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Identifying and Arresting Ransomware Criminals

The Wall Street Journal has a story about how two people were identified as the perpetrators of a ransomware scheme. They were found because — as generally happens — they made mistakes covering their tracks. They were investigated because they had the bad luck of locking up Washington, DC’s video surveillance cameras a week before the 2017 inauguration.

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Details on Uzbekistan Government Malware: SandCat

Kaspersky has uncovered an Uzbeki hacking operation, mostly due to incompetence on the part of the government hackers.

The group’s lax operational security includes using the name of a military group with ties to the SSS to register a domain used in its attack infrastructure; installing Kaspersky’s antivirus software on machines it uses to write new malware, allowing Kaspersky to detect and grab malicious code still in development before it’s deployed; and embedding a screenshot of one of its developer’s machines in a test file, exposing a major attack platform as it was in development. The group’s mistakes led Kaspersky to discover four zero-day exploits SandCat had purchased from third-party brokers to target victim machines, effectively rendering those exploits ineffective. And the mistakes not only allowed Kaspersky to track the Uzbek spy agency’s activity but also the activity of other nation-state groups in Saudi Arabia and the United Arab Emirates who were using some of the same exploits SandCat was using.

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New Research into Russian Malware

There’s some interesting new research about Russian APT malware:

The Russian government has fostered competition among the three agencies, which operate independently from one another, and compete for funds. This, in turn, has resulted in each group developing and hoarding its tools, rather than sharing toolkits with their counterparts, a common sight among Chinese and North Korean state-sponsored hackers.

“Every actor or organization under the Russain APT umbrella has its own dedicated malware development teams, working for years in parallel on similar malware toolkits and frameworks,” researchers said.

“While each actor does reuse its code in different operations and between different malware families, there is no single tool, library or framework that is shared between different actors.”

Researchers say these findings suggest that Russia’s cyber-espionage apparatus is investing a lot of effort into its operational security.

“By avoiding different organizations re-using the same tools on a wide range of targets, they overcome the risk that one compromised operation will expose other active operations,” researchers said.

This is no different from the US. The NSA malware released by the Shadow Brokers looked nothing like the CIA “Vault 7” malware released by WikiLeaks.

The work was done by Check Point and Intezer Labs. They have a website with an interactive map.

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Security Vulnerabilities in US Weapons Systems

The US Government Accounting Office just published a new report: “Weapons Systems Cyber Security: DOD Just Beginning to Grapple with Scale of Vulnerabilities” (summary here). The upshot won’t be a surprise to any of my regular readers: they’re vulnerable.

From the summary:

Automation and connectivity are fundamental enablers of DOD’s modern military capabilities. However, they make weapon systems more vulnerable to cyber attacks. Although GAO and others have warned of cyber risks for decades, until recently, DOD did not prioritize weapon systems cybersecurity. Finally, DOD is still determining how best to address weapon systems cybersecurity.

In operational testing, DOD routinely found mission-critical cyber vulnerabilities in systems that were under development, yet program officials GAO met with believed their systems were secure and discounted some test results as unrealistic. Using relatively simple tools and techniques, testers were able to take control of systems and largely operate undetected, due in part to basic issues such as poor password management and unencrypted communications. In addition, vulnerabilities that DOD is aware of likely represent a fraction of total vulnerabilities due to testing limitations. For example, not all programs have been tested and tests do not reflect the full range of threats.

It is definitely easier, and cheaper, to ignore the problem or pretend it isn’t a big deal. But that’s probably a mistake in the long run.

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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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