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cybercrime

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Collating Hacked Data Sets

Two Harvard undergraduates completed a project where they went out on the dark web and found a bunch of stolen datasets. Then they correlated all the information, and combined it with additional, publicly available, information. No surprise: the result was much more detailed and personal.

“What we were able to do is alarming because we can now find vulnerabilities in people’s online presence very quickly,” Metropolitansky said. “For instance, if I can aggregate all the leaked credentials associated with you in one place, then I can see the passwords and usernames that you use over and over again.”

Of the 96,000 passwords contained in the dataset the students used, only 26,000 were unique.

“We also showed that a cyber criminal doesn’t have to have a specific victim in mind. They can now search for victims who meet a certain set of criteria,” Metropolitansky said.

For example, in less than 10 seconds she produced a dataset with more than 1,000 people who have high net worth, are married, have children, and also have a username or password on a cheating website. Another query pulled up a list of senior-level politicians, revealing the credit scores, phone numbers, and addresses of three U.S. senators, three U.S. representatives, the mayor of Washington, D.C., and a Cabinet member.

“Hopefully, this serves as a wake-up call that leaks are much more dangerous than we think they are,” Metropolitansky said. “We’re two college students. If someone really wanted to do some damage, I’m sure they could use these same techniques to do something horrible.”

That’s about right.

And you can be sure that the world’s major intelligence organizations have already done all of this.

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Apple Abandoned Plans for Encrypted iCloud Backup after FBI Complained

This is new from Reuters:

More than two years ago, Apple told the FBI that it planned to offer users end-to-end encryption when storing their phone data on iCloud, according to one current and three former FBI officials and one current and one former Apple employee.

Under that plan, primarily designed to thwart hackers, Apple would no longer have a key to unlock the encrypted data, meaning it would not be able to turn material over to authorities in a readable form even under court order.

In private talks with Apple soon after, representatives of the FBI’s cyber crime agents and its operational technology division objected to the plan, arguing it would deny them the most effective means for gaining evidence against iPhone-using suspects, the government sources said.

When Apple spoke privately to the FBI about its work on phone security the following year, the end-to-end encryption plan had been dropped, according to the six sources. Reuters could not determine why exactly Apple dropped the plan.

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Brazil Charges Glenn Greenwald with Cybercrimes

Glenn Greenwald has been charged with cybercrimes in Brazil, stemming from publishing information and documents that were embarrassing to the government. The charges are that he actively helped the people who actually did the hacking:

Citing intercepted messages between Mr. Greenwald and the hackers, prosecutors say the journalist played a “clear role in facilitating the commission of a crime.”

For instance, prosecutors contend that Mr. Greenwald encouraged the hackers to delete archives that had already been shared with The Intercept Brasil, in order to cover their tracks.

Prosecutors also say that Mr. Greenwald was communicating with the hackers while they were actively monitoring private chats on Telegram, a messaging app. The complaint charged six other individuals, including four who were detained last year in connection with the cellphone hacking.

This isn’t new, or unique to Brazil. Last year, Julian Assange was charged by the US with doing essentially the same thing with Chelsea Manning:

The indictment alleges that in March 2010, Assange engaged in a conspiracy with Chelsea Manning, a former intelligence analyst in the U.S. Army, to assist Manning in cracking a password stored on U.S. Department of Defense computers connected to the Secret Internet Protocol Network (SIPRNet), a U.S. government network used for classified documents and communications. Manning, who had access to the computers in connection with her duties as an intelligence analyst, was using the computers to download classified records to transmit to WikiLeaks. Cracking the password would have allowed Manning to log on to the computers under a username that did not belong to her. Such a deceptive measure would have made it more difficult for investigators to determine the source of the illegal disclosures.

During the conspiracy, Manning and Assange engaged in real-time discussions regarding Manning’s transmission of classified records to Assange. The discussions also reflect Assange actively encouraging Manning to provide more information. During an exchange, Manning told Assange that “after this upload, that’s all I really have got left.” To which Assange replied, “curious eyes never run dry in my experience.”

Good commentary on the Assange case here.

It’s too early for any commentary on the Greenwald case. Lots of news articles are essentially saying the same thing. I’ll post more news when there is some.

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Attacker Causes Epileptic Seizure over the Internet

This isn’t a first, but I think it will be the first conviction:

The GIF set off a highly unusual court battle that is expected to equip those in similar circumstances with a new tool for battling threatening trolls and cyberbullies. On Monday, the man who sent Eichenwald the moving image, John Rayne Rivello, was set to appear in a Dallas County district court. A last-minute rescheduling delayed the proceeding until Jan. 31, but Rivello is still expected to plead guilty to aggravated assault. And he may be the first of many.

The Epilepsy Foundation announced on Monday it lodged a sweeping slate of criminal complaints against a legion of copycats who targeted people with epilepsy and sent them an onslaught of strobe GIFs — a frightening phenomenon that unfolded in a short period of time during the organization’s marking of National Epilepsy Awareness Month in November.

[…]

Rivello’s supporters — among them, neo-Nazis and white nationalists, including Richard Spencer — have also argued that the issue is about freedom of speech. But in an amicus brief to the criminal case, the First Amendment Clinic at Duke University School of Law argued Rivello’s actions were not constitutionally protected.

“A brawler who tattoos a message onto his knuckles does not throw every punch with the weight of First Amendment protection behind him,” the brief stated. “Conduct like this does not constitute speech, nor should it. A deliberate attempt to cause physical injury to someone does not come close to the expression which the First Amendment is designed to protect.”

Another article.

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Fabricated Voice Used in Financial Fraud

This seems to be an identity theft first:

Criminals used artificial intelligence-based software to impersonate a chief executive’s voice and demand a fraudulent transfer of €220,000 ($243,000) in March in what cybercrime experts described as an unusual case of artificial intelligence being used in hacking.

Another news article.

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The Cost of Cybercrime

Really interesting paper calculating the worldwide cost of cybercrime:

Abstract: In 2012 we presented the first systematic study of the costs of cybercrime. In this paper,we report what has changed in the seven years since. The period has seen major platform evolution, with the mobile phone replacing the PC and laptop as the consumer terminal of choice, with Android replacing Windows, and with many services moving to the cloud.The use of social networks has become extremely widespread. The executive summary is that about half of all property crime, by volume and by value, is now online. We hypothesised in 2012 that this might be so; it is now established by multiple victimisation studies.Many cybercrime patterns appear to be fairly stable, but there are some interesting changes.Payment fraud, for example, has more than doubled in value but has fallen slightly as a proportion of payment value; the payment system has simply become bigger, and slightly more efficient. Several new cybercrimes are significant enough to mention, including business email compromise and crimes involving cryptocurrencies. The move to the cloud means that system misconfiguration may now be responsible for as many breaches as phishing. Some companies have suffered large losses as a side-effect of denial-of-service worms released by state actors, such as NotPetya; we have to take a view on whether they count as cybercrime.The infrastructure supporting cybercrime, such as botnets, continues to evolve, and specific crimes such as premium-rate phone scams have evolved some interesting variants. The over-all picture is the same as in 2012: traditional offences that are now technically ‘computercrimes’ such as tax and welfare fraud cost the typical citizen in the low hundreds of Euros/dollars a year; payment frauds and similar offences, where the modus operandi has been completely changed by computers, cost in the tens; while the new computer crimes cost in the tens of cents. Defending against the platforms used to support the latter two types of crime cost citizens in the tens of dollars. Our conclusions remain broadly the same as in 2012:it would be economically rational to spend less in anticipation of cybercrime (on antivirus, firewalls, etc.) and more on response. We are particularly bad at prosecuting criminals who operate infrastructure that other wrongdoers exploit. Given the growing realisation among policymakers that crime hasn’t been falling over the past decade, merely moving online, we might reasonably hope for better funded and coordinated law-enforcement action.

Richard Clayton gave a presentation on this yesterday at WEIS. His final slide contained a summary.

  • Payment fraud is up, but credit card sales are up even more — so we’re winning.

  • Cryptocurrencies are enabling new scams, but the big money is still being lost in more traditional investment fraud.

  • Telcom fraud is down, basically because Skype is free.

  • Anti-virus fraud has almost disappeared, but tech support scams are growing very rapidly.

  • The big money is still in tax fraud, welfare fraud, VAT fraud, and so on.

  • We spend more money on cyber defense than we do on the actual losses.

  • Criminals largely act with impunity. They don’t believe they will get caught, and mostly that’s correct.

Bottom line: the technology has changed a lot since 2012, but the economic considerations remain unchanged.

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Protecting Yourself from Identity Theft

I don’t have a lot of good news for you. The truth is there’s nothing we can do to protect our data from being stolen by cybercriminals and others.

Ten years ago, I could have given you all sorts of advice about using encryption, not sending information over email, securing your web connections, and a host of other things­ — but most of that doesn’t matter anymore. Today, your sensitive data is controlled by others, and there’s nothing you can personally to do affect its security.

I could give you advice like don’t stay at a hotel (the Marriott breach), don’t get a government clearance (the Office of Personnel Management hack), don’t store your photos online (Apple breach and others), don’t use email (many, many different breaches), and don’t have anything other than an anonymous cash-only relationship with anyone, ever (the Equifax breach). But that’s all ridiculous advice for anyone trying to live a normal life in the 21st century.

The reality is that your sensitive data has likely already been stolen, multiple times. Cybercriminals have your credit card information. They have your social security number and your mother’s maiden name. They have your address and phone number. They obtained the data by hacking any one of the hundreds of companies you entrust with the data­ — and you have no visibility into those companies’ security practices, and no recourse when they lose your data.

Given this, your best option is to turn your efforts toward trying to make sure that your data isn’t used against you. Enable two-factor authentication for all important accounts whenever possible. Don’t reuse passwords for anything important — ­and get a password manager to remember them all.

Do your best to disable the “secret questions” and other backup authentication mechanisms companies use when you forget your password­ — those are invariably insecure. Watch your credit reports and your bank accounts for suspicious activity. Set up credit freezes with the major credit bureaus. Be wary of email and phone calls you get from people purporting to be from companies you do business with.

Of course, it’s unlikely you will do a lot of this. Pretty much no one does. That’s because it’s annoying and inconvenient. This is the reality, though. The companies you do business with have no real incentive to secure your data. The best way for you to protect yourself is to change that incentive, which means agitating for government oversight of this space. This includes proscriptive regulations, more flexible security standards, liabilities, certification, licensing, and meaningful labeling. Once that happens, the market will step in and provide companies with the technologies they can use to secure your data.

This essay previously appeared in the Rochester Review, as part of an alumni forum that asked: “How do you best protect yourself from identity theft?”

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Banks Attacked through Malicious Hardware Connected to the Local Network

Kaspersky is reporting on a series of bank hacks — called DarkVishnya — perpetrated through malicious hardware being surreptitiously installed into the target network:

In 2017-2018, Kaspersky Lab specialists were invited to research a series of cybertheft incidents. Each attack had a common springboard: an unknown device directly connected to the company’s local network. In some cases, it was the central office, in others a regional office, sometimes located in another country. At least eight banks in Eastern Europe were the targets of the attacks (collectively nicknamed DarkVishnya), which caused damage estimated in the tens of millions of dollars.

Each attack can be divided into several identical stages. At the first stage, a cybercriminal entered the organization’s building under the guise of a courier, job seeker, etc., and connected a device to the local network, for example, in one of the meeting rooms. Where possible, the device was hidden or blended into the surroundings, so as not to arouse suspicion.

The devices used in the DarkVishnya attacks varied in accordance with the cybercriminals’ abilities and personal preferences. In the cases we researched, it was one of three tools:

  • netbook or inexpensive laptop
  • Raspberry Pi computer
  • Bash Bunny, a special tool for carrying out USB attacks

Inside the local network, the device appeared as an unknown computer, an external flash drive, or even a keyboard. Combined with the fact that Bash Bunny is comparable in size to a USB flash drive, this seriously complicated the search for the entry point. Remote access to the planted device was via a built-in or USB-connected GPRS/3G/LTE modem.

Slashdot thread.

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How to Punish Cybercriminals

Interesting policy paper by Third Way: “To Catch a Hacker: Toward a comprehensive strategy to identify, pursue, and punish malicious cyber actors“:

In this paper, we argue that the United States currently lacks a comprehensive overarching strategic approach to identify, stop and punish cyberattackers. We show that:

  • There is a burgeoning cybercrime wave: A rising and often unseen crime wave is mushrooming in America. There are approximately 300,000 reported malicious cyber incidents per year, including up to 194,000 that could credibly be called individual or system-wide breaches or attempted breaches. This is likely a vast undercount since many victims don’t report break-ins to begin with. Attacks cost the US economy anywhere from $57 billion to $109 billion annually and these costs are increasing.

  • There is a stunning cyber enforcement gap: Our analysis of publicly available data shows that cybercriminals can operate with near impunity compared to their real-world counterparts. We estimate that cyber enforcement efforts are so scattered that less than 1% of malicious cyber incidents see an enforcement action taken against the attackers.

  • There is no comprehensive US cyber enforcement strategy aimed at the human attacker: Despite the recent release of a National Cyber Strategy, the United States still lacks a comprehensive strategic approach to how it identifies, pursues, and punishes malicious human cyberattackers and the organizations and countries often behind them. We believe that the United States is as far from this human attacker strategy as the nation was toward a strategic approach to countering terrorism in the weeks and months before 9/11.

In order to close the cyber enforcement gap, we argue for a comprehensive enforcement strategy that makes a fundamental rebalance in US cybersecurity policies: from a heavy focus on building better cyber defenses against intrusion to also waging a more robust effort at going after human attackers. We call for ten US policy actions that could form the contours of a comprehensive enforcement strategy to better identify, pursue and bring to justice malicious cyber actors that include building up law enforcement, enhancing diplomatic efforts, and developing a measurable strategic plan to do so.

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