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E-Mail Leaves an Evidence Trail

If you’re going to commit an illegal act, it’s best not to discuss it in e-mail. It’s also best to Google tech instructions rather than asking someone else to do it:

One new detail from the indictment, however, points to just how unsophisticated Manafort seems to have been. Here’s the relevant passage from the indictment. I’ve bolded the most important bits:

Manafort and Gates made numerous false and fraudulent representations to secure the loans. For example, Manafort provided the bank with doctored [profit and loss statements] for [Davis Manafort Inc.] for both 2015 and 2016, overstating its income by millions of dollars. The doctored 2015 DMI P&L submitted to Lender D was the same false statement previously submitted to Lender C, which overstated DMI’s income by more than $4 million. The doctored 2016 DMI P&L was inflated by Manafort by more than $3.5 million. To create the false 2016 P&L, on or about October 21, 2016, Manafort emailed Gates a .pdf version of the real 2016 DMI P&L, which showed a loss of more than $600,000. Gates converted that .pdf into a “Word” document so that it could be edited, which Gates sent back to Manafort. Manafort altered that “Word” document by adding more than $3.5 million in income. He then sent this falsified P&L to Gates and asked that the “Word” document be converted back to a .pdf, which Gates did and returned to Manafort. Manafort then sent the falsified 2016 DMI P&L .pdf to Lender D.

So here’s the essence of what went wrong for Manafort and Gates, according to Mueller’s investigation: Manafort allegedly wanted to falsify his company’s income, but he couldn’t figure out how to edit the PDF. He therefore had Gates turn it into a Microsoft Word document for him, which led the two to bounce the documents back-and-forth over email. As attorney and blogger Susan Simpson notes on Twitter, Manafort’s inability to complete a basic task on his own seems to have effectively “created an incriminating paper trail.”

If there’s a lesson here, it’s that the Internet constantly generates data about what people are doing on it, and that data is all potential evidence. The FBI is 100% wrong that they’re going dark; it’s really the golden age of surveillance, and the FBI’s panic is really just its own lack of technical sophistication.

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Daphne Caruana Galizia’s Murder and the Security of WhatsApp

Daphne Caruana Galizia was a Maltese journalist whose anti-corruption investigations exposed powerful people. She was murdered in October by a car bomb.

Galizia used WhatsApp to communicate securely with her sources. Now that she is dead, the Maltese police want to break into her phone or the app, and find out who those sources were.

One journalist reports:

Part of Daphne’s destroyed smart phone was elevated from the scene.

Investigators say that Caruana Galizia had not taken her laptop with her on that particular trip. If she had done so, the forensic experts would have found evidence on the ground.

Her mobile phone is also being examined, as can be seen from her WhatsApp profile, which has registered activity since the murder. But it is understood that the data is safe.

Sources close to the newsroom said that as part of the investigation her sim card has been cloned. This is done with the help of mobile service providers in similar cases. Asked if her WhatsApp messages or any other messages that were stored in her phone will be retrieved, the source said that since the messaging application is encrypted, the messages cannot be seen. Therefore it is unlikely that any data can be retrieved.

I am less optimistic than that reporter. The FBI is providing “specific assistance.” The article doesn’t explain that, but I would not be surprised if they were helping crack the phone.

It will be interesting to see if WhatsApp’s security survives this. My guess is that it depends on how much of the phone was recovered from the bombed car.

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Yacht Security

Turns out, multi-million dollar yachts are no more secure than anything else out there:

The ease with which ocean-going oligarchs or other billionaires can be hijacked on the high seas was revealed at a superyacht conference held in a private members club in central London this week.

[…]

Murray, a cybercrime expert at BlackBerry, was demonstrating how criminal gangs could exploit lax data security on superyachts to steal their owners’ financial information, private photos ­ and even force the yacht off course.

I’m sure it was a surprise to the yacht owners.

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Criminals are Now Exploiting SS7 Flaws to Hack Smartphone Two-Factor Authentication Systems

I’ve previously written about the serious vulnerabilities in the SS7 phone routing system. Basically, the system doesn’t authenticate messages. Now, criminals are using it to hack smartphone-based two-factor authentication systems:

In short, the issue with SS7 is that the network believes whatever you tell it. SS7 is especially used for data-roaming: when a phone user goes outside their own provider’s coverage, messages still need to get routed to them. But anyone with SS7 access, which can be purchased for around 1000 Euros according to The Süddeutsche Zeitung, can send a routing request, and the network may not authenticate where the message is coming from.

That allows the attacker to direct a target’s text messages to another device, and, in the case of the bank accounts, steal any codes needed to login or greenlight money transfers (after the hackers obtained victim passwords).

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Clever Physical ATM Attack

This is an interesting combination of computer and physical attack:

Researchers from the Russian security firm Kaspersky on Monday detailed a new ATM-emptying attack, one that mixes digital savvy with a very precise form of physical penetration. Kaspersky’s team has even reverse engineered and demonstrated the attack, using only a portable power drill and a $15 homemade gadget that injects malicious commands to trigger the machine’s cash dispenser. And though they won’t name the ATM manufacturer or the banks affected, they warn that thieves have already used the drill attack across Russia and Europe, and that the technique could still leave ATMs around the world vulnerable to having their cash safes disemboweled in a matter of minutes.

“We wanted to know: To what extent can you control the internals of the ATM with one drilled hole and one connected wire? It turns out we can do anything with it,” says Kaspersky researcher Igor Soumenkov, who presented the research at the company’s annual Kaspersky Analyst Summit. “The dispenser will obey and dispense money, and it can all be done with a very simple microcomputer.”

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Hackers Threaten to Erase Apple Customer Data

Turkish hackers are threatening to erase millions of iCloud user accounts unless Apple pays a ransom.

This is a weird story, and I’m skeptical of some of the details. Presumably Apple has decided that it’s smarter to spend the money on secure backups and other security measures than to pay the ransom. But we’ll see how this unfolds.

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