They’re actually Arris routers, sold or given away by AT&T. There are several security vulnerabilities, some of them very serious. They can be fixed, but because these are routers it takes some skill. We don’t know how many routers are affected, and estimates range from thousands to 138,000.
Among the vulnerabilities are hardcoded credentials, which can allow “root” remote access to an affected device, giving an attacker full control over the router. An attacker can connect to an affected router and log-in with a publicly-disclosed username and password, granting access to the modem’s menu-driven shell. An attacker can view and change the Wi-Fi router name and password, and alter the network’s setup, such as rerouting internet traffic to a malicious server.
The shell also allows the attacker to control a module that’s dedicated to injecting advertisements into unencrypted web traffic, a common tactic used by internet providers and other web companies. Hutchins said that there was “no clear evidence” to suggest the module was running but noted that it was still vulnerable, allowing an attacker to inject their own money-making ad campaigns or malware.
I have written about router vulnerabilities, and why the economics of their production makes them inevitable.
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