Tag Archives: scam

Scammer Targets Reddit Users With Premium Account Racket

Post Syndicated from Andy original https://torrentfreak.com/scammer-targets-reddit-users-with-premium-account-racket-190722/

Reddit’s /r/piracy sub-Reddit is home to more than 402,000 subscribers hoping to hear about the latest news and developments in the world of digital piracy.

By its very nature, users are likely to be interested in getting something for free, so it’s no surprise that scammers are targeting its users offering just that.

Over the weekend, users of the sub-Reddit began commenting that they’d received unsolicited direct messages offering them a great deal. All they had to do was download a free piece of software called PremiumGet and in return, they would be given free premium accounts for use on Netflix, Spotify, Hulu, NordVPN and several other services.

The direct message: Ignore

It wasn’t initially clear why some users were getting the messages and others weren’t. However, a user one particular thread noted that immediately after posting in a discussion about ‘PremiumGet’, he received a message in his inbox advertising the scam. We had that theory tested and sure enough, the same message appeared.

The message contains a link to file-hosting platform Mediafire, where the suspiciously large 51.76MB file can be downloaded. According to the uploader, who engaged in disputes with other users elsewhere on Reddit about the tool, it doesn’t trigger alerts in anti-malware software so must be safe.

Not a virus – probably

The accompanying video, if anyone cares to view it, can be found here. Those who prefer not to inflate the view count on YouTube can see a screenshot below, which shows the screen directly after the one that prompts users to enter their Google or Facebook usernames and passwords.

We have zero intentions of download, installing, or otherwise testing the software, we’ll let the security specialists do their job there. However, there is a really simple rule for those still mulling it over, and we’ve seen a few of those this morning.

Random people on the Internet offering expensive stuff for free, requiring you to install software and then asking for your existing usernames and passwords to services that may have massive control over your entire digital life, never have your best interests at heart. Ever.

Walk away. Nothing good here.

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

Police: Scam Streaming Sites Are Exploiting Internet Users

Post Syndicated from Andy original https://torrentfreak.com/police-scam-streaming-sites-are-exploiting-internet-users-190707/

It is fairly common for anti-piracy outfits to describe pirate sites and devices as “scams” but despite being mostly illegal, they deliver what they promise and rarely attempt to defraud the public.

Over in Germany, a much more sinister operation is being reported, one that involves more than a couple of hundred sites that claim to be legal but are actually a huge money-making scheme for fraudsters.

In the example shown below, AsoFlix looks like a regular pirate streaming platform. However, the site claims to be legitimate, despite the fact that the irregular capitalization of its various movie categories suggests an unprofessional offer.

No content can be accessed before registering and when users try to sign up, they are asked to enter all of their personal details. This is where the trouble starts.

In return for handing over their names, addresses, credit card and cellphone numbers, users are given a five-day free trial but according to police, this amounts to a so-called “subscription trap”. Buried away in the terms and conditions is a note that if “users do not unsubscribe during the free trial, your account will automatically be upgraded to a one-year premium account.”

In the case of Asoflix, that’s the princely sum of € 395.88 per year, charged in one transaction. Worst still, local news outlet Tarnkappe reports that the sites actually have “little to no works” on offer, which means a huge bill and no return for those unfortunate enough to sign up. Police add that they cannot say whether any content offered is licensed, although that seems unlikely.

The scam was first uncovered in 2018 but according to police, it is very much ongoing. They have published a list of the domains involved in the fraud which number around 220 (TF tests reveal that a number are now inactive), alongside warnings not to pay up.

The problem is that many victims are receiving pressure from the sites to do just that via bogus debt collection letters threatening to seize property, pensions, bank deposits, and even unemployment benefits. And in a sign of how sophisticated the scam is, police say that videos have been posted to YouTube supposedly featuring lawyers who advise that the demands for cash are legitimate.

Video advising that the scam on GadaFlix.de is legal (credit: German police)

It’s worth noting that AsoFlix and GadaFlix (the site referenced in the YouTube screenshot above) are identical, yet they claim to be owned by different companies. Perhaps unsurprisingly, a report from Germany connects this scam with an earlier one involving bogus copyright infringement notices.

Since we highlighted AsoFlix above, we took a closer look at who might be behind the service. Strangely, given the heat this and similar platforms are under in Germany, the AsoFlix site actually lists its owning company as FOXRUSH FILMS LTD, England.

Whether this is actually the owning company is unknown, but a company by that name does exist in the UK having been incorporated in 2013. It is currently listed as dormant and since its inception has never reported any trading. Google Maps shows the address as a small mid-terrace house in a residential area of Coventry. According to EU databases, the VAT number provided by AsoFlix doesn’t exist.

TorrentFreak checked a number of the companies listed on these scam sites as their owners and many are incorporated entities in the UK. While it’s possible the scammers trawled Companies House in search of random companies to blame, further investigation by the authorities is needed to draw a definitive conclusion.

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

Scammers Abuse Steam to Attract Would-Be Movie Pirates

Post Syndicated from Andy original https://torrentfreak.com/scammers-abuse-steam-to-trap-would-be-movie-pirates-190623/

According to an October 2018 report, Steam has around 90 million active monthly users, making it the largest digital distribution platform for PC games.

Steam user accounts overall are many times more numerous. In April, PCGamesN indicated that the platform had attracted its billionth account, noting that “a significant number of these are undoubtedly spam, scam, alt, and bot accounts.”

Indeed, an activity that appears to have taken root on the platform over the past few months shows that accounts don’t have to be limited to just one type of the above suspicious activity. Steam is the last place one might expect to find links to pirate movies, but that’s part of the trap.

As the image below shows, this Steam page is supposedly offering the movie Escape Room “for FREE online” but that certainly isn’t the case.

Beware

Users who scroll down to the bottom find extremely lengthy hyperlinks hidden under a pair of “Watch Now” and “Download” buttons. Since this is clearly some kind of dodgy activity, we truncated those links in order to visit only their final destination.

That led us to another site called “Daily Movie” which appeared to begin playing not Escape Room, but Avengers: Infinity War. After viewing what seemed to be a real movie intro (the lion of MGM in this case), neither movie was presented. Instead, we got the following;

Don’t give them a penny

Needless to say, in the context of the offer on Steam (recent Hollywood movies) most of the claims in the above statement are a lie. The ‘continue’ link goes to a subscription content service (Dontra) that has none of the movies previously promised and will only leave users disappointed – after earning the Steam spammer some commission, of course.

Another page, which claims to offer Aquaman for download, contains hyperlinks to what appears to be a full ‘pirate’ streaming site called Cinemago. While the links are not directly functional (and Steam helpfully warns that these go to an external site), it does send users to the Cinemago platform, as shown below.

CinemaNO

This site, unsurprisingly, does not offer pirate movies. Instead, when users click any of the film covers they are introduced to a similar “sign up” window and are then re-directed to a site called Funwraith. It is absolutely identical to Dontra and as such has none of the movies offered.

This bait-and-switch subscription trap is repeated on dozens of Steam pages too numerous to outline here. However, if readers want to see more of them (not recommended), typing site:steamcommunity.com/sharedfiles/ “full movie” into Google will bring up pages and pages of results.

While unusual, legitimate platforms have been abused for piracy and scam schemes in the past. Facebook, Google, Google Maps and even Change.org have all been repurposed in similar fashion.

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

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.

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.

Ransomware Update: Viruses Targeting Business IT Servers

Post Syndicated from Roderick Bauer original https://www.backblaze.com/blog/ransomware-update-viruses-targeting-business-it-servers/

Ransomware warning message on computer

As ransomware attacks have grown in number in recent months, the tactics and attack vectors also have evolved. While the primary method of attack used to be to target individual computer users within organizations with phishing emails and infected attachments, we’re increasingly seeing attacks that target weaknesses in businesses’ IT infrastructure.

How Ransomware Attacks Typically Work

In our previous posts on ransomware, we described the common vehicles used by hackers to infect organizations with ransomware viruses. Most often, downloaders distribute trojan horses through malicious downloads and spam emails. The emails contain a variety of file attachments, which if opened, will download and run one of the many ransomware variants. Once a user’s computer is infected with a malicious downloader, it will retrieve additional malware, which frequently includes crypto-ransomware. After the files have been encrypted, a ransom payment is demanded of the victim in order to decrypt the files.

What’s Changed With the Latest Ransomware Attacks?

In 2016, a customized ransomware strain called SamSam began attacking the servers in primarily health care institutions. SamSam, unlike more conventional ransomware, is not delivered through downloads or phishing emails. Instead, the attackers behind SamSam use tools to identify unpatched servers running Red Hat’s JBoss enterprise products. Once the attackers have successfully gained entry into one of these servers by exploiting vulnerabilities in JBoss, they use other freely available tools and scripts to collect credentials and gather information on networked computers. Then they deploy their ransomware to encrypt files on these systems before demanding a ransom. Gaining entry to an organization through its IT center rather than its endpoints makes this approach scalable and especially unsettling.

SamSam’s methodology is to scour the Internet searching for accessible and vulnerable JBoss application servers, especially ones used by hospitals. It’s not unlike a burglar rattling doorknobs in a neighborhood to find unlocked homes. When SamSam finds an unlocked home (unpatched server), the software infiltrates the system. It is then free to spread across the company’s network by stealing passwords. As it transverses the network and systems, it encrypts files, preventing access until the victims pay the hackers a ransom, typically between $10,000 and $15,000. The low ransom amount has encouraged some victimized organizations to pay the ransom rather than incur the downtime required to wipe and reinitialize their IT systems.

The success of SamSam is due to its effectiveness rather than its sophistication. SamSam can enter and transverse a network without human intervention. Some organizations are learning too late that securing internet-facing services in their data center from attack is just as important as securing endpoints.

The typical steps in a SamSam ransomware attack are:

1
Attackers gain access to vulnerable server
Attackers exploit vulnerable software or weak/stolen credentials.
2
Attack spreads via remote access tools
Attackers harvest credentials, create SOCKS proxies to tunnel traffic, and abuse RDP to install SamSam on more computers in the network.
3
Ransomware payload deployed
Attackers run batch scripts to execute ransomware on compromised machines.
4
Ransomware demand delivered requiring payment to decrypt files
Demand amounts vary from victim to victim. Relatively low ransom amounts appear to be designed to encourage quick payment decisions.

What all the organizations successfully exploited by SamSam have in common is that they were running unpatched servers that made them vulnerable to SamSam. Some organizations had their endpoints and servers backed up, while others did not. Some of those without backups they could use to recover their systems chose to pay the ransom money.

Timeline of SamSam History and Exploits

Since its appearance in 2016, SamSam has been in the news with many successful incursions into healthcare, business, and government institutions.

March 2016
SamSam appears

SamSam campaign targets vulnerable JBoss servers
Attackers hone in on healthcare organizations specifically, as they’re more likely to have unpatched JBoss machines.

April 2016
SamSam finds new targets

SamSam begins targeting schools and government.
After initial success targeting healthcare, attackers branch out to other sectors.

April 2017
New tactics include RDP

Attackers shift to targeting organizations with exposed RDP connections, and maintain focus on healthcare.
An attack on Erie County Medical Center costs the hospital $10 million over three months of recovery.
Erie County Medical Center attacked by SamSam ransomware virus

January 2018
Municipalities attacked

• Attack on Municipality of Farmington, NM.
• Attack on Hancock Health.
Hancock Regional Hospital notice following SamSam attack
• Attack on Adams Memorial Hospital
• Attack on Allscripts (Electronic Health Records), which includes 180,000 physicians, 2,500 hospitals, and 7.2 million patients’ health records.

February 2018
Attack volume increases

• Attack on Davidson County, NC.
• Attack on Colorado Department of Transportation.
SamSam virus notification

March 2018
SamSam shuts down Atlanta

• Second attack on Colorado Department of Transportation.
• City of Atlanta suffers a devastating attack by SamSam.
The attack has far-reaching impacts — crippling the court system, keeping residents from paying their water bills, limiting vital communications like sewer infrastructure requests, and pushing the Atlanta Police Department to file paper reports.
Atlanta Ransomware outage alert
• SamSam campaign nets $325,000 in 4 weeks.
Infections spike as attackers launch new campaigns. Healthcare and government organizations are once again the primary targets.

How to Defend Against SamSam and Other Ransomware Attacks

The best way to respond to a ransomware attack is to avoid having one in the first place. If you are attacked, making sure your valuable data is backed up and unreachable by ransomware infection will ensure that your downtime and data loss will be minimal or none if you ever suffer an attack.

In our previous post, How to Recover From Ransomware, we listed the ten ways to protect your organization from ransomware.

  1. Use anti-virus and anti-malware software or other security policies to block known payloads from launching.
  2. Make frequent, comprehensive backups of all important files and isolate them from local and open networks. Cybersecurity professionals view data backup and recovery (74% in a recent survey) by far as the most effective solution to respond to a successful ransomware attack.
  3. Keep offline backups of data stored in locations inaccessible from any potentially infected computer, such as disconnected external storage drives or the cloud, which prevents them from being accessed by the ransomware.
  4. Install the latest security updates issued by software vendors of your OS and applications. Remember to patch early and patch often to close known vulnerabilities in operating systems, server software, browsers, and web plugins.
  5. Consider deploying security software to protect endpoints, email servers, and network systems from infection.
  6. Exercise cyber hygiene, such as using caution when opening email attachments and links.
  7. Segment your networks to keep critical computers isolated and to prevent the spread of malware in case of attack. Turn off unneeded network shares.
  8. Turn off admin rights for users who don’t require them. Give users the lowest system permissions they need to do their work.
  9. Restrict write permissions on file servers as much as possible.
  10. Educate yourself, your employees, and your family in best practices to keep malware out of your systems. Update everyone on the latest email phishing scams and human engineering aimed at turning victims into abettors.

Please Tell Us About Your Experiences with Ransomware

Have you endured a ransomware attack or have a strategy to avoid becoming a victim? Please tell us of your experiences in the comments.

The post Ransomware Update: Viruses Targeting Business IT Servers appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Obscure E-Mail Vulnerability

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/04/obscure_e-mail_.html

This vulnerability is a result of an interaction between two different ways of handling e-mail addresses. Gmail ignores dots in addresses, so [email protected] is the same as [email protected] is the same as [email protected] (Note: I do not own any of those email addresses — if they’re even valid.) Netflix doesn’t ignore dots, so those are all unique e-mail addresses and can each be used to register an account. This difference can be exploited.

I was almost fooled into perpetually paying for Eve’s Netflix access, and only paused because I didn’t recognize the declined card. More generally, the phishing scam here is:

  1. Hammer the Netflix signup form until you find a gmail.com address which is “already registered”. Let’s say you find the victim jameshfisher.
  2. Create a Netflix account with address james.hfisher.
  3. Sign up for free trial with a throwaway card number.
  4. After Netflix applies the “active card check”, cancel the card.
  5. Wait for Netflix to bill the cancelled card. Then Netflix emails james.hfisher asking for a valid card.
  6. Hope Jim reads the email to james.hfisher, assumes it’s for his Netflix account backed by jameshfisher, then enters his card **** 1234.
  7. Change the email for the Netflix account to [email protected], kicking Jim’s access to this account.
  8. Use Netflix free forever with Jim’s card **** 1234!

Obscure, yes? A problem, yes?

James Fisher, who wrote the post, argues that it’s Google’s fault. Ignoring dots might give people an enormous number of different email addresses, but it’s not a feature that people actually want. And as long as other sites don’t follow Google’s lead, these sorts of problems are possible.

I think the problem is more subtle. It’s an example of two systems without a security vulnerability coming together to create a security vulnerability. As we connect more systems directly to each other, we’re going to see a lot more of these. And like this Google/Netflix interaction, it’s going to be hard to figure out who to blame and who — if anyone — has the responsibility of fixing it.

Secure Images

Post Syndicated from marcelatoath original https://yahooeng.tumblr.com/post/172068649246

oath-postmaster:

By Marcel Becker

The mail team at OATH is busy  integrating  Yahoo and AOL technology to deliver an even better experience across all our consumer mail products. While privacy and security are top priority for us, we also want to improve the experience and remove unnecessary clutter across all of our products.

Starting this week we will be serving images in mails via our own secure proxy servers. This will not only increase speed and security in our own mail products and reduce the risk of phishing and other scams,  but it will also mean that our users don’t have to fiddle around with those “enable images” settings. Messages and inline images will now just show up as originally intended.

We are aware that commercial mail senders are relying on images (so-called pixels) to track delivery and open rates. Our proxy solution will continue to support most of these cases and ensure that true mail opens are recorded.

For senders serving dynamic content based on the recipient’s location (leveraging standard IP-based browser and app capabilities) we recommend falling back on other tools and technologies which do not rely on IP-based targeting.

All of our consumer mail applications (Yahoo and AOL) will benefit from this change. This includes our desktop products as well as our mobile applications across iOS and Android.

If you have any feedback or want to discuss those changes with us personally, just send us a note to [email protected].

Secure Images

Post Syndicated from marcelatoath original https://yahooeng.tumblr.com/post/172037447286

By Marcel Becker

The mail team at OATH is busy  integrating  Yahoo and AOL technology to deliver an even better experience across all our consumer mail products. While privacy and security are top priority for us, we also want to improve the experience and remove unnecessary clutter across all of our products.

Starting this week we will be serving images in mails via our own secure proxy servers. This will not only increase speed and security in our own mail products and reduce the risk of phishing and other scams,  but it will also mean that our users don’t have to fiddle around with those “enable images” settings. Messages and inline images will now just show up as originally intended.

We are aware that commercial mail senders are relying on images (so-called pixels) to track delivery and open rates. Our proxy solution will continue to support most of these cases and ensure that true mail opens are recorded.

For senders serving dynamic content based on the recipient’s location (leveraging standard IP-based browser and app capabilities) we recommend falling back on other tools and technologies which do not rely on IP-based targeting.

All of our consumer mail applications (Yahoo and AOL) will benefit from this change. This includes our desktop products as well as our mobile applications across iOS and Android.

If you have any feedback or want to discuss those changes with us personally, just send us a note to [email protected].

What John Oliver gets wrong about Bitcoin

Post Syndicated from Robert Graham original http://blog.erratasec.com/2018/03/what-john-oliver-gets-wrong-about.html

John Oliver covered bitcoin/cryptocurrencies last night. I thought I’d describe a bunch of things he gets wrong.

How Bitcoin works

Nowhere in the show does it describe what Bitcoin is and how it works.
Discussions should always start with Satoshi Nakamoto’s original paper. The thing Satoshi points out is that there is an important cost to normal transactions, namely, the entire legal system designed to protect you against fraud, such as the way you can reverse the transactions on your credit card if it gets stolen. The point of Bitcoin is that there is no way to reverse a charge. A transaction is done via cryptography: to transfer money to me, you decrypt it with your secret key and encrypt it with mine, handing ownership over to me with no third party involved that can reverse the transaction, and essentially no overhead.
All the rest of the stuff, like the decentralized blockchain and mining, is all about making that work.
Bitcoin crazies forget about the original genesis of Bitcoin. For example, they talk about adding features to stop fraud, reversing transactions, and having a central authority that manages that. This misses the point, because the existing electronic banking system already does that, and does a better job at it than cryptocurrencies ever can. If you want to mock cryptocurrencies, talk about the “DAO”, which did exactly that — and collapsed in a big fraudulent scheme where insiders made money and outsiders didn’t.
Sticking to Satoshi’s original ideas are a lot better than trying to repeat how the crazy fringe activists define Bitcoin.

How does any money have value?

Oliver’s answer is currencies have value because people agree that they have value, like how they agree a Beanie Baby is worth $15,000.
This is wrong. A better way of asking the question why the value of money changes. The dollar has been losing roughly 2% of its value each year for decades. This is called “inflation”, as the dollar loses value, it takes more dollars to buy things, which means the price of things (in dollars) goes up, and employers have to pay us more dollars so that we can buy the same amount of things.
The reason the value of the dollar changes is largely because the Federal Reserve manages the supply of dollars, using the same law of Supply and Demand. As you know, if a supply decreases (like oil), then the price goes up, or if the supply of something increases, the price goes down. The Fed manages money the same way: when prices rise (the dollar is worth less), the Fed reduces the supply of dollars, causing it to be worth more. Conversely, if prices fall (or don’t rise fast enough), the Fed increases supply, so that the dollar is worth less.
The reason money follows the law of Supply and Demand is because people use money, they consume it like they do other goods and services, like gasoline, tax preparation, food, dance lessons, and so forth. It’s not like a fine art painting, a stamp collection or a Beanie Baby — money is a product. It’s just that people have a hard time thinking of it as a consumer product since, in their experience, money is what they use to buy consumer products. But it’s a symmetric operation: when you buy gasoline with dollars, you are actually selling dollars in exchange for gasoline. That you call one side in this transaction “money” and the other “goods” is purely arbitrary, you call gasoline money and dollars the good that is being bought and sold for gasoline.
The reason dollars is a product is because trying to use gasoline as money is a pain in the neck. Storing it and exchanging it is difficult. Goods like this do become money, such as famously how prisons often use cigarettes as a medium of exchange, even for non-smokers, but it has to be a good that is fungible, storable, and easily exchanged. Dollars are the most fungible, the most storable, and the easiest exchanged, so has the most value as “money”. Sure, the mechanic can fix the farmers car for three chickens instead, but most of the time, both parties in the transaction would rather exchange the same value using dollars than chickens.
So the value of dollars is not like the value of Beanie Babies, which people might buy for $15,000, which changes purely on the whims of investors. Instead, a dollar is like gasoline, which obey the law of Supply and Demand.
This brings us back to the question of where Bitcoin gets its value. While Bitcoin is indeed used like dollars to buy things, that’s only a tiny use of the currency, so therefore it’s value isn’t determined by Supply and Demand. Instead, the value of Bitcoin is a lot like Beanie Babies, obeying the laws of investments. So in this respect, Oliver is right about where the value of Bitcoin comes, but wrong about where the value of dollars comes from.

Why Bitcoin conference didn’t take Bitcoin

John Oliver points out the irony of a Bitcoin conference that stopped accepting payments in Bitcoin for tickets.
The biggest reason for this is because Bitcoin has become so popular that transaction fees have gone up. Instead of being proof of failure, it’s proof of popularity. What John Oliver is saying is the old joke that nobody goes to that popular restaurant anymore because it’s too crowded and you can’t get a reservation.
Moreover, the point of Bitcoin is not to replace everyday currencies for everyday transactions. If you read Satoshi Nakamoto’s whitepaper, it’s only goal is to replace certain types of transactions, like purely electronic transactions where electronic goods and services are being exchanged. Where real-life goods/services are being exchanged, existing currencies work just fine. It’s only the crazy activists who claim Bitcoin will eventually replace real world currencies — the saner people see it co-existing with real-world currencies, each with a different value to consumers.

Turning a McNugget back into a chicken

John Oliver uses the metaphor of turning a that while you can process a chicken into McNuggets, you can’t reverse the process. It’s a funny metaphor.
But it’s not clear what the heck this metaphor is trying explain. That’s not a metaphor for the blockchain, but a metaphor for a “cryptographic hash”, where each block is a chicken, and the McNugget is the signature for the block (well, the block plus the signature of the last block, forming a chain).
Even then that metaphor as problems. The McNugget produced from each chicken must be unique to that chicken, for the metaphor to accurately describe a cryptographic hash. You can therefore identify the original chicken simply by looking at the McNugget. A slight change in the original chicken, like losing a feather, results in a completely different McNugget. Thus, nuggets can be used to tell if the original chicken has changed.
This then leads to the key property of the blockchain, it is unalterable. You can’t go back and change any of the blocks of data, because the fingerprints, the nuggets, will also change, and break the nugget chain.
The point is that while John Oliver is laughing at a silly metaphor to explain the blockchain becuase he totally misses the point of the metaphor.
Oliver rightly says “don’t worry if you don’t understand it — most people don’t”, but that includes the big companies that John Oliver name. Some companies do get it, and are producing reasonable things (like JP Morgan, by all accounts), but some don’t. IBM and other big consultancies are charging companies millions of dollars to consult with them on block chain products where nobody involved, the customer or the consultancy, actually understand any of it. That doesn’t stop them from happily charging customers on one side and happily spending money on the other.
Thus, rather than Oliver explaining the problem, he’s just being part of the problem. His explanation of blockchain left you dumber than before.

ICO’s

John Oliver mocks the Brave ICO ($35 million in 30 seconds), claiming it’s all driven by YouTube personalities and people who aren’t looking at the fundamentals.
And while this is true, most ICOs are bunk, the  Brave ICO actually had a business model behind it. Brave is a Chrome-like web-browser whose distinguishing feature is that it protects your privacy from advertisers. If you don’t use Brave or a browser with an ad block extension, you have no idea how bad things are for you. However, this presents a problem for websites that fund themselves via advertisements, which is most of them, because visitors no longer see ads. Brave has a fix for this. Most people wouldn’t mind supporting the websites they visit often, like the New York Times. That’s where the Brave ICO “token” comes in: it’s not simply stock in Brave, but a token for micropayments to websites. Users buy tokens, then use them for micropayments to websites like New York Times. The New York Times then sells the tokens back to the market for dollars. The buying and selling of tokens happens without a centralized middleman.
This is still all speculative, of course, and it remains to be seen how successful Brave will be, but it’s a serious effort. It has well respected VC behind the company, a well-respected founder (despite the fact he invented JavaScript), and well-respected employees. It’s not a scam, it’s a legitimate venture.

How to you make money from Bitcoin?

The last part of the show is dedicated to describing all the scam out there, advising people to be careful, and to be “responsible”. This is garbage.
It’s like my simple two step process to making lots of money via Bitcoin: (1) buy when the price is low, and (2) sell when the price is high. My advice is correct, of course, but useless. Same as “be careful” and “invest responsibly”.
The truth about investing in cryptocurrencies is “don’t”. The only responsible way to invest is to buy low-overhead market index funds and hold for retirement. No, you won’t get super rich doing this, but anything other than this is irresponsible gambling.
It’s a hard lesson to learn, because everyone is telling you the opposite. The entire channel CNBC is devoted to day traders, who buy and sell stocks at a high rate based on the same principle as a ponzi scheme, basing their judgment not on the fundamentals (like long term dividends) but animal spirits of whatever stock is hot or cold at the moment. This is the same reason people buy or sell Bitcoin, not because they can describe the fundamental value, but because they believe in a bigger fool down the road who will buy it for even more.
For things like Bitcoin, the trick to making money is to have bought it over 7 years ago when it was essentially worthless, except to nerds who were into that sort of thing. It’s the same tick to making a lot of money in Magic: The Gathering trading cards, which nerds bought decades ago which are worth a ton of money now. Or, to have bought Apple stock back in 2009 when the iPhone was new, when nerds could understand the potential of real Internet access and apps that Wall Street could not.
That was my strategy: be a nerd, who gets into things. I’ve made a good amount of money on all these things because as a nerd, I was into Magic: The Gathering, Bitcoin, and the iPhone before anybody else was, and bought in at the point where these things were essentially valueless.
At this point with cryptocurrencies, with the non-nerds now flooding the market, there little chance of making it rich. The lottery is probably a better bet. Instead, if you want to make money, become a nerd, obsess about a thing, understand a thing when its new, and cash out once the rest of the market figures it out. That might be Brave, for example, but buy into it because you’ve spent the last year studying the browser advertisement ecosystem, the market’s willingness to pay for content, and how their Basic Attention Token delivers value to websites — not because you want in on the ICO craze.

Conclusion

John Oliver spends 25 minutes explaining Bitcoin, Cryptocurrencies, and the Blockchain to you. Sure, it’s funny, but it leaves you worse off than when it started. It admits they “simplify” the explanation, but they simplified it so much to the point where they removed all useful information.

Cybercriminals Infiltrating E-Mail Networks to Divert Large Customer Payments

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/11/cybercriminals_.html

There’s a new criminal tactic involving hacking an e-mail account of a company that handles high-value transactions and diverting payments. Here it is in real estate:

The scam generally works like this: Hackers find an opening into a title company’s or realty agent’s email account, track upcoming home purchases scheduled for settlements — the pricier the better — then assume the identity of the title agency person handling the transaction.

Days or sometimes weeks before the settlement, the scammer poses as the title or escrow agent whose email accounts they’ve hijacked and instructs the home buyer to wire the funds needed to close — often hundreds of thousands of dollars, sometimes far more — to the criminals’ own bank accounts, not the title or escrow company’s legitimate accounts. The criminals then withdraw the money and vanish.

Here it is in fine art:

The fraud is relatively simple. Criminals hack into an art dealer’s email account and monitor incoming and outgoing correspondence. When the gallery sends a PDF invoice to a client via email following a sale, the conversation is hijacked. Posing as the gallery, hackers send a duplicate, fraudulent invoice from the same gallery email address, with an accompanying message instructing the client to disregard the first invoice and instead wire payment to the account listed in the fraudulent document.

Once money has been transferred to the criminals’ account, the hackers move the money to avoid detection and then disappear. The same technique is used to intercept payments made by galleries to their artists and others. Because the hackers gain access to the gallery’s email contacts, the scam can spread quickly, with fraudulent emails appearing to come from known sources.

I’m sure it’s happening in other industries as well, probably even with business-to-business commerce.

EDITED TO ADD (11/14): Brian Krebs wrote about this in 2014.

Blockchain? It’s All Greek To Me…

Post Syndicated from Bozho original https://techblog.bozho.net/blockchain-its-all-greek-to-me/

The blockchain hype is huge, the ICO craze (“Coindike”) is generating millions if not billions of “funding” for businesses that claim to revolutionize basically anything.

I’ve been following all of that for a while. I got my first (and only) Bitcoin several years ago, I know how the technology works, I’ve implemented the data structure part, I’ve tried (with varying success) to install an Ethereum wallet since almost as soon as Ethereum appeared, and I’ve read and subscribed to newsletters about dozens of projects and new cryptocurrencies, including storj.io, siacoin, namecoin, etc. I would say I’m at least above average in terms of knowledge on how the cryptocurrencies, blockchain, smart contracts, EVM, proof-of-wahtever operates. And I’ve voiced my concerns about the technology in general.

Now it’s rant time.

I’ve been reading whitepapers of various projects, I’ve been to various meetups and talks, I’ve been reading the professed future applications of the blockchain, and I have to admit – it’s all Greek to me. I have no clue what these people are talking about. And why would all of that make any sense. I still think I’m not clever enough to understand the upcoming revolution, but there’s also a cynical side of me that says “this is all a scam”.

Why “X on the blockchain” somehow makes it magical and superior to a good old centralized solution? No, spare me the cliches about “immutable ledger”, “lack of central authority” and the likes. These are the phrases that a person learns after reading literally one article about blockchain. Have you actually written anything apart from a complex-sounding whitepaper or a hello-world smart contract? Do you really know how the overlay network works, how the economic incentives behind that network work, how all the cryptography works? Maybe there are many, many people that indeed know that and they know it better than me and are thus able to imagine the business case behind “X on the blockchain”.

I can’t. I can’t see why it would be useful to abandon a centralized database that you can query in dozens of ways, test easily and scale trivially in favour of a clunky write-only, low-throughput, hard-to-debug privacy nightmare that is any public blockchain. And how do you imagine to gain a substantial userbase with an ecosystem where the Windows client for the 2nd most popular blockchain (Ethereum) has been so buggy, I (a software engineer) couldn’t get it work and sync the whole chain. And why would building a website ontop of that clunky, user-unfriendly database has any benefit over a centralized competitor?

Do we all believe that somehow the huge datacenters with guarnateed power backups, regular hardware and network checks, regular backups and overall – guaranteed redundancy – will somehow be beaten by a few thousand machines hosting a software that has the sole purpose of guaranteeing integrity? Bitcoin has 10 thousand nodes. Ethereum has 22 thousand nodes. And while these nodes are probably very well GPU-equipped, they aren’t supercomputers. Amazon’s AWS has a million servers. How’s that for comparison. And why would anyone take seriously 22 thousand non-servers. Or even 220 thousand, if we believe in some inevitable growth.

Don’t get me wrong, the technology is really cool. The way tamper-evident data structures (hash chains) were combined with a consensus algorithm, an overlay network and a financial incentive is really awesome. When you add a distributed execution environment, it gets even cooler. But is it suitable for literally everything? I fail to see how.

I’m sure I’m missing something. The fact that many of those whitepapers sound increasingly like Greek to me might hint that I’m just a dumb developer and those enlightened people are really onto something huge. I guess time will tell.

But I happen to be living in a country that saw a transition to capitalism in the years of my childhood. And there were a lot of scams and ponzi schemes that people believed in. Because they didn’t know how capitalism works, how the market works. I’m seeing some similarities – we have no idea how the digital realm really works, and so a lot of scams are bound to appear, until we as a society learn the basics.

Until then – enjoy your ICO, enjoy your tokens, enjoy your big-player competitor with practically the same business model, only on a worse database.

And I hope that after the smoke of hype and fraud clears, we’ll be able to enjoy the true benefits of the blockchain innovation.

The post Blockchain? It’s All Greek To Me… appeared first on Bozho's tech blog.

Top 10 Most Obvious Hacks of All Time (v0.9)

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/07/top-10-most-obvious-hacks-of-all-time.html

For teaching hacking/cybersecurity, I thought I’d create of the most obvious hacks of all time. Not the best hacks, the most sophisticated hacks, or the hacks with the biggest impact, but the most obvious hacks — ones that even the least knowledgeable among us should be able to understand. Below I propose some hacks that fit this bill, though in no particular order.

The reason I’m writing this is that my niece wants me to teach her some hacking. I thought I’d start with the obvious stuff first.

Shared Passwords

If you use the same password for every website, and one of those websites gets hacked, then the hacker has your password for all your websites. The reason your Facebook account got hacked wasn’t because of anything Facebook did, but because you used the same email-address and password when creating an account on “beagleforums.com”, which got hacked last year.

I’ve heard people say “I’m sure, because I choose a complex password and use it everywhere”. No, this is the very worst thing you can do. Sure, you can the use the same password on all sites you don’t care much about, but for Facebook, your email account, and your bank, you should have a unique password, so that when other sites get hacked, your important sites are secure.

And yes, it’s okay to write down your passwords on paper.

Tools: HaveIBeenPwned.com

PIN encrypted PDFs

My accountant emails PDF statements encrypted with the last 4 digits of my Social Security Number. This is not encryption — a 4 digit number has only 10,000 combinations, and a hacker can guess all of them in seconds.
PIN numbers for ATM cards work because ATM machines are online, and the machine can reject your card after four guesses. PIN numbers don’t work for documents, because they are offline — the hacker has a copy of the document on their own machine, disconnected from the Internet, and can continue making bad guesses with no restrictions.
Passwords protecting documents must be long enough that even trillion upon trillion guesses are insufficient to guess.

Tools: Hashcat, John the Ripper

SQL and other injection

The lazy way of combining websites with databases is to combine user input with an SQL statement. This combines code with data, so the obvious consequence is that hackers can craft data to mess with the code.
No, this isn’t obvious to the general public, but it should be obvious to programmers. The moment you write code that adds unfiltered user-input to an SQL statement, the consequence should be obvious. Yet, “SQL injection” has remained one of the most effective hacks for the last 15 years because somehow programmers don’t understand the consequence.
CGI shell injection is a similar issue. Back in early days, when “CGI scripts” were a thing, it was really important, but these days, not so much, so I just included it with SQL. The consequence of executing shell code should’ve been obvious, but weirdly, it wasn’t. The IT guy at the company I worked for back in the late 1990s came to me and asked “this guy says we have a vulnerability, is he full of shit?”, and I had to answer “no, he’s right — obviously so”.

XSS (“Cross Site Scripting”) [*] is another injection issue, but this time at somebody’s web browser rather than a server. It works because websites will echo back what is sent to them. For example, if you search for Cross Site Scripting with the URL https://www.google.com/search?q=cross+site+scripting, then you’ll get a page back from the server that contains that string. If the string is JavaScript code rather than text, then some servers (thought not Google) send back the code in the page in a way that it’ll be executed. This is most often used to hack somebody’s account: you send them an email or tweet a link, and when they click on it, the JavaScript gives control of the account to the hacker.

Cross site injection issues like this should probably be their own category, but I’m including it here for now.

More: Wikipedia on SQL injection, Wikipedia on cross site scripting.
Tools: Burpsuite, SQLmap

Buffer overflows

In the C programming language, programmers first create a buffer, then read input into it. If input is long than the buffer, then it overflows. The extra bytes overwrite other parts of the program, letting the hacker run code.
Again, it’s not a thing the general public is expected to know about, but is instead something C programmers should be expected to understand. They should know that it’s up to them to check the length and stop reading input before it overflows the buffer, that there’s no language feature that takes care of this for them.
We are three decades after the first major buffer overflow exploits, so there is no excuse for C programmers not to understand this issue.

What makes particular obvious is the way they are wrapped in exploits, like in Metasploit. While the bug itself is obvious that it’s a bug, actually exploiting it can take some very non-obvious skill. However, once that exploit is written, any trained monkey can press a button and run the exploit. That’s where we get the insult “script kiddie” from — referring to wannabe-hackers who never learn enough to write their own exploits, but who spend a lot of time running the exploit scripts written by better hackers than they.

More: Wikipedia on buffer overflow, Wikipedia on script kiddie,  “Smashing The Stack For Fun And Profit” — Phrack (1996)
Tools: bash, Metasploit

SendMail DEBUG command (historical)

The first popular email server in the 1980s was called “SendMail”. It had a feature whereby if you send a “DEBUG” command to it, it would execute any code following the command. The consequence of this was obvious — hackers could (and did) upload code to take control of the server. This was used in the Morris Worm of 1988. Most Internet machines of the day ran SendMail, so the worm spread fast infecting most machines.
This bug was mostly ignored at the time. It was thought of as a theoretical problem, that might only rarely be used to hack a system. Part of the motivation of the Morris Worm was to demonstrate that such problems was to demonstrate the consequences — consequences that should’ve been obvious but somehow were rejected by everyone.

More: Wikipedia on Morris Worm

Email Attachments/Links

I’m conflicted whether I should add this or not, because here’s the deal: you are supposed to click on attachments and links within emails. That’s what they are there for. The difference between good and bad attachments/links is not obvious. Indeed, easy-to-use email systems makes detecting the difference harder.
On the other hand, the consequences of bad attachments/links is obvious. That worms like ILOVEYOU spread so easily is because people trusted attachments coming from their friends, and ran them.
We have no solution to the problem of bad email attachments and links. Viruses and phishing are pervasive problems. Yet, we know why they exist.

Default and backdoor passwords

The Mirai botnet was caused by surveillance-cameras having default and backdoor passwords, and being exposed to the Internet without a firewall. The consequence should be obvious: people will discover the passwords and use them to take control of the bots.
Surveillance-cameras have the problem that they are usually exposed to the public, and can’t be reached without a ladder — often a really tall ladder. Therefore, you don’t want a button consumers can press to reset to factory defaults. You want a remote way to reset them. Therefore, they put backdoor passwords to do the reset. Such passwords are easy for hackers to reverse-engineer, and hence, take control of millions of cameras across the Internet.
The same reasoning applies to “default” passwords. Many users will not change the defaults, leaving a ton of devices hackers can hack.

Masscan and background radiation of the Internet

I’ve written a tool that can easily scan the entire Internet in a short period of time. It surprises people that this possible, but it obvious from the numbers. Internet addresses are only 32-bits long, or roughly 4 billion combinations. A fast Internet link can easily handle 1 million packets-per-second, so the entire Internet can be scanned in 4000 seconds, little more than an hour. It’s basic math.
Because it’s so easy, many people do it. If you monitor your Internet link, you’ll see a steady trickle of packets coming in from all over the Internet, especially Russia and China, from hackers scanning the Internet for things they can hack.
People’s reaction to this scanning is weirdly emotional, taking is personally, such as:
  1. Why are they hacking me? What did I do to them?
  2. Great! They are hacking me! That must mean I’m important!
  3. Grrr! How dare they?! How can I hack them back for some retribution!?

I find this odd, because obviously such scanning isn’t personal, the hackers have no idea who you are.

Tools: masscan, firewalls

Packet-sniffing, sidejacking

If you connect to the Starbucks WiFi, a hacker nearby can easily eavesdrop on your network traffic, because it’s not encrypted. Windows even warns you about this, in case you weren’t sure.

At DefCon, they have a “Wall of Sheep”, where they show passwords from people who logged onto stuff using the insecure “DefCon-Open” network. Calling them “sheep” for not grasping this basic fact that unencrypted traffic is unencrypted.

To be fair, it’s actually non-obvious to many people. Even if the WiFi itself is not encrypted, SSL traffic is. They expect their services to be encrypted, without them having to worry about it. And in fact, most are, especially Google, Facebook, Twitter, Apple, and other major services that won’t allow you to log in anymore without encryption.

But many services (especially old ones) may not be encrypted. Unless users check and verify them carefully, they’ll happily expose passwords.

What’s interesting about this was 10 years ago, when most services which only used SSL to encrypt the passwords, but then used unencrypted connections after that, using “cookies”. This allowed the cookies to be sniffed and stolen, allowing other people to share the login session. I used this on stage at BlackHat to connect to somebody’s GMail session. Google, and other major websites, fixed this soon after. But it should never have been a problem — because the sidejacking of cookies should have been obvious.

Tools: Wireshark, dsniff

Stuxnet LNK vulnerability

Again, this issue isn’t obvious to the public, but it should’ve been obvious to anybody who knew how Windows works.
When Windows loads a .dll, it first calls the function DllMain(). A Windows link file (.lnk) can load icons/graphics from the resources in a .dll file. It does this by loading the .dll file, thus calling DllMain. Thus, a hacker could put on a USB drive a .lnk file pointing to a .dll file, and thus, cause arbitrary code execution as soon as a user inserted a drive.
I say this is obvious because I did this, created .lnks that pointed to .dlls, but without hostile DllMain code. The consequence should’ve been obvious to me, but I totally missed the connection. We all missed the connection, for decades.

Social Engineering and Tech Support [* * *]

After posting this, many people have pointed out “social engineering”, especially of “tech support”. This probably should be up near #1 in terms of obviousness.

The classic example of social engineering is when you call tech support and tell them you’ve lost your password, and they reset it for you with minimum of questions proving who you are. For example, you set the volume on your computer really loud and play the sound of a crying baby in the background and appear to be a bit frazzled and incoherent, which explains why you aren’t answering the questions they are asking. They, understanding your predicament as a new parent, will go the extra mile in helping you, resetting “your” password.

One of the interesting consequences is how it affects domain names (DNS). It’s quite easy in many cases to call up the registrar and convince them to transfer a domain name. This has been used in lots of hacks. It’s really hard to defend against. If a registrar charges only $9/year for a domain name, then it really can’t afford to provide very good tech support — or very secure tech support — to prevent this sort of hack.

Social engineering is such a huge problem, and obvious problem, that it’s outside the scope of this document. Just google it to find example after example.

A related issue that perhaps deserves it’s own section is OSINT [*], or “open-source intelligence”, where you gather public information about a target. For example, on the day the bank manager is out on vacation (which you got from their Facebook post) you show up and claim to be a bank auditor, and are shown into their office where you grab their backup tapes. (We’ve actually done this).

More: Wikipedia on Social Engineering, Wikipedia on OSINT, “How I Won the Defcon Social Engineering CTF” — blogpost (2011), “Questioning 42: Where’s the Engineering in Social Engineering of Namespace Compromises” — BSidesLV talk (2016)

Blue-boxes (historical) [*]

Telephones historically used what we call “in-band signaling”. That’s why when you dial on an old phone, it makes sounds — those sounds are sent no differently than the way your voice is sent. Thus, it was possible to make tone generators to do things other than simply dial calls. Early hackers (in the 1970s) would make tone-generators called “blue-boxes” and “black-boxes” to make free long distance calls, for example.

These days, “signaling” and “voice” are digitized, then sent as separate channels or “bands”. This is call “out-of-band signaling”. You can’t trick the phone system by generating tones. When your iPhone makes sounds when you dial, it’s entirely for you benefit and has nothing to do with how it signals the cell tower to make a call.

Early hackers, like the founders of Apple, are famous for having started their careers making such “boxes” for tricking the phone system. The problem was obvious back in the day, which is why as the phone system moves from analog to digital, the problem was fixed.

More: Wikipedia on blue box, Wikipedia article on Steve Wozniak.

Thumb drives in parking lots [*]

A simple trick is to put a virus on a USB flash drive, and drop it in a parking lot. Somebody is bound to notice it, stick it in their computer, and open the file.

This can be extended with tricks. For example, you can put a file labeled “third-quarter-salaries.xlsx” on the drive that required macros to be run in order to open. It’s irresistible to other employees who want to know what their peers are being paid, so they’ll bypass any warning prompts in order to see the data.

Another example is to go online and get custom USB sticks made printed with the logo of the target company, making them seem more trustworthy.

We also did a trick of taking an Adobe Flash game “Punch the Monkey” and replaced the monkey with a logo of a competitor of our target. They now only played the game (infecting themselves with our virus), but gave to others inside the company to play, infecting others, including the CEO.

Thumb drives like this have been used in many incidents, such as Russians hacking military headquarters in Afghanistan. It’s really hard to defend against.

More: “Computer Virus Hits U.S. Military Base in Afghanistan” — USNews (2008), “The Return of the Worm That Ate The Pentagon” — Wired (2011), DoD Bans Flash Drives — Stripes (2008)

Googling [*]

Search engines like Google will index your website — your entire website. Frequently companies put things on their website without much protection because they are nearly impossible for users to find. But Google finds them, then indexes them, causing them to pop up with innocent searches.
There are books written on “Google hacking” explaining what search terms to look for, like “not for public release”, in order to find such documents.

More: Wikipedia entry on Google Hacking, “Google Hacking” book.

URL editing [*]

At the top of every browser is what’s called the “URL”. You can change it. Thus, if you see a URL that looks like this:

http://www.example.com/documents?id=138493

Then you can edit it to see the next document on the server:

http://www.example.com/documents?id=138494

The owner of the website may think they are secure, because nothing points to this document, so the Google search won’t find it. But that doesn’t stop a user from manually editing the URL.
An example of this is a big Fortune 500 company that posts the quarterly results to the website an hour before the official announcement. Simply editing the URL from previous financial announcements allows hackers to find the document, then buy/sell the stock as appropriate in order to make a lot of money.
Another example is the classic case of Andrew “Weev” Auernheimer who did this trick in order to download the account email addresses of early owners of the iPad, including movie stars and members of the Obama administration. It’s an interesting legal case because on one hand, techies consider this so obvious as to not be “hacking”. On the other hand, non-techies, especially judges and prosecutors, believe this to be obviously “hacking”.

DDoS, spoofing, and amplification [*]

For decades now, online gamers have figured out an easy way to win: just flood the opponent with Internet traffic, slowing their network connection. This is called a DoS, which stands for “Denial of Service”. DoSing game competitors is often a teenager’s first foray into hacking.
A variant of this is when you hack a bunch of other machines on the Internet, then command them to flood your target. (The hacked machines are often called a “botnet”, a network of robot computers). This is called DDoS, or “Distributed DoS”. At this point, it gets quite serious, as instead of competitive gamers hackers can take down entire businesses. Extortion scams, DDoSing websites then demanding payment to stop, is a common way hackers earn money.
Another form of DDoS is “amplification”. Sometimes when you send a packet to a machine on the Internet it’ll respond with a much larger response, either a very large packet or many packets. The hacker can then send a packet to many of these sites, “spoofing” or forging the IP address of the victim. This causes all those sites to then flood the victim with traffic. Thus, with a small amount of outbound traffic, the hacker can flood the inbound traffic of the victim.
This is one of those things that has worked for 20 years, because it’s so obvious teenagers can do it, yet there is no obvious solution. President Trump’s executive order of cyberspace specifically demanded that his government come up with a report on how to address this, but it’s unlikely that they’ll come up with any useful strategy.

More: Wikipedia on DDoS, Wikipedia on Spoofing

Conclusion

Tweet me (@ErrataRob) your obvious hacks, so I can add them to the list.

Top Ten Ways to Protect Yourself Against Phishing Attacks

Post Syndicated from Roderick Bauer original https://www.backblaze.com/blog/top-ten-ways-protect-phishing-attacks/

It’s hard to miss the increasing frequency of phishing attacks in the news. Earlier this year, a major phishing attack targeted Google Docs users, and attempted to compromise at least one million Google Docs accounts. Experts say the “phish” was convincing and sophisticated, and even people who thought they would never be fooled by a phishing attack were caught in its net.

What is phishing?

Phishing attacks use seemingly trustworthy but malicious emails and websites to obtain your personal account or banking information. The attacks are cunning and highly effective because they often appear to come from an organization or business you actually use. The scam comes into play by tricking you into visiting a website you believe belongs to the trustworthy organization, but in fact is under the control of the phisher attempting to extract your private information.

Phishing attacks are once again in the news due to a handful of high profile ransomware incidents. Ransomware invades a user’s computer, encrypts their data files, and demands payment to decrypt the files. Ransomware most often makes its way onto a user’s computer through a phishing exploit, which gives the ransomware access to the user’s computer.

The best strategy against phishing is to scrutinize every email and message you receive and never to get caught. Easier said than done—even smart people sometimes fall victim to a phishing attack. To minimize the damage in an event of a phishing attack, backing up your data is the best ultimate defense and should be part of your anti-phishing and overall anti-malware strategy.

How do you recognize a phishing attack?

A phishing attacker may send an email seemingly from a reputable credit card company or financial institution that requests account information, often suggesting that there is a problem with your account. When users respond with the requested information, attackers can use it to gain access to the accounts.

The image below is a mockup of how a phishing attempt might appear. In this example, courtesy of Wikipedia, the bank is fictional, but in a real attempt the sender would use an actual bank, perhaps even the bank where the targeted victim does business. The sender is attempting to trick the recipient into revealing confidential information by getting the victim to visit the phisher’s website. Note the misspelling of the words “received” and “discrepancy” as recieved and discrepency. Misspellings sometimes are indications of a phishing attack. Also note that although the URL of the bank’s webpage appears to be legitimate, the hyperlink would actually take you to the phisher’s webpage, which would be altogether different from the URL displayed in the message.

By Andrew Levine – en:Image:PhishingTrustedBank.png, Public Domain, https://commons.wikimedia.org/w/index.php?curid=549747

Top ten ways to protect yourself against phishing attacks

  1. Always think twice when presented with a link in any kind of email or message before you click on it. Ask yourself whether the sender would ask you to do what it is requesting. Most banks and reputable service providers won’t ask you to reveal your account information or password via email. If in doubt, don’t use the link in the message and instead open a new webpage and go directly to the known website of the organization. Sign in to the site in the normal manner to verify that the request is legitimate.
  2. A good precaution is to always hover over a link before clicking on it and observe the status line in your browser to verify that the link in the text and the destination link are in fact the same.
  3. Phishers are clever, and they’re getting better all the time, and you might be fooled by a simple ruse to make you think the link is one you recognize. Links can have hard-to-detect misspellings that would result in visiting a site very different than what you expected.
  4. Be wary even of emails and message from people you know. It’s very easy to spoof an email so it appears to come from someone you know, or to create a URL that appears to be legitimate, but isn’t.

For example, let’s say that you work for roughmedia.com and you get an email from Chuck in accounting ([email protected]) that has an attachment for you, perhaps a company form you need to fill out. You likely wouldn’t notice in the sender address that the phisher has replaced the “m” in media with an “r” and an “n” that look very much like an “m.” You think it’s good old Chuck in finance and it’s actually someone “phishing” for you to open the attachment and infect your computer. This type of attack is known as “spear phishing” because it’s targeted at a specific individual and is using social engineering—specifically familiarity with the sender—as part of the scheme to fool you into trusting the attachment. This technique is by far the most successful on the internet today. (This example is based on Gimlet Media’s Reply All Podcast Episode, “What Kind of Idiot Gets Phished?“)

  1. Use anti-malware software, but don’t rely on it to catch all attacks. Phishers change their approach often to keep ahead of the software attack detectors.
  2. If you are asked to enter any valuable information, only do so if you’re on a secure connection. Look for the “https” prefix before the site URL, indicating the site is employing SSL (Secure Socket Layer). If there is no “s” after “http,” it’s best not to enter any confidential information.
By Fabio Lanari – Internet1.jpg by Rock1997 modified., GFDL, https://commons.wikimedia.org/w/index.php?curid=20995390
  1. Avoid logging in to online banks and similar services via public Wi-Fi networks. Criminals can compromise open networks with man-in-the-middle attacks that capture your information or spoof website addresses over the connection and redirect you to a fake page they control.
  2. Email, instant messaging, and gaming social channels are all possible vehicles to deliver phishing attacks, so be vigilant!
  3. Lay the foundation for a good defense by choosing reputable tech vendors and service providers that respect your privacy and take steps to protect your data. At Backblaze, we have full-time security teams constantly looking for ways to improve our security.
  4. When it is available, always take advantage of multi-factor verification to protect your accounts. The standard categories used for authentication are 1) something you know (e.g. your username and password), 2) something you are (e.g. your fingerprint or retina pattern), and 3) something you have (e.g. an authenticator app on your smartphone). An account that allows only a single factor for authentication is more susceptible to hacking than one that supports multiple factors. Backblaze supports multi-factor authentication to protect customer accounts.

Be a good internet citizen, and help reduce phishing and other malware attacks by notifying the organization being impersonated in the phishing attempt, or by forwarding suspicious messages to the Federal Trade Commission at [email protected]. Some email clients and services, such as Microsoft Outlook and Google Gmail, give you the ability to easily report suspicious emails. Phishing emails misrepresenting Apple can be reported to [email protected].

Backing up your data is an important part of a strong defense against phishing and other malware

The best way to avoid becoming a victim is to be vigilant against suspicious messages and emails, but also to assume that no matter what you do, it is very possible that your system will be compromised. Even the most sophisticated and tech-savvy of us can be ensnared if we are tired, in a rush, or just unfamiliar with the latest methods hackers are using. Remember that hackers are working full-time on ways to fool us, so it’s very difficult to keep ahead of them.

The best defense is to make sure that any data that could compromised by hackers—basically all of the data that is reachable via your computer—is not your only copy. You do that by maintaining an active and reliable backup strategy.

Files that are backed up to cloud storage, such as with Backblaze, are not vulnerable to attacks on your local computer in the way that local files, attached drives, network drives, or sync services like Dropbox that have local directories on your computer are.

In the event that your computer is compromised and your files are lost or encrypted, you can recover your files if you have a cloud backup that is beyond the reach of attacks on your computer.

The post Top Ten Ways to Protect Yourself Against Phishing Attacks appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

WannaCry Ransomware

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/05/wannacry_ransom.html

Criminals go where the money is, and cybercriminals are no exception.

And right now, the money is in ransomware.

It’s a simple scam. Encrypt the victim’s hard drive, then extract a fee to decrypt it. The scammers can’t charge too much, because they want the victim to pay rather than give up on the data. But they can charge individuals a few hundred dollars, and they can charge institutions like hospitals a few thousand. Do it at scale, and it’s a profitable business.

And scale is how ransomware works. Computers are infected automatically, with viruses that spread over the internet. Payment is no more difficult than buying something online ­– and payable in untraceable bitcoin -­- with some ransomware makers offering tech support to those unsure of how to buy or transfer bitcoin. Customer service is important; people need to know they’ll get their files back once they pay.

And they want you to pay. If they’re lucky, they’ve encrypted your irreplaceable family photos, or the documents of a project you’ve been working on for weeks. Or maybe your company’s accounts receivable files or your hospital’s patient records. The more you need what they’ve stolen, the better.

The particular ransomware making headlines is called WannaCry, and it’s infected some pretty serious organizations.

What can you do about it? Your first line of defense is to diligently install every security update as soon as it becomes available, and to migrate to systems that vendors still support. Microsoft issued a security patch that protects against WannaCry months before the ransomware started infecting systems; it only works against computers that haven’t been patched. And many of the systems it infects are older computers, no longer normally supported by Microsoft –­ though it did belatedly release a patch for those older systems. I know it’s hard, but until companies are forced to maintain old systems, you’re much safer upgrading.

This is easier advice for individuals than for organizations. You and I can pretty easily migrate to a new operating system, but organizations sometimes have custom software that breaks when they change OS versions or install updates. Many of the organizations hit by WannaCry had outdated systems for exactly these reasons. But as expensive and time-consuming as updating might be, the risks of not doing so are increasing.

Your second line of defense is good antivirus software. Sometimes ransomware tricks you into encrypting your own hard drive by clicking on a file attachment that you thought was benign. Antivirus software can often catch your mistake and prevent the malicious software from running. This isn’t perfect, of course, but it’s an important part of any defense.

Your third line of defense is to diligently back up your files. There are systems that do this automatically for your hard drive. You can invest in one of those. Or you can store your important data in the cloud. If your irreplaceable family photos are in a backup drive in your house, then the ransomware has that much less hold on you. If your e-mail and documents are in the cloud, then you can just reinstall the operating system and bypass the ransomware entirely. I know storing data in the cloud has its own privacy risks, but they may be less than the risks of losing everything to ransomware.

That takes care of your computers and smartphones, but what about everything else? We’re deep into the age of the “Internet of things.”

There are now computers in your household appliances. There are computers in your cars and in the airplanes you travel on. Computers run our traffic lights and our power grids. These are all vulnerable to ransomware. The Mirai botnet exploited a vulnerability in internet-enabled devices like DVRs and webcams to launch a denial-of-service attack against a critical internet name server; next time it could just as easily disable the devices and demand payment to turn them back on.

Re-enabling a webcam will be cheap; re-enabling your car will cost more. And you don’t want to know how vulnerable implanted medical devices are to these sorts of attacks.

Commercial solutions are coming, probably a convenient repackaging of the three lines of defense described above. But it’ll be yet another security surcharge you’ll be expected to pay because the computers and internet-of-things devices you buy are so insecure. Because there are currently no liabilities for lousy software and no regulations mandating secure software, the market rewards software that’s fast and cheap at the expense of good. Until that changes, ransomware will continue to be profitable line of criminal business.

This essay previously appeared in the New York Daily News.

Stealing Voice Prints

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/05/stealing_voice_.html

This article feels like hyperbole:

The scam has arrived in Australia after being used in the United States and Britain.

The scammer may ask several times “can you hear me?”, to which people would usually reply “yes.”

The scammer is then believed to record the “yes” response and end the call.

That recording of the victim’s voice can then be used to authorise payments or charges in the victim’s name through voice recognition.

Are there really banking systems that use voice recognition of the word “yes” to authenticate? I have never heard of that.

RFD: the alien abduction prophecy protocol

Post Syndicated from Michal Zalewski original http://lcamtuf.blogspot.com/2017/05/rfd-alien-abduction-prophecy-protocol.html

“It’s tough to make predictions, especially about the future.”
– variously attributed to Yogi Berra and Niels Bohr

Right. So let’s say you are visited by transdimensional space aliens from outer space. There’s some old-fashioned probing, but eventually, they get to the point. They outline a series of apocalyptic prophecies, beginning with the surprise 2032 election of Dwayne Elizondo Mountain Dew Herbert Camacho as the President of the United States, followed by a limited-scale nuclear exchange with the Grand Duchy of Ruritania in 2036, and culminating with the extinction of all life due to a series of cascading Y2K38 failures that start at an Ohio pretzel reprocessing plan. Long story short, if you want to save mankind, you have to warn others of what’s to come.

But there’s a snag: when you wake up in a roadside ditch in Alabama, you realize that nobody is going to believe your story! If you come forward, your professional and social reputation will be instantly destroyed. If you’re lucky, the vindication of your claims will come fifteen years later; if not, it might turn out that you were pranked by some space alien frat boys who just wanted to have some cheap space laughs. The bottom line is, you need to be certain before you make your move. You figure this means staying mum until the Election Day of 2032.

But wait, this plan is also not very good! After all, how could your future self convince others that you knew about President Camacho all along? Well… if you work in information security, you are probably familiar with a neat solution: write down your account of events in a text file, calculate a cryptographic hash of this file, and publish the resulting value somewhere permanent. Fifteen years later, reveal the contents of your file and point people to your old announcement. Explain that you must have been in the possession of this very file back in 2017; otherwise, you would not have known its hash. Voila – a commitment scheme!

Although elegant, this approach can be risky: historically, the usable life of cryptographic hash functions seemed to hover at somewhere around 15 years – so even if you pick a very modern algorithm, there is a real risk that future advances in cryptanalysis could severely undermine the strength of your proof. No biggie, though! For extra safety, you could combine several independent hashing functions, or increase the computational complexity of the hash by running it in a loop. There are also some less-known hash functions, such as SPHINCS, that are designed with different trade-offs in mind and may offer longer-term security guarantees.

Of course, the computation of the hash is not enough; it needs to become an immutable part of the public record and remain easy to look up for years to come. There is no guarantee that any particular online publishing outlet is going to stay afloat that long and continue to operate in its current form. The survivability of more specialized and experimental platforms, such as blockchain-based notaries, seems even less clear. Thankfully, you can resort to another kludge: if you publish the hash through a large number of independent online venues, there is a good chance that at least one of them will be around in 2032.

(Offline notarization – whether of the pen-and-paper or the PKI-based variety – offers an interesting alternative. That said, in the absence of an immutable, public ledger, accusations of forgery or collusion would be very easy to make – especially if the fate of the entire planet is at stake.)

Even with this out of the way, there is yet another profound problem with the plan: a current-day scam artist could conceivably generate hundreds or thousands of political predictions, publish the hashes, and then simply discard or delete the ones that do not come true by 2032 – thus creating an illusion of prescience. To convince skeptics that you are not doing just that, you could incorporate a cryptographic proof of work into your approach, attaching a particular CPU time “price tag” to every hash. The future you could then claim that it would have been prohibitively expensive for the former you to attempt the “prediction spam” attack. But this argument seems iffy: a $1,000 proof may already be too costly for a lower middle class abductee, while a determined tech billionaire could easily spend $100,000 to pull off an elaborate prank on the entire world. Not to mention, massive CPU resources can be commandeered with little or no effort by the operators of large botnets and many other actors of this sort.

In the end, my best idea is to rely on an inherently low-bandwidth publication medium, rather than a high-cost one. For example, although a determined hoaxer could place thousands of hash-bearing classifieds in some of the largest-circulation newspapers, such sleigh-of-hand would be trivial for future sleuths to spot (at least compared to combing through the entire Internet for an abandoned hash). Or, as per an anonymous suggestion relayed by Thomas Ptacek: just tattoo the signature on your body, then post some post some pics; there are only so many places for a tattoo to go.

Still, what was supposed to be a nice, scientific proof devolved into a bunch of hand-wavy arguments and poorly-quantified probabilities. For the sake of future abductees: is there a better way?

Research on Tech-Support Scams

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/04/research_on_tec.html

Interesting paper: “Dial One for Scam: A Large-Scale Analysis of Technical Support Scams“:

Abstract: In technical support scams, cybercriminals attempt to convince users that their machines are infected with malware and are in need of their technical support. In this process, the victims are asked to provide scammers with remote access to their machines, who will then “diagnose the problem”, before offering their support services which typically cost hundreds of dollars. Despite their conceptual simplicity, technical support scams are responsible for yearly losses of tens of millions of dollars from everyday users of the web.

In this paper, we report on the first systematic study of technical support scams and the call centers hidden behind them. We identify malvertising as a major culprit for exposing users to technical support scams and use it to build an automated system capable of discovering, on a weekly basis, hundreds of phone numbers and domains operated by scammers. By allowing our system to run for more than 8 months we collect a large corpus of technical support scams and use it to provide insights on their prevalence, the abused infrastructure, the illicit profits, and the current evasion attempts of scammers. Finally, by setting up a controlled, IRB-approved, experiment where we interact with 60 different scammers, we experience first-hand their social engineering tactics, while collecting detailed statistics of the entire process. We explain how our findings can be used by law-enforcing agencies and propose technical and educational countermeasures for helping users avoid being victimized by
technical support scams.

BoingBoing post.