to work with ISE and helps them with everyday routine tasks related to 802.1X without the need to train them in Cisco ISE. XTENDISE saves administrators’ time, prevents errors and increases network security. Read more here.
The Cisco Secure Malware Analytics Add-On for Splunk leverages the Threat Grid API to enrich events within Splunk. The add-on is now updated for Splunk 8 and is available on Splunkbase. Read more here.
Censys now has an integration with SecureX threat response, which returns Sightings of IP and IPv6 Observables (IOCs) in an investigation. Read more about the Censys relay module here.
The new Exabeam integration empowers users to investigate an observable and determine if it is contained in a log message stored in Exabeam Fusion SIEM Data Lake. It provides users with the date and time the observable was seen in the log, the forwarder that sent the log, and the raw log messages. When you pivot into Exabeam and search for an observable in all the log messages, the results of the search are displayed in the Exabeam UI. This integration allows you to query IPv4, IPv6, SHA-1, SHA-256, MD5, domain, URL, file path, user and email data types and it returns sightings of an observable from each log message. Read more here.
The LogRhythm integration empowers users to investigate an observable and determine if it is contained in an event stored in LogRhythm. It provides users with the date and time the observable was seen in the event and the raw event data. This integration allows you to query IPv4 and IPv6 data types and it returns sightings of an observable from each event. Read more here.
A proof-of-concept integration with RSA NetWitness SIEM was built for the RSAC SOC and Black Hat NOCs. The SecureX Concrete Relay implementation using NetWitness as a third-party Cyber Threat Intelligence service provider. The Relay itself is just a simple application written in Python that can be easily packaged and deployed. Read more here.
Cisco SecureX threat response integration with SecOps is now certified for the ServiceNow San Diego release. The module allows ServiceNow SecOps to leverage the Verdicts, Refer and Response capabilities provided by SecureX threat response to assist the security analyst in their investigation workflow. Read more here.
The Sumo Logic Cloud SIEM integration provides security analysts with enhanced visibility across the enterprise to thoroughly understand the impact and context of an attack. Streamlined workflows automatically triage alerts to maximize security analyst efficiency and focus. This integration indicates to users that the observable in an investigation is contained in an insight and/or signal within Sumo Logic Cloud SIEM. It allows you to query IPv4, IPv6, SHA-1, SHA-256, MD5, domain, and URL data types. It also returns sightings and indicators of an observable from each insight and signal retrieved from Sumo Logic Cloud SIEM. Read more here.
APIVoid provides JSON APIs useful for cyber threat analysis, threat detection and threat prevention. The following APIVoid atomic actions for SecureX Orchestration Workflows are now available: Get Domain Reputation, Get IP Reputation, Get URL Reputation, Get URL Status. Access the workflows here.
Censys is a company that allows users to discover the devices, networks, and infrastructure on the Internet and monitor how it changes over time. SecureX orchestration atomic actions for Censys is now available and includes: Basic Search. Access the workflows here.
This integration radically reduces the time and resources enterprises spend to detect, investigate, and remediate ransomware threats to data. It empowers SecOps, ITOps and NetOps with visibility and automation to collaborate in countering ransomware — regardless of whether data resides on-premises or in the cloud — delivering enterprise-wide confidence in deterring, detecting, and recovering fast from cyberattacks. Cohesity’s next-gen data management enhances Cisco SecureX by adding visibility and context to data, complementing Cisco’s existing capabilities for networks, endpoints, clouds, and apps. Read more here.
SecureX orchestration atomic actions for workflows are now available for Farsight Security DNSDB. They include various items like DKIM key inspections, DNS Resource Records and more. Access the workflows here.
SecureX orchestration workflows for Fortinet FortiGate are now available: Block URL, IP and Domain Threat Containment. Access the workflows here.
SecureX orchestration workflows for Jamf Pro include: Lock Computer, Lock Mobile Device. Access the workflows here.
SecureX orchestration workflows for Palo Alto Networks Panorama are now available: Block URL, IP, Domain Threat Containment. Access the workflows here.
A new Orchestration action provides top MacOS IR Indicators to ServiceNow This workflow runs multiple Orbital queries on the endpoint provided to look for top incident response indicators of compromise. The results are then posted to a ServiceNow incident. Supported observables: ip, mac_address, amp_computer_guid, hostname. Access the workflow here.
Shodan is a database of billions of publicly available IP addresses, and it’s used by security experts to analyze network security. SecureX orchestration atomic actions for Shodan include: Basic Search. Access the workflows here.
Earlier this year we announced SecureX Device Insights which provides comprehensive endpoint inventory in a single unified view. Endpoint searching and reporting allows you to assess device security configuration on employee-owned, contractor-owned, company owned, and IoT/OT devices—without risking business disruption. With Device Insights you can
Device insights supports the following third-party sources in its initial release: Jamf Pro, Microsoft Intune, Ivanti MobileIron and VMware Workspace ONE (formerly AirWatch).
Bitglass’ Next-Gen CASB provides data protection, threat protection, access management, and visibility, while Duo offers identity verification options like SSO and MFA. The Duo and Bitglass integration provide a synergistic solution that funnels traffic through Duo’s SSO and verifies users via its MFA so Bitglass can deliver real-time data loss prevention and granular adaptive access control. Because of Bitglass’ agentless architecture, the joint solution can secure any app, any device, anywhere. Read more about the integration here. A joint solution brief is also available here.
Cmd helps companies authenticate and manage user security in Linux production environments without slowing down teams — you don’t need to individually configure identities and devices. Cmd integrates with Duo to put 2FA checkpoints into Linux-based data centers and cloud infrastructure. The combination of Cmd and Duo enables development teams to run at the modern, agile pace they are accustomed to without any security-induced slowdowns. Read more here.
Darktrace is an AI-native platform that delivers self-learning cyber defense and AI investigations and seamlessly integrates with other tools via an open and extensible architecture. Darktrace’s Security Module for Duo provides coverage over access, user sessions and platform administration within the Duo platform. Read more here.
Dashlane is a password manager that now supports Duo using Duo SSO. The integration lets IT Administrators easily deploy Duo + Dashlane and set up access policies. End users can easily access Dashlane and their passwords with SSO from Duo. Read more here.
HashiCorp Vault is an identity-based secrets and encryption management system. A secret is anything that you want to tightly control access to, such as API encryption keys, passwords, and certificates. Add another layer of protection and protect access to secrets within HashiCorp Vault with Duo Security MFA. Read more here. A recording of the Cisco Duo + HashiCorp webinar is available to view here.
Oort discovers vulnerabilities across an entire user population (or a segment of it). Trigger notifications related to behavioral anomalies or best practices, or policies not being followed. Oort integrates with Duo for identity analytics and threat detection to provide a complete picture of the user behavior and highlight any anomalous activity or identify risks. Read more here.
Perimeter 81 simplifies cyber and network security for the hybrid workforce, ensuring secure access to local networks, applications, and cloud infrastructure. Their integration with Duo provides protection for administrators and end-users who need to log in to Perimeter 81. Read more here.
Specops Software, a leading provider of password management and authentication solutions, protects businesses by securing user authentication across high-risk tasks including account unlocks and password recovery via self-service or the IT service desk. Organizations can extend Duo authentication to secure user verification across these use cases. Read about the integration here. A blog on the integration is also available here.
Sectona is a Privileged Access Management company that delivers integrated privilege management components for securing dynamic remote workforce access across on-premises or cloud workloads, endpoints, and machine-to-machine communication. Duo’s secure access multi-factor authentication can be used to ensure that each user authenticates using multiple methods (factors) while accessing Sectona Privileged Access Management. Read more here.
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Earlier this month, the administrator of the cybercrime forum Breached received a cease-and-desist letter from a cybersecurity firm. The missive alleged that an auction on the site for data stolen from 10 million customers of Mexico’s second-largest bank was fake news and harming the bank’s reputation. The administrator responded to this empty threat by purchasing the stolen banking data and leaking it on the forum for everyone to download.
On August 3, 2022, someone using the alias “Holistic-K1ller” posted on Breached a thread selling data allegedly stolen from Grupo Financiero Banorte, Mexico’s second-biggest financial institution by total loans. Holistic-K1ller said the database included the full names, addresses, phone numbers, Mexican tax IDs (RFC), email addresses and balances on more than 10 million citizens.
There was no reason to believe Holistic-K1ller had fabricated their breach claim. This identity has been highly active on Breached and its predecessor RaidForums for more than two years, mostly selling databases from hacked Mexican entities. Last month, they sold customer information on 36 million customers of the Mexican phone company Telcel; in March, they sold 33,000 images of Mexican IDs — with the front picture and a selfie of each citizen. That same month, they also sold data on 1.4 million customers of Mexican lending platform Yotepresto.
But this history was either overlooked or ignored by Group-IB, the Singapore-based cybersecurity firm apparently hired by Banorte to help respond to the data breach.
“The Group-IB team has discovered a resource containing a fraudulent post offering to buy Grupo Financiero Banorte’s leaked databases,” reads a letter the Breach administrator said they received from Group-IB. “We ask you to remove this post containing Banorte data. Thank you for your cooperation and prompt attention to this urgent matter.”
The administrator of Breached is “Pompompurin,” the same individual who alerted this author in November 2021 to a glaring security hole in a U.S. Justice Department website that was used to spoof security alerts from the FBI. In a post to Breached on Aug. 8, Pompompurin said they bought the Banorte database from Holistic-K1ller’s sales thread because Group-IB was sending emails complaining about it.
“They also attempted to submit DMCA’s against the website,” Pompompurin wrote, referring to legal takedown requests under the Digital Millennium Copyright Act. “Make sure to tell Banorte that now they need to worry about the data being leaked instead of just being sold.”
Group-IB CEO Dmitriy Volkov said the company has seen some success in the past asking hackers to remove or take down certain information, but that making such requests is not a typical response for the security firm.
“It is not a common practice to send takedown notifications to such forums demanding that such content be removed,” Volkov said. “But these abuse letters are legally binding, which helps build a foundation for further steps taken by law enforcement agencies. Actions contrary to international rules in the regulated space of the Internet only lead to more severe crimes, which — as we know from the case of Raidforums — are successfully investigated and stopped by law enforcement.”
Banorte did not respond to requests for comment. But in a brief written statement picked up on Twitter, Banorte said there was no breach involving their infrastructure, and the data being sold is old.
“There has been no violation of our platforms and technological infrastructure,” Banorte said. “The set of information referred to is inaccurate and outdated, and does not put our users and customers at risk.”
That statement may be 100 percent true. Still, it is difficult to think of a better example of how not to do breach response. Banorte shrugging off this incident as a nothingburger is baffling: While it is almost certainly true that the bank balance information in the Banorte leak is now out of date, the rest of the information (tax IDs, phone numbers, email addresses) is harder to change.
“Is there one person from our community that think sending cease and desist letter to a hackers forum operator is a good idea?,” asked Ohad Zaidenberg, founder of CTI League, a volunteer emergency response community that emerged in 2020 to help fight COVID-19 related scams. “Who does it? Instead of helping, they pushed the organization from the hill.”
Kurt Seifried, director of IT for the CloudSecurityAlliance, was similarly perplexed by the response to the Banorte breach.
“If the data wasn’t real….did the bank think a cease and desist would result in the listing being removed?” Seifried wondered on Twitter. “I mean, isn’t selling breach data a worse crime usually than slander or libel? What was their thought process?”
A more typical response when a large bank suspects a breach is to approach the seller privately through an intermediary to ascertain if the information is valid and what it might cost to take it off the market. While it may seem odd to expect cybercriminals to make good on their claims to sell stolen data to only one party, removing sold stolen items from inventory is a fairly basic function of virtually all cybercriminal markets today (apart from perhaps sites that traffic in stolen identity data).
At a minimum, negotiating or simply engaging with a data seller can buy the victim organization additional time and clues with which to investigate the claim and ideally notify affected parties of a breach before the stolen data winds up online.
It is true that a large number of hacked databases put up for sale on the cybercrime underground are sold only after a small subset of in-the-know thieves have harvested all of the low-hanging fruit in the data — e.g., access to cryptocurrency accounts or user credentials that are recycled across multiple websites. And it’s certainly not unheard of for cybercriminals to go back on their word and re-sell or leak information that they have sold previously.
But companies in the throes of responding to a data security incident do themselves and customers no favors when they underestimate their adversaries, or try to intimidate cybercrooks with legal threats. Such responses generally accomplish nothing, except unnecessarily upping the stakes for everyone involved while displaying a dangerous naiveté about how the cybercrime underground works.
Update, Aug. 17, 10:32 a.m.: Thanks to a typo by this author, a request for comment sent to Group-IB was not delivered in advance of this story. The copy above has been updated to include a comment from Group-IB’s CEO.
Apple, Google and Microsoft announced this week they will soon support an approach to authentication that avoids passwords altogether, and instead requires users to merely unlock their smartphones to sign in to websites or online services. Experts say the changes should help defeat many types of phishing attacks and ease the overall password burden on Internet users, but caution that a true passwordless future may still be years away for most websites.
Image: Blog.google
The tech giants are part of an industry-led effort to replace passwords, which are easily forgotten, frequently stolen by malware and phishing schemes, or leaked and sold online in the wake of corporate data breaches.
Apple, Google and Microsoft are some of the more active contributors to a passwordless sign-in standard crafted by the FIDO (“Fast Identity Online”) Alliance and the World Wide Web Consortium (W3C), groups that have been working with hundreds of tech companies over the past decade to develop a new login standard that works the same way across multiple browsers and operating systems.
According to the FIDO Alliance, users will be able to sign in to websites through the same action that they take multiple times each day to unlock their devices — including a device PIN, or a biometric such as a fingerprint or face scan.
“This new approach protects against phishing and sign-in will be radically more secure when compared to passwords and legacy multi-factor technologies such as one-time passcodes sent over SMS,” the alliance wrote on May 5.
Sampath Srinivas, director of security authentication at Google and president of the FIDO Alliance, said that under the new system your phone will store a FIDO credential called a “passkey” which is used to unlock your online account.
“The passkey makes signing in far more secure, as it’s based on public key cryptography and is only shown to your online account when you unlock your phone,” Srinivas wrote. “To sign into a website on your computer, you’ll just need your phone nearby and you’ll simply be prompted to unlock it for access. Once you’ve done this, you won’t need your phone again and you can sign in by just unlocking your computer.”
As ZDNet notes, Apple, Google and Microsoft already support these passwordless standards (e.g. “Sign in with Google”), but users need to sign in at every website to use the passwordless functionality. Under this new system, users will be able to automatically access their passkey on many of their devices — without having to re-enroll every account — and use their mobile device to sign into an app or website on a nearby device.
Johannes Ullrich, dean of research for the SANS Technology Institute, called the announcement “by far the most promising effort to solve the authentication challenge.”
“The most important part of this standard is that it will not require users to buy a new device, but instead they may use devices they already own and know how to use as authenticators,” Ullrich said.
Steve Bellovin, a computer science professor at Columbia University and an early internet researcher and pioneer, called the passwordless effort a “huge advance” in authentication, but said it will take a very long time for many websites to catch up.
Bellovin and others say one potentially tricky scenario in this new passwordless authentication scheme is what happens when someone loses their mobile device, or their phone breaks and they can’t recall their iCloud password.
“I worry about people who can’t afford an extra device, or can’t easily replace a broken or stolen device,” Bellovin said. “I worry about forgotten password recovery for cloud accounts.”
Google says that even if you lose your phone, “your passkeys will securely sync to your new phone from cloud backup, allowing you to pick up right where your old device left off.”
Apple and Microsoft likewise have cloud backup solutions that customers using those platforms could use to recover from a lost mobile device. But Bellovin said much depends on how securely such cloud systems are administered.
“How easy is it to add another device’s public key to an account, without authorization?” Bellovin wondered. “I think their protocols make it impossible, but others disagree.”
Nicholas Weaver, a lecturer at the computer science department at University of California, Berkeley, said websites still have to have some recovery mechanism for the “you lost your phone and your password” scenario, which he described as “a really hard problem to do securely and already one of the biggest weaknesses in our current system.”
“If you forget the password and lose your phone and can recover it, now this is a huge target for attackers,” Weaver said in an email. “If you forget the password and lose your phone and CAN’T, well, now you’ve lost your authorization token that is used for logging in. It is going to have to be the latter. Apple has the infrastructure in place to support it (iCloud keychain), but it is unclear if Google does.”
Even so, he said, the overall FIDO approach has been a great tool for improving both security and usability.
“It is a really, really good step forward, and I’m delighted to see this,” Weaver said. “Taking advantage of the phone’s strong authentication of the phone owner (if you have a decent passcode) is quite nice. And at least for the iPhone you can make this robust even to phone compromise, as it is the secure enclave that would handle this and the secure enclave doesn’t trust the host operating system.”
The tech giants said the new passwordless capabilities will be enabled across Apple, Google and Microsoft platforms “over the course of the coming year.” But experts said it will likely take several more years for smaller web destinations to adopt the technology and ditch passwords altogether.
Recent research shows far too many people still reuse or recycle passwords (modifying the same password slightly), which presents an account takeover risk when those credentials eventually get exposed in a data breach. A report in March from cybersecurity firm SpyCloud found 64 percent of users reuse passwords for multiple accounts, and that 70 percent of credentials compromised in previous breaches are still in use.
A March 2022 white paper on the FIDO approach is available here (PDF). A FAQ on it is here.
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