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Alleged Boss of ‘Scattered Spider’ Hacking Group Arrested

15 June 2024 at 19:40

A 22-year-old man from the United Kingdom arrested this week in Spain is allegedly the ringleader of Scattered Spider, a cybercrime group suspected of hacking into Twilio, LastPass, DoorDash, Mailchimp, and nearly 130 other organizations over the past two years.

The Spanish daily Murcia Today reports the suspect was wanted by the FBI and arrested in Palma de Mallorca as he tried to board a flight to Italy.

A still frame from a video released by the Spanish national police shows Tylerb in custody at the airport.

“He stands accused of hacking into corporate accounts and stealing critical information, which allegedly enabled the group to access multi-million-dollar funds,” Murcia Today wrote. “According to Palma police, at one point he controlled Bitcoins worth $27 million.”

The cybercrime-focused Twitter/X account vx-underground said the U.K. man arrested was a SIM-swapper who went by the alias “Tyler.” In a SIM-swapping attack, crooks transfer the target’s phone number to a device they control and intercept any text messages or phone calls sent to the victim — including one-time passcodes for authentication, or password reset links sent via SMS.

“He is a known SIM-swapper and is allegedly involved with the infamous Scattered Spider group,” vx-underground wrote on June 15, referring to a prolific gang implicated in costly data ransom attacks at MGM and Caesars casinos in Las Vegas last year.

Sources familiar with the investigation told KrebsOnSecurity the accused is a 22-year-old from Dundee, Scotland named Tyler Buchanan, also allegedly known as “tylerb” on Telegram chat channels centered around SIM-swapping.

In January 2024, U.S. authorities arrested another alleged Scattered Spider member — 19-year-old Noah Michael Urban of Palm Coast, Fla. — and charged him with stealing at least $800,000 from five victims between August 2022 and March 2023. Urban allegedly went by the nicknames “Sosa” and “King Bob,” and is believed to be part of the same crew that hacked Twilio and a slew of other companies in 2022.

Investigators say Scattered Spider members are part of a more diffuse cybercriminal community online known as “The Com,” wherein hackers from different cliques boast loudly about high-profile cyber thefts that almost invariably begin with social engineering — tricking people over the phone, email or SMS into giving away credentials that allow remote access to corporate internal networks.

One of the more popular SIM-swapping channels on Telegram maintains a frequently updated leaderboard of the most accomplished SIM-swappers, indexed by their supposed conquests in stealing cryptocurrency. That leaderboard currently lists Sosa as #24 (out of 100), and Tylerb at #65.

0KTAPUS

In August 2022, KrebsOnSecurity wrote about peering inside the data harvested in a months-long cybercrime campaign by Scattered Spider involving countless SMS-based phishing attacks against employees at major corporations. The security firm Group-IB called the gang by a different name — 0ktapus, a nod to how the criminal group phished employees for credentials.

The missives asked users to click a link and log in at a phishing page that mimicked their employer’s Okta authentication page. Those who submitted credentials were then prompted to provide the one-time password needed for multi-factor authentication.

These phishing attacks used newly-registered domains that often included the name of the targeted company, and sent text messages urging employees to click on links to these domains to view information about a pending change in their work schedule. The phishing sites also featured a hidden Telegram instant message bot to forward any submitted credentials in real-time, allowing the attackers to use the phished username, password and one-time code to log in as that employee at the real employer website.

One of Scattered Spider’s first big victims in its 2022 SMS phishing spree was Twilio, a company that provides services for making and receiving text messages and phone calls. The group then pivoted, using their access to Twilio to attack at least 163 of its customers.

A Scattered Spider phishing lure sent to Twilio employees.

Among those was the encrypted messaging app Signal, which said the breach could have let attackers re-register the phone number on another device for about 1,900 users.

Also in August 2022, several employees at email delivery firm Mailchimp provided their remote access credentials to this phishing group. According to Mailchimp, the attackers used their access to Mailchimp employee accounts to steal data from 214 customers involved in cryptocurrency and finance.

On August 25, 2022, the password manager service LastPass disclosed a breach in which attackers stole some source code and proprietary LastPass technical information, and weeks later LastPass said an investigation revealed no customer data or password vaults were accessed.

However, on November 30, 2022 LastPass disclosed a far more serious breach that the company said leveraged data stolen in the August breach. LastPass said criminal hackers had stolen encrypted copies of some password vaults, as well as other personal information.

In February 2023, LastPass disclosed that the intrusion involved a highly complex, targeted attack against an engineer who was one of only four LastPass employees with access to the corporate vault. In that incident, the attackers exploited a security vulnerability in a Plex media server that the employee was running on his home network, and succeeded in installing malicious software that stole passwords and other authentication credentials. The vulnerability exploited by the intruders was patched back in 2020, but the employee never updated his Plex software.

Plex announced its own data breach one day before LastPass disclosed its initial August intrusion. On August 24, 2022, Plex’s security team urged users to reset their passwords, saying an intruder had accessed customer emails, usernames and encrypted passwords.

TURF WARS

Sosa and Tylerb were both subjected to physical attacks from rival SIM-swapping gangs. These communities have been known to settle scores by turning to so-called “violence-as-a-service” offerings on cybercrime channels, wherein people can be hired to perform a variety geographically-specific “in real life” jobs, such as bricking windows, slashing car tires, or even home invasions.

In 2022, a video surfaced on a popular cybercrime channel purporting to show attackers hurling a brick through a window at an address that matches the spacious and upscale home of Urban’s parents in Sanford, Fl.

January’s story on Sosa noted that a junior member of his crew named “Foreshadow” was kidnapped, beaten and held for ransom in September 2022. Foreshadow’s captors held guns to his bloodied head while forcing him to record a video message pleading with his crew to fork over a $200,000 ransom in exchange for his life (Foreshadow escaped further harm in that incident).

According to several SIM-swapping channels on Telegram where Tylerb was known to frequent, rival SIM-swappers hired thugs to invade his home in February 2023. Those accounts state that the intruders assaulted Tylerb’s mother in the home invasion, and that they threatened to burn him with a blowtorch if he didn’t give up the keys to his cryptocurrency wallets. Tylerb was reputed to have fled the United Kingdom after that assault.

KrebsOnSecurity sought comment from Mr. Buchanan, and will update this story in the event he responds.

Unlock Advanced Threat Correlation

By: Enzoic
13 June 2024 at 16:38

Try the Enzoic + ThreatQ Integration Free on the ThreatQ Marketplace Exciting news for cybersecurity teams: Enzoic and ThreatQuotient have partnered to offer a powerful integration that combines Dark Web monitoring with advanced threat intelligence. And now, you can now try this integration for free on the ThreatQ marketplace, giving your organization a unique opportunity […]

The post Unlock Advanced Threat Correlation appeared first on Security Boulevard.

Don’t Panic, Take Action: What to Do If Your Data Leaks

Data leak

Recent high-profile data leaks, including incidents involving Santander and Ticketmaster, have highlighted the ongoing issue of data breaches affecting a wide array of industries, from banking and logistics to online stores and entertainment. While companies typically take steps to protect their affected clients, individuals can also enhance their digital security. Kaspersky experts offer advice on what to do if your data has been leaked. Data leaks often involve logins, passwords, addresses, and phone numbers. In some cases, they may include passport details and bank card information. While any data leak is concerning, it’s crucial not to panic. Instead, pause and consider the necessary steps to secure your information.

Data Leak? Immediate Actions to Take

1. Change Compromised Account Details: If you suspect your account details have been compromised, immediately change your password and enable two-factor authentication. If cybercriminals have already accessed your account, contact technical support to restore access and determine what other information might have been compromised. 2. Address and Phone Number Leaks: If sensitive data such as your address or phone number is leaked, it is usually not critical but still concerning. A leaked address typically doesn’t pose a threat unless it leads to targeted attacks like stalking. In such rare cases, contact the police promptly. For a leaked phone number, ensure accounts using that number as a login have two-factor authentication, change your password, and remain vigilant for potential fraud calls. 2. Passport or ID Leaks: If your passport or ID details become leaked, stay alert for potential social engineering attacks. Scammers might use your passport details to appear more credible. However, there is usually no need to obtain a new document. Using leaked passport data for fraud, such as taking out a loan, requires additional personal information and substantial criminal expertise. To mitigate future risks, avoid giving away your passport details unnecessarily—they are primarily needed for banking and e-government apps, and occasionally logistics services. 3. Bank Card Details: Act promptly if your bank card details are leaked: monitor bank notifications, reissue the card, and change your bank app or website password. Enable two-factor authentication and other verification methods. Some banks allow setting spending limits for added protection. If account and balance details are leaked, be extra vigilant against phishing emails, SMS, and calls. Cybercriminals might target you based on this information. In unclear situations, contact your bank directly. 4. Organizational Security Measures: Various types of leaked employee data can be used for OSINT (open-source intelligence) to further access internal systems. To counter these threats, organizations are advised to use advanced security solutions, implement strong cybersecurity policies, and conduct employee training. 5. Educating and Protecting Against Social Engineering: Amin Hasbini, Director of META Research Center Global Research and Analysis Team (GReAT) at Kaspersky, emphasizes the importance of being aware of data leakage risks and avoiding oversharing. He advises educating relatives, especially children and the elderly, about the dangers of social engineering attacks. "A crucial thing also is to educate your relatives, especially kids and elderly people. For example, explain that if someone refers to personal information, such as full name and even passport details, by telephone, messengers, social networks or e-mail, it’s not necessarily the bank or social service representatives, but might be scammers. In personal issues it’s advised to have a code word or question that only relatives know, while with organizations if some actions are required it’s better to use official contact information for double checking”, says Amin Hasbini, Director of META Research Center Global Research and Analysis Team (GReAT), at Kaspersky. As data breaches continue to affect various industries, individuals need to take proactive steps to secure their personal information. By following these experts' advice, you can mitigate the risks associated with data leaks and protect yourself from potential cyber threats.

Hackers steal “significant volume” of data from hundreds of Snowflake customers

10 June 2024 at 18:08
Hackers steal “significant volume” of data from hundreds of Snowflake customers

Enlarge (credit: Getty Images)

As many as 165 customers of cloud storage provider Snowflake have been compromised by a group that obtained login credentials through information-stealing malware, researchers said Monday.

On Friday, Lending Tree subsidiary QuoteWizard confirmed it was among the customers notified by Snowflake that it was affected in the incident. Lending Tree spokesperson Megan Greuling said the company is in the process of determining whether data stored on Snowflake has been stolen.

“That investigation is ongoing,” she wrote in an email. “As of this time, it does not appear that consumer financial account information was impacted, nor information of the parent entity, Lending Tree.”

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Snowflake Attacks: Mandiant Links Data Breaches to Infostealer Infections

10 June 2024 at 12:08

Mandiant says a financially motivated threat actor has compromised hundreds of Snowflake instances using customer credentials stolen via infostealer malware that infected non-Snowflake owned systems.

The post Snowflake Attacks: Mandiant Links Data Breaches to Infostealer Infections appeared first on SecurityWeek.

Ticketmaster hacked in what’s believed to be a spree hitting Snowflake customers

3 June 2024 at 18:23
Ticketmaster hacked in what’s believed to be a spree hitting Snowflake customers

Enlarge (credit: Getty Images)

Cloud storage provider Snowflake said that accounts belonging to multiple customers have been hacked after threat actors obtained credentials through info-stealing malware or by purchasing them on online crime forums.

Ticketmaster parent Live Nation—which disclosed Friday that hackers gained access to data it stored through an unnamed third-party provider—told TechCrunch the provider was Snowflake. The live-event ticket broker said it identified the hack on May 20, and a week later, a “criminal threat actor offered what it alleged to be Company user data for sale via the dark web.”

Ticketmaster is one of six Snowflake customers to be hit in the hacking campaign, said independent security researcher Kevin Beaumont, citing conversations with people inside the affected companies. Australia’s Signal Directorate said Saturday it knew of “successful compromises of several companies utilizing Snowflake environments.” Researchers with security firm Hudson Rock said in a now-deleted post that Santander, Spain’s biggest bank, was also hacked in the campaign. The researchers cited online text conversations with the threat actor. Last month, Santander disclosed a data breach affecting customers in Chile, Spain, and Uruguay.

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Data Breaches in May 2024 – Infographic

3 June 2024 at 03:25

Has your data ever felt…exposed? We’ve all heard about data breaches, but have you ever stopped to wonder what the real impact is? At WeSecureApp, we track cyber threats closely, and this month, we’re here to shed light on what […]

The post Data Breaches in May 2024 – Infographic appeared first on WeSecureApp :: Securing Offensively.

The post Data Breaches in May 2024 – Infographic appeared first on Security Boulevard.

How Middle East, Turkey, and Africa (META) Banks Are Leveraging AI

META banks

The banking industry is one of the main pillars of any nation and they have been an integral part of the critical infrastructure. The government and private banks in the Middle East, Turkey, and Africa (META) region have also gone through several transformations, and with the advancement of AI, these financial institutions have adopted artificial intelligence to streamline the banking experience for the common citizens while also ensuring robust cybersecurity measures.    These banks offer a wide range of services beyond traditional banking, including investment banking, insurance, and asset management. As the financial landscape becomes increasingly complex, meta-banks are turning to artificial intelligence (AI) to streamline operations, enhance customer experiences, and mitigate risks  The Cyber Express explores the AI revolution taking place in META  banks across the region and its benefits, challenges, and prospects of this transformative technology. 

The AI Revolution in META Banks 

The advent of AI has pushed conventional banking into a new era of endless possibilities. With its ability to process vast amounts of data and perform complex tasks with speed and accuracy, AI has become a game-changer in the financial industry.   META banks are leveraging AI algorithms and machine learning techniques to automate routine processes, analyze customer behavior, and make data-driven decisions. By harnessing the power of AI, these banks can gain a competitive edge by offering personalized products and services, reducing operational costs, and improving overall efficiency.  AI is revolutionizing various aspects of metabanking, from customer service to risk management. Chatbots, powered by AI, have become the face of customer interactions, providing round-the-clock assistance and resolving queries in real time.   These virtual assistants not only enhance customer satisfaction but also free up human resources to focus on more complex tasks. Additionally, AI-powered predictive analytics enable banks in the META region to identify patterns and trends in customer behavior, helping them tailor their offerings to meet individual needs. Moreover, AI algorithms are proving invaluable in detecting fraudulent activities, enhancing compliance, and minimizing financial risks.

Benefits of Artificial Intelligence-led Banking in the META Region

The benefits of AI in banking are manifold. Firstly, AI enables these banks to improve operational efficiency by automating repetitive tasks and reducing human error. This not only saves time but also lowers costs, allowing banks to allocate resources more effectively. By leveraging AI-powered analytics, META banks can gain valuable insights into customer preferences, enabling them to offer personalized products and services. This not only enhances customer satisfaction but also fosters loyalty and drives revenue growth. Furthermore, AI enhances risk management capabilities in META banks. With AI algorithms constantly monitoring transactions and analyzing patterns, potential fraudulent activities can be detected and flagged in real time.   This not only protects the interests of customers but also safeguards the reputation of META banks. AI-powered cybersecurity is a key component of this risk management strategy. By utilizing AI to identify and counter cyber threats, banks in the Middle East, Turkey, and Africa can ensure the security of their systems and protect sensitive customer data from unauthorized access. 

Implementing Artificial Intelligence in META Banks 

Implementing AI in the banking sector requires careful planning and strategic execution. The first step is to identify the areas where AI can bring the most value. This could include customer service, risk management, compliance, or data analytics. Once the areas are identified, META banks need to invest in the right AI technologies and infrastructure. This includes acquiring AI software, hardware, and the necessary IT resources to support AI implementation.  Data plays a crucial role in the success of AI implementation. Banks in the META region need to ensure that they have access to high-quality, structured data that can be used to train AI algorithms. This may require data integration and consolidation efforts across different systems and departments within the bank. Additionally, both private and government banks need to establish governance frameworks and protocols to ensure the ethical and responsible use of AI. This includes addressing issues such as bias, transparency, and accountability.  Cybersecurity is a top concern for financial institutions, given the sensitive nature of the data they handle. AI is proving to be a powerful tool in combating cyber threats and protecting customer information. AI-powered cybersecurity systems can analyze vast amounts of data in real time, detecting anomalies and identifying potential threats. These systems can learn from past attacks and adapt their defenses accordingly, making them more effective against cybercrime actors.   AI algorithms can detect patterns and behaviors that may indicate a cyber attack, such as unusual login attempts or unauthorized access to customer accounts. By continuously monitoring network traffic and user behavior, AI-powered cybersecurity systems can swiftly respond to potential threats, mitigating the risk of data breaches. Furthermore, AI can assist in fraud detection by identifying suspicious transactions or activities that deviate from normal customer behavior. 

Challenges and Risks of AI in META Banks 

While the benefits of AI in META banks are undeniable, some challenges and risks need to be addressed. One of the major challenges is the availability of quality data. AI algorithms rely on large volumes of accurate and relevant data to make accurate predictions and decisions. META banks need to ensure that their data is clean, well-structured, and easily accessible to maximize the effectiveness of AI. This may require investments in data management and data governance processes.  Another challenge is the ethical use of AI. As AI becomes more integrated into banking operations, concerns arise regarding bias, transparency, and privacy. AI algorithms can inadvertently perpetuate biases present in the data they are trained on, leading to unfair or discriminatory outcomes. META banks must establish ethical frameworks and guidelines to ensure that AI is used responsibly and in a manner that respects individual privacy and rights.  The future of AI in META banks is promising. As AI technologies continue to advance, banks in the META region will be able to further enhance their operations and customer experiences. One area with immense potential is predictive analytics. By leveraging AI algorithms, META banks can predict customer behavior, market trends, and economic indicators, enabling them to make informed business decisions and stay ahead of the competition.  Additionally, the rise of big data and the Internet of Things (IoT) will create new opportunities for AI in the META region. The ability to collect and analyze vast amounts of data from diverse sources will enable banks in the META region to gain deeper insights into customer preferences, market dynamics, and risk factors. AI-powered chatbots will become even more sophisticated, providing personalized recommendations and engaging in natural language conversations with customers. 

Conclusion

The AI revolution is reshaping the banking sector in the Middle East, Turkey, and Africa. By embracing AI technologies, banks in the META region can unlock a multitude of benefits, including improved operational efficiency, enhanced risk management, and personalized customer experiences.   However, the successful implementation of AI requires careful planning, investment in infrastructure, and the ethical use of data. Despite the challenges and risks, the future of AI in META banks is bright, with the potential to revolutionize the way financial services are delivered and experienced. 

City of Helsinki Data Breach: What You Need to Know – Source: securityboulevard.com

city-of-helsinki-data-breach:-what-you-need-to-know-–-source:-securityboulevard.com

Source: securityboulevard.com – Author: Rohan Timalsina On May 2, 2024, the City of Helsinki announced the data breach targeting its Education Division. However, the breach was discovered on April 30, 2024, and an investigation was promptly carried out. It was found that it has impacted tens of thousands of students, guardians, and personnel, causing considerable […]

La entrada City of Helsinki Data Breach: What You Need to Know – Source: securityboulevard.com se publicó primero en CISO2CISO.COM & CYBER SECURITY GROUP.

Hacker Claims Ticketmaster Data Breach: 560M User Details and Card Info at Risk

Ticketmaster data breach

A cybercriminal going by the alias "SpidermanData" has claimed to breach and advertise a massive database purportedly linked to Ticketmaster Entertainment, LLC. The claim of the Ticketmaster data breach, dated May 27, 2024, was posted on the cybercrime forum Exploit and shares threatening information about the organization, including database of “560M Users + Card Details”. The threat actor has also claimed to have access to 1.3TB of stolen data and is currently selling it for $500k. The post, accompanied by sample data, suggests that the data indeed belongs to Ticketmaster Entertainment. However, the American ticket sales and distribution company has yet to share any information about this alleged Ticketmaster data breach.  Additionally, apart from the Ticketmaster data breach, the company is also facing a lawsuit from The Justice Department for anti-competitive practices, limiting venue options, and threatening financial consequences. The lawsuit follows public outcry, including ticketing issues during Taylor Swift's tour. High prices, fueled by post-pandemic demand, have intensified scrutiny. Live Nation denies monopolistic behavior, but the lawsuit contends their dominance drives up prices. The Ticketmaster data breach poses another threat to the organization since databases of this caliber are usually the hot-selling items on the dark web

Ticketmaster Data Breach: The Worst Time to Have a Cybersecurity Incident

SpidermanData claims to have access to a staggering 560 million records brimming with personally identifiable information (PII) of customers, including sensitive payment card details. This breach couldn't have come at a worse time for Ticketmaster, coinciding with the onset of several major music festivals scheduled between May 2024 and January 2025.  Among these highly anticipated events is the FOREIGNER concert, featuring legendary rock acts led by Mick Jones and Kelly Hansen. The musical act will begin on June 11, 2024, in the United States and will conclude on November 9, 2024. Following suit is the iconic band HEART, set to perform across the United States from July to November 2024, culminating in an international concert in Calgary, AB, Canada. Meanwhile, Allison Russell and Hozier are primed to perform from May to August 2024. Adding to this list of bands performing this year, artists like Ian Munsick, Prateek Kuhad, and Kathleen Hanna will also go on tours across North America between 2024 and 2025. However, the jubilant atmosphere surrounding these events is now overshadowed by the threat of, one of the biggest data breaches, threatening millions of users globally.  The purportedly compromised data, amounting to a staggering 1.3 terabytes, has been divided into 15 parts, with the hacker offering samples from two segments. One dataset, extracted from a 'PATRON' database, contains a plethora of personal information, including names, addresses, emails, and phone numbers. Meanwhile, the other dataset includes information about customer sales, encompassing crucial details like event IDs and payment methods.

The Aftermath and Industry Implications

SpidermanData has listed the entire dataset for sale, quoting a hefty price tag of USD 500,000, and restricting the sale to a single buyer. The gravity of this situation cannot be overstated, with the compromised data posing significant risks of identity theft, financial fraud, and other criminal activities - something we've already seen in previous data breaches like the MOVEit File Transfer incident Live Nation Entertainment, the parent company of Ticketmaster, stands as a global juggernaut in the live entertainment domain, organizing and promoting thousands of shows annually across more than 40 countries. Meanwhile, Ticketmaster's pivotal role in facilitating ticket sales for musical and non-musical events highlights its significance within the industry, making it a prime target for cybercriminals seeking to exploit vulnerabilities for personal gain. The current Ticketmaster data breach is not the first time that the organization has faced a cyberattack. In November 2020, the company faced a hefty £1.25 million fine from the Information Commissioner's Office (ICO) following a payment data breach in 2018. The breach, stemming from a vulnerability in a third-party chatbot, compromised the personal and payment details of over nine million customers in Europe, triggering widespread fraud and financial losses. Whether the current data breach represents a resurgence of previously compromised data or the acquisition of freshly stolen data, the premise origin of the information about the databases remains unclear. Nevertheless, The Cyber Express will be closely monitoring the situation and we’ll update this post once we have more information on the Ticketmaster data leak or any official confirmation from the organization.  Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Decoding the Primary Devils Behind Data Breaches

Data breaches

By Reuben Koh, Director, Security Strategy - Asia Pacific & Japan, Akamai Technologies  The cybersecurity landscape is rife with evolving threats, as highlighted by recent reports and surveys. External actors remain a predominant force, accounting for 83% of breaches, with stolen credentials being their weapon of choice in nearly half of these incidents. DNS attacks continue to plague organizations, causing app downtime of targeted entities, and web application attacks follow closely behind. Ransomware emerges as a formidable threat, dominating cybercrime with over 72% of attacks motivated by extortion. As cyber threats continue to escalate in sophistication and frequency, organizations must prioritize proactive security measures to safeguard their data, systems, and financial stability. Data breaches are a prevalent theme in today's headlines — posing significant risks to businesses, their customers, and partners. One of the first steps to safeguarding your organization’s sensitive data is understanding the primary causes of data breaches. Despite these risks, the adoption of robust security measures lags, with less than 1% of businesses currently employing a mature zero-trust model.

Critical weaknesses behind Data Breaches

Weak and stolen credentials

Although hacking attacks are frequently cited as the leading cause of data breaches, it's often the vulnerability of compromised or weak passwords or personal data that opportunistic hackers exploit. Statistics show that four out of five breaches are partially attributed to the use of weak or stolen passwords. To mitigate the risk of hackers executing an account takeover on sensitive accounts, businesses should consider deploying fraud protection tools. These act as proactive defenses, significantly reducing the likelihood of unauthorized access and enhancing the overall security of your accounts. Bot Managers also address challenges associated with bot traffic on websites and applications. It’s designed to identify, manage, and mitigate both malicious and non-malicious bot traffic, ensuring a more secure and efficient online experience. To further protect your organization, it’s also advisable to implement enterprise single sign-on (SSO), establish strong password hygiene, and set up phishing-resistant multi-factor authentication (MFA) across computer systems — this way, you can prevent personally identifiable information from getting into the wrong person’s hands.

Backdoor and application vulnerabilities

Exploiting backdoor and application vulnerabilities is a favored strategy among cybercriminals. When software applications are poorly written or network systems are inadequately designed, hackers will continuously probe for weaknesses to find open doors that grant them direct access to valuable data and confidential information. Ensuring your web application firewall (WAF) is regularly updated and well-managed helps mitigate these vulnerabilities. Due to constantly shifting attack techniques, organizations should also use advanced artificial intelligence (AI) powered security solutions to identify vulnerabilities and protect against unauthorized access. The WAF should be a robust security solution designed to protect web applications from a variety of cyber threats, including data breaches. It can serve as a barrier between web applications and the internet, scrutinizing and filtering HTTP traffic to identify and mitigate potential vulnerabilities and attacks.

Malware

The prevalence of both direct and indirect malware is increasing. Malware (inherently malicious software) is loaded onto a system by unsuspecting victims, providing hackers with opportunities to not only exploit the affected system but also potentially spread to other connected systems. This type of malware poses a significant security threat as it allows malicious insiders access to confidential information and provides the ability to steal data for financial gain. Implementing an advanced malware protection solution at multiple ingress points in the network can significantly enhance your security posture, reducing the risk that employees will fall victim to malicious software. By leveraging cutting-edge data security in malware detection and prevention, organizations can fortify their data protection defenses against evolving cyber threats and security breaches.

Social Engineering

Cybercriminals and hackers can shorten the effort of establishing unauthorized access by persuading individuals with legitimate data access to do it for them.  Phone calls, phishing scams, malicious links (often sent via email, text, or social media), and other forms of social engineering such as deep fakes are now commonly used to manipulate individuals into unwittingly granting access or divulging sensitive information like login credentials to cybercriminals. Such information can result in a data leak, in which hackers recycle, reuse, and trade-sensitive data like Social Security numbers or personal data for the purpose of identity theft and other illicit activities. Exercising vigilance in sharing sensitive information with external parties is quintessential. Awareness of the information being shared, and verification of legitimacy can serve as a simple yet effective defense against social engineering tactics.

Ransomware

Ransomware is a type of malicious software designed to restrict access to a computer system or files until a sum of money, or ransom, is paid. It typically encrypts the victim's files or locks their system, rendering it inaccessible, and then demands payment (often in cryptocurrency) in exchange for restoring access. Ensuring the safety and protection of your infrastructure against external threats is paramount. Organizations must be confident that attackers haven’t gained access to their systems and aren’t using them for malicious activities. Implementing a robust visibility and protection solution, such as microsegmentation will be helpful in this scenario. Microsegmentation offers a straightforward, fast, and intuitive approach to enforce Zero Trust principles within your network. This solution is designed to prevent lateral movement by visualizing activity in your IT environments, implementing precise microsegmentation policies, and swiftly detecting potential breaches.

Improper configuration and exposure via APIs

Misconfigured settings or parameters encompass various issues such as default passwords, open ports, or weak encryption. Such inadequacies can create vulnerabilities that hackers may exploit to gain unauthorized access to systems or data, leading to security breaches and other malicious activities. Inadequate configuration settings and vulnerabilities in APIs can expose them to a large number of security risks. Addressing and rectifying these issues is crucial to prevent unauthorized access and potential data breaches. Consider implementing proper API security and governance from code time to runtime, including regularly auditing API security measures, which are critical steps to enhance overall protection. To address misconfiguration and exposure via APIs, businesses must rely not just on their WAF but also on deploying an advanced API security solution to protect against evasive API abuses. This solution can offer comprehensive visibility, identifying vulnerabilities and detecting potential threats and abuses related to APIs. Moreover, it assists in helping organizations establish a more proactive approach to security by lowering the overall attack surface of critical APIs from secure development to runtime protection, effectively reinforcing their overall API security posture.

DNS attacks

Domain Name System (DNS) attacks are malicious activities that target the DNS infrastructure to disrupt or manipulate the resolution of domain names into IP addresses. These attacks can have various objectives, including causing service disruptions using distributed denial of service (DDoS), redirecting users to malicious websites, or gaining unauthorized access to sensitive information. Organisations must deploy a strong cloud-based authoritative DNS Service ensuring 100% availability and protection against multi-vector DNS attacks like flooding and water torture attacks. Implementing best practices and deploying security countermeasures that are able to withstand the attack volume, are crucial steps to take when mitigating these attacks.

Conclusion

Data breaches continue to pose a pervasive risk across various sectors, affecting organizations of all sizes and types — from healthcare and finance to e-commerce and retail. By proactively identifying potential vulnerabilities, organizations can reduce the likelihood of successful cyberattacks. Investing in robust security measures that enforce a Zero Trust Security model and ensuring their applications, APIs, and DNS services are continuously protected against cyber threats, helps mitigate financial risks associated with breaches, such as regulatory fines, legal fees, and revenue loss. By minimizing the impact of breaches, organizations can also maintain business continuity — and avoid disruptions to normal operations or damaged reputations. Overall, a comprehensive understanding of breach causes, and the implementation of appropriate security measures are vital for protecting data, minimizing risk, and ensuring the long-term success of all organizations. Disclaimer: The views and opinions expressed in this guest post are solely those of the author(s) and do not necessarily reflect the official policy or position of The Cyber Express. Any content provided by the author is of their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.

FBI Seizes BreachForums Website

17 May 2024 at 07:09

The FBI has seized the BreachForums website, used by ransomware criminals to leak stolen corporate data.

If law enforcement has gained access to the hacking forum’s backend data, as they claim, they would have email addresses, IP addresses, and private messages that could expose members and be used in law enforcement investigations.

[…]

The FBI is requesting victims and individuals contact them with information about the hacking forum and its members to aid in their investigation.

The seizure messages include ways to contact the FBI about the seizure, including an email, a Telegram account, a TOX account, and a dedicated page hosted on the FBI’s Internet Crime Complaint Center (IC3).

“The Federal Bureau of Investigation (FBI) is investigating the criminal hacking forums known as BreachForums and Raidforums,” reads a dedicated subdomain on the FBI’s IC3 portal.

“From June 2023 until May 2024, BreachForums (hosted at breachforums.st/.cx/.is/.vc and run by ShinyHunters) was operating as a clear-net marketplace for cybercriminals to buy, sell, and trade contraband, including stolen access devices, means of identification, hacking tools, breached databases, and other illegal services.”

“Previously, a separate version of BreachForums (hosted at breached.vc/.to/.co and run by pompompurin) operated a similar hacking forum from March 2022 until March 2023. Raidforums (hosted at raidforums.com and run by Omnipotent) was the predecessor hacking forum to both version of BreachForums and ran from early 2015 until February 2022.”

Who Stole 3.6M Tax Records from South Carolina?

16 April 2024 at 07:26

For nearly a dozen years, residents of South Carolina have been kept in the dark by state and federal investigators over who was responsible for hacking into the state’s revenue department in 2012 and stealing tax and bank account information for 3.6 million people. The answer may no longer be a mystery: KrebsOnSecurity found compelling clues suggesting the intrusion was carried out by the same Russian hacking crew that stole of millions of payment card records from big box retailers like Home Depot and Target in the years that followed.

Questions about who stole tax and financial data on roughly three quarters of all South Carolina residents came to the fore last week at the confirmation hearing of Mark Keel, who was appointed in 2011 by Gov. Nikki Haley to head the state’s law enforcement division. If approved, this would be Keel’s third six-year term in that role.

The Associated Press reports that Keel was careful not to release many details about the breach at his hearing, telling lawmakers he knows who did it but that he wasn’t ready to name anyone.

“I think the fact that we didn’t come up with a whole lot of people’s information that got breached is a testament to the work that people have done on this case,” Keel asserted.

A ten-year retrospective published in 2022 by The Post and Courier in Columbia, S.C. said investigators determined the breach began on Aug. 13, 2012, after a state IT contractor clicked a malicious link in an email. State officials said they found out about the hack from federal law enforcement on October 10, 2012.

KrebsOnSecurity examined posts across dozens of cybercrime forums around that time, and found only one instance of someone selling large volumes of tax data in the year surrounding the breach date.

On Oct. 7, 2012 — three days before South Carolina officials say they first learned of the intrusion — a notorious cybercriminal who goes by the handle “Rescator” advertised the sale of “a database of the tax department of one of the states.”

“Bank account information, SSN and all other information,” Rescator’s sales thread on the Russian-language crime forum Embargo read. “If you purchase the entire database, I will give you access to it.”

A week later, Rescator posted a similar offer on the exclusive Russian forum Mazafaka, saying he was selling information from a U.S. state tax database, without naming the state. Rescator said the data exposed included Social Security Number (SSN), employer, name, address, phone, taxable income, tax refund amount, and bank account number.

“There is a lot of information, I am ready to sell the entire database, with access to the database, and in parts,” Rescator told Mazafaka members. “There is also information on corporate taxpayers.”

On Oct. 26, 2012, the state announced the breach publicly. State officials said they were working with investigators from the U.S. Secret Service and digital forensics experts from Mandiant, which produced an incident report (PDF) that was later published by South Carolina Dept. of Revenue. KrebsOnSecurity sought comment from the Secret Service, South Carolina prosecutors, and Mr. Keel’s office. This story will be updated if any of them respond. Update: The Secret Service declined to comment.

On Nov. 18, 2012, Rescator told fellow denizens of the forum Verified he was selling a database of 65,000 records with bank account information from several smaller, regional financial institutions. Rescator’s sales thread on Verified listed more than a dozen database fields, including account number, name, address, phone, tax ID, date of birth, employer and occupation.

Asked to provide more context about the database for sale, Rescator told forum members the database included financial records related to tax filings of a U.S. state. Rescator added that there was a second database of around 80,000 corporations that included social security numbers, names and addresses, but no financial information.

The AP says South Carolina paid $12 million to Experian for identity theft protection and credit monitoring for its residents after the breach.

“At the time, it was one of the largest breaches in U.S. history but has since been surpassed greatly by hacks to Equifax, Yahoo, Home Depot, Target and PlayStation,” the AP’s Jeffrey Collins wrote.

As it happens, Rescator’s criminal hacking crew was directly responsible for the 2013 breach at Target and the 2014 hack of Home Depot. The Target intrusion saw Rescator’s cybercrime shops selling roughly 40 million stolen payment cards, and 56 million cards from Home Depot customers.

Who is Rescator? On Dec. 14, 2023, KrebsOnSecurity published the results of a 10-year investigation into the identity of Rescator, a.k.a. Mikhail Borisovich Shefel, a 36-year-old who lives in Moscow and who recently changed his last name to Lenin.

Mr. Keel’s assertion that somehow the efforts of South Carolina officials following the breach may have lessened its impact on citizens seems unlikely. The stolen tax and financial data appears to have been sold openly on cybercrime forums by one of the Russian underground’s most aggressive and successful hacking crews.

While there are no indications from reviewing forum posts that Rescator ever sold the data, his sales threads came at a time when the incidence of tax refund fraud was skyrocketing.

Tax-related identity theft occurs when someone uses a stolen identity and SSN to file a tax return in that person’s name claiming a fraudulent refund. Victims usually first learn of the crime after having their returns rejected because scammers beat them to it. Even those who are not required to file a return can be victims of refund fraud, as can those who are not actually owed a refund from the U.S. Internal Revenue Service (IRS).

According to a 2013 report from the Treasury Inspector General’s office, the IRS issued nearly $4 billion in bogus tax refunds in 2012, and more than $5.8 billion in 2013. The money largely was sent to people who stole SSNs and other information on U.S. citizens, and then filed fraudulent tax returns on those individuals claiming a large refund but at a different address.

It remains unclear why Shefel has never been officially implicated in the breaches at Target, Home Depot, or in South Carolina. It may be that Shefel has been indicted, and that those indictments remain sealed for some reason. Perhaps prosecutors were hoping Shefel would decide to leave Russia, at which point it would be easier to apprehend him if he believed no one was looking for him.

But all signs are that Shefel is deeply rooted in Russia, and has no plans to leave. In January 2024, authorities in Australia, the United States and the U.K. levied financial sanctions against 33-year-old Russian man Aleksandr Ermakov for allegedly stealing data on 10 million customers of the Australian health insurance giant Medibank.

A week after those sanctions were put in place, KrebsOnSecurity published a deep dive on Ermakov, which found that he co-ran a Moscow-based IT security consulting business along with Mikhail Shefel called Shtazi-IT.

A Google-translated version of Shtazi dot ru. Image: Archive.org.

Why CISA is Warning CISOs About a Breach at Sisense

11 April 2024 at 16:48

The U.S. Cybersecurity and Infrastructure Security Agency (CISA) said today it is investigating a breach at business intelligence company Sisense, whose products are designed to allow companies to view the status of multiple third-party online services in a single dashboard. CISA urged all Sisense customers to reset any credentials and secrets that may have been shared with the company, which is the same advice Sisense gave to its customers Wednesday evening.

New York City based Sisense has more than a thousand customers across a range of industry verticals, including financial services, telecommunications, healthcare and higher education. On April 10, Sisense Chief Information Security Officer Sangram Dash told customers the company had been made aware of reports that “certain Sisense company information may have been made available on what we have been advised is a restricted access server (not generally available on the internet.)”

“We are taking this matter seriously and promptly commenced an investigation,” Dash continued. “We engaged industry-leading experts to assist us with the investigation. This matter has not resulted in an interruption to our business operations. Out of an abundance of caution, and while we continue to investigate, we urge you to promptly rotate any credentials that you use within your Sisense application.”

In its alert, CISA said it was working with private industry partners to respond to a recent compromise discovered by independent security researchers involving Sisense.

“CISA is taking an active role in collaborating with private industry partners to respond to this incident, especially as it relates to impacted critical infrastructure sector organizations,” the sparse alert reads. “We will provide updates as more information becomes available.”

Sisense declined to comment when asked about the veracity of information shared by two trusted sources with close knowledge of the breach investigation. Those sources said the breach appears to have started when the attackers somehow gained access to the company’s Gitlab code repository, and in that repository was a token or credential that gave the bad guys access to Sisense’s Amazon S3 buckets in the cloud.

Customers can use Gitlab either as a solution that is hosted in the cloud at Gitlab.com, or as a self-managed deployment. KrebsOnSecurity understands that Sisense was using the self-managed version of Gitlab.

Both sources said the attackers used the S3 access to copy and exfiltrate several terabytes worth of Sisense customer data, which apparently included millions of access tokens, email account passwords, and even SSL certificates.

The incident raises questions about whether Sisense was doing enough to protect sensitive data entrusted to it by customers, such as whether the massive volume of stolen customer data was ever encrypted while at rest in these Amazon cloud servers.

It is clear, however, that unknown attackers now have all of the credentials that Sisense customers used in their dashboards.

The breach also makes clear that Sisense is somewhat limited in the clean-up actions that it can take on behalf of customers, because access tokens are essentially text files on your computer that allow you to stay logged in for extended periods of time — sometimes indefinitely. And depending on which service we’re talking about, it may be possible for attackers to re-use those access tokens to authenticate as the victim without ever having to present valid credentials.

Beyond that, it is largely up to Sisense customers to decide if and when they change passwords to the various third-party services that they’ve previously entrusted to Sisense.

Earlier today, a public relations firm working with Sisense reached out to learn if KrebsOnSecurity planned to publish any further updates on their breach (KrebsOnSecurity posted a screenshot of the CISO’s customer email to both LinkedIn and Mastodon on Wednesday evening). The PR rep said Sisense wanted to make sure they had an opportunity to comment before the story ran.

But when confronted with the details shared by my sources, Sisense apparently changed its mind.

“After consulting with Sisense, they have told me that they don’t wish to respond,” the PR rep said in an emailed reply.

Update, 6:49 p.m., ET: Added clarification that Sisense is using a self-hosted version of Gitlab, not the cloud version managed by Gitlab.com.

Also, Sisense’s CISO Dash just sent an update to customers directly. The latest advice from the company is far more detailed, and involves resetting a potentially large number of access tokens across multiple technologies, including Microsoft Active Directory credentials, GIT credentials, web access tokens, and any single sign-on (SSO) secrets or tokens.

The full message from Dash to customers is below:

“Good Afternoon,

We are following up on our prior communication of April 10, 2024, regarding reports that certain Sisense company information may have been made available on a restricted access server. As noted, we are taking this matter seriously and our investigation remains ongoing.

Our customers must reset any keys, tokens, or other credentials in their environment used within the Sisense application.

Specifically, you should:
– Change Your Password: Change all Sisense-related passwords on http://my.sisense.com
– Non-SSO:
– Replace the Secret in the Base Configuration Security section with your GUID/UUID.
– Reset passwords for all users in the Sisense application.
– Logout all users by running GET /api/v1/authentication/logout_all under Admin user.
– Single Sign-On (SSO):
– If you use SSO JWT for the user’s authentication in Sisense, you will need to update sso.shared_secret in Sisense and then use the newly generated value on the side of the SSO handler.
– We strongly recommend rotating the x.509 certificate for your SSO SAML identity provider.
– If you utilize OpenID, it’s imperative to rotate the client secret as well.
– Following these adjustments, update the SSO settings in Sisense with the revised values.
– Logout all users by running GET /api/v1/authentication/logout_all under Admin user.
– Customer Database Credentials: Reset credentials in your database that were used in the Sisense application to ensure continuity of connection between the systems.
– Data Models: Change all usernames and passwords in the database connection string in the data models.
– User Params: If you are using the User Params feature, reset them.
– Active Directory/LDAP: Change the username and user password of users whose authorization is used for AD synchronization.
– HTTP Authentication for GIT: Rotate the credentials in every GIT project.
– B2D Customers: Use the following API PATCH api/v2/b2d-connection in the admin section to update the B2D connection.
– Infusion Apps: Rotate the associated keys.
– Web Access Token: Rotate all tokens.
– Custom Email Server: Rotate associated credentials.
– Custom Code: Reset any secrets that appear in custom code Notebooks.

If you need any assistance, please submit a customer support ticket at https://community.sisense.com/t5/support-portal/bd-p/SupportPortal and mark it as critical. We have a dedicated response team on standby to assist with your requests.

At Sisense, we give paramount importance to security and are committed to our customers’ success. Thank you for your partnership and commitment to our mutual security.

Regards,

Sangram Dash
Chief Information Security Officer”

Introducing the Digital Footprint Portal

10 April 2024 at 09:01

Digital security is about so much more than malware. That wasn’t always the case. 

When I started Malwarebytes more than 16 years ago, malware was the primary security concern—the annoying pop-ups, the fast-spreading viruses, the catastrophic worms—and throughout our company’s history, Malwarebytes routinely excelled against this threat. We caught malware that other vendors missed, and we pioneered malware detection methods beyond the signature-based industry standard.  

I’m proud of our success, but it wasn’t just our technology that got us here. It was our attitude.  

At Malwarebytes, we believe that everyone has the right to a secure digital life, no matter their budget, which is why our malware removal tool was free when it launched and remains free today. Our ad blocking tool, Browser Guard is also available to all without a charge. This was very much not the norm in cybersecurity, but I believe it was—and will always be—the right thing to do.  

Today, I am proud to add to our legacy of empowering individuals regardless of their wallet by releasing a new, free tool that better educates and prepares people for modern threats that abuse exposed data to target online identities. I’d like to welcome everyone to try our new Digital Footprint Portal.  

See your exposed data in our new Digital Footprint Portal.

By simply entering an email address, anyone can discover what information of theirs is available on the dark web to hackers, cybercriminals, and scammers. From our safe portal, everyday people can view past password breaches, active social media profiles, potential leaks of government ID info, and more.  

More than a decade ago, Malwarebytes revolutionized the antivirus industry by prioritizing the security of all individuals. Today, Malwarebytes is now also revolutionizing digital life protection by safeguarding the data that serves as the backbone of your identity, your privacy, your reputation, and your well-being online.  

Why data matters 

I can’t tell you how many times I’ve read that “data is the new oil” without reading any explanations as to why people should care.  

Here’s my attempt at clarifying the matter: Too much of our lives are put online without our control.  

Creating a social media account requires handing over your full name and birthdate. Completing any online shopping order requires detailing your address and credit card number. Getting approved for a mortgage requires the exchange of several documents that reveal your salary and your employer. Buying a plane ticket could necessitate your passport info. Messaging your doctor could involve sending a few photos that you’d like to keep private.  

As we know, a lot of this data is valuable to advertisers—this is what pundits focus on when they invoke the value of “oil” in discussing modern data collection—but this data is also valuable to an entirely separate group that has learned to abuse private information in novel and frightening ways: Cybercriminals.  

Long ago, cybercriminals would steal your username and password by fooling you with an urgently worded phishing email. Today, while this tactic is still being used, there’s a much easier path to data theft. Cybercriminals can simply buy your information on the dark web.  

That information can include credit card numbers—where the risk of financial fraud is obvious—and even more regulated forms of identity, like Social Security Numbers and passport info. Equipped with enough forms of “proof,” online thieves can fool a bank into routing your money elsewhere or trick a lender into opening a new line of credit in your name.  

Where the risk truly lies, however, is in fraudulent account access.  

If you’ve ever been involved in a company’s data breach (which is extremely likely), there’s a chance that the username and password that were associated with that data breach can be bought on the dark web for just pennies. Even though each data breach involves just one username and password for each account, cybercriminals know that many people frequently reuse passwords across multiple accounts. After illegally purchasing your login credentials that were exposed in one data breach, thieves will use those same credentials to try to log into more popular, sensitive online accounts, like your online banking, your email, and your social media.  

If any of these attempts at digital safe-cracking works, the potential for harm is enormous.  

With just your email login and password, cybercriminals can ransack photos that are stored in an associated cloud drive and use those for extortion. They can search for attachments that reveal credit card numbers, passport info, and ID cards and then use that information to fool a bank into letting them access your funds. They can pose as you in bogus emails and make fraudulent requests for money from your family and friends. They can even change your password and lock you out forever. 

This is the future of personal cybercrime, and as a company committed to stopping cyberthreats everywhere, we understand that we have a role to play in protecting people.  

We will always stop malware. We will always advise to create and use unique passwords and multifactor authentication. But today, we’re expanding our responsibility and helping you truly see the modern threats that could leverage your data.  

With the Digital Footprint Portal, who you are online is finally visible to you—not just cybercriminals. Use it today to understand where your data has been leaked, what passwords have been exposed, and how you can protect yourself online.  

Digitally safe 

Malwarebytes and the cybersecurity industry at large could not have predicted today’s most pressing threats against online identities and reputations, but that doesn’t mean we get to ignore them. The truth is that Malwarebytes was founded with a belief broader than anti-malware protection. Malwarebytes was founded to keep people safe.  

As cybercriminals change their tactics, as scammers needle their way onto online platforms, and as thieves steal and abuse the sensitive data that everyone places online, Malwarebytes will always stay one step ahead. The future isn’t about worms, viruses, Trojans, scams, pig butchering, or any other single scam. It’s about holistic digital life protection. We’re excited to help you get there.  

BlackCat Ransomware Group Implodes After Apparent $22M Payment by Change Healthcare

5 March 2024 at 19:22

There are indications that U.S. healthcare giant Change Healthcare has made a $22 million extortion payment to the infamous BlackCat ransomware group (a.k.a. “ALPHV“) as the company struggles to bring services back online amid a cyberattack that has disrupted prescription drug services nationwide for weeks. However, the cybercriminal who claims to have given BlackCat access to Change’s network says the crime gang cheated them out of their share of the ransom, and that they still have the sensitive data Change reportedly paid the group to destroy. Meanwhile, the affiliate’s disclosure appears to have prompted BlackCat to cease operations entirely.

Image: Varonis.

In the third week of February, a cyber intrusion at Change Healthcare began shutting down important healthcare services as company systems were taken offline. It soon emerged that BlackCat was behind the attack, which has disrupted the delivery of prescription drugs for hospitals and pharmacies nationwide for nearly two weeks.

On March 1, a cryptocurrency address that security researchers had already mapped to BlackCat received a single transaction worth approximately $22 million. On March 3, a BlackCat affiliate posted a complaint to the exclusive Russian-language ransomware forum Ramp saying that Change Healthcare had paid a $22 million ransom for a decryption key, and to prevent four terabytes of stolen data from being published online.

The affiliate claimed BlackCat/ALPHV took the $22 million payment but never paid him his percentage of the ransom. BlackCat is known as a “ransomware-as-service” collective, meaning they rely on freelancers or affiliates to infect new networks with their ransomware. And those affiliates in turn earn commissions ranging from 60 to 90 percent of any ransom amount paid.

“But after receiving the payment ALPHV team decide to suspend our account and keep lying and delaying when we contacted ALPHV admin,” the affiliate “Notchy” wrote. “Sadly for Change Healthcare, their data [is] still with us.”

Change Healthcare has neither confirmed nor denied paying, and has responded to multiple media outlets with a similar non-denial statement — that the company is focused on its investigation and on restoring services.

Assuming Change Healthcare did pay to keep their data from being published, that strategy seems to have gone awry: Notchy said the list of affected Change Healthcare partners they’d stolen sensitive data from included Medicare and a host of other major insurance and pharmacy networks.

On the bright side, Notchy’s complaint seems to have been the final nail in the coffin for the BlackCat ransomware group, which was infiltrated by the FBI and foreign law enforcement partners in late December 2023. As part of that action, the government seized the BlackCat website and released a decryption tool to help victims recover their systems.

BlackCat responded by re-forming, and increasing affiliate commissions to as much as 90 percent. The ransomware group also declared it was formally removing any restrictions or discouragement against targeting hospitals and healthcare providers.

However, instead of responding that they would compensate and placate Notchy, a representative for BlackCat said today the group was shutting down and that it had already found a buyer for its ransomware source code.

The seizure notice now displayed on the BlackCat darknet website.

“There’s no sense in making excuses,” wrote the RAMP member “Ransom.” “Yes, we knew about the problem, and we were trying to solve it. We told the affiliate to wait. We could send you our private chat logs where we are shocked by everything that’s happening and are trying to solve the issue with the transactions by using a higher fee, but there’s no sense in doing that because we decided to fully close the project. We can officially state that we got screwed by the feds.”

BlackCat’s website now features a seizure notice from the FBI, but several researchers noted that this image seems to have been merely cut and pasted from the notice the FBI left in its December raid of BlackCat’s network. The FBI has not responded to requests for comment.

Fabian Wosar, head of ransomware research at the security firm Emsisoft, said it appears BlackCat leaders are trying to pull an “exit scam” on affiliates by withholding many ransomware payment commissions at once and shutting down the service.

“ALPHV/BlackCat did not get seized,” Wosar wrote on Twitter/X today. “They are exit scamming their affiliates. It is blatantly obvious when you check the source code of their new takedown notice.”

Dmitry Smilyanets, a researcher for the security firm Recorded Future, said BlackCat’s exit scam was especially dangerous because the affiliate still has all the stolen data, and could still demand additional payment or leak the information on his own.

“The affiliates still have this data, and they’re mad they didn’t receive this money, Smilyanets told Wired.com. “It’s a good lesson for everyone. You cannot trust criminals; their word is worth nothing.”

BlackCat’s apparent demise comes closely on the heels of the implosion of another major ransomware group — LockBit, a ransomware gang estimated to have extorted over $120 million in payments from more than 2,000 victims worldwide. On Feb. 20, LockBit’s website was seized by the FBI and the U.K.’s National Crime Agency (NCA) following a months-long infiltration of the group.

LockBit also tried to restore its reputation on the cybercrime forums by resurrecting itself at a new darknet website, and by threatening to release data from a number of major companies that were hacked by the group in the weeks and days prior to the FBI takedown.

But LockBit appears to have since lost any credibility the group may have once had. After a much-promoted attack on the government of Fulton County, Ga., for example, LockBit threatened to release Fulton County’s data unless paid a ransom by Feb. 29. But when Feb. 29 rolled around, LockBit simply deleted the entry for Fulton County from its site, along with those of several financial organizations that had previously been extorted by the group.

Fulton County held a press conference to say that it had not paid a ransom to LockBit, nor had anyone done so on their behalf, and that they were just as mystified as everyone else as to why LockBit never followed through on its threat to publish the county’s data. Experts told KrebsOnSecurity LockBit likely balked because it was bluffing, and that the FBI likely relieved them of that data in their raid.

Smilyanets’ comments are driven home in revelations first published last month by Recorded Future, which quoted an NCA official as saying LockBit never deleted the data after being paid a ransom, even though that is the only reason many of its victims paid.

“If we do not give you decrypters, or we do not delete your data after payment, then nobody will pay us in the future,” LockBit’s extortion notes typically read.

Hopefully, more companies are starting to get the memo that paying cybercrooks to delete stolen data is a losing proposition all around.

Fulton County, Security Experts Call LockBit’s Bluff

29 February 2024 at 17:18

The ransomware group LockBit told officials with Fulton County, Ga. they could expect to see their internal documents published online this morning unless the county paid a ransom demand. LockBit removed Fulton County’s listing from its victim shaming website this morning, claiming the county had paid. But county officials said they did not pay, nor did anyone make payment on their behalf. Security experts say LockBit was likely bluffing and probably lost most of the data when the gang’s servers were seized this month by U.S. and U.K. law enforcement.

The LockBit website included a countdown timer until the promised release of data stolen from Fulton County, Ga. LockBit would later move this deadline up to Feb. 29, 2024.

LockBit listed Fulton County as a victim on Feb. 13, saying that unless it was paid a ransom the group would publish files stolen in a breach at the county last month. That attack disrupted county phones, Internet access and even their court system. LockBit leaked a small number of the county’s files as a teaser, which appeared to include sensitive and sealed court records in current and past criminal trials.

On Feb. 16, Fulton County’s entry — along with a countdown timer until the data would be published — was removed from the LockBit website without explanation. The leader of LockBit told KrebsOnSecurity this was because Fulton County officials had engaged in last-minute negotiations with the group.

But on Feb. 19, investigators with the FBI and the U.K.’s National Crime Agency (NCA) took over LockBit’s online infrastructure, replacing the group’s homepage with a seizure notice and links to LockBit ransomware decryption tools.

In a press briefing on Feb. 20, Fulton County Commission Chairman Robb Pitts told reporters the county did not pay a ransom demand, noting that the board “could not in good conscience use Fulton County taxpayer funds to make a payment.”

Three days later, LockBit reemerged with new domains on the dark web, and with Fulton County listed among a half-dozen other victims whose data was about to be leaked if they refused to pay. As it does with all victims, LockBit assigned Fulton County a countdown timer, saying officials had until late in the evening on March 1 until their data was published.

LockBit revised its deadline for Fulton County to Feb. 29.

LockBit soon moved up the deadline to the morning of Feb. 29. As Fulton County’s LockBit timer was counting down to zero this morning, its listing disappeared from LockBit’s site. LockBit’s leader and spokesperson, who goes by the handle “LockBitSupp,” told KrebsOnSecurity today that Fulton County’s data disappeared from their site because county officials paid a ransom.

“Fulton paid,” LockBitSupp said. When asked for evidence of payment, LockBitSupp claimed. “The proof is that we deleted their data and did not publish it.”

But at a press conference today, Fulton County Chairman Robb Pitts said the county does not know why its data was removed from LockBit’s site.

“As I stand here at 4:08 p.m., we are not aware of any data being released today so far,” Pitts said. “That does not mean the threat is over. They could release whatever data they have at any time. We have no control over that. We have not paid any ransom. Nor has any ransom been paid on our behalf.”

Brett Callow, a threat analyst with the security firm Emsisoft, said LockBit likely lost all of the victim data it stole before the FBI/NCA seizure, and that it has been trying madly since then to save face within the cybercrime community.

“I think it was a case of them trying to convince their affiliates that they were still in good shape,” Callow said of LockBit’s recent activities. “I strongly suspect this will be the end of the LockBit brand.”

Others have come to a similar conclusion. The security firm RedSense posted an analysis to Twitter/X that after the takedown, LockBit published several “new” victim profiles for companies that it had listed weeks earlier on its victim shaming site. Those victim firms — a healthcare provider and major securities lending platform — also were unceremoniously removed from LockBit’s new shaming website, despite LockBit claiming their data would be leaked.

“We are 99% sure the rest of their ‘new victims’ are also fake claims (old data for new breaches),” RedSense posted. “So the best thing for them to do would be to delete all other entries from their blog and stop defrauding honest people.”

Callow said there certainly have been plenty of cases in the past where ransomware gangs exaggerated their plunder from a victim organization. But this time feels different, he said.

“It is a bit unusual,” Callow said. “This is about trying to still affiliates’ nerves, and saying, ‘All is well, we weren’t as badly compromised as law enforcement suggested.’ But I think you’d have to be a fool to work with an organization that has been so thoroughly hacked as LockBit has.”

New Leak Shows Business Side of China’s APT Menace

22 February 2024 at 08:27

A new data leak that appears to have come from one of China’s top private cybersecurity firms provides a rare glimpse into the commercial side of China’s many state-sponsored hacking groups. Experts say the leak illustrates how Chinese government agencies increasingly are contracting out foreign espionage campaigns to the nation’s burgeoning and highly competitive cybersecurity industry.

A marketing slide deck promoting i-SOON’s Advanced Persistent Threat (APT) capabilities.

A large cache of more than 500 documents published to GitHub last week indicate the records come from i-SOON, a technology company headquartered in Shanghai that is perhaps best known for providing cybersecurity training courses throughout China. But the leaked documents, which include candid employee chat conversations and images, show a less public side of i-SOON, one that frequently initiates and sustains cyberespionage campaigns commissioned by various Chinese government agencies.

The leaked documents suggest i-SOON employees were responsible for a raft of cyber intrusions over many years, infiltrating government systems in the United Kingdom and countries throughout Asia. Although the cache does not include raw data stolen from cyber espionage targets, it features numerous documents listing the level of access gained and the types of data exposed in each intrusion.

Security experts who reviewed the leaked data say they believe the information is legitimate, and that i-SOON works closely with China’s Ministry of Public Security and the military. In 2021, the Sichuan provincial government named i-SOON as one of “the top 30 information security companies.”

“The leak provides some of the most concrete details seen publicly to date, revealing the maturing nature of China’s cyber espionage ecosystem,” said Dakota Cary, a China-focused consultant at the security firm SentinelOne. “It shows explicitly how government targeting requirements drive a competitive marketplace of independent contractor hackers-for-hire.”

Mei Danowski is a former intelligence analyst and China expert who now writes about her research in a Substack publication called Natto Thoughts. Danowski said i-SOON has achieved the highest secrecy classification that a non-state-owned company can receive, which qualifies the company to conduct classified research and development related to state security.

i-SOON’s “business services” webpage states that the company’s offerings include public security, anti-fraud, blockchain forensics, enterprise security solutions, and training. Danowski said that in 2013, i-SOON established a department for research on developing new APT network penetration methods.

APT stands for Advanced Persistent Threat, a term that generally refers to state-sponsored hacking groups. Indeed, among the documents apparently leaked from i-SOON is a sales pitch slide boldly highlighting the hacking prowess of the company’s “APT research team” (see screenshot above).

i-SOON CEO Wu Haibo, in 2011. Image: nattothoughts.substack.com.

The leaked documents included a lengthy chat conversation between the company’s founders, who repeatedly discuss flagging sales and the need to secure more employees and government contracts. Danowski said the CEO of i-SOON, Wu Haibo (“Shutdown” in the leaked chats) is a well-known first-generation red hacker or “Honker,” and an early member of Green Army — the very first Chinese hacktivist group founded in 1997. Mr. Haibo has not yet responded to a request for comment.

In October 2023, Danowski detailed how i-SOON became embroiled in a software development contract dispute when it was sued by a competing Chinese cybersecurity company called Chengdu 404. In September 2020, the U.S. Department of Justice unsealed indictments against multiple Chengdu 404 employees, charging that the company was a facade that hid more than a decade’s worth of cyber intrusions attributed to a threat actor group known as “APT 41.”

Danowski said the existence of this legal dispute suggests that Chengdu 404 and i-SOON have or at one time had a business relationship, and that one company likely served as a subcontractor to the other.

“From what they chat about we can see this is a very competitive industry, where companies in this space are constantly poaching each others’ employees and tools,” Danowski said. “The infosec industry is always trying to distinguish [the work] of one APT group from another. But that’s getting harder to do.”

It remains unclear if i-SOON’s work has earned it a unique APT designation. But Will Thomas, a cyber threat intelligence researcher at Equinix, found an Internet address in the leaked data that corresponds to a domain flagged in a 2019 Citizen Lab report about one-click mobile phone exploits that were being used to target groups in Tibet. The 2019 report referred to the threat actor behind those attacks as an APT group called Poison Carp.

Several images and chat records in the data leak suggest i-SOON’s clients periodically gave the company a list of targets they wanted to infiltrate, but sometimes employees confused the instructions. One screenshot shows a conversation in which an employee tells his boss they’ve just hacked one of the universities on their latest list, only to be told that the victim in question was not actually listed as a desired target.

The leaked chats show i-SOON continuously tried to recruit new talent by hosting a series of hacking competitions across China. It also performed charity work, and sought to engage employees and sustain morale with various team-building events.

However, the chats include multiple conversations between employees commiserating over long hours and low pay. The overall tone of the discussions indicates employee morale was quite low and that the workplace environment was fairly toxic. In several of the conversations, i-SOON employees openly discuss with their bosses how much money they just lost gambling online with their mobile phones while at work.

Danowski believes the i-SOON data was probably leaked by one of those disgruntled employees.

“This was released the first working day after the Chinese New Year,” Danowski said. “Definitely whoever did this planned it, because you can’t get all this information all at once.”

SentinelOne’s Cary said he came to the same conclusion, noting that the Protonmail account tied to the GitHub profile that published the records was registered a month before the leak, on January 15, 2024.

China’s much vaunted Great Firewall not only lets the government control and limit what citizens can access online, but this distributed spying apparatus allows authorities to block data on Chinese citizens and companies from ever leaving the country.

As a result, China enjoys a remarkable information asymmetry vis-a-vis virtually all other industrialized nations. Which is why this apparent data leak from i-SOON is such a rare find for Western security researchers.

“I was so excited to see this,” Cary said. “Every day I hope for data leaks coming out of China.”

That information asymmetry is at the heart of the Chinese government’s cyberwarfare goals, according to a 2023 analysis by Margin Research performed on behalf of the Defense Advanced Research Projects Agency (DARPA).

“In the area of cyberwarfare, the western governments see cyberspace as a ‘fifth domain’ of warfare,” the Margin study observed. “The Chinese, however, look at cyberspace in the broader context of information space. The ultimate objective is, not ‘control’ of cyberspace, but control of information, a vision that dominates China’s cyber operations.”

The National Cybersecurity Strategy issued by the White House last year singles out China as the biggest cyber threat to U.S. interests. While the United States government does contract certain aspects of its cyber operations to companies in the private sector, it does not follow China’s example in promoting the wholesale theft of state and corporate secrets for the commercial benefit of its own private industries.

Dave Aitel, a co-author of the Margin Research report and former computer scientist at the U.S. National Security Agency, said it’s nice to see that Chinese cybersecurity firms have to deal with all of the same contracting headaches facing U.S. companies seeking work with the federal government.

“This leak just shows there’s layers of contractors all the way down,” Aitel said. “It’s pretty fun to see the Chinese version of it.”

U.S. Internet Leaked Years of Internal, Customer Emails

14 February 2024 at 11:45

The Minnesota-based Internet provider U.S. Internet Corp. has a business unit called Securence, which specializes in providing filtered, secure email services to businesses, educational institutions and government agencies worldwide. But until it was notified last week, U.S. Internet was publishing more than a decade’s worth of its internal email — and that of thousands of Securence clients — in plain text out on the Internet and just a click away for anyone with a Web browser.

Headquartered in Minnetonka, Minn., U.S. Internet is a regional ISP that provides fiber and wireless Internet service. The ISP’s Securence division bills itself “a leading provider of email filtering and management software that includes email protection and security services for small business, enterprise, educational and government institutions worldwide.”

U.S. Internet/Securence says your email is secure. Nothing could be further from the truth.

Roughly a week ago, KrebsOnSecurity was contacted by Hold Security, a Milwaukee-based cybersecurity firm. Hold Security founder Alex Holden said his researchers had unearthed a public link to a U.S. Internet email server listing more than 6,500 domain names, each with its own clickable link.

A tiny portion of the more than 6,500 customers who trusted U.S. Internet with their email.

Drilling down into those individual domain links revealed inboxes for each employee or user of these exposed host names. Some of the emails dated back to 2008; others were as recent as the present day.

Securence counts among its customers dozens of state and local governments, including: nc.gov — the official website of North Carolina; stillwatermn.gov, the website for the city of Stillwater, Minn.; and cityoffrederickmd.gov, the website for the government of Frederick, Md.

Incredibly, included in this giant index of U.S. Internet customer emails were the internal messages for every current and former employee of U.S. Internet and its subsidiary USI Wireless. Since that index also included the messages of U.S. Internet’s CEO Travis Carter, KrebsOnSecurity forwarded one of Mr. Carter’s own recent emails to him, along with a request to understand how exactly the company managed to screw things up so spectacularly.

Individual inboxes of U.S. Wireless employees were published in clear text on the Internet.

Within minutes of that notification, U.S. Internet pulled all of the published inboxes offline. Mr. Carter responded and said his team was investigating how it happened. In the same breath, the CEO asked if KrebsOnSecurity does security consulting for hire (I do not).

[Author’s note: Perhaps Mr. Carter was frantically casting about for any expertise he could find in a tough moment. But I found the request personally offensive, because I couldn’t shake the notion that maybe the company was hoping it could buy my silence.]

Earlier this week, Mr. Carter replied with a highly technical explanation that ultimately did little to explain why or how so many internal and customer inboxes were published in plain text on the Internet.

“The feedback from my team was a issue with the Ansible playbook that controls the Nginx configuration for our IMAP servers,” Carter said, noting that this incorrect configuration was put in place by a former employee and never caught. U.S. Internet has not shared how long these messages were exposed.

“The rest of the platform and other backend services are being audited to verify the Ansible playbooks are correct,” Carter said.

Holden said he also discovered that hackers have been abusing a Securence link scrubbing and anti-spam service called Url-Shield to create links that look benign but instead redirect visitors to hacked and malicious websites.

“The bad guys modify the malicious link reporting into redirects to their own malicious sites,” Holden said. “That’s how the bad guys drive traffic to their sites and increase search engine rankings.”

For example, clicking the Securence link shown in the screenshot directly above leads one to a website that tries to trick visitors into allowing site notifications by couching the request as a CAPTCHA request designed to separate humans from bots. After approving the deceptive CAPTCHA/notification request, the link forwards the visitor to a Russian internationalized domain name (рпроаг[.]рф).

The link to this malicious and deceptive website was created using Securence’s link-scrubbing service. Notification pop-ups were blocked when this site tried to disguise a prompt for accepting notifications as a form of CAPTCHA.

U.S. Internet has not responded to questions about how long it has been exposing all of its internal and customer emails, or when the errant configuration changes were made. The company also still has not disclosed the incident on its website. The last press release on the site dates back to March 2020.

KrebsOnSecurity has been writing about data breaches for nearly two decades, but this one easily takes the cake in terms of the level of incompetence needed to make such a huge mistake unnoticed. I’m not sure what the proper response from authorities or regulators should be to this incident, but it’s clear that U.S. Internet should not be allowed to manage anyone’s email unless and until it can demonstrate more transparency, and prove that it has radically revamped its security.

Arrests in $400M SIM-Swap Tied to Heist at FTX?

1 February 2024 at 13:41

Three Americans were charged this week with stealing more than $400 million in a November 2022 SIM-swapping attack. The U.S. government did not name the victim organization, but there is every indication that the money was stolen from the now-defunct cryptocurrency exchange FTX, which had just filed for bankruptcy on that same day.

A graphic illustrating the flow of more than $400 million in cryptocurrencies stolen from FTX on Nov. 11-12, 2022. Image: Elliptic.co.

An indictment unsealed this week and first reported on by Ars Technica alleges that Chicago man Robert Powell, a.k.a. “R,” “R$” and “ElSwapo1,” was the ringleader of a SIM-swapping group called the “Powell SIM Swapping Crew.” Colorado resident Emily “Em” Hernandez allegedly helped the group gain access to victim devices in service of SIM-swapping attacks between March 2021 and April 2023. Indiana resident Carter Rohn, a.k.a. “Carti,” and “Punslayer,” allegedly assisted in compromising devices.

In a SIM-swapping attack, the crooks transfer the target’s phone number to a device they control, allowing them to intercept any text messages or phone calls sent to the victim, including one-time passcodes for authentication or password reset links sent via SMS.

The indictment states that the perpetrators in this heist stole the $400 million in cryptocurrencies on Nov. 11, 2022 after they SIM-swapped an AT&T customer by impersonating them at a retail store using a fake ID. However, the document refers to the victim in this case only by the name “Victim 1.”

Wired’s Andy Greenberg recently wrote about FTX’s all-night race to stop a $1 billion crypto heist that occurred on the evening of November 11:

“FTX’s staff had already endured one of the worst days in the company’s short life. What had recently been one of the world’s top cryptocurrency exchanges, valued at $32 billion only 10 months earlier, had just declared bankruptcy. Executives had, after an extended struggle, persuaded the company’s CEO, Sam Bankman-Fried, to hand over the reins to John Ray III, a new chief executive now tasked with shepherding the company through a nightmarish thicket of debts, many of which it seemed to have no means to pay.”

“FTX had, it seemed, hit rock bottom. Until someone—a thief or thieves who have yet to be identified—chose that particular moment to make things far worse. That Friday evening, exhausted FTX staffers began to see mysterious outflows of the company’s cryptocurrency, publicly captured on the Etherscan website that tracks the Ethereum blockchain, representing hundreds of millions of dollars worth of crypto being stolen in real time.”

The indictment says the $400 million was stolen over several hours between November 11 and 12, 2022. Tom Robinson, co-founder of the blockchain intelligence firm Elliptic, said the attackers in the FTX heist began to drain FTX wallets on the evening of Nov. 11, 2022 local time, and continuing until the 12th of November.

Robinson said Elliptic is not aware of any other crypto heists of that magnitude occurring on that date.

“We put the value of the cryptoassets stolen at $477 million,” Robinson said. “The FTX administrators have reported overall losses due to “unauthorized third-party transfers” of $413 million – the discrepancy is likely due to subsequent seizure and return of some of the stolen assets. Either way, it’s certainly over $400 million, and we are not aware of any other thefts from crypto exchanges on this scale, on this date.”

The SIM-swappers allegedly responsible for the $400 million crypto theft are all U.S. residents. But there are some indications they had help from organized cybercriminals based in Russia. In October 2023, Elliptic released a report that found the money stolen from FTX had been laundered through exchanges with ties to criminal groups based in Russia.

“A Russia-linked actor seems a stronger possibility,” Elliptic wrote. “Of the stolen assets that can be traced through ChipMixer, significant amounts are combined with funds from Russia-linked criminal groups, including ransomware gangs and darknet markets, before being sent to exchanges. This points to the involvement of a broker or other intermediary with a nexus in Russia.”

Nick Bax, director of analytics at the cryptocurrency wallet recovery firm Unciphered, said the flow of stolen FTX funds looks more like what his team has seen from groups based in Eastern Europe and Russian than anything they’ve witnessed from US-based SIM-swappers.

“I was a bit surprised by this development but it seems to be consistent with reports from CISA [the Cybersecurity and Infrastructure Security Agency] and others that “Scattered Spider” has worked with [ransomware] groups like ALPHV/BlackCat,” Bax said.

CISA’s alert on Scattered Spider says they are a cybercriminal group that targets large companies and their contracted information technology (IT) help desks.

“Scattered Spider threat actors, per trusted third parties, have typically engaged in data theft for extortion and have also been known to utilize BlackCat/ALPHV ransomware alongside their usual TTPs,” CISA said, referring to the group’s signature “Tactics, Techniques an Procedures.”

Nick Bax, posting on Twitter/X in Nov 2022 about his research on the $400 million FTX heist.

Earlier this week, KrebsOnSecurity published a story noting that a Florida man recently charged with being part of a SIM-swapping conspiracy is thought to be a key member of Scattered Spider, a hacking group also known as 0ktapus. That group has been blamed for a string of cyber intrusions at major U.S. technology companies during the summer of 2022.

Financial claims involving FTX’s bankruptcy proceedings are being handled by the financial and risk consulting giant Kroll. In August 2023, Kroll suffered its own breach after a Kroll employee was SIM-swapped. According to Kroll, the thieves stole user information for multiple cryptocurrency platforms that rely on Kroll services to handle bankruptcy proceedings.

KrebsOnSecurity sought comment for this story from Kroll, the FBI, the prosecuting attorneys, and Sullivan & Cromwell, the law firm handling the FTX bankruptcy. This story will be updated in the event any of them respond.

Attorneys for Mr. Powell said they do not know who Victim 1 is in the indictment, as the government hasn’t shared that information yet. Powell’s next court date is a detention hearing on Feb. 2, 2024.

Update, Feb. 3, 12:19 p.m. ET: The FBI declined a request to comment.

Okta: Breach Affected All Customer Support Users

29 November 2023 at 14:41

When KrebsOnSecurity broke the news on Oct. 20, 2023 that identity and authentication giant Okta had suffered a breach in its customer support department, Okta said the intrusion allowed hackers to steal sensitive data from fewer than one percent of its 18,000+ customers. But today, Okta revised that impact statement, saying the attackers also stole the name and email address for nearly all of its customer support users.

Okta acknowledged last month that for several weeks beginning in late September 2023, intruders had access to its customer support case management system. That access allowed the hackers to steal authentication tokens from some Okta customers, which the attackers could then use to make changes to customer accounts, such as adding or modifying authorized users.

In its initial incident reports about the breach, Okta said the hackers gained unauthorized access to files inside Okta’s customer support system associated with 134 Okta customers, or less than 1% of Okta’s customer base.

But in an updated statement published early this morning, Okta said it determined the intruders also stole the names and email addresses of all Okta customer support system users.

“All Okta Workforce Identity Cloud (WIC) and Customer Identity Solution (CIS) customers are impacted except customers in our FedRamp High and DoD IL4 environments (these environments use a separate support system NOT accessed by the threat actor),” Okta’s advisory states. “The Auth0/CIC support case management system was also not impacted by this incident.”

Okta said that for nearly 97 percent of users, the only contact information exposed was full name and email address. That means about three percent of Okta customer support accounts had one or more of the following data fields exposed (in addition to email address and name): last login; username; phone number; SAML federation ID; company name; job role; user type; date of last password change or reset.

Okta notes that a large number of the exposed accounts belong to Okta administrators — IT people responsible for integrating Okta’s authentication technology inside customer environments — and that these individuals should be on guard for targeted phishing attacks.

“Many users of the customer support system are Okta administrators,” Okta pointed out. “It is critical that these users have multi-factor authentication (MFA) enrolled to protect not only the customer support system, but also to secure access to their Okta admin console(s).”

While it may seem completely bonkers that some companies allow their IT staff to operate company-wide authentication systems using an Okta administrator account that isn’t protected with MFA, Okta said fully six percent of its customers (more than 1,000) persist in this dangerous practice.

In a previous disclosure on Nov. 3, Okta blamed the intrusion on an employee who saved the credentials for a service account in Okta’s customer support infrastructure to their personal Google account, and said it was likely those credentials were stolen when the employee’s personal device using the same Google account was compromised.

Unlike standard user accounts, which are accessed by humans, service accounts are mostly reserved for automating machine-to-machine functions, such as performing data backups or antivirus scans every night at a particular time. For this reason, they can’t be locked down with multifactor authentication the way user accounts can.

Dan Goodin over at Ars Technica reckons this explains why MFA wasn’t set up on the compromised Okta service account. But as he rightly points out, if a transgression by a single employee breaches your network, you’re doing it wrong.

“Okta should have put access controls in place besides a simple password to limit who or what could log in to the service account,” Goodin wrote on Nov. 4. “One way of doing this is to put a limit or conditions on the IP addresses that can connect. Another is to regularly rotate access tokens used to authenticate to service accounts. And, of course, it should have been impossible for employees to be logged in to personal accounts on a work machine. These and other precautions are the responsibility of senior people inside Okta.”

Goodin suggested that people who want to delve further into various approaches for securing service accounts should read this thread on Mastodon.

“A fair number of the contributions come from security professionals with extensive experience working in sensitive cloud environments,” Goodin wrote.

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