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Kimsuky's New Golang Stealer 'Troll' and 'GoBear' Backdoor Target South Korea

By Newsroom
The North Korea-linked nation-state actor known as Kimsuky is suspected of using a previously undocumented Golang-based information stealer called Troll Stealer. The malware steals "SSH, FileZilla, C drive files/directories, browsers, system information, [and] screen captures" from infected systems, South Korean cybersecurity company S2W said in a new technical report. Troll

Kimsuky Hackers Deploying AppleSeed, Meterpreter, and TinyNuke in Latest Attacks

By Newsroom
Nation-state actors affiliated to North Korea have been observed using spear-phishing attacks to deliver an assortment of backdoors and tools such as AppleSeed, Meterpreter, and TinyNuke to seize control of compromised machines. South Korea-based cybersecurity company AhnLab attributed the activity to an advanced persistent threat group known as Kimsuky. “A notable point about attacks that

Rogue WordPress Plugin Exposes E-Commerce Sites to Credit Card Theft

By Newsroom
Threat hunters have discovered a rogue WordPress plugin that's capable of creating bogus administrator users and injecting malicious JavaScript code to steal credit card information. The skimming activity is part of a Magecart campaign targeting e-commerce websites, according to Sucuri. "As with many other malicious or fake WordPress plugins it contains some deceptive information at

Lazarus Group Using Log4j Exploits to Deploy Remote Access Trojans

By Newsroom
The notorious North Korea-linked threat actor known as the Lazarus Group has been attributed to a new global campaign that involves the opportunistic exploitation of security flaws in Log4j to deploy previously undocumented remote access trojans (RATs) on compromised hosts. Cisco Talos is tracking the activity under the name Operation Blacksmith, noting the use of three DLang-based

N. Korea's Kimsuky Targeting South Korean Research Institutes with Backdoor Attacks

By Newsroom
The North Korean threat actor known as Kimsuky has been observed targeting research institutes in South Korea as part of a spear-phishing campaign with the ultimate goal of distributing backdoors on compromised systems. "The threat actor ultimately uses a backdoor to steal information and execute commands," the AhnLab Security Emergency Response Center (ASEC) said in an

U.S. Treasury Sanctions North Korean Kimsuky Hackers and 8 Foreign-Based Agents

By Newsroom
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) on Thursday sanctioned the North Korea-linked adversarial collective known as Kimsuky as well as eight foreign-based agents who are alleged to have facilitated sanctions evasion. The agents, the Treasury said, helped in "revenue generation and missile-related technology procurement that support the DPRK's

“Grab hold and give it a wiggle” – ATM card skimming is still a thing

By Paul Ducklin
The rise of tap-to-pay and chip-and-PIN hasn't rid the world of ATM card skimming criminals...

Megaupload duo will go to prison at last, but Kim Dotcom fights on…

By Paul Ducklin
One, sadly, has died, and two are heading to prison, but for Kim Dotcom, the saga goes on...

Kimsuky Targets Think Tanks and News Media with Social Engineering Attacks

By Ravie Lakshmanan
The North Korean nation-state threat actor known as Kimsuky has been linked to a social engineering campaign targeting experts in North Korean affairs with the goal of stealing Google credentials and delivering reconnaissance malware. "Further, Kimsuky's objective extends to the theft of subscription credentials from NK News," cybersecurity firm SentinelOne said in a report shared with The

Magento, WooCommerce, WordPress, and Shopify Exploited in Web Skimmer Attack

By Ravie Lakshmanan
Cybersecurity researchers have unearthed a new ongoing Magecart-style web skimmer campaign that's designed to steal personally identifiable information (PII) and credit card data from e-commerce websites. A noteworthy aspect that sets it apart from other Magecart campaigns is that the hijacked sites further serve as "makeshift" command-and-control (C2) servers, using the cover to facilitate the

North Korea's Kimsuky Group Mimics Key Figures in Targeted Cyber Attacks

By Ravie Lakshmanan
U.S. and South Korean intelligence agencies have issued a new alert warning of North Korean cyber actors' use of social engineering tactics to strike think tanks, academia, and news media sectors. The "sustained information gathering efforts" have been attributed to a state-sponsored cluster dubbed Kimsuky, which is also known by the names APT43, ARCHIPELAGO, Black Banshee, Emerald Sleet (

N. Korean Kimsuky Hackers Using New Recon Tool ReconShark in Latest Cyberattacks

By Ravie Lakshmanan
The North Korean state-sponsored threat actor known as Kimsuky has been discovered using a new reconnaissance tool called ReconShark as part of an ongoing global campaign. "[ReconShark] is actively delivered to specifically targeted individuals through spear-phishing emails, OneDrive links leading to document downloads, and the execution of malicious macros," SentinelOne researchers Tom Hegel

3CX Breach Was a Double Supply Chain Compromise

By BrianKrebs

We learned some remarkable new details this week about the recent supply-chain attack on VoIP software provider 3CX. The lengthy, complex intrusion has all the makings of a cyberpunk spy novel: North Korean hackers using legions of fake executive accounts on LinkedIn to lure people into opening malware disguised as a job offer; malware targeting Mac and Linux users working at defense and cryptocurrency firms; and software supply-chain attacks nested within earlier supply chain attacks.

Researchers at ESET say this job offer from a phony HSBC recruiter on LinkedIn was North Korean malware masquerading as a PDF file.

In late March 2023, 3CX disclosed that its desktop applications for both Windows and macOS were compromised with malicious code that gave attackers the ability to download and run code on all machines where the app was installed. 3CX says it has more than 600,000 customers and 12 million users in a broad range of industries, including aerospace, healthcare and hospitality.

3CX hired incident response firm Mandiant, which released a report on Wednesday that said the compromise began in 2022 when a 3CX employee installed a malware-laced software package distributed via an earlier software supply chain compromise that began with a tampered installer for X_TRADER, a software package provided by Trading Technologies.

“This is the first time Mandiant has seen a software supply chain attack lead to another software supply chain attack,” reads the April 20 Mandiant report.

Mandiant found the earliest evidence of compromise uncovered within 3CX’s network was through the VPN using the employee’s corporate credentials, two days after the employee’s personal computer was compromised.

“Eventually, the threat actor was able to compromise both the Windows and macOS build environments,” 3CX said in an April 20 update on their blog.

Mandiant concluded that the 3CX attack was orchestrated by the North Korean state-sponsored hacking group known as Lazarus, a determination that was independently reached earlier by researchers at Kaspersky Lab and Elastic Security.

Mandiant found the compromised 3CX software would download malware that sought out new instructions by consulting encrypted icon files hosted on GitHub. The decrypted icon files revealed the location of the malware’s control server, which was then queried for a third stage of the malware compromise — a password stealing program dubbed ICONICSTEALER.

The double supply chain compromise that led to malware being pushed out to some 3CX customers. Image: Mandiant.

Meanwhile, the security firm ESET today published research showing remarkable similarities between the malware used in the 3CX supply chain attack and Linux-based malware that was recently deployed via fake job offers from phony executive profiles on LinkedIn. The researchers said this was the first time Lazarus had been spotted deploying malware aimed at Linux users.

As reported in a series last summer here, LinkedIn has been inundated this past year by fake executive profiles for people supposedly employed at a range of technology, defense, energy and financial companies. In many cases, the phony profiles spoofed chief information security officers at major corporations, and some attracted quite a few connections before their accounts were terminated.

Mandiant, Proofpoint and other experts say Lazarus has long used these bogus LinkedIn profiles to lure targets into opening a malware-laced document that is often disguised as a job offer. This ongoing North Korean espionage campaign using LinkedIn was first documented in August 2020 by ClearSky Security, which said the Lazarus group operates dozens of researchers and intelligence personnel to maintain the campaign globally.

Microsoft Corp., which owns LinkedIn, said in September 2022 that it had detected a wide range of social engineering campaigns using a proliferation of phony LinkedIn accounts. Microsoft said the accounts were used to impersonate recruiters at technology, defense and media companies, and to entice people into opening a malicious file. Microsoft found the attackers often disguised their malware as legitimate open-source software like Sumatra PDF and the SSH client Putty.

Microsoft attributed those attacks to North Korea’s Lazarus hacking group, although they’ve traditionally referred to this group as “ZINC“. That is, until earlier this month, when Redmond completely revamped the way it names threat groups; Microsoft now references ZINC as “Diamond Sleet.”

The ESET researchers said they found a new fake job lure tied to an ongoing Lazarus campaign on LinkedIn designed to compromise Linux operating systems. The malware was found inside of a document that offered an employment contract at the multinational bank HSBC.

“A few weeks ago, a native Linux payload was found on VirusTotal with an HSBC-themed PDF lure,” wrote ESET researchers Peter Kalnai and Marc-Etienne M.Leveille. “This completes Lazarus’s ability to target all major desktop operating systems. In this case, we were able to reconstruct the full chain, from the ZIP file that delivers a fake HSBC job offer as a decoy, up until the final payload.”

ESET said the malicious PDF file used in the scheme appeared to have a file extension of “.pdf,” but that this was a ruse. ESET discovered that the dot in the filename wasn’t a normal period but instead a Unicode character (U+2024) representing a “leader dot,” which is often used in tables of contents to connect section headings with the page numbers on which those sections begin.

“The use of the leader dot in the filename was probably an attempt to trick the file manager into treating the file as an executable instead of a PDF,” the researchers continued. “This could cause the file to run when double-clicked instead of opening it with a PDF viewer.”

ESET said anyone who opened the file would see a decoy PDF with a job offer from HSBC, but in the background the executable file would download additional malware payloads. The ESET team also found the malware was able to manipulate the program icon displayed by the malicious PDF, possibly because fiddling with the file extension could cause the user’s system to display a blank icon for the malware lure.

Kim Zetter, a veteran Wired.com reporter and now independent security journalist, interviewed Mandiant researchers who said they expect “many more victims” will be discovered among the customers of Trading Technologies and 3CX now that news of the compromised software programs is public.

“Mandiant informed Trading Technologies on April 11 that its X_Trader software had been compromised, but the software maker says it has not had time to investigate and verify Mandiant’s assertions,” Zetter wrote in her Zero Day newsletter on Substack. For now, it remains unclear whether the compromised X_Trader software was downloaded by people at other software firms.

If there’s a silver lining here, the X_Trader software had been decommissioned in April 2020 — two years before the hackers allegedly embedded malware in it.

“The company hadn’t released new versions of the software since that time and had stopped providing support for the product, making it a less-than-ideal vector for the North Korean hackers to infect customers,” Zetter wrote.

German and South Korean Agencies Warn of Kimsuky's Expanding Cyber Attack Tactics

By Ravie Lakshmanan
German and South Korean government agencies have warned about cyber attacks mounted by a threat actor tracked as Kimsuky using rogue browser extensions to steal users' Gmail inboxes. The joint advisory comes from Germany's domestic intelligence apparatus, the Federal Office for the Protection of the Constitution (BfV), and South Korea's National Intelligence Service (NIS). The intrusions are

New Protections for Food Benefits Stolen by Skimmers

By BrianKrebs

Millions of Americans receiving food assistance benefits just earned a new right that they can’t yet enforce: The right to be reimbursed if funds on their Electronic Benefit Transfer (EBT) cards are stolen by card skimming devices secretly installed at cash machines and grocery store checkout lanes.

On December 29, 2022, President Biden signed into law the Consolidated Appropriations Act of 2023, which — for the first time ever — includes provisions for the replacement of stolen EBT benefits. This is a big deal because in 2022, organized crime groups began massively targeting EBT accounts — often emptying affected accounts at ATMs immediately after the states disperse funds each month.

EBT cards can be used along with a personal identification number (PIN) to pay for goods at participating stores, and to withdraw cash from an ATM. However, EBT cards differ from debit cards issued to most Americans in two important ways. First, most states do not equip EBT cards with smart chip technology, which can make the cards more difficult and expensive for skimming thieves to clone.

More critically, EBT participants traditionally have had little hope of recovering food assistance funds when their cards were copied by card-skimming devices and used for fraud. That’s because while the EBT programs are operated by individually by the states, those programs are funded by the U.S. Department of Agriculture (USDA), which until late last year was barred from reimbursing states for stolen EBT funds.

The protections passed in the 2023 Appropriations Act allow states to use federal funds to replace stolen EBT benefits, and they permit states to seek reimbursement for any skimmed EBT funds they may have replaced from their own coffers (dating back to Oct. 1, 2022).

But first, all 50 states must each submit a plan for how they are going to protect and replace food benefits stolen via card skimming. Guidance for the states in drafting those plans was issued by the USDA on Jan. 31 (PDF), and states that don’t get them done before Feb. 27, 2023 risk losing the ability to be reimbursed for EBT fraud losses.

Deborah Harris is a staff attorney at The Massachusetts Law Reform Institute (MLRI), a nonprofit legal assistance organization that has closely tracked the EBT skimming epidemic. In November 2022, the MLRI filed a class-action lawsuit against Massachusetts on behalf of thousands of low-income families who were collectively robbed of more than $1 million in food assistance benefits by card skimming devices secretly installed at cash machines and grocery store checkout lanes across the state.

Harris said she’s pleased that the USDA guidelines were issued so promptly, and that the guidance for states was not overly prescriptive. For example, some security experts have suggested that adding contactless capability to EBT cards could help participants avoid skimming devices altogether. But Harris said contactless cards do not require a PIN, which is the only thing that stops EBT cards from being drained at the ATM when a participant’s card is lost or stolen.

Then again, nothing in the guidance even mentions chip-based cards, or any other advice for improving the physical security of EBT cards. Rather, it suggests states should seek to develop the capability to perform basic fraud detection and alerting on suspicious transactions, such as when an EBT card that is normally used only in one geographic area suddenly is used to withdraw cash at an ATM halfway across the country.

“Besides having the states move fast to approve their plans, we’d also like to see a focused effort to move states from magstripe-only cards to chip, and also assisting states to develop the algorithms that will enable them to identify likely incidents of stolen benefits,” Harris said.

Harris said Massachusetts has begun using algorithms to look for these suspicious transaction patterns throughout its EBT network, and now has the ability to alert households and verify transactions. But she said most states do not have this capability.

“We have heard that other states aren’t currently able to do that,” Harris said. “But encouraging states to more affirmatively identify instances of likely theft and assisting with the claims and verification process is critical. Most households can’t do that on their own, and in Massachusetts it’s very hard for a person to get a copy of their transaction history. Some states can do that through third-party apps, but something so basic should not be on the burden of EBT households.”

Some states aren’t waiting for direction from the federal government to beef up EBT card security. Like Maryland, which identified more than 1,400 households hit by EBT skimming attacks last year — a tenfold increase over 2021.

Advocates for EBT beneficiaries in Maryland are backing Senate Bill 401 (PDF), which would require the use of chip technology and ongoing monitoring for suspicious activity (a hearing on SB401 is scheduled in the Maryland Senate Finance Commission for Thursday, Feb. 23, at 1 p.m.).

Michelle Salomon Madaio is a director at the Homeless Persons Representation Project, a legal assistance organization based in Silver Spring, Md. Madaio said the bill would require the state Department of Human Services to replace skimmed benefits, not only after the bill goes into effect but also retroactively from January 2020 to the present.

Madaio said the bill also would require the state to monitor for patterns of suspicious activity on EBT cards, and to develop a mechanism to contact potentially affected households.

“For most of the skimming victims we’ve worked with, the fraudulent transactions would be pretty easy to spot because they mostly happened in the middle of the night or out of state, or both,” Madaio said. “To make matters worse, a lot of families whose benefits were scammed then incurred late fees on many other things as a result.”

It is not difficult to see why organized crime groups have pounced on EBT cards as easy money. In most traditional payment card transactions, there are usually several parties that have a financial interest in minimizing fraud and fraud losses, including the bank that issued the card, the card network (Visa, MasterCard, Discover, etc.), and the merchant.

But that infrastructure simply does not exist within state EBT programs, and it certainly isn’t a thing at the inter-state level. What that means is that the vast majority of EBT cards have zero fraud controls, which is exactly what continues to make them so appealing to thieves.

For now, the only fraud controls available to most EBT cardholders include being especially paranoid about where they use their cards, and frequently changing their PINs.

According to USDA guidance issued prior to the passage of the appropriations act, EBT cardholders should consider changing their card PIN at least once a month.

“By changing PINs frequently, at least monthly, and doing so before benefit issuance dates, households can minimize their risk of stolen benefits from a previously skimmed EBT card,” the USDA advised.

Credit card skimming – the long and winding road of supply chain failure

By Paul Ducklin
Don't keep calling home to a JavaScript server that closed its doors eight years ago!

Lawsuit Seeks Food Benefits Stolen By Skimmers

By BrianKrebs

A nonprofit organization is suing the state of Massachusetts on behalf of thousands of low-income families who were collectively robbed of more than a $1 million in food assistance benefits by card skimming devices secretly installed at cash machines and grocery store checkout lanes across the state. Federal law bars states from replacing these benefits using federal funds, and a recent rash of skimming incidents nationwide has disproportionately affected those receiving food assistance via state-issued prepaid debit cards.

The Massachusetts SNAP benefits card looks more like a library card than a payment card.

On Nov. 4, The Massachusetts Law Reform Institute (MLRI) filed a class action lawsuit on behalf of low-income families whose Supplemental Nutrition and Assistance Program (SNAP) benefits were stolen from their accounts. The SNAP program serves over a million people in Massachusetts, and 41 million people nationally.

“Over the past few months, thieves have stolen over a million SNAP dollars from thousands of Massachusetts families – putting their nutrition and economic stability at risk,” the MLRI said in a statement on the lawsuit. “The criminals attach a skimming device on a POS (point of sale) terminal to capture the household’s account information and PIN. The criminals then use that information to make a fake card and steal the SNAP benefits.”

In announcing the lawsuit, the MRLI linked to a story KrebsOnSecurity published last month that examined how skimming thieves increasingly are targeting SNAP payment card holders nationwide. The story looked at how the vast majority of SNAP benefit cards issued by the states do not include the latest chip technology that makes it more difficult and expensive for thieves to clone them.

The story also highlighted how SNAP cardholders usually have little recourse to recover any stolen funds — even in unlikely cases where the victim has gathered mountains of proof to show state and federal officials that the fraudulent withdrawals were not theirs.

Deborah Harris is a staff attorney at the MLRI. Harris said the goal of the lawsuit is to force Massachusetts to reimburse SNAP skimming victims using state funds, and to convince The U.S. Department of Agriculture (USDA) — which funds the program that states draw from — to change its policies and allow states to replace stolen benefits with federal funds.

“Ultimately we think it’s the USDA that needs to step up and tell states they have a duty to restore the stolen benefits, and that USDA will cover the cost at least until there is better security in place, such as chip cards,” Harris told KrebsOnSecurity.

“The losses we’re talking about are relatively small in the scheme of total SNAP expenditures which are billions,” she said. “But if you are a family that can’t pay for food because you suddenly don’t have money in your account, it’s devastating for the family.”

The USDA has not said it will help states restore the stolen funds. But on Oct. 31, 2022, the agency released guidance (PDF) whose primary instructions were included in an appendix titled, Card Security Options Available to Households. Notably, the USDA did not mention the idea of shifting to chip-based SNAP benefits cards.

The recently issued USDA guidance.

“The guidance generally continues to make households responsible for preventing the theft of their benefits as well as for suffering the loss when benefits are stolen through no fault of the household,” Harris said. “Many of the recommendations are not practical for households who don’t have a smartphone to receive text messages and aren’t able to change their PIN after each transaction and keep track of the new PIN.”

Harris said three of the four recommendations are not currently available in Massachusetts, and they are very likely not currently available in other states. For example, she said, Massachusetts households do not have the option of freezing or locking their cards between transactions. Nor do they receive alerts about transactions. And they most certainly don’t have any way to block out-of-state transactions.

“Perhaps these are options that [card] processors and states could provide, but they are not available now as far as we know,” Harris said. “Most likely they would take time to implement.”

The Center for Law and Social Policy (CLASP) recently published Five Ways State Agencies Can Support EBT Users at Risk of Skimming. CLASP says while it is true states can’t use federal funds to replace benefits unless the loss was due to a “system error,” states could use their own funds.

“Doing so will ensure families don’t have to go without food, gas money, or their rent for the month,” CLASP wrote.

That would help address the symptoms of card skimming, but not a root cause. Hardly anyone is suggesting the obvious, which is to equip SNAP benefit cards with the same security technology afforded to practically everyone else participating in the U.S. banking system.

There are several reasons most state-issued SNAP benefit cards do not include chips. For starters, nobody says they have to. Also, it’s a fair bit more expensive to produce chip cards versus plain old magnetic stripe cards, and many state assistance programs are chronically under-funded. Finally, there is no vocal (or at least well-heeled) constituency advocating for change.

A copy of the class action complaint filed by the MLRI is available here.

Kimsuky Hackers Spotted Using 3 New Android Malware to Target South Koreans

By Ravie Lakshmanan
The North Korean espionage-focused actor known as Kimsuky has been observed using three different Android malware strains to target users located in its southern counterpart. That's according to findings from South Korean cybersecurity company S2W, which named the malware families FastFire, FastViewer, and FastSpy. "The FastFire malware is disguised as a Google security plugin, and the

How Card Skimming Disproportionally Affects Those Most In Need

By BrianKrebs

When people banking in the United States lose money because their payment card got skimmed at an ATM, gas pump or grocery store checkout terminal, they may face hassles or delays in recovering any lost funds, but they are almost always made whole by their financial institution. Yet, one class of Americans — those receiving food assistance benefits via state-issued prepaid debit cards — are particularly exposed to losses from skimming scams, and usually have little recourse to do anything about it.

California’s EBT card does not currently include a chip. That silver square is a hologram.

Over the past several months, authorities in multiple U.S. states have reported rapid increases in skimming losses tied to people who receive assistance via Electronic Benefits Transfer (EBT), which allows a Supplemental Nutrition Assistance Program (SNAP) participant to pay for food using SNAP benefits.

When a participant uses a SNAP payment card at an authorized retail store, their SNAP EBT account is debited to reimburse the store for food that was purchased. EBT is used in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, and Guam.

EBT cards work just like regular debit cards, in that they can be used along with a personal identification number (PIN) to pay for goods at participating stores, and to withdraw cash from an ATM.

However, EBT cards differ from debit cards issued to most Americans in two important ways. First, most states do not equip EBT cards with smart chip technology, which can make payment cards much more difficult and expensive for skimming thieves to clone.

Alas, it is no accident that all of the states reporting recent spikes in fraud tied to EBT accounts — including California, Connecticut, Maryland, Pennsylvania, Tennessee, and Virginia appear to currently issue chip-less cards to their EBT recipients.

The Massachusetts SNAP benefits card looks more like a library card than a payment card.  Oddly enough, both are reliant on the same fundamentally insecure technology: The magnetic stripe, which stores cardholder data in plain text that can be easily copied.

In September, authorities in California arrested three men thought to be part of a skimming crew that specifically targeted EBT cards and balances. The men allegedly installed deep insert skimmers, and stole PINs using tiny hidden cameras.

“The arrests were the result of a joint investigation by the Sheriff’s Office and Bank of America corporate security,” reads a September 2022 story from The Sacramento Bee. “The investigation focused on illegal skimming, particularly the high-volume cash-out sequence at ATMs near the start of each month when Electronic Benefits Transfer accounts are funded by California.”

Armed with a victim’s PIN along with stolen card data, thieves can clone the card onto anything with a magnetic stripe and use it at ATMs to withdraw cash, or as a payment instrument at any establishment that accepts EBT cards.

Skimming gear seized from three suspects arrested by Sacramento authorities in September. Image: Sacramento County Sheriff’s Office.

Although it may be shocking that California — one of America’s wealthiest states — still treats EBT recipients as second-class citizens by issuing them chip-less debit cards, California behaves like most other states in this regard.

More critical, however, is the second way SNAP cards differ from regular debit cards: Recipients of SNAP benefits have little to no hope of recovering their funds when their EBT cards are copied by card-skimming devices and used for fraud.

That’s because in the SNAP program, federal law bars the states from replacing SNAP benefits using federal funds. And while some of these EBT cards have Visa or MasterCard logos on them, it is not up to those companies to replace funds in the event of fraud.

Victims are encouraged to report the theft to both their state agency and the local police, but many victims say they rarely receive updates on their cases from police, and, if they hear from the state, it’s usually the agency telling them it found no evidence of fraud.

Maryland’s EBT card.

That’s according to Brenna Smith, a reporter at The Baltimore Banner who recently wrote about the case of a Maryland mother of three who lost nearly $3,000 in SNAP benefits thanks to a skimmer installed at a local 7-Eleven. Maryland [Department of Human Services] spokesperson Katherine Morris told the Banner there was evidence of “a nationwide EBT card cloning scheme.”

The woman profiled in Smith’s story contacted all of the retailers where her EBT card was used to buy thousands of dollars worth of baby formula. Two of those retailers agreed to share video surveillance footage of the people making the purchases at the exact timestamps specified in her EBT account history: The videos clearly showed it was the same fraudster making both purchases with a cloned copy of her EBT card.

Even after the police officer assigned to the victim’s case confirmed they found a skimmer installed at the 7-Eleven store she frequented, her claim — which was denied — is still languishing in appeals months later.

(Left) A video still showing a couple purchasing almost $1,200 in baby formula using SNAP benefits. (Right) A video still of a woman leaving from the CVS in Seat Pleasant. Image: The Baltimore Banner.

The Center for Law and Social Policy (CLASP) recently published Five Ways State Agencies Can Support EBT Users at Risk of Skimming. CLASP says while it is true states can’t use federal funds to replace benefits unless the loss was due to a “system error,” states could use their own funds.

“Doing so will ensure families don’t have to go without food, gas money, or their rent for the month,” CLASP wrote.

That would help address the symptoms of card skimming, but not a root cause. Hardly anyone is suggesting the obvious, which is to equip EBT cards with the same security technology afforded to practically everyone else participating in the U.S. banking system.

There are several reasons most state-issued EBT cards do not include chips. For starters, nobody says they have to. Also, it’s a fair bit more expensive to produce chip cards versus plain old magnetic stripe cards, and many state assistance programs are chronically under-funded. Finally, there is no vocal (or at least well-heeled) constituency advocating for change.

Say Hello to Crazy Thin ‘Deep Insert’ ATM Skimmers

By BrianKrebs

A number of financial institutions in and around New York City are dealing with a rash of super-thin “deep insert” skimming devices designed to fit inside the mouth of an ATM’s card acceptance slot. The card skimmers are paired with tiny pinhole cameras that are cleverly disguised as part of the cash machine. Here’s a look at some of the more sophisticated deep insert skimmer technology that fraud investigators have recently found in the wild.

This ultra thin and flexible “deep insert” skimmer recently recovered from an NCR cash machine in New York is about half the height of a U.S. dime. The large yellow rectangle is a battery. Image: KrebsOnSecurity.com.

The insert skimmer pictured above is approximately .68 millimeters tall. This leaves more than enough space to accommodate most payment cards (~.54 mm) without interrupting the machine’s ability to grab and return the customer’s card. For comparison, this flexible skimmer is about half the height of a U.S. dime (1.35 mm).

These skimmers do not attempt to siphon chip-card data or transactions, but rather are after the cardholder data still stored in plain text on the magnetic stripe on the back of most payment cards issued to Americans.

Here’s what the other side of that insert skimmer looks like:

The other side of the deep insert skimmer. Image: KrebsOnSecurity.com.

The thieves who designed this skimmer were after the magnetic stripe data and the customer’s 4-digit personal identification number (PIN). With those two pieces of data, the crooks can then clone payment cards and use them to siphon money from victim accounts at other ATMs.

To steal PINs, the fraudsters in this case embedded pinhole cameras in a false panel made to fit snugly over the cash machine enclosure on one side of the PIN pad.

Pinhole cameras were hidden in these false side panels glued to one side of the ATM, and angled toward the PIN pad. Image: KrebsOnSecurity.com.

The skimming devices pictured above were pulled from a brand of ATMs made by NCR called the NCR SelfServ 84 Walk-Up. In January 2022, NCR produced a report on motorized deep insert skimmers, which offers a closer look at other insert skimmers found targeting this same line of ATMs.

Here are some variations on deep insert skimmers NCR found in recent investigations:

Image: NCR.

Image: NCR

The NCR report included additional photos that show how fake ATM side panels with the hidden cameras are carefully crafted to slip over top of the real ATM side panels.

Image: NCR.

Sometimes the skimmer thieves embed their pinhole spy cameras in fake panels directly above the PIN pad, as in these recent attacks targeting a similar NCR model:

Image: NCR

In the image below, the thieves hid their pinhole camera in a “consumer awareness mirror” placed directly above an ATM retrofitted with an insert skimmer:

Image: NCR

The financial institution that shared the images above said it has seen success in stopping most of these insert skimmer attacks by incorporating a solution that NCR sells called an “insert kit,” which it said stops current insert skimmer designs. NCR also is conducting field trials on a “smart detect kit” that adds a standard USB camera to view the internal card reader area, and uses image recognition software to identify any fraudulent device inside the reader.

Skimming devices will continue to mature in miniaturization and stealth as long as payment cards continue to hold cardholder data in plain text on a magnetic stripe. It may seem silly that we’ve spent years rolling out more tamper- and clone-proof chip-based payment cards, only to undermine this advance in the name of backwards compatibility. However, there are a great many smaller businesses in the United States that still rely on being able to swipe the customer’s card.

Many newer ATM models, including the NCR SelfServ referenced throughout this post, now include contactless capability, meaning customers no longer need to insert their ATM card anywhere: They can instead just tap their smart card against the wireless indicator to the left of the card acceptance slot (and right below the “Use Mobile Device Here” sign on the ATM).

For simple ease-of-use reasons, this contactless feature is now increasingly prevalent at drive-thru ATMs. If your payment card supports contactless technology, you will notice a wireless signal icon printed somewhere on the card — most likely on the back. ATMs with contactless capabilities also feature this same wireless icon.

Once you become aware of ATM skimmers, it’s difficult to use a cash machine without also tugging on parts of it to make sure nothing comes off. But the truth is you probably have a better chance of getting physically mugged after withdrawing cash than you do encountering a skimmer in real life.

So keep your wits about you when you’re at the ATM, and avoid dodgy-looking and standalone cash machines in low-lit areas, if possible. When possible, stick to ATMs that are physically installed at a bank. And be especially vigilant when withdrawing cash on the weekends; thieves tend to install skimming devices on Saturdays after business hours — when they know the bank won’t be open again for more than 24 hours.

Lastly but most importantly, covering the PIN pad with your hand defeats one key component of most skimmer scams: The spy camera that thieves typically hide somewhere on or near the compromised ATM to capture customers entering their PINs.

Shockingly, few people bother to take this simple, effective step. Or at least, that’s what KrebsOnSecurity found in this skimmer tale from 2012, wherein we obtained hours worth of video seized from two ATM skimming operations and saw customer after customer walk up, insert their cards and punch in their digits — all in the clear.

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