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Cybersecurity Insurance Not Paying for NotPetya Losses

This will complicate things:

To complicate matters, having cyber insurance might not cover everyone’s losses. Zurich American Insurance Company refused to pay out a $100 million claim from Mondelez, saying that since the U.S. and other governments labeled the NotPetya attack as an action by the Russian military their claim was excluded under the “hostile or warlike action in time of peace or war” exemption.

I get that $100 million is real money, but the insurance industry needs to figure out how to properly insure commercial networks against this sort of thing.

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Japanese Government Will Hack Citizens’ IoT Devices

The Japanese government is going to run penetration tests against all the IoT devices in their country, in an effort to (1) figure out what’s insecure, and (2) help consumers secure them:

The survey is scheduled to kick off next month, when authorities plan to test the password security of over 200 million IoT devices, beginning with routers and web cameras. Devices in people’s homes and on enterprise networks will be tested alike.

[…]

The Japanese government’s decision to log into users’ IoT devices has sparked outrage in Japan. Many have argued that this is an unnecessary step, as the same results could be achieved by just sending a security alert to all users, as there’s no guarantee that the users found to be using default or easy-to-guess passwords would change their passwords after being notified in private.

However, the government’s plan has its technical merits. Many of today’s IoT and router botnets are being built by hackers who take over devices with default or easy-to-guess passwords.

Hackers can also build botnets with the help of exploits and vulnerabilities in router firmware, but the easiest way to assemble a botnet is by collecting the ones that users have failed to secure with custom passwords.

Securing these devices is often a pain, as some expose Telnet or SSH ports online without the users’ knowledge, and for which very few users know how to change passwords. Further, other devices also come with secret backdoor accounts that in some cases can’t be removed without a firmware update.

I am interested in the results of this survey. Japan isn’t very different from other industrialized nations in this regard, so their findings will be general. I am less optimistic about the country’s ability to secure all of this stuff — especially before the 2020 Summer Olympics.

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Hacking the GCHQ Backdoor

Last week, I evaluated the security of a recent GCHQ backdoor proposal for communications systems. Furthering the debate, Nate Cardozo and Seth Schoen of EFF explain how this sort of backdoor can be detected:

In fact, we think when the ghost feature is active¬≠ — silently inserting a secret eavesdropping member into an otherwise end-to-end encrypted conversation in the manner described by the GCHQ authors¬≠ — it could be detected (by the target as well as certain third parties) with at least four different techniques: binary reverse engineering, cryptographic side channels, network-traffic analysis, and crash log analysis. Further, crash log analysis could lead unrelated third parties to find evidence of the ghost in use, and it’s even possible that binary reverse engineering could lead researchers to find ways to disable the ghost capability on the client side. It should be obvious that none of these possibilities are desirable for law enforcement or society as a whole. And while we’ve theorized some types of mitigations that might make the ghost less detectable by particular techniques, they could also impose considerable costs to the network when deployed at the necessary scale, as well as creating new potential security risks or detection methods.

Other critiques of the system were written by Susan Landau and Matthew Green.

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Hacking Construction Cranes

Construction cranes are vulnerable to hacking:

In our research and vulnerability discoveries, we found that weaknesses in the controllers can be (easily) taken advantage of to move full-sized machines such as cranes used in construction sites and factories. In the different attack classes that we’ve outlined, we were able to perform the attacks quickly and even switch on the controlled machine despite an operator’s having issued an emergency stop (e-stop).

The core of the problem lies in how, instead of depending on wireless, standard technologies, these industrial remote controllers rely on proprietary RF protocols, which are decades old and are primarily focused on safety at the expense of security. It wasn’t until the arrival of Industry 4.0, as well as the continuing adoption of the industrial internet of things (IIoT), that industries began to acknowledge the pressing need for security.

News article. Report.

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New Attack Against Electrum Bitcoin Wallets

This is clever:

How the attack works:

  • Attacker added tens of malicious servers to the Electrum wallet network.
  • Users of legitimate Electrum wallets initiate a Bitcoin transaction.
  • If the transaction reaches one of the malicious servers, these servers reply with an error message that urges users to download a wallet app update from a malicious website (GitHub repo).
  • User clicks the link and downloads the malicious update.
  • When the user opens the malicious Electrum wallet, the app asks the user for a two-factor authentication (2FA) code. This is a red flag, as these 2FA codes are only requested before sending funds, and not at wallet startup.
  • The malicious Electrum wallet uses the 2FA code to steal the user’s funds and transfer them to the attacker’s Bitcoin addresses.

The problem here is that Electrum servers are allowed to trigger popups with custom text inside users’ wallets.

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Marriott Hack Reported as Chinese State-Sponsored

The New York Times and Reuters are reporting that China was behind the recent hack of Mariott Hotels. Note that this is still uncomfirmed, but interesting if it is true.

Reuters:

Private investigators looking into the breach have found hacking tools, techniques and procedures previously used in attacks attributed to Chinese hackers, said three sources who were not authorized to discuss the company’s private probe into the attack.

That suggests that Chinese hackers may have been behind a campaign designed to collect information for use in Beijing’s espionage efforts and not for financial gain, two of the sources said.

While China has emerged as the lead suspect in the case, the sources cautioned it was possible somebody else was behind the hack because other parties had access to the same hacking tools, some of which have previously been posted online.

Identifying the culprit is further complicated by the fact that investigators suspect multiple hacking groups may have simultaneously been inside Starwood’s computer networks since 2014, said one of the sources.

I used to have opinions about whether these attributions are true or not. These days, I tend to wait and see.

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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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That Bloomberg Supply-Chain-Hack Story

Back in October, Bloomberg reported that China has managed to install backdoors into server equipment that ended up in networks belonging to — among others — Apple and Amazon. Pretty much everybody has denied it (including the US DHS and the UK NCSC). Bloomberg has stood by its story — and is still standing by it.

I don’t think it’s real. Yes, it’s plausible. But first of all, if someone actually surreptitiously put malicious chips onto motherboards en masse, we would have seen a photo of the alleged chip already. And second, there are easier, more effective, and less obvious ways of adding backdoors to networking equipment.

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