Tag Archives: hacking

Chinese Hackers Stole an NSA Windows Exploit in 2014

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/03/chinese-hackers-stole-an-nsa-windows-exploit-in-2014.html

Check Point has evidence that (probably government affiliated) Chinese hackers stole and cloned an NSA Windows hacking tool years before (probably government affiliated) Russian hackers stole and then published the same tool. Here’s the timeline:

The timeline basically seems to be, according to Check Point:

  • 2013: NSA’s Equation Group developed a set of exploits including one called EpMe that elevates one’s privileges on a vulnerable Windows system to system-administrator level, granting full control. This allows someone with a foothold on a machine to commandeer the whole box.
  • 2014-2015: China’s hacking team code-named APT31, aka Zirconium, developed Jian by, one way or another, cloning EpMe.
  • Early 2017: The Equation Group’s tools were teased and then leaked online by a team calling itself the Shadow Brokers. Around that time, Microsoft cancelled its February Patch Tuesday, identified the vulnerability exploited by EpMe (CVE-2017-0005), and fixed it in a bumper March update. Interestingly enough, Lockheed Martin was credited as alerting Microsoft to the flaw, suggesting it was perhaps used against an American target.
  • Mid 2017: Microsoft quietly fixed the vulnerability exploited by the leaked EpMo exploit.

Lots of news articles about this.

National Security Risks of Late-Stage Capitalism

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/03/national-security-risks-of-late-stage-capitalism.html

Early in 2020, cyberspace attackers apparently working for the Russian government compromised a piece of widely used network management software made by a company called SolarWinds. The hack gave the attackers access to the computer networks of some 18,000 of SolarWinds’s customers, including US government agencies such as the Homeland Security Department and State Department, American nuclear research labs, government contractors, IT companies and nongovernmental agencies around the world.

It was a huge attack, with major implications for US national security. The Senate Intelligence Committee is scheduled to hold a hearing on the breach on Tuesday. Who is at fault?

The US government deserves considerable blame, of course, for its inadequate cyberdefense. But to see the problem only as a technical shortcoming is to miss the bigger picture. The modern market economy, which aggressively rewards corporations for short-term profits and aggressive cost-cutting, is also part of the problem: Its incentive structure all but ensures that successful tech companies will end up selling insecure products and services.

Like all for-profit corporations, SolarWinds aims to increase shareholder value by minimizing costs and maximizing profit. The company is owned in large part by Silver Lake and Thoma Bravo, private-equity firms known for extreme cost-cutting.

SolarWinds certainly seems to have underspent on security. The company outsourced much of its software engineering to cheaper programmers overseas, even though that typically increases the risk of security vulnerabilities. For a while, in 2019, the update server’s password for SolarWinds’s network management software was reported to be “solarwinds123.” Russian hackers were able to breach SolarWinds’s own email system and lurk there for months. Chinese hackers appear to have exploited a separate vulnerability in the company’s products to break into US government computers. A cybersecurity adviser for the company said that he quit after his recommendations to strengthen security were ignored.

There is no good reason to underspend on security other than to save money — especially when your clients include government agencies around the world and when the technology experts that you pay to advise you are telling you to do more.

As the economics writer Matt Stoller has suggested, cybersecurity is a natural area for a technology company to cut costs because its customers won’t notice unless they are hacked ­– and if they are, they will have already paid for the product. In other words, the risk of a cyberattack can be transferred to the customers. Doesn’t this strategy jeopardize the possibility of long-term, repeat customers? Sure, there’s a danger there –­ but investors are so focused on short-term gains that they’re too often willing to take that risk.

The market loves to reward corporations for risk-taking when those risks are largely borne by other parties, like taxpayers. This is known as “privatizing profits and socializing losses.” Standard examples include companies that are deemed “too big to fail,” which means that society as a whole pays for their bad luck or poor business decisions. When national security is compromised by high-flying technology companies that fob off cybersecurity risks onto their customers, something similar is at work.

Similar misaligned incentives affect your everyday cybersecurity, too. Your smartphone is vulnerable to something called SIM-swap fraud because phone companies want to make it easy for you to frequently get a new phone — and they know that the cost of fraud is largely borne by customers. Data brokers and credit bureaus that collect, use, and sell your personal data don’t spend a lot of money securing it because it’s your problem if someone hacks them and steals it. Social media companies too easily let hate speech and misinformation flourish on their platforms because it’s expensive and complicated to remove it, and they don’t suffer the immediate costs ­– indeed, they tend to profit from user engagement regardless of its nature.

There are two problems to solve. The first is information asymmetry: buyers can’t adequately judge the security of software products or company practices. The second is a perverse incentive structure: the market encourages companies to make decisions in their private interest, even if that imperils the broader interests of society. Together these two problems result in companies that save money by taking on greater risk and then pass off that risk to the rest of us, as individuals and as a nation.

The only way to force companies to provide safety and security features for customers and users is with government intervention. Companies need to pay the true costs of their insecurities, through a combination of laws, regulations, and legal liability. Governments routinely legislate safety — pollution standards, automobile seat belts, lead-free gasoline, food service regulations. We need to do the same with cybersecurity: the federal government should set minimum security standards for software and software development.

In today’s underregulated markets, it’s just too easy for software companies like SolarWinds to save money by skimping on security and to hope for the best. That’s a rational decision in today’s free-market world, and the only way to change that is to change the economic incentives.

This essay previously appeared in the New York Times.

Deliberately Playing Copyrighted Music to Avoid Being Live-Streamed

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/deliberately-playing-copyrighted-music-to-avoid-being-live-streamed.html

Vice is reporting on a new police hack: playing copyrighted music when being filmed by citizens, trying to provoke social media sites into taking the videos down and maybe even banning the filmers:

In a separate part of the video, which Devermont says was filmed later that same afternoon, Devermont approaches [BHPD Sgt. Billy] Fair outside. The interaction plays out almost exactly like it did in the department — when Devermont starts asking questions, Fair turns on the music.

Devermont backs away, and asks him to stop playing music. Fair says “I can’t hear you” — again, despite holding a phone that is blasting tunes.

Later, Fair starts berating Devermont’s livestreaming account, saying “I read the comments [on your account], they talk about how fake you are.” He then holds out his phone, which is still on full blast, and walks toward Devermont, saying “Listen to the music”.

In a statement emailed to VICE News, Beverly Hills PD said that “the playing of music while accepting a complaint or answering questions is not a procedure that has been recommended by Beverly Hills Police command staff,” and that the videos of Fair were “currently under review.”

However, this is not the first time that a Beverly Hills police officer has done this, nor is Fair the only one.

In an archived clip from a livestream shared privately to VICE Media that Devermont has not publicly reposted but he says was taken weeks ago, another officer can be seen quickly swiping through his phone as Devermont approaches. By the time Devermont is close enough to speak to him, the officer’s phone is already blasting “In My Life” by the Beatles — a group whose rightsholders have notoriously sued Apple numerous times. If you want to get someone in trouble for copyright infringement, the Beatles are quite possibly your best bet.

As Devermont asks about the music, the officer points the phone at him, asking, “Do you like it?”

Clever, really, and an illustration of the problem with context-free copyright enforcement.

SonicWall Zero-Day

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/sonicwall-zero-day.html

Hackers are exploiting a zero-day in SonicWall:

In an email, an NCC Group spokeswoman wrote: “Our team has observed signs of an attempted exploitation of a vulnerabilitythat affects the SonicWall SMA 100 series devices. We are working closely with SonicWall to investigate this in more depth.”

In Monday’s update, SonicWall representatives said the company’s engineering team confirmed that the submission by NCC Group included a “critical zero-day” in the SMA 100 series 10.x code. SonicWall is tracking it as SNWLID-2021-0001. The SMA 100 series is a line of secure remote access appliances.

The disclosure makes SonicWall at least the fifth large company to report in recent weeks that it was targeted by sophisticated hackers. Other companies include network management tool provider SolarWinds, Microsoft, FireEye, and Malwarebytes. CrowdStrike also reported being targeted but said the attack wasn’t successful.

Neither SonicWall nor NCC Group said that the hack involving the SonicWall zero-day was linked to the larger hack campaign involving SolarWinds. Based on the timing of the disclosure and some of the details in it, however, there is widespread speculation that the two are connected.

The speculation is just that — speculation. I have no opinion in the matter. This could easily be part of the SolarWinds campaign, which targeted other security companies. But there are a lot of “highly sophisticated threat actors” — that’s how NCC Group described them — out there, and this could easily be a coincidence.

Were I working for a national intelligence organization, I would try to disguise my operations as being part of the SolarWinds attack.

EDITED TO ADD (2/9): SonicWall has patched the vulnerability.

Another SolarWinds Orion Hack

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/another-solarwinds-orion-hack.html

At the same time the Russians were using a backdoored SolarWinds update to attack networks worldwide, another threat actor — believed to be Chinese in origin — was using an already existing vulnerability in Orion to penetrate networks:

Two people briefed on the case said FBI investigators recently found that the National Finance Center, a federal payroll agency inside the U.S. Department of Agriculture, was among the affected organizations, raising fears that data on thousands of government employees may have been compromised.

[…]

Reuters was not able to establish how many organizations were compromised by the suspected Chinese operation. The sources, who spoke on condition of anonymity to discuss ongoing investigations, said the attackers used computer infrastructure and hacking tools previously deployed by state-backed Chinese cyberspies.

[…]

While the alleged Russian hackers penetrated deep into SolarWinds network and hid a “back door” in Orion software updates which were then sent to customers, the suspected Chinese group exploited a separate bug in Orion’s code to help spread across networks they had already compromised, the sources said.

Two takeaways: One, we are learning about a lot of supply-chain attacks right now. Two, SolarWinds’ terrible security is the result of a conscious business decision to reduce costs in the name of short-term profits. Economist Matt Stoller writes about this:

These private equity-owned software firms torture professionals with bad user experiences and shitty customer support in everything from yoga studio software to car dealer IT to the nightmarish ‘core’ software that runs small banks and credit unions, as close as one gets to automating Office Space. But they also degrade product quality by firing or disrespecting good workers, under-investing in good security practices, or sending work abroad and paying badly, meaning their products are more prone to espionage. In other words, the same sloppy and corrupt practices that allowed this massive cybersecurity hack made Bravo a billionaire. In a sense, this hack, and many more like it, will continue to happen, as long as men like Bravo get rich creating security vulnerabilities for bad actors to exploit.

SolarWinds increased its profits by increasing its cybersecurity risk, and then transferred that risk to its customers without their knowledge or consent.

More SolarWinds News

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/02/more-solarwinds-news.html

Microsoft analyzed details of the SolarWinds attack:

Microsoft and FireEye only detected the Sunburst or Solorigate malware in December, but Crowdstrike reported this month that another related piece of malware, Sunspot, was deployed in September 2019, at the time hackers breached SolarWinds’ internal network. Other related malware includes Teardrop aka Raindrop.

Details are in the Microsoft blog:

We have published our in-depth analysis of the Solorigate backdoor malware (also referred to as SUNBURST by FireEye), the compromised DLL that was deployed on networks as part of SolarWinds products, that allowed attackers to gain backdoor access to affected devices. We have also detailed the hands-on-keyboard techniques that attackers employed on compromised endpoints using a powerful second-stage payload, one of several custom Cobalt Strike loaders, including the loader dubbed TEARDROP by FireEye and a variant named Raindrop by Symantec.

One missing link in the complex Solorigate attack chain is the handover from the Solorigate DLL backdoor to the Cobalt Strike loader. Our investigations show that the attackers went out of their way to ensure that these two components are separated as much as possible to evade detection. This blog provides details about this handover based on a limited number of cases where this process occurred. To uncover these cases, we used the powerful, cross-domain optics of Microsoft 365 Defender to gain visibility across the entire attack chain in one complete and consolidated view.

This is all important, because MalwareBytes was penetrated through Office 365, and not SolarWinds. New estimates are that 30% of the SolarWinds victims didn’t use SolarWinds:

Many of the attacks gained initial footholds by password spraying to compromise individual email accounts at targeted organizations. Once the attackers had that initial foothold, they used a variety of complex privilege escalation and authentication attacks to exploit flaws in Microsoft’s cloud services. Another of the Advanced Persistent Threat (APT)’s targets, security firm CrowdStrike, said the attacker tried unsuccessfully to read its email by leveraging a compromised account of a Microsoft reseller the firm had worked with.

On attribution: Earlier this month, the US government has stated the attack is “likely Russian in origin.” This echos what then Secretary of State Mike Pompeo said in December, and the Washington Post‘s reporting (both from December). (The New York Times has repeated this attribution — a good article that also discusses the magnitude of the attack.) More evidence comes from code forensics, which links it to Turla, another Russian threat actor.

And lastly, a long ProPublica story on an unused piece of government-developed tech that might have caught the supply-chain attack much earlier:

The in-toto system requires software vendors to map out their process for assembling computer code that will be sent to customers, and it records what’s done at each step along the way. It then verifies electronically that no hacker has inserted something in between steps. Immediately before installation, a pre-installed tool automatically runs a final check to make sure that what the customer received matches the final product the software vendor generated for delivery, confirming that it wasn’t tampered with in transit.

I don’t want to hype this defense too much without knowing a lot more, but I like the approach of verifying the software build process.

Including Hackers in NATO Wargames

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/including-hackers-in-nato-wargames.html

This essay makes the point that actual computer hackers would be a useful addition to NATO wargames:

The international information security community is filled with smart people who are not in a military structure, many of whom would be excited to pose as independent actors in any upcoming wargames. Including them would increase the reality of the game and the skills of the soldiers building and training on these networks. Hackers and cyberwar experts would demonstrate how industrial control systems such as power supply for refrigeration and temperature monitoring in vaccine production facilities are critical infrastructure; they’re easy targets and should be among NATO’s priorities at the moment.

Diversity of thought leads to better solutions. We in the information security community strongly support the involvement of acknowledged nonmilitary experts in the development and testing of future cyberwar scenarios. We are confident that independent experts, many of whom see sharing their skills as public service, would view participation in these cybergames as a challenge and an honor.

New iMessage Security Features

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/new-imessage-security-features.html

Apple has added added security features to mitigate the risk of zero-click iMessage attacks.

Apple did not document the changes but Groß said he fiddled around with the newest iOS 14 and found that Apple shipped a “significant refactoring of iMessage processing” that severely cripples the usual ways exploits are chained together for zero-click attacks.

Groß notes that memory corruption based zero-click exploits typically require exploitation of multiple vulnerabilities to create exploit chains. In most observed attacks, these could include a memory corruption vulnerability, reachable without user interaction and ideally without triggering any user notifications; a way to break ASLR remotely; a way to turn the vulnerability into remote code execution;; and a way to break out of any sandbox, typically by exploiting a separate vulnerability in another operating system component (e.g. a userspace service or the kernel).

Insider Attack on Home Surveillance Systems

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/insider-attack-on-home-surveillance-systems.html

No one who reads this blog regularly will be surprised:

A former employee of prominent home security company ADT has admitted that he hacked into the surveillance feeds of dozens of customer homes, doing so primarily to spy on naked women or to leer at unsuspecting couples while they had sex.

[…]

Authorities say that the IT technician “took note of which homes had attractive women, then repeatedly logged into these customers’ accounts in order to view their footage for sexual gratification.” He did this by adding his personal email address to customer accounts, which ultimately hooked him into “real-time access to the video feeds from their homes.”

Slashdot thread.

SVR Attacks on Microsoft 365

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/svr-attacks-on-microsoft-365.html

FireEye is reporting the current known tactics that the SVR used to compromise Microsoft 365 cloud data as part of its SolarWinds operation:

Mandiant has observed UNC2452 and other threat actors moving laterally to the Microsoft 365 cloud using a combination of four primary techniques:

  • Steal the Active Directory Federation Services (AD FS) token-signing certificate and use it to forge tokens for arbitrary users (sometimes described as Golden SAML). This would allow the attacker to authenticate into a federated resource provider (such as Microsoft 365) as any user, without the need for that user’s password or their corresponding multi-factor authentication (MFA) mechanism.
  • Modify or add trusted domains in Azure AD to add a new federated Identity Provider (IdP) that the attacker controls. This would allow the attacker to forge tokens for arbitrary users and has been described as an Azure AD backdoor.
  • Compromise the credentials of on-premises user accounts that are synchronized to Microsoft 365 that have high privileged directory roles, such as Global Administrator or Application Administrator.
  • Backdoor an existing Microsoft 365 application by adding a new application or service principal credential in order to use the legitimate permissions assigned to the application, such as the ability to read email, send email as an arbitrary user, access user calendars, etc.

Lots of details here, including information on remediation and hardening.

The more we learn about the this operation, the more sophisticated it becomes.

In related news, MalwareBytes was also targeted.

Sophisticated Watering Hole Attack

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/sophisticated-watering-hole-attack.html

Google’s Project Zero has exposed a sophisticated watering-hole attack targeting both Windows and Android:

Some of the exploits were zero-days, meaning they targeted vulnerabilities that at the time were unknown to Google, Microsoft, and most outside researchers (both companies have since patched the security flaws). The hackers delivered the exploits through watering-hole attacks, which compromise sites frequented by the targets of interest and lace the sites with code that installs malware on visitors’ devices. The boobytrapped sites made use of two exploit servers, one for Windows users and the other for users of Android

The use of zero-days and complex infrastructure isn’t in itself a sign of sophistication, but it does show above-average skill by a professional team of hackers. Combined with the robustness of the attack code — ­which chained together multiple exploits in an efficient manner — the campaign demonstrates it was carried out by a “highly sophisticated actor.”

[…]

The modularity of the payloads, the interchangeable exploit chains, and the logging, targeting, and maturity of the operation also set the campaign apart, the researcher said.

No attribution was made, but the list of countries likely to be behind this isn’t very large. If you were to ask me to guess based on available information, I would guess it was the US — specifically, the NSA. It shows a care and precision that it’s known for. But I have no actual evidence for that guess.

All the vulnerabilities were fixed by last April.

Injecting a Backdoor into SolarWinds Orion

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/injecting-a-backdoor-into-solarwinds-orion.html

Crowdstrike is reporting on a sophisticated piece of malware that was able to inject malware into the SolarWinds build process:

Key Points

  • SUNSPOT is StellarParticle’s malware used to insert the SUNBURST backdoor into software builds of the SolarWinds Orion IT management product.
  • SUNSPOT monitors running processes for those involved in compilation of the Orion product and replaces one of the source files to include the SUNBURST backdoor code.
  • Several safeguards were added to SUNSPOT to avoid the Orion builds from failing, potentially alerting developers to the adversary’s presence.

Analysis of a SolarWinds software build server provided insights into how the process was hijacked by StellarParticle in order to insert SUNBURST into the update packages. The design of SUNSPOT suggests StellarParticle developers invested a lot of effort to ensure the code was properly inserted and remained undetected, and prioritized operational security to avoid revealing their presence in the build environment to SolarWinds developers.

This, of course, reminds many of us of Ken Thompson’s thought experiment from his 1984 Turing Award lecture, “Reflections on Trusting Trust.” In that talk, he suggested that a malicious C compiler might add a backdoor into programs it compiles.

The moral is obvious. You can’t trust code that you did not totally create yourself. (Especially code from companies that employ people like me.) No amount of source-level verification or scrutiny will protect you from using untrusted code. In demonstrating the possibility of this kind of attack, I picked on the C compiler. I could have picked on any program-handling program such as an assembler, a loader, or even hardware microcode. As the level of program gets lower, these bugs will be harder and harder to detect. A well-installed microcode bug will be almost impossible to detect.

That’s all still true today.

APT Horoscope

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/apt-horoscope.html

This delightful essay matches APT hacker groups up with astrological signs. This is me:

Capricorn is renowned for its discipline, skilled navigation, and steadfastness. Just like Capricorn, Helix Kitten (also known as APT 35 or OilRig) is a skilled navigator of vast online networks, maneuvering deftly across an array of organizations, including those in aerospace, energy, finance, government, hospitality, and telecommunications. Steadfast in its work and objectives, Helix Kitten has a consistent track record of developing meticulous spear-phishing attacks.

Russia’s SolarWinds Attack and Software Security

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/russias-solarwinds-attack-and-software-security.html

The information that is emerging about Russia’s extensive cyberintelligence operation against the United States and other countries should be increasingly alarming to the public. The magnitude of the hacking, now believed to have affected more than 250 federal agencies and businesses — ­primarily through a malicious update of the SolarWinds network management software — ­may have slipped under most people’s radar during the holiday season, but its implications are stunning.

According to a Washington Post report, this is a massive intelligence coup by Russia’s foreign intelligence service (SVR). And a massive security failure on the part of the United States is also to blame. Our insecure Internet infrastructure has become a critical national security risk­ — one that we need to take seriously and spend money to reduce.

President-elect Joe Biden’s initial response spoke of retaliation, but there really isn’t much the United States can do beyond what it already does. Cyberespionage is business as usual among countries and governments, and the United States is aggressively offensive in this regard. We benefit from the lack of norms in this area and are unlikely to push back too hard because we don’t want to limit our own offensive actions.

Biden took a more realistic tone last week when he spoke of the need to improve US defenses. The initial focus will likely be on how to clean the hackers out of our networks, why the National Security Agency and US Cyber Command failed to detect this intrusion and whether the 2-year-old Cybersecurity and Infrastructure Security Agency has the resources necessary to defend the United States against attacks of this caliber. These are important discussions to have, but we also need to address the economic incentives that led to SolarWinds being breached and how that insecure software ended up in so many critical US government networks.

Software has become incredibly complicated. Most of us almost don’t know all of the software running on our laptops and what it’s doing. We don’t know where it’s connecting to on the Internet­ — not even which countries it’s connecting to­ — and what data it’s sending. We typically don’t know what third party libraries are in the software we install. We don’t know what software any of our cloud services are running. And we’re rarely alone in our ignorance. Finding all of this out is incredibly difficult.

This is even more true for software that runs our large government networks, or even the Internet backbone. Government software comes from large companies, small suppliers, open source projects and everything in between. Obscure software packages can have hidden vulnerabilities that affect the security of these networks, and sometimes the entire Internet. Russia’s SVR leveraged one of those vulnerabilities when it gained access to SolarWinds’ update server, tricking thousands of customers into downloading a malicious software update that gave the Russians access to those networks.

The fundamental problem is one of economic incentives. The market rewards quick development of products. It rewards new features. It rewards spying on customers and users: collecting and selling individual data. The market does not reward security, safety or transparency. It doesn’t reward reliability past a bare minimum, and it doesn’t reward resilience at all.

This is what happened at SolarWinds. A New York Times report noted the company ignored basic security practices. It moved software development to Eastern Europe, where Russia has more influence and could potentially subvert programmers, because it’s cheaper.

Short-term profit was seemingly prioritized over product security.

Companies have the right to make decisions like this. The real question is why the US government bought such shoddy software for its critical networks. This is a problem that Biden can fix, and he needs to do so immediately.

The United States needs to improve government software procurement. Software is now critical to national security. Any system for acquiring software needs to evaluate the security of the software and the security practices of the company, in detail, to ensure they are sufficient to meet the security needs of the network they’re being installed in. Procurement contracts need to include security controls of the software development process. They need security attestations on the part of the vendors, with substantial penalties for misrepresentation or failure to comply. The government needs detailed best practices for government and other companies.

Some of the groundwork for an approach like this has already been laid by the federal government, which has sponsored the development of a “Software Bill of Materials” that would set out a process for software makers to identify the components used to assemble their software.

This scrutiny can’t end with purchase. These security requirements need to be monitored throughout the software’s life cycle, along with what software is being used in government networks.

None of this is cheap, and we should be prepared to pay substantially more for secure software. But there’s a benefit to these practices. If the government evaluations are public, along with the list of companies that meet them, all network buyers can benefit from them. The US government acting purely in the realm of procurement can improve the security of nongovernmental networks worldwide.

This is important, but it isn’t enough. We need to set minimum safety and security standards for all software: from the code in that Internet of Things appliance you just bought to the code running our critical national infrastructure. It’s all one network, and a vulnerability in your refrigerator’s software can be used to attack the national power grid.

The IOT Cybersecurity Improvement Act, signed into law last month, is a start in this direction.

The Biden administration should prioritize minimum security standards for all software sold in the United States, not just to the government but to everyone. Long gone are the days when we can let the software industry decide how much emphasis to place on security. Software security is now a matter of personal safety: whether it’s ensuring your car isn’t hacked over the Internet or that the national power grid isn’t hacked by the Russians.

This regulation is the only way to force companies to provide safety and security features for customers — just as legislation was necessary to mandate food safety measures and require auto manufacturers to install life-saving features such as seat belts and air bags. Smart regulations that incentivize innovation create a market for security features. And they improve security for everyone.

It’s true that creating software in this sort of regulatory environment is more expensive. But if we truly value our personal and national security, we need to be prepared to pay for it.

The truth is that we’re already paying for it. Today, software companies increase their profits by secretly pushing risk onto their customers. We pay the cost of insecure personal computers, just as the government is now paying the cost to clean up after the SolarWinds hack. Fixing this requires both transparency and regulation. And while the industry will resist both, they are essential for national security in our increasingly computer-dependent worlds.

This essay previously appeared on CNN.com.

Latest on the SVR’s SolarWinds Hack

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2021/01/latest-on-the-svrs-solarwinds-hack.html

The New York Times has an in-depth article on the latest information about the SolarWinds hack (not a great name, since it’s much more far-reaching than that).

Interviews with key players investigating what intelligence agencies believe to be an operation by Russia’s S.V.R. intelligence service revealed these points:

  • The breach is far broader than first believed. Initial estimates were that Russia sent its probes only into a few dozen of the 18,000 government and private networks they gained access to when they inserted code into network management software made by a Texas company named SolarWinds. But as businesses like Amazon and Microsoft that provide cloud services dig deeper for evidence, it now appears Russia exploited multiple layers of the supply chain to gain access to as many as 250 networks.
  • The hackers managed their intrusion from servers inside the United States, exploiting legal prohibitions on the National Security Agency from engaging in domestic surveillance and eluding cyberdefenses deployed by the Department of Homeland Security.
  • “Early warning” sensors placed by Cyber Command and the National Security Agency deep inside foreign networks to detect brewing attacks clearly failed. There is also no indication yet that any human intelligence alerted the United States to the hacking.
  • The government’s emphasis on election defense, while critical in 2020, may have diverted resources and attention from long-brewing problems like protecting the “supply chain” of software. In the private sector, too, companies that were focused on election security, like FireEye and Microsoft, are now revealing that they were breached as part of the larger supply chain attack.
  • SolarWinds, the company that the hackers used as a conduit for their attacks, had a history of lackluster security for its products, making it an easy target, according to current and former employees and government investigators. Its chief executive, Kevin B. Thompson, who is leaving his job after 11 years, has sidestepped the question of whether his company should have detected the intrusion.
  • Some of the compromised SolarWinds software was engineered in Eastern Europe, and American investigators are now examining whether the incursion originated there, where Russian intelligence operatives are deeply rooted.

Separately, it seems that the SVR conducted a dry run of the attack five months before the actual attack:

The hackers distributed malicious files from the SolarWinds network in October 2019, five months before previously reported files were sent to victims through the company’s software update servers. The October files, distributed to customers on Oct. 10, did not have a backdoor embedded in them, however, in the way that subsequent malicious files that victims downloaded in the spring of 2020 did, and these files went undetected until this month.

[…]

“This tells us the actor had access to SolarWinds’ environment much earlier than this year. We know at minimum they had access Oct. 10, 2019. But they would certainly have had to have access longer than that,” says the source. “So that intrusion [into SolarWinds] has to originate probably at least a couple of months before that ­- probably at least mid-2019 [if not earlier].”

The files distributed to victims in October 2019 were signed with a legitimate SolarWinds certificate to make them appear to be authentic code for the company’s Orion Platform software, a tool used by system administrators to monitor and configure servers and other computer hardware on their network.

Russia’s SolarWinds Attack

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/12/russias-solarwinds-attack.html

Recent news articles have all been talking about the massive Russian cyberattack against the United States, but that’s wrong on two accounts. It wasn’t a cyberattack in international relations terms, it was espionage. And the victim wasn’t just the US, it was the entire world. But it was massive, and it is dangerous.

Espionage is internationally allowed in peacetime. The problem is that both espionage and cyberattacks require the same computer and network intrusions, and the difference is only a few keystrokes. And since this Russian operation isn’t at all targeted, the entire world is at risk — and not just from Russia. Many countries carry out these sorts of operations, none more extensively than the US. The solution is to prioritize security and defense over espionage and attack.

Here’s what we know: Orion is a network management product from a company named SolarWinds, with over 300,000 customers worldwide. Sometime before March, hackers working for the Russian SVR — previously known as the KGB — hacked into SolarWinds and slipped a backdoor into an Orion software update. (We don’t know how, but last year the company’s update server was protected by the password “solarwinds123” — something that speaks to a lack of security culture.) Users who downloaded and installed that corrupted update between March and June unwittingly gave SVR hackers access to their networks.

This is called a supply-chain attack, because it targets a supplier to an organization rather than an organization itself — and can affect all of a supplier’s customers. It’s an increasingly common way to attack networks. Other examples of this sort of attack include fake apps in the Google Play store, and hacked replacement screens for your smartphone.

SolarWinds has removed its customer list from its website, but the Internet Archive saved it: all five branches of the US military, the state department, the White House, the NSA, 425 of the Fortune 500 companies, all five of the top five accounting firms, and hundreds of universities and colleges. In an SEC filing, SolarWinds said that it believes “fewer than 18,000” of those customers installed this malicious update, another way of saying that more than 17,000 did.

That’s a lot of vulnerable networks, and it’s inconceivable that the SVR penetrated them all. Instead, it chose carefully from its cornucopia of targets. Microsoft’s analysis identified 40 customers who were infiltrated using this vulnerability. The great majority of those were in the US, but networks in Canada, Mexico, Belgium, Spain, the UK, Israel and the UAE were also targeted. This list includes governments, government contractors, IT companies, thinktanks, and NGOs — and it will certainly grow.

Once inside a network, SVR hackers followed a standard playbook: establish persistent access that will remain even if the initial vulnerability is fixed; move laterally around the network by compromising additional systems and accounts; and then exfiltrate data. Not being a SolarWinds customer is no guarantee of security; this SVR operation used other initial infection vectors and techniques as well. These are sophisticated and patient hackers, and we’re only just learning some of the techniques involved here.

Recovering from this attack isn’t easy. Because any SVR hackers would establish persistent access, the only way to ensure that your network isn’t compromised is to burn it to the ground and rebuild it, similar to reinstalling your computer’s operating system to recover from a bad hack. This is how a lot of sysadmins are going to spend their Christmas holiday, and even then they can&;t be sure. There are many ways to establish persistent access that survive rebuilding individual computers and networks. We know, for example, of an NSA exploit that remains on a hard drive even after it is reformatted. Code for that exploit was part of the Equation Group tools that the Shadow Brokers — again believed to be Russia — stole from the NSA and published in 2016. The SVR probably has the same kinds of tools.

Even without that caveat, many network administrators won’t go through the long, painful, and potentially expensive rebuilding process. They’ll just hope for the best.

It’s hard to overstate how bad this is. We are still learning about US government organizations breached: the state department, the treasury department, homeland security, the Los Alamos and Sandia National Laboratories (where nuclear weapons are developed), the National Nuclear Security Administration, the National Institutes of Health, and many more. At this point, there’s no indication that any classified networks were penetrated, although that could change easily. It will take years to learn which networks the SVR has penetrated, and where it still has access. Much of that will probably be classified, which means that we, the public, will never know.

And now that the Orion vulnerability is public, other governments and cybercriminals will use it to penetrate vulnerable networks. I can guarantee you that the NSA is using the SVR’s hack to infiltrate other networks; why would they not? (Do any Russian organizations use Orion? Probably.)

While this is a security failure of enormous proportions, it is not, as Senator Richard Durban said, “virtually a declaration of war by Russia on the United States.” While President-elect Biden said he will make this a top priority, it’s unlikely that he will do much to retaliate.

The reason is that, by international norms, Russia did nothing wrong. This is the normal state of affairs. Countries spy on each other all the time. There are no rules or even norms, and it’s basically “buyer beware.” The US regularly fails to retaliate against espionage operations — such as China’s hack of the Office of Personal Management (OPM) and previous Russian hacks — because we do it, too. Speaking of the OPM hack, the then director of national intelligence, James Clapper, said: “You have to kind of salute the Chinese for what they did. If we had the opportunity to do that, I don’t think we’d hesitate for a minute.”

We don’t, and I’m sure NSA employees are grudgingly impressed with the SVR. The US has by far the most extensive and aggressive intelligence operation in the world. The NSA’s budget is the largest of any intelligence agency. It aggressively leverages the US’s position controlling most of the internet backbone and most of the major internet companies. Edward Snowden disclosed many targets of its efforts around 2014, which then included 193 countries, the World Bank, the IMF and the International Atomic Energy Agency. We are undoubtedly running an offensive operation on the scale of this SVR operation right now, and it’ll probably never be made public. In 2016, President Obama boasted that we have “more capacity than anybody both offensively and defensively.”

He may have been too optimistic about our defensive capability. The US prioritizes and spends many times more on offense than on defensive cybersecurity. In recent years, the NSA has adopted a strategy of “persistent engagement,” sometimes called “defending forward.” The idea is that instead of passively waiting for the enemy to attack our networks and infrastructure, we go on the offensive and disrupt attacks before they get to us. This strategy was credited with foiling a plot by the Russian Internet Research Agency to disrupt the 2018 elections.

But if persistent engagement is so effective, how could it have missed this massive SVR operation? It seems that pretty much the entire US government was unknowingly sending information back to Moscow. If we had been watching everything the Russians were doing, we would have seen some evidence of this. The Russians’ success under the watchful eye of the NSA and US Cyber Command shows that this is a failed approach.

And how did US defensive capability miss this? The only reason we know about this breach is because, earlier this month, the security company FireEye discovered that it had been hacked. During its own audit of its network, it uncovered the Orion vulnerability and alerted the US government. Why don’t organizations like the Departments of State, Treasury and Homeland Wecurity regularly conduct that level of audit on their own systems? The government’s intrusion detection system, Einstein 3, failed here because it doesn’t detect new sophisticated attacks — a deficiency pointed out in 2018 but never fixed. We shouldn’t have to rely on a private cybersecurity company to alert us of a major nation-state attack.

If anything, the US’s prioritization of offense over defense makes us less safe. In the interests of surveillance, the NSA has pushed for an insecure cell phone encryption standard and a backdoor in random number generators (important for secure encryption). The DoJ has never relented in its insistence that the world’s popular encryption systems be made insecure through back doors — another hot point where attack and defense are in conflict. In other words, we allow for insecure standards and systems, because we can use them to spy on others.

We need to adopt a defense-dominant strategy. As computers and the internet become increasingly essential to society, cyberattacks are likely to be the precursor to actual war. We are simply too vulnerable when we prioritize offense, even if we have to give up the advantage of using those insecurities to spy on others.

Our vulnerability is magnified as eavesdropping may bleed into a direct attack. The SVR’s access allows them not only to eavesdrop, but also to modify data, degrade network performance, or erase entire networks. The first might be normal spying, but the second certainly could be considered an act of war. Russia is almost certainly laying the groundwork for future attack.

This preparation would not be unprecedented. There’s a lot of attack going on in the world. In 2010, the US and Israel attacked the Iranian nuclear program. In 2012, Iran attacked the Saudi national oil company. North Korea attacked Sony in 2014. Russia attacked the Ukrainian power grid in 2015 and 2016. Russia is hacking the US power grid, and the US is hacking Russia’s power grid — just in case the capability is needed someday. All of these attacks began as a spying operation. Security vulnerabilities have real-world consequences.

We’re not going to be able to secure our networks and systems in this no-rules, free-for-all every-network-for-itself world. The US needs to willingly give up part of its offensive advantage in cyberspace in exchange for a vastly more secure global cyberspace. We need to invest in securing the world’s supply chains from this type of attack, and to press for international norms and agreements prioritizing cybersecurity, like the 2018 Paris Call for Trust and Security in Cyberspace or the Global Commission on the Stability of Cyberspace. Hardening widely used software like Orion (or the core internet protocols) helps everyone. We need to dampen this offensive arms race rather than exacerbate it, and work towards cyber peace. Otherwise, hypocritically criticizing the Russians for doing the same thing we do every day won’t help create the safer world in which we all want to live.

This essay previously appeared in the Guardian.

How China Uses Stolen US Personnel Data

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/12/how-china-uses-stolen-us-personnel-data.html

Interesting analysis of China’s efforts to identify US spies:

By about 2010, two former CIA officials recalled, the Chinese security services had instituted a sophisticated travel intelligence program, developing databases that tracked flights and passenger lists for espionage purposes. “We looked at it very carefully,” said the former senior CIA official. China’s spies “were actively using that for counterintelligence and offensive intelligence. The capability was there and was being utilized.” China had also stepped up its hacking efforts targeting biometric and passenger data from transit hubs…

To be sure, China had stolen plenty of data before discovering how deeply infiltrated it was by U.S. intelligence agencies. However, the shake-up between 2010 and 2012 gave Beijing an impetus not only to go after bigger, riskier targets, but also to put together the infrastructure needed to process the purloined information. It was around this time, said a former senior NSA official, that Chinese intelligence agencies transitioned from merely being able to steal large datasets en masse to actually rapidly sifting through information from within them for use….

For U.S. intelligence personnel, these new capabilities made China’s successful hack of the U.S. Office of Personnel Management (OPM) that much more chilling. During the OPM breach, Chinese hackers stole detailed, often highly sensitive personnel data from 21.5 million current and former U.S. officials, their spouses, and job applicants, including health, residency, employment, fingerprint, and financial data. In some cases, details from background investigations tied to the granting of security clearances — investigations that can delve deeply into individuals’ mental health records, their sexual histories and proclivities, and whether a person’s relatives abroad may be subject to government blackmail — were stolen as well….

When paired with travel details and other purloined data, information from the OPM breach likely provided Chinese intelligence potent clues about unusual behavior patterns, biographical information, or career milestones that marked individuals as likely U.S. spies, officials say. Now, these officials feared, China could search for when suspected U.S. spies were in certain locations — and potentially also meeting secretly with their Chinese sources. China “collects bulk personal data to help it track dissidents or other perceived enemies of China around the world,” Evanina, the top U.S. counterintelligence official, said.

[..]

But after the OPM breach, anomalies began to multiply. In 2012, senior U.S. spy hunters began to puzzle over some “head-scratchers”: In a few cases, spouses of U.S. officials whose sensitive work should have been difficult to discern were being approached by Chinese and Russian intelligence operatives abroad, according to the former counterintelligence executive. In one case, Chinese operatives tried to harass and entrap a U.S. official’s wife while she accompanied her children on a school field trip to China. “The MO is that, usually at the end of the trip, the lightbulb goes on [and the foreign intelligence service identifies potential persons of interest]. But these were from day one, from the airport onward,” the former official said.

Worries about what the Chinese now knew precipitated an intelligence community-wide damage assessment surrounding the OPM and other hacks, recalled Douglas Wise, a former senior CIA official who served deputy director of the Defense Intelligence Agency from 2014 to 2016. Some worried that China might have purposefully secretly altered data in individuals’ OPM files to later use as leverage in recruitment attempts. Officials also believed that the Chinese might sift through the OPM data to try and craft the most ideal profiles for Chinese intelligence assets seeking to infiltrate the U.S. government­ — since they now had granular knowledge of what the U.S. government looked for, and what it didn’t, while considering applicants for sensitive positions. U.S. intelligence agencies altered their screening procedures to anticipate new, more finely tuned Chinese attempts at human spying, Wise said.

NSA on Authentication Hacks (Related to SolarWinds Breach)

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/12/nsa-on-authentication-hacks-related-to-solarwinds-breach.html

The NSA has published an advisory outlining how “malicious cyber actors” are “are manipulating trust in federated authentication environments to access protected data in the cloud.” This is related to the SolarWinds hack I have previously written about, and represents one of the techniques the SVR is using once it has gained access to target networks.

From the summary:

Malicious cyberactors are abusing trust in federated authentication environments to access protected data. The exploitation occurs after the actors have gained initial access to a victim’s on-premises network. The actors leverage privileged access in the on-premises environment to subvert the mechanisms that the organization uses to grant access to cloud and on-premises resources and/or to compromise administrator credentials with the ability to manage cloud resources. The actors demonstrate two sets of tactics, techniques,and procedures (TTP) for gaining access to the victim network’s cloud resources, often with a particular focus on organizational email.

In the first TTP, the actors compromise on-premises components of a federated SSO infrastructure and steal the credential or private key that is used to sign Security Assertion Markup Language (SAML) tokens(TA0006, T1552, T1552.004). Using the private keys, the actors then forge trusted authentication tokens to access cloud resources. A recent NSA Cybersecurity Advisory warned of actors exploiting a vulnerability in VMware Access and VMware Identity Manager that allowed them to perform this TTP and abuse federated SSO infrastructure.While that example of this TTP may have previously been attributed to nation-state actors, a wealth of actors could be leveraging this TTP for their objectives. This SAML forgery technique has been known and used by cyber actors since at least 2017.

In a variation of the first TTP, if the malicious cyber actors are unable to obtain anon-premises signing key, they would attempt to gain sufficient administrative privileges within the cloud tenant to add a malicious certificate trust relationship for forging SAML tokens.

In the second TTP, the actors leverage a compromised global administrator account to assign credentials to cloud application service principals (identities for cloud applications that allow the applications to be invoked to access other cloud resources). The actors then invoke the application’s credentials for automated access to cloud resources (often email in particular) that would otherwise be difficult for the actors to access or would more easily be noticed as suspicious (T1114, T1114.002).

This is an ongoing story, and I expect to see a lot more about TTP — nice acronym there — in coming weeks.

Related: Tom Bossert has a scathing op-ed on the breach. Jack Goldsmith’s essay is worth reading. So is Nick Weaver’s.

Another Massive Russian Hack of US Government Networks

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/12/another-massive-russian-hack-of-us-government-networks.html

The press is reporting a massive hack of US government networks by sophisticated Russian hackers.

Officials said a hunt was on to determine if other parts of the government had been affected by what looked to be one of the most sophisticated, and perhaps among the largest, attacks on federal systems in the past five years. Several said national security-related agencies were also targeted, though it was not clear whether the systems contained highly classified material.

[…]

The motive for the attack on the agency and the Treasury Department remains elusive, two people familiar with the matter said. One government official said it was too soon to tell how damaging the attacks were and how much material was lost, but according to several corporate officials, the attacks had been underway as early as this spring, meaning they continued undetected through months of the pandemic and the election season.

The attack vector seems to be a malicious update in SolarWinds’ “Orion” IT monitoring platform, which is widely used in the US government (and elsewhere).

SolarWinds’ comprehensive products and services are used by more than 300,000 customers worldwide, including military, Fortune 500 companies, government agencies, and education institutions. Our customer list includes:

  • More than 425 of the US Fortune 500
  • All ten of the top ten US telecommunications companies
  • All five branches of the US Military
  • The US Pentagon, State Department, NASA, NSA, Postal Service, NOAA, Department of Justice, and the Office of the President of the United States
  • All five of the top five US accounting firms
  • Hundreds of universities and colleges worldwide

I’m sure more details will become public over the next several weeks.

EDITED TO ADD (12/15): More news.

FireEye Hacked

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/12/fireeye-hacked.html

FireEye was hacked by — they believe — “a nation with top-tier offensive capabilities”:

During our investigation to date, we have found that the attacker targeted and accessed certain Red Team assessment tools that we use to test our customers’ security. These tools mimic the behavior of many cyber threat actors and enable FireEye to provide essential diagnostic security services to our customers. None of the tools contain zero-day exploits. Consistent with our goal to protect the community, we are proactively releasing methods and means to detect the use of our stolen Red Team tools.

We are not sure if the attacker intends to use our Red Team tools or to publicly disclose them. Nevertheless, out of an abundance of caution, we have developed more than 300 countermeasures for our customers, and the community at large, to use in order to minimize the potential impact of the theft of these tools.

We have seen no evidence to date that any attacker has used the stolen Red Team tools. We, as well as others in the security community, will continue to monitor for any such activity. At this time, we want to ensure that the entire security community is both aware and protected against the attempted use of these Red Team tools. Specifically, here is what we are doing:

  • We have prepared countermeasures that can detect or block the use of our stolen Red Team tools.
  • We have implemented countermeasures into our security products.
  • We are sharing these countermeasures with our colleagues in the security community so that they can update their security tools.
  • We are making the countermeasures publicly available on our GitHub.
  • We will continue to share and refine any additional mitigations for the Red Team tools as they become available, both publicly and directly with our security partners.

Consistent with a nation-state cyber-espionage effort, the attacker primarily sought information related to certain government customers. While the attacker was able to access some of our internal systems, at this point in our investigation, we have seen no evidence that the attacker exfiltrated data from our primary systems that store customer information from our incident response or consulting engagements, or the metadata collected by our products in our dynamic threat intelligence systems. If we discover that customer information was taken, we will contact them directly.

From the New York Times:

The hack was the biggest known theft of cybersecurity tools since those of the National Security Agency were purloined in 2016 by a still-unidentified group that calls itself the ShadowBrokers. That group dumped the N.S.A.’s hacking tools online over several months, handing nation-states and hackers the “keys to the digital kingdom,” as one former N.S.A. operator put it. North Korea and Russia ultimately used the N.S.A.’s stolen weaponry in destructive attacks on government agencies, hospitals and the world’s biggest conglomerates ­- at a cost of more than $10 billion.

The N.S.A.’s tools were most likely more useful than FireEye’s since the U.S. government builds purpose-made digital weapons. FireEye’s Red Team tools are essentially built from malware that the company has seen used in a wide range of attacks.

Russia is presumed to be the attacker.

Reuters article. Boing Boing post. Slashdot thread. Wired article.