Tag Archives: scams

Twitter Hacker Arrested

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/07/twitter_hacker_.html

A 17-year-old Florida boy was arrested and charged with last week’s Twitter hack.

News articles. Boing Boing post. Florida state attorney press release.

This is a developing story. Post any additional news in the comments.

EDITED TO ADD (8/1): Two others have been charged as well.

EDITED TO ADD (8/11): The online bail hearing was hacked.

On the Twitter Hack

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/07/on_the_twitter_.html

Twitter was hacked this week. Not a few people’s Twitter accounts, but all of Twitter. Someone compromised the entire Twitter network, probably by stealing the log-in credentials of one of Twitter’s system administrators. Those are the people trusted to ensure that Twitter functions smoothly.

The hacker used that access to send tweets from a variety of popular and trusted accounts, including those of Joe Biden, Bill Gates, and Elon Musk, as part of a mundane scam — stealing bitcoin — but it’s easy to envision more nefarious scenarios. Imagine a government using this sort of attack against another government, coordinating a series of fake tweets from hundreds of politicians and other public figures the day before a major election, to affect the outcome. Or to escalate an international dispute. Done well, it would be devastating.

Whether the hackers had access to Twitter direct messages is not known. These DMs are not end-to-end encrypted, meaning that they are unencrypted inside Twitter’s network and could have been available to the hackers. Those messages — between world leaders, industry CEOs, reporters and their sources, heath organizations — are much more valuable than bitcoin. (If I were a national-intelligence agency, I might even use a bitcoin scam to mask my real intelligence-gathering purpose.) Back in 2018, Twitter said it was exploring encrypting those messages, but it hasn’t yet.

Internet communications platforms — such as Facebook, Twitter, and YouTube — are crucial in today’s society. They’re how we communicate with one another. They’re how our elected leaders communicate with us. They are essential infrastructure. Yet they are run by for-profit companies with little government oversight. This is simply no longer sustainable. Twitter and companies like it are essential to our national dialogue, to our economy, and to our democracy. We need to start treating them that way, and that means both requiring them to do a better job on security and breaking them up.

In the Twitter case this week, the hacker’s tactics weren’t particularly sophisticated. We will almost certainly learn about security lapses at Twitter that enabled the hack, possibly including a SIM-swapping attack that targeted an employee’s cellular service provider, or maybe even a bribed insider. The FBI is investigating.

This kind of attack is known as a “class break.” Class breaks are endemic to computerized systems, and they’re not something that we as users can defend against with better personal security. It didn’t matter whether individual accounts had a complicated and hard-to-remember password, or two-factor authentication. It didn’t matter whether the accounts were normally accessed via a Mac or a PC. There was literally nothing any user could do to protect against it.

Class breaks are security vulnerabilities that break not just one system, but an entire class of systems. They might exploit a vulnerability in a particular operating system that allows an attacker to take remote control of every computer that runs on that system’s software. Or a vulnerability in internet-enabled digital video recorders and webcams that allows an attacker to recruit those devices into a massive botnet. Or a single vulnerability in the Twitter network that allows an attacker to take over every account.

For Twitter users, this attack was a double whammy. Many people rely on Twitter’s authentication systems to know that someone who purports to be a certain celebrity, politician, or journalist is really that person. When those accounts were hijacked, trust in that system took a beating. And then, after the attack was discovered and Twitter temporarily shut down all verified accounts, the public lost a vital source of information.

There are many security technologies companies like Twitter can implement to better protect themselves and their users; that’s not the issue. The problem is economic, and fixing it requires doing two things. One is regulating these companies, and requiring them to spend more money on security. The second is reducing their monopoly power.

The security regulations for banks are complex and detailed. If a low-level banking employee were caught messing around with people’s accounts, or if she mistakenly gave her log-in credentials to someone else, the bank would be severely fined. Depending on the details of the incident, senior banking executives could be held personally liable. The threat of these actions helps keep our money safe. Yes, it costs banks money; sometimes it severely cuts into their profits. But the banks have no choice.

The opposite is true for these tech giants. They get to decide what level of security you have on your accounts, and you have no say in the matter. If you are offered security and privacy options, it’s because they decided you can have them. There is no regulation. There is no accountability. There isn’t even any transparency. Do you know how secure your data is on Facebook, or in Apple’s iCloud, or anywhere? You don’t. No one except those companies do. Yet they’re crucial to the country’s national security. And they’re the rare consumer product or service allowed to operate without significant government oversight.

For example, President Donald Trump’s Twitter account wasn’t hacked as Joe Biden’s was, because that account has “special protections,” the details of which we don’t know. We also don’t know what other world leaders have those protections, or the decision process surrounding who gets them. Are they manual? Can they scale? Can all verified accounts have them? Your guess is as good as mine.

In addition to security measures, the other solution is to break up the tech monopolies. Companies like Facebook and Twitter have so much power because they are so large, and they face no real competition. This is a national-security risk as well as a personal-security risk. Were there 100 different Twitter-like companies, and enough compatibility so that all their feeds could merge into one interface, this attack wouldn’t have been such a big deal. More important, the risk of a similar but more politically targeted attack wouldn’t be so great. If there were competition, different platforms would offer different security options, as well as different posting rules, different authentication guidelines — different everything. Competition is how our economy works; it’s how we spur innovation. Monopolies have more power to do what they want in the quest for profits, even if it harms people along the way.

This wasn’t Twitter’s first security problem involving trusted insiders. In 2017, on his last day of work, an employee shut down President Donald Trump’s account. In 2019, two people were charged with spying for the Saudi government while they were Twitter employees.

Maybe this hack will serve as a wake-up call. But if past incidents involving Twitter and other companies are any indication, it won’t. Underspending on security, and letting society pay the eventual price, is far more profitable. I don’t blame the tech companies. Their corporate mandate is to make as much money as is legally possible. Fixing this requires changes in the law, not changes in the hearts of the company’s leaders.

This essay previously appeared on TheAtlantic.com.

Cryptocurrency Pump and Dump Scams

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/06/cryptocurrency_.html

Really interesting research: “An examination of the cryptocurrency pump and dump ecosystem“:

Abstract: The surge of interest in cryptocurrencies has been accompanied by a proliferation of fraud. This paper examines pump and dump schemes. The recent explosion of nearly 2,000 cryptocurrencies in an unregulated environment has expanded the scope for abuse. We quantify the scope of cryptocurrency pump and dump schemes on Discord and Telegram, two popular group-messaging platforms. We joined all relevant Telegram and Discord groups/channels and identified thousands of different pumps. Our findings provide the first measure of the scope of such pumps and empirically document important properties of this ecosystem.

How Apple’s "Find My" Feature Works

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/06/how_apples_find.html

Matthew Green intelligently speculates about how Apple’s new “Find My” feature works.

If you haven’t already been inspired by the description above, let me phrase the question you ought to be asking: how is this system going to avoid being a massive privacy nightmare?

Let me count the concerns:

  • If your device is constantly emitting a BLE signal that uniquely identifies it, the whole world is going to have (yet another) way to track you. Marketers already use WiFi and Bluetooth MAC addresses to do this: Find My could create yet another tracking channel.
  • It also exposes the phones who are doing the tracking. These people are now going to be sending their current location to Apple (which they may or may not already be doing). Now they’ll also be potentially sharing this information with strangers who “lose” their devices. That could go badly.

  • Scammers might also run active attacks in which they fake the location of your device. While this seems unlikely, people will always surprise you.

The good news is that Apple claims that their system actually does provide strong privacy, and that it accomplishes this using clever cryptography. But as is typical, they’ve declined to give out the details how they’re going to do it. Andy Greenberg talked me through an incomplete technical description that Apple provided to Wired, so that provides many hints. Unfortunately, what Apple provided still leaves huge gaps. It’s into those gaps that I’m going to fill in my best guess for what Apple is actually doing.

Amazon Is Losing the War on Fraudulent Sellers

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

Excellent article on fraudulent seller tactics on Amazon.

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


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

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

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

Slashdot thread. Boing Boing post.

Using Gmail "Dot Addresses" to Commit Fraud

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

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

This fact can be used to commit fraud:

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

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

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

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

News article.

Slashdot thread.

Sophisticated Voice Phishing Scams

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

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

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

EDITED TO ADD: In 2009, I wrote:

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

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

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

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

Where else does this advice hold true?

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.”

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:

Attackers gain access to vulnerable server
Attackers exploit vulnerable software or weak/stolen credentials.
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.
Ransomware payload deployed
Attackers run batch scripts to execute ransomware on compromised machines.
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.

Secure Images

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


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 mail-[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].

New Malware Hijacks Cryptocurrency Mining

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/01/new_malware_hij.html

This is a clever attack.

After gaining control of the coin-mining software, the malware replaces the wallet address the computer owner uses to collect newly minted currency with an address controlled by the attacker. From then on, the attacker receives all coins generated, and owners are none the wiser unless they take time to manually inspect their software configuration.

So far it hasn’t been very profitable, but it — or some later version — eventually will be.

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:


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


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


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

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.