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The head of counterintelligence for a division of the Russian Federal Security Service (FSB) was sentenced last week to nine years in a penal colony for accepting a USD $1.7 million bribe to ignore the activities of a prolific Russian cybercrime group that hacked thousands of e-commerce websites. The protection scheme was exposed in 2022 when Russian authorities arrested six members of the group, which sold millions of stolen payment cards at flashy online shops like Trump’s Dumps.
A now-defunct carding shop that sold stolen credit cards and invoked 45’s likeness and name.
As reported by The Record, a Russian court last week sentenced former FSB officer Grigory Tsaregorodtsev for taking a $1.7 million bribe from a cybercriminal group that was seeking a “roof,” a well-placed, corrupt law enforcement official who could be counted on to both disregard their illegal hacking activities and run interference with authorities in the event of their arrest.
Tsaregorodtsev was head of the counterintelligence department for a division of the FSB based in Perm, Russia. In February 2022, Russian authorities arrested six men in the Perm region accused of selling stolen payment card data. They also seized multiple carding shops run by the gang, including Ferum Shop, Sky-Fraud, and Trump’s Dumps, a popular fraud store that invoked the 45th president’s likeness and promised to “make credit card fraud great again.”
All of the domains seized in that raid were registered by an IT consulting company in Perm called Get-net LLC, which was owned in part by Artem Zaitsev — one of the six men arrested. Zaitsev reportedly was a well-known programmer whose company supplied services and leasing to the local FSB field office.
The message for Trump’s Dumps users left behind by Russian authorities that seized the domain in 2022.
Russian news sites report that Internal Affairs officials with the FSB grew suspicious when Tsaregorodtsev became a little too interested in the case following the hacking group’s arrests. The former FSB agent had reportedly assured the hackers he could have their case transferred and that they would soon be free.
But when that promised freedom didn’t materialize, four the of the defendants pulled the walls down on the scheme and brought down their own roof. The FSB arrested Tsaregorodtsev, and seized $154,000 in cash, 100 gold bars, real estate and expensive cars.
At Tsaregorodtsev’s trial, his lawyers argued that their client wasn’t guilty of bribery per se, but that he did admit to fraud because he was ultimately unable to fully perform the services for which he’d been hired.
The Russian news outlet Kommersant reports that all four of those who cooperated were released with probation or correctional labor. Zaitsev received a sentence of 3.5 years in prison, and defendant Alexander Kovalev got four years.
In 2017, KrebsOnSecurity profiled Trump’s Dumps, and found the contact address listed on the site was tied to an email address used to register more than a dozen domains that were made to look like legitimate Javascript calls many e-commerce sites routinely make to process transactions — such as “js-link[dot]su,” “js-stat[dot]su,” and “js-mod[dot]su.”
Searching on those malicious domains revealed a 2016 report from RiskIQ, which shows the domains featured prominently in a series of hacking campaigns against e-commerce websites. According to RiskIQ, the attacks targeted online stores running outdated and unpatched versions of shopping cart software from Magento, Powerfront and OpenCart.
Those shopping cart flaws allowed the crooks to install “web skimmers,” malicious Javascript used to steal credit card details and other information from payment forms on the checkout pages of vulnerable e-commerce sites. The stolen customer payment card details were then sold on sites like Trump’s Dumps and Sky-Fraud.
One of the oldest malware tricks in the book — hacked websites claiming visitors need to update their Web browser before they can view any content — has roared back to life in the past few months. New research shows the attackers behind one such scheme have developed an ingenious way of keeping their malware from being taken down by security experts or law enforcement: By hosting the malicious files on a decentralized, anonymous cryptocurrency blockchain.
In August 2023, security researcher Randy McEoin blogged about a scam he dubbed ClearFake, which uses hacked WordPress sites to serve visitors with a page that claims you need to update your browser before you can view the content.
The fake browser alerts are specific to the browser you’re using, so if you’re surfing the Web with Chrome, for example, you’ll get a Chrome update prompt. Those who are fooled into clicking the update button will have a malicious file dropped on their system that tries to install an information stealing trojan.
Earlier this month, researchers at the Tel Aviv-based security firm Guardio said they tracked an updated version of the ClearFake scam that included an important evolution. Previously, the group had stored its malicious update files on Cloudflare, Guardio said.
But when Cloudflare blocked those accounts the attackers began storing their malicious files as cryptocurrency transactions in the Binance Smart Chain (BSC), a technology designed to run decentralized apps and “smart contracts,” or coded agreements that execute actions automatically when certain conditions are met.
Nati Tal, head of security at Guardio Labs, the research unit at Guardio, said the malicious scripts stitched into hacked WordPress sites will create a new smart contract on the BSC Blockchain, starting with a unique, attacker-controlled blockchain address and a set of instructions that defines the contract’s functions and structure. When that contract is queried by a compromised website, it will return an obfuscated and malicious payload.
“These contracts offer innovative ways to build applications and processes,” Tal wrote along with his Guardio colleague Oleg Zaytsev. “Due to the publicly accessible and unchangeable nature of the blockchain, code can be hosted ‘on-chain’ without the ability for a takedown.”
Tal said hosting malicious files on the Binance Smart Chain is ideal for attackers because retrieving the malicious contract is a cost-free operation that was originally designed for the purpose of debugging contract execution issues without any real-world impact.
“So you get a free, untracked, and robust way to get your data (the malicious payload) without leaving traces,” Tal said.
Attacker-controlled BSC addresses — from funding, contract creation, and ongoing code updates. Image: Guardio
In response to questions from KrebsOnSecurity, the BNB Smart Chain (BSC) said its team is aware of the malware abusing its blockchain, and is actively addressing the issue. The company said all addresses associated with the spread of the malware have been blacklisted, and that its technicians had developed a model to detect future smart contracts that use similar methods to host malicious scripts.
“This model is designed to proactively identify and mitigate potential threats before they can cause harm,” BNB Smart Chain wrote. “The team is committed to ongoing monitoring of addresses that are involved in spreading malware scripts on the BSC. To enhance their efforts, the tech team is working on linking identified addresses that spread malicious scripts to centralized KYC [Know Your Customer] information, when possible.”
Guardio says the crooks behind the BSC malware scheme are using the same malicious code as the attackers that McEoin wrote about in August, and are likely the same group. But a report published today by email security firm Proofpoint says the company is currently tracking at least four distinct threat actor groups that use fake browser updates to distribute malware.
Proofpoint notes that the core group behind the fake browser update scheme has been using this technique to spread malware for the past five years, primarily because the approach still works well.
“Fake browser update lures are effective because threat actors are using an end-user’s security training against them,” Proofpoint’s Dusty Miller wrote. “In security awareness training, users are told to only accept updates or click on links from known and trusted sites, or individuals, and to verify sites are legitimate. The fake browser updates abuse this training because they compromise trusted sites and use JavaScript requests to quietly make checks in the background and overwrite the existing website with a browser update lure. To an end user, it still appears to be the same website they were intending to visit and is now asking them to update their browser.”
More than a decade ago, this site published Krebs’s Three Rules for Online Safety, of which Rule #1 was, “If you didn’t go looking for it, don’t install it.” It’s nice to know that this technology-agnostic approach to online safety remains just as relevant today.
Denis Emelyantsev, a 36-year-old Russian man accused of running a massive botnet called RSOCKS that stitched malware into millions of devices worldwide, pleaded guilty to two counts of computer crime violations in a California courtroom this week. The plea comes just months after Emelyantsev was extradited from Bulgaria, where he told investigators, “America is looking for me because I have enormous information and they need it.”
A copy of the passport for Denis Emelyantsev, a.k.a. Denis Kloster, as posted to his Vkontakte page in 2019.
First advertised in the cybercrime underground in 2014, RSOCKS was the web-based storefront for hacked computers that were sold as “proxies” to cybercriminals looking for ways to route their Web traffic through someone else’s device.
Customers could pay to rent access to a pool of proxies for a specified period, with costs ranging from $30 per day for access to 2,000 proxies, to $200 daily for up to 90,000 proxies.
Many of the infected systems were Internet of Things (IoT) devices, including industrial control systems, time clocks, routers, audio/video streaming devices, and smart garage door openers. Later in its existence, the RSOCKS botnet expanded into compromising Android devices and conventional computers.
In June 2022, authorities in the United States, Germany, the Netherlands and the United Kingdom announced a joint operation to dismantle the RSOCKS botnet. But that action did not name any defendants.
Inspired by that takedown, KrebsOnSecurity followed clues from the RSOCKS botnet master’s identity on the cybercrime forums to Emelyantsev’s personal blog, where he went by the name Denis Kloster. The blog featured musings on the challenges of running a company that sells “security and anonymity services to customers around the world,” and even included a group photo of RSOCKS employees.
“Thanks to you, we are now developing in the field of information security and anonymity!,” Kloster’s blog enthused. “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.”
But by the time that investigation was published, Emelyantsev had already been captured by Bulgarian authorities responding to an American arrest warrant. At his extradition hearing, Emelyantsev claimed he would prove his innocence in an U.S. courtroom.
“I have hired a lawyer there and I want you to send me as quickly as possible to clear these baseless charges,” Emelyantsev told the Bulgarian court. “I am not a criminal and I will prove it in an American court.”
RSOCKS, circa 2016. At that time, RSOCKS was advertising more than 80,000 proxies. Image: archive.org.
Emelyantsev was far more than just an administrator of a large botnet. Behind the facade of his Internet advertising company based in Omsk, Russia, the RSOCKS botmaster was a major player in the Russian email spam industry for more than a decade.
Some of the top Russian cybercrime forums have been hacked over the years, and leaked private messages from those forums show the RSOCKS administrator claimed ownership of the RUSdot spam forum. RUSdot is the successor forum to Spamdot, a far more secretive and restricted community where most of the world’s top spammers, virus writers and cybercriminals collaborated for years before the forum imploded in 2010.
A Google-translated version of the Rusdot spam forum.
Indeed, the very first mentions of RSOCKS on any Russian-language cybercrime forums refer to the service by its full name as the “RUSdot Socks Server.”
Email spam — and in particular malicious email sent via compromised computers — is still one of the biggest sources of malware infections that lead to data breaches and ransomware attacks. So it stands to reason that as administrator of Russia’s most well-known forum for spammers, Emelyantsev probably knows quite a bit about other top players in the botnet spam and malware community.
It remains unclear whether Emelyantsev made good on his promise to spill that knowledge to American investigators as part of his plea deal. The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of California, which has not responded to a request for comment.
Emelyantsev pleaded guilty on Monday to two counts, including damage to protected computers and conspiracy to damage protected computers. He faces a maximum of 20 years in prison, and is currently scheduled to be sentenced on April 27, 2023.
A 36-year-old Russian man recently identified by KrebsOnSecurity as the likely proprietor of the massive RSOCKS botnet has been arrested in Bulgaria at the request of U.S. authorities. At a court hearing in Bulgaria this month, the accused hacker requested and was granted extradition to the United States, reportedly telling the judge, “America is looking for me because I have enormous information and they need it.”
A copy of the passport for Denis Kloster, as posted to his Vkontakte page in 2019.
On June 22, KrebsOnSecurity published Meet the Administrators of the RSOCKS Proxy Botnet, which identified Denis Kloster, a.k.a. Denis Emelyantsev, as the apparent owner of RSOCKS, 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.
A native of Omsk, Russia, Kloster came into focus after KrebsOnSecurity followed clues from the RSOCKS botnet master’s identity on the cybercrime forums to Kloster’s personal blog, which featured musings on the challenges of running a company that sells “security and anonymity services to customers around the world.” Kloster’s blog even included a group photo of RSOCKS employees.
“Thanks to you, we are now developing in the field of information security and anonymity!,” Kloster’s blog enthused. “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.”
The Bulgarian news outlet 24Chasa.bg reports that Kloster was arrested in June at a co-working space in the southwestern ski resort town of Bansko, and that the accused asked to be handed over to the American authorities.
“I have hired a lawyer there and I want you to send me as quickly as possible to clear these baseless charges,” Kloster reportedly told the Bulgarian court this week. “I am not a criminal and I will prove it in an American court.”
Launched in 2013, RSOCKS was shut down in June 2022 as part of an international investigation into the cybercrime service. According to the Justice Department, the RSOCKS botnet initially targeted Internet of Things (IoT) devices, including industrial control systems, time clocks, routers, audio/video streaming devices, and smart garage door openers; later in its existence, the RSOCKS botnet expanded into compromising additional types of devices, including Android devices and conventional computers, the DOJ said.
The Justice Department’s June 2022 statement about that takedown cited a search warrant from the U.S. Attorney’s Office for the Southern District of California, which also was named by Bulgarian news outlets this month as the source of Kloster’s arrest warrant.
When asked about the existence of an arrest warrant or criminal charges against Kloster, a spokesperson for the Southern District said, “no comment.”
Update, Sept. 24, 9:00 a.m. ET: Kloster was named in a 2019 indictment (PDF) unsealed Sept. 23 by the Southern District court.
The employees who kept things running for RSOCKS, circa 2016. Notice that nobody seems to be wearing shoes.
24Chasa said the defendant’s surname is Emelyantsev and that he only recently adopted the last name Kloster, which is his mother’s maiden name.
As KrebsOnSecurity reported in June, Kloster also appears to be a major player in the Russian email spam industry. In several private exchanges on cybercrime forums, the RSOCKS administrator claimed ownership of the RUSdot spam forum. 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.
Email spam — and in particular malicious email sent via compromised computers — is still one of the biggest sources of malware infections that lead to data breaches and ransomware attacks. So it stands to reason that as administrator of Russia’s most well-known forum for spammers, the defendant in this case probably knows quite a bit about other top players in the botnet spam and malware community.
A Google-translated version of the Rusdot spam forum.
Despite maintaining his innocence, Kloster reportedly told the Bulgarian judge that he could be useful to American investigators.
“America is looking for me because I have enormous information and they need it,” Kloster told the court, according to 24Chasa. “That’s why they want me.”
The Bulgarian court agreed, and granted his extradition. Kloster’s fiancee also attended the extradition hearing, and reportedly wept in the hall outside the entire time.
Kloster turned 36 while awaiting his extradition hearing, and may soon be facing charges that carry punishments of up to 20 years in prison.
A 33-year-old Illinois man was sentenced to two years in prison today following his conviction last year for operating services that allowed paying customers to launch powerful distributed denial-of-service (DDoS) attacks against hundreds of thousands of Internet users and websites.
The user interface for Downthem[.]org.
Matthew Gatrel of St. Charles, Ill. was found guilty for violations of the Computer Fraud and Abuse Act (CFAA) related to his operation of downthem[.]org and ampnode[.]com, two DDoS-for-hire services that had thousands of customers who paid to launch more than 200,000 attacks.
Despite admitting to FBI agents that he ran these so-called “booter” services (and turning over plenty of incriminating evidence in the process), Gatrel opted to take his case to trial, defended the entire time by public defenders. Gatrel’s co-defendant and partner in the business, Juan “Severon” Martinez of Pasadena, Calif., pleaded guilty just before the trial.
After a nine-day trial in the Central District of California, Gatrel was convicted on all three counts, including conspiracy to commit unauthorized impairment of a protected computer, conspiracy to commit wire fraud, and unauthorized impairment of a protected computer.
Prosecutors said Downthem sold subscriptions allowing customers to launch DDoS attacks, while AmpNode provided “bulletproof” server hosting to customers — with an emphasis on “spoofing” servers that could be pre-configured with DDoS attack scripts and lists of vulnerable “attack amplifiers” used to launch simultaneous cyberattacks on victims.
Booter and stresser services let customers pick from among a variety of attack methods, but almost universally the most powerful of these methods involves what’s known as a “reflective amplification attack.” In such assaults, the perpetrators leverage unmanaged Domain Name Servers (DNS) or other devices on the Web to create huge traffic floods.
Ideally, DNS servers only provide services to machines within a trusted domain — such as translating an Internet address from a series of numbers into a domain name, like example.com. But DNS reflection attacks rely on consumer and business routers and other devices equipped with DNS servers that are (mis)configured to accept queries from anywhere on the Web.
Attackers can send spoofed DNS queries to these DNS servers, forging the request so that it appears to come from the target’s network. That way, when the DNS servers respond, they reply to the spoofed (target) address.
The bad guys also can amplify a reflective attack by crafting DNS queries so that the responses are much bigger than the requests. For example, an attacker could compose a DNS request of less than 100 bytes, prompting a response that is 60-70 times as large. This “amplification” effect is especially pronounced if the perpetrators query dozens of DNS servers with these spoofed requests simultaneously.
The government charged that Gatrel and Martinez constantly scanned the Internet for these misconfigured devices, and then sold lists of Internet addresses tied to these devices to other booter service operators.
“Gatrel ran a criminal enterprise designed around launching hundreds of thousands of cyber-attacks on behalf of hundreds of customers,” prosecutors wrote in a memorandum submitted in advance of his sentencing. “He also provided infrastructure and resources for other cybercriminals to run their own businesses launching these same kinds of attacks. These attacks victimized wide swaths of American society and compromised computers around the world.”
The U.S. and United Kingdom have been trying to impress on would-be customers of these booter services that hiring them for DDoS attacks is illegal. The U.K. has even taken out Google ads to remind U.K. residents when they search online for terms common to booter services.
The case against Gatrel and Martinez was brought as part of a widespread crackdown on booter services in 2018, when the FBI joined law enforcement partners overseas to seize 15 different booter service domains.
Those actions have prompted a flurry of prosecutions, with wildly varying sentences when the booter service owners are invariably found guilty. However, DDoS experts say booter and stresser services that remain in operation continue to account for the vast majority of DDoS attacks launched daily around the globe.
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