Tag Archives: fraud

Amazon Is Losing the War on Fraudulent Sellers

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/05/amazon_is_losin.html

Excellent article on fraudulent seller tactics on Amazon.

The most prominent black hat companies for US Amazon sellers offer ways to manipulate Amazon’s ranking system to promote products, protect accounts from disciplinary actions, and crush competitors. Sometimes, these black hat companies bribe corporate Amazon employees to leak information from the company’s wiki pages and business reports, which they then resell to marketplace sellers for steep prices. One black hat company charges as much as $10,000 a month to help Amazon sellers appear at the top of product search results. Other tactics to promote sellers’ products include removing negative reviews from product pages and exploiting technical loopholes on Amazon’s site to lift products’ overall sales rankings.

[…]

AmzPandora’s services ranged from small tasks to more ambitious strategies to rank a product higher using Amazon’s algorithm. While it was online, it offered to ping internal contacts at Amazon for $500 to get information about why a seller’s account had been suspended, as well as advice on how to appeal the suspension. For $300, the company promised to remove an unspecified number of negative reviews on a listing within three to seven days, which would help increase the overall star rating for a product. For $1.50, the company offered a service to fool the algorithm into believing a product had been added to a shopper’s cart or wish list by writing a super URL. And for $1,200, an Amazon seller could purchase a “frequently bought together” spot on another marketplace product’s page that would appear for two weeks, which AmzPandora promised would lead to a 10% increase in sales.

This was a good article on this from last year. (My blog post.)

Amazon has a real problem here, primarily because trust in the system is paramount to Amazon’s success. As much as they need to crack down on fraudulent sellers, they really want articles like these to not be written.

Slashdot thread. Boing Boing post.

I Am Not Associated with Swift Recovery Ltd.

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/02/i_am_not_associ.html

It seems that someone from a company called Swift Recovery Ltd. is impersonating me — at least on Telegram. The person is using a photo of me, and is using details of my life available on Wikipedia to convince people that they are me.

They are not.

If anyone has any more information — stories, screen shots of chats, etc. — please forward them to me.

Using Gmail "Dot Addresses" to Commit Fraud

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/02/using_gmail_dot.html

In Gmail addresses, the dots don’t matter. The account “[email protected]” maps to the exact same address as “[email protected]” and “[email protected]” — and so on. (Note: I own none of those addresses, if they are actually valid.)

This fact can be used to commit fraud:

Recently, we observed a group of BEC actors make extensive use of Gmail dot accounts to commit a large and diverse amount of fraud. Since early 2018, this group has used this fairly simple tactic to facilitate the following fraudulent activities:

  • Submit 48 credit card applications at four US-based financial institutions, resulting in the approval of at least $65,000 in fraudulent credit
  • Register for 14 trial accounts with a commercial sales leads service to collect targeting data for BEC attacks
  • File 13 fraudulent tax returns with an online tax filing service
  • Submit 12 change of address requests with the US Postal Service
  • Submit 11 fraudulent Social Security benefit applications
  • Apply for unemployment benefits under nine identities in a large US state
  • Submit applications for FEMA disaster assistance under three identities

In each case, the scammers created multiple accounts on each website within a short period of time, modifying the placement of periods in the email address for each account. Each of these accounts is associated with a different stolen identity, but all email from these services are received by the same Gmail account. Thus, the group is able to centralize and organize their fraudulent activity around a small set of email accounts, thereby increasing productivity and making it easier to continue their fraudulent behavior.

This isn’t a new trick. It has been previously documented as a way to trick Netflix users.

News article.

Slashdot thread.

New Attack Against Electrum Bitcoin Wallets

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/01/new_attack_agai_3.html

This is clever:

How the attack works:

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

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

Massive Ad Fraud Scheme Relied on BGP Hijacking

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/12/massive_ad_frau.html

This is a really interesting story of an ad fraud scheme that relied on hijacking the Border Gateway Protocol:

Members of 3ve (pronounced “eve”) used their large reservoir of trusted IP addresses to conceal a fraud that otherwise would have been easy for advertisers to detect. The scheme employed a thousand servers hosted inside data centers to impersonate real human beings who purportedly “viewed” ads that were hosted on bogus pages run by the scammers themselves­ — who then received a check from ad networks for these billions of fake ad impressions. Normally, a scam of this magnitude coming from such a small pool of server-hosted bots would have stuck out to defrauded advertisers. To camouflage the scam, 3ve operators funneled the servers’ fraudulent page requests through millions of compromised IP addresses.

About one million of those IP addresses belonged to computers, primarily based in the US and the UK, that attackers had infected with botnet software strains known as Boaxxe and Kovter. But at the scale employed by 3ve, not even that number of IP addresses was enough. And that’s where the BGP hijacking came in. The hijacking gave 3ve a nearly limitless supply of high-value IP addresses. Combined with the botnets, the ruse made it seem like millions of real people from some of the most affluent parts of the world were viewing the ads.

Lots of details in the article.

An aphorism I often use in my talks is “expertise flows downhill: today’s top-secret NSA programs become tomorrow’s PhD theses and the next day’s hacking tools.” This is an example of that. BGP hacking — known as “traffic shaping” inside the NSA — has long been a tool of national intelligence agencies. Now it is being used by cybercriminals.

EDITED TO ADD (1/2): Classified NSA presentation on “network shaping.” I don’t know if there is a difference inside the NSA between the two terms.

Fraudulent Tactics on Amazon Marketplace

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/12/fraudulent_tact.html

Fascinating article about the many ways Amazon Marketplace sellers sabotage each other and defraud customers. The opening example: framing a seller for false advertising by buying fake five-star reviews for their products.

Defacement: Sellers armed with the accounts of Amazon distributors (sometimes legitimately, sometimes through the black market) can make all manner of changes to a rival’s listings, from changing images to altering text to reclassifying a product into an irrelevant category, like “sex toys.”

Phony fires: Sellers will buy their rival’s product, light it on fire, and post a picture to the reviews, claiming it exploded. Amazon is quick to suspend sellers for safety claims.

[…]

Over the following days, Harris came to realize that someone had been targeting him for almost a year, preparing an intricate trap. While he had trademarked his watch and registered his brand, Dead End Survival, with Amazon, Harris hadn’t trademarked the name of his Amazon seller account, SharpSurvival. So the interloper did just that, submitting to the patent office as evidence that he owned the goods a photo taken from Harris’ Amazon listings, including one of Harris’ own hands lighting a fire using the clasp of his survival watch. The hijacker then took that trademark to Amazon and registered it, giving him the power to kick Harris off his own listings and commandeer his name.

[…]

There are more subtle methods of sabotage as well. Sellers will sometimes buy Google ads for their competitors for unrelated products — say, a dog food ad linking to a shampoo listing — so that Amazon’s algorithm sees the rate of clicks converting to sales drop and automatically demotes their product.

What’s also interesting is how Amazon is basically its own government — with its own rules that its suppliers have no choice but to follow. And, of course, increasingly there is no option but to sell your stuff on Amazon.

FBI Takes Down a Massive Advertising Fraud Ring

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/11/fbi_takes_down_.html

The FBI announced that it dismantled a large Internet advertising fraud network, and arrested eight people:

A 13-count indictment was unsealed today in federal court in Brooklyn charging Aleksandr Zhukov, Boris Timokhin, Mikhail Andreev, Denis Avdeev, Dmitry Novikov, Sergey Ovsyannikov, Aleksandr Isaev and Yevgeniy Timchenko with criminal violations for their involvement in perpetrating widespread digital advertising fraud. The charges include wire fraud, computer intrusion, aggravated identity theft and money laundering. Ovsyannikov was arrested last month in Malaysia; Zhukov was arrested earlier this month in Bulgaria; and Timchenko was arrested earlier this month in Estonia, all pursuant to provisional arrest warrants issued at the request of the United States. They await extradition. The remaining defendants are at large.

It looks like an impressive piece of police work.

Details of the forensics that led to the arrests.

Propaganda and the Weakening of Trust in Government

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/11/propaganda_and_.html

On November 4, 2016, the hacker “Guccifer 2.0,: a front for Russia’s military intelligence service, claimed in a blogpost that the Democrats were likely to use vulnerabilities to hack the presidential elections. On November 9, 2018, President Donald Trump started tweeting about the senatorial elections in Florida and Arizona. Without any evidence whatsoever, he said that Democrats were trying to steal the election through “FRAUD.”

Cybersecurity experts would say that posts like Guccifer 2.0’s are intended to undermine public confidence in voting: a cyber-attack against the US democratic system. Yet Donald Trump’s actions are doing far more damage to democracy. So far, his tweets on the topic have been retweeted over 270,000 times, eroding confidence far more effectively than any foreign influence campaign.

We need new ideas to explain how public statements on the Internet can weaken American democracy. Cybersecurity today is not only about computer systems. It’s also about the ways attackers can use computer systems to manipulate and undermine public expectations about democracy. Not only do we need to rethink attacks against democracy; we also need to rethink the attackers as well.

This is one key reason why we wrote a new research paper which uses ideas from computer security to understand the relationship between democracy and information. These ideas help us understand attacks which destabilize confidence in democratic institutions or debate.

Our research implies that insider attacks from within American politics can be more pernicious than attacks from other countries. They are more sophisticated, employ tools that are harder to defend against, and lead to harsh political tradeoffs. The US can threaten charges or impose sanctions when Russian trolling agencies attack its democratic system. But what punishments can it use when the attacker is the US president?

People who think about cybersecurity build on ideas about confrontations between states during the Cold War. Intellectuals such as Thomas Schelling developed deterrence theory, which explained how the US and USSR could maneuver to limit each other’s options without ever actually going to war. Deterrence theory, and related concepts about the relative ease of attack and defense, seemed to explain the tradeoffs that the US and rival states faced, as they started to use cyber techniques to probe and compromise each others’ information networks.

However, these ideas fail to acknowledge one key differences between the Cold War and today. Nearly all states — whether democratic or authoritarian — are entangled on the Internet. This creates both new tensions and new opportunities. The US assumed that the internet would help spread American liberal values, and that this was a good and uncontroversial thing. Illiberal states like Russia and China feared that Internet freedom was a direct threat to their own systems of rule. Opponents of the regime might use social media and online communication to coordinate among themselves, and appeal to the broader public, perhaps toppling their governments, as happened in Tunisia during the Arab Spring.

This led illiberal states to develop new domestic defenses against open information flows. As scholars like Molly Roberts have shown, states like China and Russia discovered how they could "flood" internet discussion with online nonsense and distraction, making it impossible for their opponents to talk to each other, or even to distinguish between truth and falsehood. These flooding techniques stabilized authoritarian regimes, because they demoralized and confused the regime’s opponents. Libertarians often argue that the best antidote to bad speech is more speech. What Vladimir Putin discovered was that the best antidote to more speech was bad speech.

Russia saw the Arab Spring and efforts to encourage democracy in its neighborhood as direct threats, and began experimenting with counter-offensive techniques. When a Russia-friendly government in Ukraine collapsed due to popular protests, Russia tried to destabilize new, democratic elections by hacking the system through which the election results would be announced. The clear intention was to discredit the election results by announcing fake voting numbers that would throw public discussion into disarray.

This attack on public confidence in election results was thwarted at the last moment. Even so, it provided the model for a new kind of attack. Hackers don’t have to secretly alter people’s votes to affect elections. All they need to do is to damage public confidence that the votes were counted fairly. As researchers have argued, “simply put, the attacker might not care who wins; the losing side believing that the election was stolen from them may be equally, if not more, valuable.”

These two kinds of attacks — “flooding” attacks aimed at destabilizing public discourse, and “confidence” attacks aimed at undermining public belief in elections — were weaponized against the US in 2016. Russian social media trolls, hired by the “Internet Research Agency,” flooded online political discussions with rumors and counter-rumors in order to create confusion and political division. Peter Pomerantsev describes how in Russia, “one moment [Putin’s media wizard] Surkov would fund civic forums and human rights NGOs, the next he would quietly support nationalist movements that accuse the NGOs of being tools of the West.” Similarly, Russian trolls tried to get Black Lives Matter protesters and anti-Black Lives Matter protesters to march at the same time and place, to create conflict and the appearance of chaos. Guccifer 2.0’s blog post was surely intended to undermine confidence in the vote, preparing the ground for a wider destabilization campaign after Hillary Clinton won the election. Neither Putin nor anyone else anticipated that Trump would win, ushering in chaos on a vastly greater scale.

We do not know how successful these attacks were. A new book by John Sides, Michael Tesler and Lynn Vavreck suggests that Russian efforts had no measurable long-term consequences. Detailed research on the flow of news articles through social media by Yochai Benker, Robert Farris, and Hal Roberts agrees, showing that Fox News was far more influential in the spread of false news stories than any Russian effort.

However, global adversaries like the Russians aren’t the only actors who can use flooding and confidence attacks. US actors can use just the same techniques. Indeed, they can arguably use them better, since they have a better understanding of US politics, more resources, and are far more difficult for the government to counter without raising First Amendment issues.

For example, when the Federal Communication Commission asked for comments on its proposal to get rid of “net neutrality,” it was flooded by fake comments supporting the proposal. Nearly every real person who commented was in favor of net neutrality, but their arguments were drowned out by a flood of spurious comments purportedly made by identities stolen from porn sites, by people whose names and email addresses had been harvested without their permission, and, in some cases, from dead people. This was done not just to generate fake support for the FCC’s controversial proposal. It was to devalue public comments in general, making the general public’s support for net neutrality politically irrelevant. FCC decision making on issues like net neutrality used to be dominated by industry insiders, and many would like to go back to the old regime.

Trump’s efforts to undermine confidence in the Florida and Arizona votes work on a much larger scale. There are clear short-term benefits to asserting fraud where no fraud exists. This may sway judges or other public officials to make concessions to the Republicans to preserve their legitimacy. Yet they also destabilize American democracy in the long term. If Republicans are convinced that Democrats win by cheating, they will feel that their own manipulation of the system (by purging voter rolls, making voting more difficult and so on) are legitimate, and very probably cheat even more flagrantly in the future. This will trash collective institutions and leave everyone worse off.

It is notable that some Arizonan Republicans — including Martha McSally — have so far stayed firm against pressure from the White House and the Republican National Committee to claim that cheating is happening. They presumably see more long term value from preserving existing institutions than undermining them. Very plausibly, Donald Trump has exactly the opposite incentives. By weakening public confidence in the vote today, he makes it easier to claim fraud and perhaps plunge American politics into chaos if he is defeated in 2020.

If experts who see Russian flooding and confidence measures as cyberattacks on US democracy are right, then these attacks are just as dangerous — and perhaps more dangerous — when they are used by domestic actors. The risk is that over time they will destabilize American democracy so that it comes closer to Russia’s managed democracy — where nothing is real any more, and ordinary people feel a mixture of paranoia, helplessness and disgust when they think about politics. Paradoxically, Russian interference is far too ineffectual to get us there — but domestically mounted attacks by all-American political actors might.

To protect against that possibility, we need to start thinking more systematically about the relationship between democracy and information. Our paper provides one way to do this, highlighting the vulnerabilities of democracy against certain kinds of information attack. More generally, we need to build levees against flooding while shoring up public confidence in voting and other public information systems that are necessary to democracy.

The first may require radical changes in how we regulate social media companies. Modernization of government commenting platforms to make them robust against flooding is only a very minimal first step. Up until very recently, companies like Twitter have won market advantage from bot infestations — even when it couldn’t make a profit, it seemed that user numbers were growing. CEOs like Mark Zuckerberg have begun to worry about democracy, but their worries will likely only go so far. It is difficult to get a man to understand something when his business model depends on not understanding it. Sharp — and legally enforceable — limits on automated accounts are a first step. Radical redesign of networks and of trending indicators so that flooding attacks are less effective may be a second.

The second requires general standards for voting at the federal level, and a constitutional guarantee of the right to vote. Technical experts nearly universally favor robust voting systems that would combine paper records with random post-election auditing, to prevent fraud and secure public confidence in voting. Other steps to ensure proper ballot design, and standardize vote counting and reporting will take more time and discussion — yet the record of other countries show that they are not impossible.

The US is nearly unique among major democracies in the persistent flaws of its election machinery. Yet voting is not the only important form of democratic information. Apparent efforts to deliberately skew the US census against counting undocumented immigrants show the need for a more general audit of the political information systems that we need if democracy is to function properly.

It’s easier to respond to Russian hackers through sanctions, counter-attacks and the like than to domestic political attacks that undermine US democracy. To preserve the basic political freedoms of democracy requires recognizing that these freedoms are sometimes going to be abused by politicians such as Donald Trump. The best that we can do is to minimize the possibilities of abuse up to the point where they encroach on basic freedoms and harden the general institutions that secure democratic information against attacks intended to undermine them.

This essay was co-authored with Henry Farrell, and previously appeared on Motherboard, with a terrible headline that I was unable to get changed.

Chip Cards Fail to Reduce Credit Card Fraud in the US

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/11/chip_cards_fail.html

A new study finds that credit card fraud has not declined since the introduction of chip cards in the US. The majority of stolen card information comes from hacked point-of-sale terminals.

The reasons seem to be twofold. One, the US uses chip-and-signature instead of chip-and-PIN, obviating the most critical security benefit of the chip. And two, US merchants still accept magnetic stripe cards, meaning that thieves can steal credentials from a chip card and create a working cloned mag stripe card.

Boing Boing post.

Detecting Deep Fakes

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/10/detecting_deep_.html

This story nicely illustrates the arms race between technologies to create fake videos and technologies to detect fake videos:

These fakes, while convincing if you watch a few seconds on a phone screen, aren’t perfect (yet). They contain tells, like creepily ever-open eyes, from flaws in their creation process. In looking into DeepFake’s guts, Lyu realized that the images that the program learned from didn’t include many with closed eyes (after all, you wouldn’t keep a selfie where you were blinking, would you?). “This becomes a bias,” he says. The neural network doesn’t get blinking. Programs also might miss other “physiological signals intrinsic to human beings,” says Lyu’s paper on the phenomenon, such as breathing at a normal rate, or having a pulse. (Autonomic signs of constant existential distress are not listed.) While this research focused specifically on videos created with this particular software, it is a truth universally acknowledged that even a large set of snapshots might not adequately capture the physical human experience, and so any software trained on those images may be found lacking.

Lyu’s blinking revelation revealed a lot of fakes. But a few weeks after his team put a draft of their paper online, they got anonymous emails with links to deeply faked YouTube videos whose stars opened and closed their eyes more normally. The fake content creators had evolved.

I don’t know who will win this arms race, if there ever will be a winner. But the problem with fake videos goes deeper: they affect people even if they are later told that they are fake, and there always will be people that will believe they are real, despite any evidence to the contrary.

Android Ad-Fraud Scheme

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/10/android_ad-frau.html

BuzzFeed is reporting on a scheme where fraudsters buy legitimate Android apps, track users’ behavior in order to mimic it in a way that evades bot detectors, and then uses bots to perpetuate an ad-fraud scheme.

After being provided with a list of the apps and websites connected to the scheme, Google investigated and found that dozens of the apps used its mobile advertising network. Its independent analysis confirmed the presence of a botnet driving traffic to websites and apps in the scheme. Google has removed more than 30 apps from the Play store, and terminated multiple publisher accounts with its ad networks. Google said that prior to being contacted by BuzzFeed News it had previously removed 10 apps in the scheme and blocked many of the websites. It continues to investigate, and published a blog post to detail its findings.

The company estimates this operation stole close to $10 million from advertisers who used Google’s ad network to place ads in the affected websites and apps. It said the vast majority of ads being placed in these apps and websites came via other major ad networks.

Lots of details in both the BuzzFeed and the Google links.

The Internet advertising industry is rife with fraud, at all levels. This is just one scheme among many.

Sophisticated Voice Phishing Scams

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/10/sophisticated_v.html

Brian Krebs is reporting on some new and sophisticated phishing scams over the telephone.

I second his advice: “never give out any information about yourself in response to an unsolicited phone call.” Always call them back, and not using the number offered to you by the caller. Always.

EDITED TO ADD: In 2009, I wrote:

When I was growing up, children were commonly taught: “don’t talk to strangers.” Strangers might be bad, we were told, so it’s prudent to steer clear of them.

And yet most people are honest, kind, and generous, especially when someone asks them for help. If a small child is in trouble, the smartest thing he can do is find a nice-looking stranger and talk to him.

These two pieces of advice may seem to contradict each other, but they don’t. The difference is that in the second instance, the child is choosing which stranger to talk to. Given that the overwhelming majority of people will help, the child is likely to get help if he chooses a random stranger. But if a stranger comes up to a child and talks to him or her, it’s not a random choice. It’s more likely, although still unlikely, that the stranger is up to no good.

That advice is generalizable to this instance as well. The problem is that someone claiming to be from your bank asking for personal information. The problem is that they contacted you first.

Where else does this advice hold true?

On Financial Fraud

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/07/on_financial_fr.html

There are some good lessons in this article on financial fraud:

That’s how we got it so wrong. We were looking for incidental breaches of technical regulations, not systematic crime. And the thing is, that’s normal. The nature of fraud is that it works outside your field of vision, subverting the normal checks and balances so that the world changes while the picture stays the same. People in financial markets have been missing the wood for the trees for as long as there have been markets.

[..]

Trust — particularly between complete strangers, with no interactions beside relatively anonymous market transactions — is the basis of the modern industrial economy. And the story of the development of the modern economy is in large part the story of the invention and improvement of technologies and institutions for managing that trust.

And as industrial society develops, it becomes easier to be a victim. In The Wealth of Nations, Adam Smith described how prosperity derived from the division of labour — the 18 distinct operations that went into the manufacture of a pin, for example. While this was going on, the modern world also saw a growing division of trust. The more a society benefits from the division of labour in checking up on things, the further you can go into a con game before you realise that you’re in one.

[…]

Libor teaches us a valuable lesson about commercial fraud — that unlike other crimes, it has a problem of denial as well as one of detection. There are very few other criminal acts where the victim not only consents to the criminal act, but voluntarily transfers the money or valuable goods to the criminal. And the hierarchies, status distinctions and networks that make up a modern economy also create powerful psychological barriers against seeing fraud when it is happening. White-collar crime is partly defined by the kind of person who commits it: a person of high status in the community, the kind of person who is always given the benefit of the doubt.

[…]

Fraudsters don’t play on moral weaknesses, greed or fear; they play on weaknesses in the system of checks and balances — the audit processes that are meant to supplement an overall environment of trust. One point that comes up again and again when looking at famous and large-scale frauds is that, in many cases, everything could have been brought to a halt at a very early stage if anyone had taken care to confirm all the facts. But nobody does confirm all the facts. There are just too bloody many of them. Even after the financial rubble has settled and the arrests been made, this is a huge problem.

1834: The First Cyberattack

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/05/1834_the_first_.html

Tom Standage has a great story of the first cyberattack against a telegraph network.

The Blanc brothers traded government bonds at the exchange in the city of Bordeaux, where information about market movements took several days to arrive from Paris by mail coach. Accordingly, traders who could get the information more quickly could make money by anticipating these movements. Some tried using messengers and carrier pigeons, but the Blanc brothers found a way to use the telegraph line instead. They bribed the telegraph operator in the city of Tours to introduce deliberate errors into routine government messages being sent over the network.

The telegraph’s encoding system included a “backspace” symbol that instructed the transcriber to ignore the previous character. The addition of a spurious character indicating the direction of the previous day’s market movement, followed by a backspace, meant the text of the message being sent was unaffected when it was written out for delivery at the end of the line. But this extra character could be seen by another accomplice: a former telegraph operator who observed the telegraph tower outside Bordeaux with a telescope, and then passed on the news to the Blancs. The scam was only uncovered in 1836, when the crooked operator in Tours fell ill and revealed all to a friend, who he hoped would take his place. The Blanc brothers were put on trial, though they could not be convicted because there was no law against misuse of data networks. But the Blancs’ pioneering misuse of the French network qualifies as the world’s first cyber-attack.

FCC Asks Amazon & eBay to Help Eliminate Pirate Media Box Sales

Post Syndicated from Andy original https://torrentfreak.com/fcc-asks-amazon-ebay-to-help-eliminate-pirate-media-box-sales-180530/

Over the past several years, anyone looking for a piracy-configured set-top box could do worse than search for one on Amazon or eBay.

Historically, people deploying search terms including “Kodi” or “fully-loaded” were greeted by page after page of Android-type boxes, each ready for illicit plug-and-play entertainment consumption following delivery.

Although the problem persists on both platforms, people are now much less likely to find infringing devices than they were 12 to 24 months ago. Under pressure from entertainment industry groups, both Amazon and eBay have tightened the screws on sellers of such devices. Now, however, both companies have received requests to stem sales from a completetey different direction.

In a letter to eBay CEO Devin Wenig and Amazon CEO Jeff Bezos first spotted by Ars, FCC Commissioner Michael O’Rielly calls on the platforms to take action against piracy-configured boxes that fail to comply with FCC equipment authorization requirements or falsely display FCC logos, contrary to United States law.

“Disturbingly, some rogue set-top box manufacturers and distributors are exploiting the FCC’s trusted logo by fraudulently placing it on devices that have not been approved via the Commission’s equipment authorization process,” O’Rielly’s letter reads.

“Specifically, nine set-top box distributors were referred to the FCC in October for enabling the unlawful streaming of copyrighted material, seven of which displayed the FCC logo, although there was no record of such compliance.”

While O’Rielly admits that the copyright infringement aspects fall outside the jurisdiction of the FCC, he says it’s troubling that many of these devices are used to stream infringing content, “exacerbating the theft of billions of dollars in American innovation and creativity.”

As noted above, both Amazon and eBay have taken steps to reduce sales of pirate boxes on their respective platforms on copyright infringement grounds, something which is duly noted by O’Rielly. However, he points out that devices continue to be sold to members of the public who may believe that the devices are legal since they’re available for sale from legitimate companies.

“For these reasons, I am seeking your further cooperation in assisting the FCC in taking steps to eliminate the non-FCC compliant devices or devices that fraudulently bear the FCC logo,” the Commissioner writes (pdf).

“Moreover, if your company is made aware by the Commission, with supporting evidence, that a particular device is using a fraudulent FCC label or has not been appropriately certified and labeled with a valid FCC logo, I respectfully request that you commit to swiftly removing these products from your sites.”

In the event that Amazon and eBay take action under this request, O’Rielly asks both platforms to hand over information they hold on offending manufacturers, distributors, and suppliers.

Amazon was quick to respond to the FCC. In a letter published by Ars, Amazon’s Public Policy Vice President Brian Huseman assured O’Rielly that the company is not only dedicated to tackling rogue devices on copyright-infringement grounds but also when there is fraudulent use of the FCC’s logos.

Noting that Amazon is a key member of the Alliance for Creativity and Entertainment (ACE) – a group that has been taking legal action against sellers of infringing streaming devices (ISDs) and those who make infringing addons for Kodi-type systems – Huseman says that dealing with the problem is a top priority.

“Our goal is to prevent the sale of ISDs anywhere, as we seek to protect our customers from the risks posed by these devices, in addition to our interest in protecting Amazon Studios content,” Huseman writes.

“In 2017, Amazon became the first online marketplace to prohibit the sale of streaming media players that promote or facilitate piracy. To prevent the sale of these devices, we proactively scan product listings for signs of potentially infringing products, and we also invest heavily in sophisticated, automated real-time tools to review a variety of data sources and signals to identify inauthentic goods.

“These automated tools are supplemented by human reviewers that conduct manual investigations. When we suspect infringement, we take immediate action to remove suspected listings, and we also take enforcement action against sellers’ entire accounts when appropriate.”

Huseman also reveals that since implementing a proactive policy against such devices, “tens of thousands” of listings have been blocked from Amazon. In addition, the platform has been making criminal referrals to law enforcement as well as taking civil action (1,2,3) as part of ACE.

“As noted in your letter, we would also appreciate the opportunity to collaborate further with the FCC to remove non-compliant devices that improperly use the FCC logo or falsely claim FCC certification. If any FCC non-compliant devices are identified, we seek to work with you to ensure they are not offered for sale,” Huseman concludes.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN reviews, discounts, offers and coupons.

Kidnapping Fraud

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/05/kidnapping_frau.html

Fake kidnapping fraud:

“Most commonly we have unsolicited calls to potential victims in Australia, purporting to represent the people in authority in China and suggesting to intending victims here they have been involved in some sort of offence in China or elsewhere, for which they’re being held responsible,” Commander McLean said.

The scammers threaten the students with deportation from Australia or some kind of criminal punishment.

The victims are then coerced into providing their identification details or money to get out of the supposed trouble they’re in.

Commander McLean said there are also cases where the student is told they have to hide in a hotel room, provide compromising photos of themselves and cut off all contact.

This simulates a kidnapping.

“So having tricked the victims in Australia into providing the photographs, and money and documents and other things, they then present the information back to the unknowing families in China to suggest that their children who are abroad are in trouble,” Commander McLean said.

“So quite circular in a sense…very skilled, very cunning.”

Google’s Chrome Web Store Spammed With Dodgy ‘Pirate’ Movie Links

Post Syndicated from Andy original https://torrentfreak.com/googles-chrome-web-store-spammed-with-dodgy-pirate-movie-links-180527/

Launched in 2010, Google’s Chrome Store is the go-to place for people looking to pimp their Chrome browser.

Often referred to as apps and extensions, the programs offered by the platform run in Chrome and can perform a dazzling array of functions, from improving security and privacy, to streaming video or adding magnet links to torrent sites.

Also available on the Chrome Store are themes, which can be installed locally to change the appearance of the Chrome browser.

While there are certainly plenty to choose from, some additions to the store over the past couple of months are not what most people have come to expect from the add-on platform.

Free movies on Chrome’s Web Store?

As the image above suggests, unknown third parties appear to be exploiting the Chrome Store’s ‘theme’ section to offer visitors access to a wide range of pirate movies including Black Panther, Avengers: Infinity War and Rampage.

When clicking through to the page offering Ready Player One, for example, users are presented with a theme that apparently allows them to watch the movie online in “Full HD Online 4k.”

Of course, the whole scheme is a dubious scam which eventually leads users to Vioos.co, a platform that tries very hard to give the impression of being a pirate streaming portal but actually provides nothing of use.

Nothing to see here

In fact, as soon as one clicks the play button on movies appearing on Vioos.co, visitors are re-directed to another site called Zumastar which asks people to “create a free account” to “access unlimited downloads & streaming.”

“With over 20 million titles, Zumastar is your number one entertainment resource. Join hundreds of thousands of satisfied members and enjoy the hottest movies,” the site promises.

With this kind of marketing, perhaps we should think about this offer for a second. Done. No thanks.

In extended testing, some visits to Vioos.co resulted in a redirection to EtnaMedia.net, a domain that was immediately blocked by MalwareBytes due to suspected fraud. However, after allowing the browser to make the connection, TF was presented with another apparent subscription site.

We didn’t follow through with a sign-up but further searches revealed upset former customers complaining of money being taken from their credit cards when they didn’t expect that to happen.

Quite how many people have signed up to Zumastar or EtnaMedia via this convoluted route from Google’s Chrome Store isn’t clear but a worrying number appear to have installed the ‘themes’ (if that’s what they are) offered on each ‘pirate movie’ page.

At the time of writing the ‘free Watch Rampage Online Full Movie’ ‘theme’ has 2,196 users, the “Watch Avengers Infinity War Full Movie” variant has 974, the ‘Watch Ready Player One 2018 Full HD’ page has 1,031, and the ‘Watch Black Panther Online Free 123putlocker’ ‘theme’ has more than 1,800. Clearly, a worrying number of people will click and install just about anything.

We haven’t tested the supposed themes to see what they do but it’s a cast-iron guarantee that they don’t offer the movies displayed and there’s always a chance they’ll do something awful. As a rule of thumb, it’s nearly always wise to steer clear of anything with “full movie” in the title, they can rarely be trusted.

Finally, those hoping to get some guidance on quality from the reviews on the Chrome Store will be bitterly disappointed.

Garbage reviews, probably left by the scammers

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN reviews, discounts, offers and coupons.

Fully-Loaded Kodi Box Sellers Receive Hefty Jail Sentences

Post Syndicated from Andy original https://torrentfreak.com/fully-loaded-kodi-box-sellers-receive-hefty-jail-sentences-180524/

While users of older peer-to-peer based file-sharing systems have to work relatively hard to obtain content, users of the Kodi media player have things an awful lot easier.

As standard, Kodi is perfectly legal. However, when augmented with third-party add-ons it becomes a media discovery powerhouse, providing most of the content anyone could desire. A system like this can be set up by the user but for many, buying a so-called “fully-loaded” box from a seller is the easier option.

As a result, hundreds – probably thousands – of cottage industries have sprung up to service this hungry market in the UK, with regular people making a business out of setting up and selling such devices. Until three years ago, that’s what Michael Jarman and Natalie Forber of Colwyn Bay, Wales, found themselves doing.

According to reports in local media, Jarman was arrested in January 2015 when police were called to a disturbance at Jarman and Forber’s home. A large number of devices were spotted and an investigation was launched by Trading Standards officers. The pair were later arrested and charged with fraud offenses.

While 37-year-old Jarman pleaded guilty, 36-year-old Forber initially denied the charges and was due to stand trial. However, she later changed her mind and like Jarman, pleaded guilty to participating in a fraudulent business. Forber also pleaded guilty to transferring criminal property by shifting cash from the scheme through various bank accounts.

The pair attended a sentencing hearing before Judge Niclas Parry at Caernarfon Crown Court yesterday. According to local reporter Eryl Crump, the Court heard that the couple had run their business for about two years, selling around 1,000 fully-loaded Kodi-enabled devices for £100 each via social media.

According to David Birrell for the prosecution, the operation wasn’t particularly sophisticated but it involved Forber programming the devices as well as handling customer service. Forber claimed she was forced into the scheme by Jarman but that claim was rejected by the prosecution.

Between February 2013 and January 2015 the pair banked £105,000 from the business, money that was transferred between bank accounts in an effort to launder the takings.

Reporting from Court via Twitter, Crump said that Jarman’s defense lawyer accepted that a prison sentence was inevitable for his client but asked for the most lenient sentence possible.

Forber’s lawyer pointed out she had no previous convictions. The mother-of-two broke up with Jarman following her arrest and is now back in work and studying at college.

Sentencing the pair, Judge Niclas Parry described the offenses as a “relatively sophisticated fraud” carried out over a significant period. He jailed Jarman for 21 months and Forber for 16 months, suspended for two years. She must also carry out 200 hours of unpaid work.

The pair will also face a Proceeds of Crime investigation which could see them paying large sums to the state, should any assets be recoverable.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN reviews, discounts, offers and coupons.

Maliciously Changing Someone’s Address

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/05/maliciously_cha.html

Someone changed the address of UPS corporate headquarters to his own apartment in Chicago. The company discovered it three months later.

The problem, of course, is that there isn’t any authentication of change-of-address submissions:

According to the Postal Service, nearly 37 million change-of-address requests ­ known as PS Form 3575 ­ were submitted in 2017. The form, which can be filled out in person or online, includes a warning below the signature line that “anyone submitting false or inaccurate information” could be subject to fines and imprisonment.

To cut down on possible fraud, post offices send a validation letter to both an old and new address when a change is filed. The letter includes a toll-free number to call to report anything suspicious.

Each year, only a tiny fraction of the requests are ever referred to postal inspectors for investigation. A spokeswoman for the U.S. Postal Inspection Service could not provide a specific number to the Tribune, but officials have previously said that the number of change-of-address investigations in a given year totals 1,000 or fewer typically.

While fraud involving change-of-address forms has long been linked to identity thieves, the targets are usually unsuspecting individuals, not massive corporations.