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cybercrime

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Business Email Compromise (BEC) Criminal Ring

A criminal group called Cosmic Lynx seems to be based in Russia:

Dubbed Cosmic Lynx, the group has carried out more than 200 BEC campaigns since July 2019, according to researchers from the email security firm Agari, particularly targeting senior executives at large organizations and corporations in 46 countries. Cosmic Lynx specializes in topical, tailored scams related to mergers and acquisitions; the group typically requests hundreds of thousands or even millions of dollars as part of its hustles.

[…]

For example, rather than use free accounts, Cosmic Lynx will register strategic domain names for each BEC campaign to create more convincing email accounts. And the group knows how to shield these domains so they’re harder to trace to the true owner. Cosmic Lynx also has a strong understanding of the email authentication protocol DMARC and does reconnaissance to assess its targets’ specific system DMARC policies to most effectively circumvent them.

Cosmic Lynx also drafts unusually clean and credible-looking messages to deceive targets. The group will find a company that is about to complete an acquisition and contact one of its top executives posing as the CEO of the organization being bought. This phony CEO will then involve “external legal counsel” to facilitate the necessary payments. This is where Cosmic Lynx adds a second persona to give the process an air of legitimacy, typically impersonating a real lawyer from a well-regarded law firm in the United Kingdom. The fake lawyer will email the same executive that the “CEO” wrote to, often in a new email thread, and share logistics about completing the transaction. Unlike most BEC campaigns, in which the messages often have grammatical mistakes or awkward wording, Cosmic Lynx messages are almost always clean.

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The Unintended Harms of Cybersecurity

Interesting research: “Identifying Unintended Harms of Cybersecurity Countermeasures“:

Abstract: Well-meaning cybersecurity risk owners will deploy countermeasures (technologies or procedures) to manage risks to their services or systems. In some cases, those countermeasures will produce unintended consequences, which must then be addressed. Unintended consequences can potentially induce harm, adversely affecting user behaviour, user inclusion, or the infrastructure itself (including other services or countermeasures). Here we propose a framework for preemptively identifying unintended harms of risk countermeasures in cybersecurity.The framework identifies a series of unintended harms which go beyond technology alone, to consider the cyberphysical and sociotechnical space: displacement, insecure norms, additional costs, misuse, misclassification, amplification, and disruption. We demonstrate our framework through application to the complex,multi-stakeholder challenges associated with the prevention of cyberbullying as an applied example. Our framework aims to illuminate harmful consequences, not to paralyze decision-making, but so that potential unintended harms can be more thoroughly considered in risk management strategies. The framework can support identification and preemptive planning to identify vulnerable populations and preemptively insulate them from harm. There are opportunities to use the framework in coordinating risk management strategy across stakeholders in complex cyberphysical environments.

Security is always a trade-off. I appreciate work that examines the details of that trade-off.

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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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