security

German twins commit the perfect crime

business, law, science, security / /

From “Twins Suspected in Spectacular Jewelry Heist Set Free” (Spiegel Online International: 19 March 2009):

Saved by their indistinguishable DNA, identical twins suspected in a massive jewelry heist have been set free. Neither could be exclusively linked to the DNA evidence.

German police say at least one of the identical twin brothers Hassan and Abbas O. may have perpetrated a recent multimillion euro jewelry heist in Berlin. But because of their indistinguishable DNA, neither can be individually linked to the crime. Both were set free on Wednesday.

In the early morning hours of February 25, three masked men broke into Germany’s famous luxury department store Kaufhaus Des Westens (KaDeWe). Video cameras show how they climbed into the store’s grand main hall, broke open cabinets and display cases and made off with an estimated €5 million worth of jewelry and watches.

When police found traces of DNA on a glove left at the scene of the crime, it seemed that the criminals responsible for Germany’s most spectacular heist in years would be caught. But the DNA led to not one but two suspects — 27-year-old identical, or monozygotic, twins with near-identical DNA.

German law stipulates that each criminal must be individually proven guilty. The problem in the case of the O. brothers is that their twin DNA is so similar that neither can be exclusively linked to the evidence using current methods of DNA analysis. So even though both have criminal records and may have committed the heist together, Hassan and Abbas O. have been set free.

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Criminal goods & service sold on the black market

business, law, security, tech in changing society / /

From Ellen Messmer’s “Symantec takes cybercrime snapshot with ‘Underground Economy’ report” (Network World: 24 November 2008):

The “Underground Economy” report [from Symantec] contains a snapshot of online criminal activity observed from July 2007 to June 2008 by a Symantec team monitoring activities in Internet Relay Chat (IRC) and Web-based forums where stolen goods are advertised. Symantec estimates the total value of the goods advertised on what it calls “underground servers” was about $276 million, with credit-card information accounting for 59% of the total.

If that purloined information were successfully exploited, it probably would bring the buyers about $5 billion, according to the report — just a drop in the bucket, points out David Cowings, senior manager of operations at Symantec Security Response.

“Ninety-eight percent of the underground-economy servers have life spans of less than 6 months,” Cowings says. “The smallest IRC server we saw had five channels and 40 users. The largest IRC server network had 28,000 channels and 90,000 users.”

In the one year covered by the report, Symantec’s team observed more than 69,000 distinct advertisers and 44 million total messages online selling illicit credit-card and financial data, but the 10 most active advertisers appeared to account for 11% of the total messages posted and $575,000 in sales.

…

According to the report, a bank-account credential was selling for $10 to $1,000, depending on the balance and location of the account. Sellers also hawked specific financial sites’ vulnerabilities for an average price of $740, though prices did go as high as $2,999.

In other spots, the average price for a keystroke logger — malware used to capture a victim’s information — was an affordable $23. Attack tools, such as botnets, sold for an average of $225. “For $10, you could host a phishing site on someone’s server or compromised Web site,” Cowings says.

Desktop computer games appeared to be the most-pirated software, accounting for 49% of all file instances that Symantec observed. The second-highest category was utility applications; third-highest was multimedia productivity applications, such as photograph or HTML editors.

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Another huge botnet

business, security / /

From Kelly Jackson Higgins’ “Researchers Find Massive Botnet On Nearly 2 Million Infected Consumer, Business, Government PCs” (Dark Reading: 22 April 2009):

Researchers have discovered a major botnet operating out of the Ukraine that has infected 1.9 million machines, including large corporate and government PCs mainly in the U.S.

The botnet, which appears to be larger than the infamous Storm botnet was in its heyday, has infected machines from some 77 government-owned domains — 51 of which are U.S. government ones, according to Ophir Shalitin, marketing director of Finjan, which recently found the botnet. Shalitin says the botnet is controlled by six individuals and is hosted in Ukraine.

Aside from its massive size and scope, what is also striking about the botnet is what its malware can do to an infected machine. The malware lets an attacker read the victim’s email, communicate via HTTP in the botnet, inject code into other processes, visit Websites without the user knowing, and register as a background service on the infected machine, for instance.

…

Finjan says victims are infected when visiting legitimate Websites containing a Trojan that the company says is detected by only four of 39 anti-malware tools, according to a VirusTotal report run by Finjan researchers.

…

Around 45 percent of the bots are in the U.S., and the machines are Windows XP. Nearly 80 percent run Internet Explorer; 15 percent, Firefox; 3 percent, Opera; and 1 percent Safari. Finjan says the bots were found in banks and large corporations, as well as consumer machines.

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Reasons Windows has a poor security architecture

security / /

From Daniel Eran Dilger’s “The Unavoidable Malware Myth: Why Apple Won’t Inherit Microsoft’s Malware Crown” (AppleInsider: 1 April 2008):

Thanks to its extensive use of battle-hardened Unix and open source software, Mac OS X also has always had security precautions in place that Windows lacked. It has also not shared the architectural weaknesses of Windows that have made that platform so easy to exploit and so difficult to clean up afterward, including:

  • the Windows Registry and the convoluted software installation mess related to it,
  • the Windows NT/2000/XP Interactive Services flaw opening up shatter attacks,
  • a wide open, legacy network architecture that left unnecessary, unsecured ports exposed by default,
  • poorly designed network sharing protocols that failed to account for adequate security measures,
  • poorly designed administrative messaging protocols that failed to account for adequate security,
  • poorly designed email clients that gave untrusted scripts access to spam one’s own contacts unwittingly,
  • an integrated web browser architecture that opened untrusted executables by design, and many others.

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Vista & Mac OS X security features

security, technology / /

From Prince McLean’s “Pwn2Own contest winner: Macs are safer than Windows” (AppleInsider: 26 March 2009):

Once it did arrive, Vista introduced sophisticated new measures to make it more difficult for malicious crackers to inject code.

One is support for the CPU’s NX bit, which allows a process to mark certain areas of memory as “Non-eXecutable” so the CPU will not run any code stored there. This is referred to as “executable space protection,” and helps to prevent malicious code from being surreptitiously loaded into a program’s data storage and subsequently executed to gain access to the same privileges as the program itself, an exploit known as a “buffer overflow attack.”

A second security practice of Vista is “address space layout randomization” or ASLR, which is used to load executables, and the system libraries, heap, and stack into a randomly assigned location within the address space, making it far more difficult for crackers to know where to find vulnerabilities they can attack, even if they know what the bugs are and how to exploit them.

[Charlie Miller, the security expert who won both this and last year’s CanSecWest Pwn2Own security contests,] told Tom’s Hardware “the NX bit is very powerful. When used properly, it ensures that user-supplied code cannot be executed in the process during exploitation. Researchers (and hackers) have struggled with ways around this protection. ASLR is also very tough to defeat. This is the way the process randomizes the location of code in a process. Between these two hurdles, no one knows how to execute arbitrary code in Firefox or IE 8 in Vista right now. For the record, Leopard has neither of these features, at least implemented effectively. In the exploit I won Pwn2Own with, I knew right where my shellcode was located and I knew it would execute on the heap for me.”

…

While Apple did implement some support for NX and ASLR in Mac OS X, Leopard retains dyld, (the dynamic loader responsible for loading all of the frameworks, dylibs, and bundles needed by a process) in the same known location, making it relatively trivial to bypass its ASLR. This is slated to change later this year in Snow Leopard.

With the much larger address space available to 64-bit binaries, Snow Leopard’s ASLR will make it possible to hide the location of loaded code like a needle in a haystack, thwarting the efforts of malicious attackers to maintain predictable targets for controlling the code and data loaded into memory. Without knowing what addresses to target, the “vast majority of these exploits will fail,” another security expert who has also won a high profile Mac cracking contest explained to AppleInsider.

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$9 million stolen from 130 ATM machines in 49 cities in 30 minutes

business, law, security, tech in changing society / /

From Catey Hill’s “Massive ATM heist! $9M stolen in only 30 minutes” (New York Daily News: 12 February 2009)

With information stolen from only 100 ATM cards, thieves made off with $9 million in cash, according to published reports. It only took 30 minutes.

“We’ve seen similar attempts to defraud a bank through ATM machines but not, not anywhere near the scale we have here,” FBI Agent Ross Rice told Fox 5. “We’ve never seen one this well coordinated,” the FBI told Fox 5.

The heist happened in November, but FBI officials released more information about the events only recently. …

How did they do it? The thieves hacked into the RBS WorldPay computer system and stole payroll card information from the company. A payroll card is used by many companies to pay the salaries of their employees. The cards work a lot like a debit card and can be used in any ATM.

Once the thieves had the card info, they employed a group of ‘cashers’ – people employed to go get the money out of the ATMs. The cashers went to ATMs around the world and withdrew money.
“Over 130 different ATM machines in 49 cities worldwide were accessed in a 30-minute period on November 8,” Agent Rice told Fox 5.

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What passwords do people use? phpBB examples

language & literature, security / /

From Robert Graham’s “PHPBB Password Analysis” (Dark Reading: 6 February 2009):

A popular Website, phpbb.com, was recently hacked. The hacker published approximately 20,000 user passwords from the site. …

This incident is similar to one two years ago when MySpace was hacked, revealing about 30,000 passwords. …

The striking different between the two incidents is that the phpbb passwords are simpler. MySpace requires that passwords “must be between 6 and 10 characters, and contain at least 1 number or punctuation character.” Most people satisfied this requirement by simply appending “1” to the ends of their passwords. The phpbb site has no such restrictions — the passwords are shorter and rarely contain anything more than a dictionary word.

It’s hard to judge exactly how many passwords are dictionary words. … I ran the phpbb passwords through various dictionary files and come up with a 65% match (for a simple English dictionary) and 94% (for “hacker” dictionaries). …

16% of passwords matched a person’s first name. This includes people choosing their own first names or those of their spouses or children. The most popular first names were Joshua, Thomas, Michael, and Charlie. But I wonder if there is something else going on. Joshua, for example, was also the password to the computer in “Wargames” …

14% of passwords were patterns on the keyboard, like “1234,” “qwerty,” or “asdf.” There are a lot of different patterns people choose, like “1qaz2wsx” or “1q2w3e.” I spent a while googling “159357,” trying to figure out how to categorize it, then realized it was a pattern on the numeric keypad. …

4% are variations of the word “password,” such as “passw0rd,” “password1,” or “passwd.” I googled “drowssap,” trying to figure out how to categorize it, until I realized it was “password” spelled backward.

5% of passwords are pop-culture references from TV, movies, and music. These tend to be youth culture (“hannah,” “pokemon,” “tigger”) and geeky (“klingon,” “starwars,” “matrix,” “legolas,” “ironman”). … Some notable pop-culture references are chosen not because they are popular, but because they sound like passwords, such as “ou812” (’80s Van Halen album), “blink182” (’90s pop), “rush2112” (’80s album), and “8675309” (’80s pop song).

4% of passwords appear to reference things nearby. The name “samsung” is a popular password, I think because it’s the brand name on the monitor that people are looking at … Similarly, there are a lot of names of home computers like “dell,” “packard,” “apple,” “pavilion,” “presario,” “compaq,” and so on. …

3% of passwords are “emo” words. Swear words, especially the F-word, are common, but so are various forms of love and hate (like “iloveyou” or “ihateyou”).

3% are “don’t care” words. … A lot of password choices reflect this attitude, either implicitly with “abc123” or “blahblah,” or explicitly with “whatever,” “whocares,” or “nothing.”

1.3% are passwords people saw in movies/TV. This is a small category, consisting only of “letmein,” “trustno1,” “joshua,” and “monkey,” but it accounts for a large percentage of passwords.

1% are sports related. …

Here is the top 20 passwords from the phpbb dataset. You’ll find nothing surprising here; all of them are on this Top 500 list.

3.03% “123456”
2.13% “password”
1.45% “phpbb”
0.91% “qwerty”
0.82% “12345”
0.59% “12345678”
0.58% “letmein”
0.53% “1234”
0.50% “test”
0.43% “123”
0.36% “trustno1”
0.33% “dragon”
0.31% “abc123”
0.31% “123456789”
0.31% “111111”
0.30% “hello”
0.30% “monkey”
0.28% “master”
0.22% “killer”
0.22% “123123”

Notice that whereas “myspace1” was one of the most popular passwords in the MySpace dataset, “phpbb” is one of the most popular passwords in the phpbb dataset.

…

The password length distribution is as follows:

1 character 0.34%
2 characters 0.54%
3 characters 2.92%
4 characters 12.29%
5 characters 13.29%
6 characters 35.16%
7 characters 14.60%
8 characters 15.50%
9 characters 3.81%
10 characters 1.14%
11 characters 0.22%

Note that phpbb has no requirements for password lengths …

What passwords do people use? phpBB examples Read More »

Crazy anti-terrorism plans that worked

history, law, politics, security / /

From a Special Operations officer quoted in Tom Ricks’s Inbox (The Washington Post: 5 October 2008):

One of the most interesting operations was the laundry mat [sic]. Having lost many troops and civilians to bombings, the Brits decided they needed to determine who was making the bombs and where they were being manufactured. One bright fellow recommended they operate a laundry and when asked “what the hell he was talking about,” he explained the plan and it was incorporated — to much success.

The plan was simple: Build a laundry and staff it with locals and a few of their own. The laundry would then send out “color coded” special discount tickets, to the effect of “get two loads for the price of one,” etc. The color coding was matched to specific streets and thus when someone brought in their laundry, it was easy to determine the general location from which a city map was coded.

While the laundry was indeed being washed, pressed and dry cleaned, it had one additional cycle — every garment, sheet, glove, pair of pants, was first sent through an analyzer, located in the basement, that checked for bomb-making residue. The analyzer was disguised as just another piece of the laundry equipment; good OPSEC [operational security]. Within a few weeks, multiple positives had shown up, indicating the ingredients of bomb residue, and intelligence had determined which areas of the city were involved. To narrow their target list, [the laundry] simply sent out more specific coupons [numbered] to all houses in the area, and before long they had good addresses. After confirming addresses, authorities with the SAS teams swooped down on the multiple homes and arrested multiple personnel and confiscated numerous assembled bombs, weapons and ingredients. During the entire operation, no one was injured or killed.
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By the way, the gentleman also told the story of how [the British] also bugged every new car going into Northern Ireland, and thus knew everything [Sinn Fein leader] Gerry Adams was discussing. They did this because Adams always conducted mobile meetings and always used new cars.

The Israelis have a term for this type of thinking, “Embracing the Meshugganah,” which literally translated means, embrace the craziness, because the crazier the plan, the less likely the adversary will have thought about it, and thus, not have implemented a counter-measure.

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Conficker creating a new gargantuan botneth

business, law, security, tech in changing society, technology / /

From Asavin Wattanajantra’s “Windows worm could create the ‘world’s biggest botnet’” (IT PRO: 19 January 2009):

The Downadup or “Conficker” worm has increased to over nine million infections over the weekend – increasing from 2.4 million in a four-day period, according to F-Secure.

…

The worm has password cracking capabilities, which is often successful because company passwords sometimes match a predefined password list that the worm carries.

Corporate networks around the world have already been infected by the network worm, which is particularly hard to eradicate as it is able to evolve – making use of a long list of websites – by downloading another version of itself.

Rik Ferguson, solution architect at Trend Micro, told IT PRO that the worm was very difficult to block for security companies as they had to make sure that they blocked every single one of the hundreds of domains that it could download from.

…

Ferguson said that the worm was creating a staggering amount of infections, even if just the most conservative infection estimates are taken into account. He said: “What’s particularly interesting about this worm is that it is the first hybrid with old school worm infection capabilities and command and control infrastructure.”

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CCTV in your plane’s cabin?

business, law, security, tech in changing society / /

From Michael Reilly’s “In-flight surveillance could foil terrorists in the sky” (New Scientist: 29 May 2008):

CCTV cameras are bringing more and more public places under surveillance – and passenger aircraft could be next.

A prototype European system uses multiple cameras and “Big Brother” software to try and automatically detect terrorists or other dangers caused by passengers.

The European Union’s Security of Aircraft in the Future European Environment (SAFEE) project uses a camera in every passenger’s seat, with six wide-angle cameras to survey the aisles. Software then analyses the footage to detect developing terrorist activity or “air-rage” incidents, by tracking passengers’ facial expressions.

…

“It looks for running in the cabin, standing near the cockpit for long periods of time, and other predetermined indicators that suggest a developing threat,” says James Ferryman of the University of Reading, UK, one of the system’s developers.

Other behaviours could include a person nervously touching their face, or sweating excessively. One such behaviour won’t trigger the system to alert the crew, only certain combinations of them.

CCTV in your plane’s cabin? Read More »

Give CLEAR your info, watch CLEAR lose your info

business, law, politics, security, tech in changing society, technology / /

From “Missing SFO Laptop With Sensitive Data Found” (CBS5: 5 August 2008):

The company that runs a fast-pass security prescreening program at San Francisco International Airport said Tuesday that it found a laptop containing the personal information of 33,000 people more than a week after it apparently went missing.

The Transportation Security Administration announced late Monday that it had suspended new enrollments to the program, known as Clear, after the unencrypted computer was reported stolen at SFO.

…

The laptop was found Tuesday morning in the same company office where it supposedly had gone missing on July 26, said spokeswoman Allison Beer.

“It was not in an obvious location,” said Beer, who said an investigation was under way to determine whether the computer was actually stolen or had just been misplaced.

…

The laptop contained personal information on applicants to the program, including names, address and birth dates, and in some cases driver’s license, passport or green card numbers, the company said.

The laptop did not contain Social Security numbers, credit card numbers or fingerprint or iris images used to verify identities at the checkpoints, Beer said.

…

In a statement, the company said the information on the laptop, which was originally reported stolen from its locked office, “is secured by two levels of password protection.” Beer called the fact that the personal information itself was not encrypted “a mistake” that the company would fix.

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US government makes unsafe RFID-laden passports even less safe through business practices

business, history, law, politics, security, tech in changing society / /

From Bill Gertz’s “Outsourced passports netting govt. profits, risking national security” (The Washington Times: 26 March 2008):

The United States has outsourced the manufacturing of its electronic passports to overseas companies — including one in Thailand that was victimized by Chinese espionage — raising concerns that cost savings are being put ahead of national security, an investigation by The Washington Times has found.

The Government Printing Office’s decision to export the work has proved lucrative, allowing the agency to book more than $100 million in recent profits by charging the State Department more money for blank passports than it actually costs to make them, according to interviews with federal officials and documents obtained by The Times.

The profits have raised questions both inside the agency and in Congress because the law that created GPO as the federal government’s official printer explicitly requires the agency to break even by charging only enough to recover its costs.

Lawmakers said they were alarmed by The Times’ findings and plan to investigate why U.S. companies weren’t used to produce the state-of-the-art passports, one of the crown jewels of American border security.

…

Officials at GPO, the Homeland Security Department and the State Department played down such concerns, saying they are confident that regular audits and other protections already in place will keep terrorists and foreign spies from stealing or copying the sensitive components to make fake passports.

“Aside from the fact that we have fully vetted and qualified vendors, we also note that the materials are moved via a secure transportation means, including armored vehicles,” GPO spokesman Gary Somerset said.

But GPO Inspector General J. Anthony Ogden, the agency’s internal watchdog, doesn’t share that confidence. He warned in an internal Oct. 12 report that there are “significant deficiencies with the manufacturing of blank passports, security of components, and the internal controls for the process.”

The inspector general’s report said GPO claimed it could not improve its security because of “monetary constraints.” But the inspector general recently told congressional investigators he was unaware that the agency had booked tens of millions of dollars in profits through passport sales that could have been used to improve security, congressional aides told The Times.

…

GPO is an agency little-known to most Americans, created by Congress almost two centuries ago as a virtual monopoly to print nearly all of the government’s documents … Since 1926, it also has been charged with the job of printing the passports used by Americans to enter and leave the country.

…

Each new e-passport contains a small computer chip inside the back cover that contains the passport number along with the photo and other personal data of the holder. The data is secured and is transmitted through a tiny wire antenna when it is scanned electronically at border entry points and compared to the actual traveler carrying it.

According to interviews and documents, GPO managers rejected limiting the contracts to U.S.-made computer chip makers and instead sought suppliers from several countries, including Israel, Germany and the Netherlands.

…

After the computer chips are inserted into the back cover of the passports in Europe, the blank covers are shipped to a factory in Ayutthaya, Thailand, north of Bangkok, to be fitted with a wire Radio Frequency Identification, or RFID, antenna. The blank passports eventually are transported to Washington for final binding, according to the documents and interviews.

The stop in Thailand raises its own security concerns. The Southeast Asian country has battled social instability and terror threats. Anti-government groups backed by Islamists, including al Qaeda, have carried out attacks in southern Thailand and the Thai military took over in a coup in September 2006.

The Netherlands-based company that assembles the U.S. e-passport covers in Thailand, Smartrac Technology Ltd., warned in its latest annual report that, in a worst-case scenario, social unrest in Thailand could lead to a halt in production.

Smartrac divulged in an October 2007 court filing in The Hague that China had stolen its patented technology for e-passport chips, raising additional questions about the security of America’s e-passports.

Transport concerns

A 2005 document obtained by The Times states that GPO was using unsecure FedEx courier services to send blank passports to State Department offices until security concerns were raised and forced GPO to use an armored car company. Even then, the agency proposed using a foreign armored car vendor before State Department diplomatic security officials objected.

…

Questionable profits

…

The State Department is now charging Americans $100 or more for new e-passports produced by the GPO, depending on how quickly they are needed. That’s up from a cost of around just $60 in 1998.

Internal agency documents obtained by The Times show each blank passport costs GPO an average of just $7.97 to manufacture and that GPO then charges the State Department about $14.80 for each, a margin of more than 85 percent, the documents show.

The accounting allowed GPO to make gross profits of more than $90 million from Oct. 1, 2006, through Sept. 30, 2007, on the production of e-passports. The four subsequent months produced an additional $54 million in gross profits.

The agency set aside more than $40 million of those profits to help build a secure backup passport production facility in the South, still leaving a net profit of about $100 million in the last 16 months.

…

GPO plans to produce 28 million blank passports this year up from about 9 million five years ago.

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The end of Storm

business, security / /

From Brian Krebs’ “Atrivo Shutdown Hastened Demise of Storm Worm” (The Washington Post: 17 October 2008):

The infamous Storm worm, which powered a network of thousands of compromised PCs once responsible for sending more than 20 percent of all spam, appears to have died off. Security experts say Storm’s death knell was sounded by the recent shutdown of Atrivo, a California based ISP that was home to a number of criminal cyber crime operations, including at least three of the master servers used to control the Storm network.

Three out of four of [Storm’s] control servers were located at Atrivo, a.k.a. Intercage, said Joe Stewart, a senior security researcher with Atlanta based SecureWorks who helped unlock the secrets of the complex Storm network. The fourth server, he said, operated out of Hosting.ua, an Internet provider based in the Ukraine.

Stewart said the final spam run blasted out by Storm was on Sept. 18.Three days later, Atrivo was forced off the Internet after its sole remaining upstream provider — Pacific Internet Exchange (PIE) — decided to stop routing for the troubled ISP. In the weeks leading up to that disconnection, four other upstream providers severed connectivity to Atrivo, following detailed reports from Security Fix and Host Exploit that pointed to a massive amount of spam, malicious software and a host of other cyber criminal operations emanating from it.

Stewart said spam sent by the Storm network had been steadily decreasing throughout 2008, aided in large part by the inclusion of the malware in Microsoft’s malicious software removal tool, which has scrubbed Storm from hundreds of thousands of PCs since last fall. Stewart said it’s impossible to tell whether the Storm worm was disrupted by the Atrivo shutdown or if the worm’s authors pulled the plug themselves and decided to move on. But at least 30,000 systems remain infected with the Storm malware.

The end of Storm Read More »

The end of Storm?

business, security / /

From “Storm Worm botnet cracked wide open” (Heise Security: 9 January 2009):

A team of researchers from Bonn University and RWTH Aachen University have analysed the notorious Storm Worm botnet, and concluded it certainly isn’t as invulnerable as it once seemed. Quite the reverse, for in theory it can be rapidly eliminated using software developed and at least partially disclosed by Georg Wicherski, Tillmann Werner, Felix Leder and Mark Schlösser. However it seems in practice the elimination process would fall foul of the law.

Over the last two years, Storm Worm has demonstrated how easily organised internet criminals have been able to spread this infection. During that period, the Storm Worm botnet has accumulated more than a million infected computers, known as drones or zombies, obeying the commands of a control server and using peer-to-peer techniques to locate new servers. Even following a big clean-up with Microsoft’s Malicious Software Removal Tool, around 100,000 drones probably still remain. That means the Storm Worm botnet is responsible for a considerable share of the Spam tsunami and for many distributed denial-of-service attacks. It’s astonishing that no one has succeeded in dismantling the network, but these researchers say it isn’t due to technical finesse on the part of the Storm Worm’s developers.

Existing knowledge of the techniques used by the Storm Worm has mainly been obtained by observing the behaviour of infected systems, but the researchers took a different approach to disarm it. They reverse translated large parts of the machine code of the drone client program and analysed it, taking a particularly close look at the functions for communications between drones and with the server.

Using this background knowledge, they were able to develop their own client, which links itself into the peer-to-peer structure of a Storm Worm network in such a way that queries from other drones, looking for new command servers, can be reliably routed to it. That enables it to divert drones to a new server. The second step was to analyse the protocol for passing commands. The researchers were astonished to find that the server doesn’t have to authenticate itself to clients, so using their knowledge they were able to direct drones to a simple server. The latter could then issue commands to the test Storm worm drones in the laboratory so that, for example, they downloaded a specific program from a server, perhaps a special cleaning program, and ran it. The students then went on to write such a program.

…

The team has not yet taken the final step of putting the whole thing into action with a genuine Storm Worm botnet in the wild. From a legal point of view, that could involve many problems. Any unauthorised access to third-party computers could be regarded as tampering with data, which is punishable under paragraph § 303a of the German Penal Code. That paragraph threatens up to two years’ imprisonment for unlawfully deleting, suppressing, making unusable or changing third-party data. Although this legal process would only come into effect if there was a criminal complaint from an injured party, or if there was special public interest in the prosecution of the crime.

Besides risks of coming up against the criminal law, there is also a danger of civil claims for damages by the owners of infected PCs, because the operation might cause collateral damage. There are almost certain to be configurations in which the cleaning goes wrong, perhaps disabling computers so they won’t run any more. Botnet operators could also be expected to strike back, causing further damage.

The end of Storm? Read More »

Three top botnets

business, security / /

From Kelly Jackson Higgins’ “The World’s Biggest Botnets” (Dark Reading: 9 November 2007):

You know about the Storm Trojan, which is spread by the world’s largest botnet. But what you may not know is there’s now a new peer-to-peer based botnet emerging that could blow Storm away.

“We’re investigating a new peer-to-peer botnet that may wind up rivaling Storm in size and sophistication,” says Tripp Cox, vice president of engineering for startup Damballa, which tracks botnet command and control infrastructures. “We can’t say much more about it, but we can tell it’s distinct from Storm.”

…

Researchers estimate that there are thousands of botnets in operation today, but only a handful stand out by their sheer size and pervasiveness. Although size gives a botnet muscle and breadth, it can also make it too conspicuous, which is why botnets like Storm fluctuate in size and are constantly finding new ways to cover their tracks to avoid detection. Researchers have different head counts for different botnets, with Storm by far the largest (for now, anyway).

Damballa says its top three botnets are Storm, with 230,000 active members per 24 hour period; Rbot, an IRC-based botnet with 40,000 active members per 24 hour period; and Bobax, an HTTP-based botnet with 24,000 active members per 24 hour period, according to the company.

…

1. Storm

Size: 230,000 active members per 24 hour period

Type: peer-to-peer

Purpose: Spam, DDOS

Malware: Trojan.Peacomm (aka Nuwar)

Few researchers can agree on Storm’s actual size — while Damballa says its over 200,000 bots, Trend Micro says its more like 40,000 to 100,000 today. But all researchers say that Storm is a whole new brand of botnet. First, it uses encrypted decentralized, peer-to-peer communication, unlike the traditional centralized IRC model. That makes it tough to kill because you can’t necessarily shut down its command and control machines. And intercepting Storm’s traffic requires cracking the encrypted data.

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Storm also uses fast-flux, a round-robin method where infected bot machines (typically home computers) serve as proxies or hosts for malicious Websites. These are constantly rotated, changing their DNS records to prevent their discovery by researchers, ISPs, or law enforcement. And researchers say it’s tough to tell how the command and control communication structure is set up behind the P2P botnet. “Nobody knows how the mother ships are generating their C&C,” Trend Micro’s Ferguson says.

Storm uses a complex combination of malware called Peacomm that includes a worm, rootkit, spam relay, and Trojan.

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But researchers don’t know — or can’t say — who exactly is behind Storm, except that it’s likely a fairly small, tightly knit group with a clear business plan. “All roads lead back to Russia,” Trend Micro’s Ferguson says.

“Storm is only thing now that keeps me awake at night and busy,” he says. “It’s professionalized crimeware… They have young, talented programmers apparently. And they write tools to do administrative [tracking], as well as writing cryptographic routines… and another will handle social engineering, and another will write the Trojan downloader, and another is writing the rootkit.”

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Rbot

Size: 40,000 active members per 24 hour period

Type: IRC

Purpose: DDOS, spam, malicious operations

Malware: Windows worm

Rbot is basically an old-school IRC botnet that uses the Rbot malware kit. It isn’t likely to ever reach Storm size because IRC botnets just can’t scale accordingly. “An IRC server has to be a beefy machine to support anything anywhere close to the size of Peacomm/Storm,” Damballa’s Cox says.

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It can disable antivirus software, too. Rbot’s underlying malware uses a backdoor to gain control of the infected machine, installing keyloggers, viruses, and even stealing files from the machine, as well as the usual spam and DDOS attacks.

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Bobax

Size: 24,000 active members per 24 hour period

Type: HTTP

Purpose: Spam

Malware: Mass-mailing worm

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Bobax is specifically for spamming, Cox says, and uses the stealthier HTTP for sending instructions to its bots on who and what to spam. …

According to Symantec, Bobax bores open a back door and downloads files onto the infected machine, and lowers its security settings. It spreads via a buffer overflow vulnerability in Windows, and inserts the spam code into the IE browser so that each time the browser runs, the virus is activated. And Bobax also does some reconnaissance to ensure that its spam runs are efficient: It can do bandwidth and network analysis to determine just how much spam it can send, according to Damballa. “Thus [they] are able to tailor their spamming so as not to tax the network, which helps them avoid detection,” according to company research.

Even more frightening, though, is that some Bobax variants can block access to antivirus and security vendor Websites, a new trend in Website exploitation.

Three top botnets Read More »

Largest botnet as of 2006: 1.5 M machines

business, security / /

From Gregg Keizer’s “Dutch Botnet Bigger Than Expected” (InformationWeek: 21 October 2005):

Dutch prosecutors who last month arrested a trio of young men for creating a large botnet allegedly used to extort a U.S. company, steal identities, and distribute spyware now say they bagged bigger prey: a botnet of 1.5 million machines.

According to Wim de Bruin, a spokesman for the Public Prosecution Service (Openbaar Ministerie, or OM), when investigators at GOVCERT.NL, the Netherlands’ Computer Emergency Response Team, and several Internet service providers began dismantling the botnet, they discovered it consisted of about 1.5 million compromised computers, 15 times the 100,000 PCs first thought.

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The three suspects, ages 19, 22, and 27, were arrested Oct. 6 …

The trio supposedly used the Toxbot Trojan horse to infect the vast number of machines, easily the largest controlled by arrested attackers.

Largest botnet as of 2006: 1.5 M machines Read More »

Why botnet operators do it: profit, politics, & prestige

business, security / /

From Clive Akass’ “Storm worm ‘making millions a day’” (Personal Computer World: 11 February 2008):

The people behind the Storm worm are making millions of pounds a day by using it to generate revenue, according to IBM’s principal web security strategist.

Joshua Corman, of IBM Internet Security Systems, said that in the past it had been assumed that web security attacks were essential ego driven. But now attackers fell in three camps.

‘I call them my three Ps, profit, politics and prestige,’ he said during a debate at a NetEvents forum in Barcelona.

The Storm worm, which had been around about a year, had been a tremendous financial success because it created a botnet of compromised machines that could be used to launch profitable spam attacks.

Not only do the criminals get money simply for sending out the spam in much more quantity than could be sent by a single machine but they get a cut of any business done off the spam.

Why botnet operators do it: profit, politics, & prestige Read More »

Number of bots drops 20% on Christmas

business, security / /

From Robert Lemos’ “Bot-infected PCs get a refresh” (SecurityFocus: 28 December 2006):

On Christmas day, the number of bots tracked by the Shadowserver group dropped nearly 20 percent.

The dramatic decrease in weekly totals–from more than 500,000 infected systems to less than 400,000 computers–puzzled researchers. The Internet Storm Center, a threat monitoring group managed by the SANS Institute, confirmed a drop of about 10 percent.

One of the Internet Storm Center’s network monitoring volunteers posited that the decrease was due to the large number of computers given as gifts this Christmas. The systems running Microsoft Windows XP will be using Service Pack 2, which also means the firewall will be on by default, adding an additional hurdle for bot herder looking to reclaim their drones.

“Many of the infected machines are turned off, the new shiny ones have not been infected, and the Internet is momentarily a safer place,” Marcus Sachs, director of the ISC, stated in a diary entry. “But like you said, give it a few weeks and we’ll be right back to where we started from.”

Number of bots drops 20% on Christmas Read More »

1/4 of all Internet computers part of a botnet?

business, security / /

From Nate Anderson’s “Vint Cerf: one quarter of all computers part of a botnet” (Ars Technica: 25 January 2007):

The BBC’s Tim Weber, who was in the audience of an Internet panel featuring Vint Cerf, Michael Dell, John Markoff of the New York Times, and Jon Zittrain of Oxford, came away most impressed by the botnet statistics. Cerf told his listeners that approximately 600 million computers are connected to the Internet, and that 150 million of them might be participants in a botnet—nearly all of them unwilling victims. Weber remarks that “in most cases the owners of these computers have not the slightest idea what their little beige friend in the study is up to.”

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In September 2006, security research firm Arbor Networks announced that it was now seeing botnet-based denial of service attacks capable of generating an astonishing 10-20Gbps of junk data. The company notes that when major attacks of this sort began, ISPs often do exactly what the attacker wants them to do: take the target site offline.

1/4 of all Internet computers part of a botnet? Read More »

Prices for various services and software in the underground

business, security / /

From Tom Espiner’s “Cracking open the cybercrime economy” (CNET News: 14 December 2007):

“Over the years, the criminal elements, the ones who are making money, making millions out of all this online crime, are just getting stronger and stronger. I don’t think we are really winning this war.”

As director of antivirus research for F-Secure, you might expect Mikko Hypponen to overplay the seriousness of the situation. But according to the Finnish company, during 2007 the number of samples of malicious code on its database doubled, having taken 20 years to reach the size it was at the beginning of this year.

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“From Trojan creation sites out of Germany and the Eastern bloc, you can purchase kits and support for malware in yearly contracts,” said [David Marcus, security research manager at McAfee Avert Labs]. “They present themselves as a cottage industry which sells tools or creation kits. It’s hard to tell if it’s a conspiracy or a bunch of autonomous individuals who are good at covering their tracks.”

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Joe Telafici, director of operations at McAfee’s Avert Labs, said Storm is continuing to evolve. “We’ve seen periodic activity from Storm indicating that it is still actively being maintained. They have actually ripped out core pieces of functionality to modify the obfuscation mechanisms that weren’t working any more. Most people keep changing the wrapper until it gets by (security software)–these guys changed the functionality.”

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Peter Gutmann, a security researcher at the University of Auckland, says in a report that malicious software via the affiliate model–in which someone pays others to infect users with spyware and Trojans–has become more prevalent in 2007.

The affiliate model was pioneered by the iframedollars.biz site in 2005, which paid Webmasters 6 cents per infected site. Since then, this has been extended to a “vast number of adware affiliates,” according to Gutmann. For example, one adware supplier pays 30 cents for each install in the United States, 20 cents in Canada, 10 cents in the United Kingdom, and 1 or 2 cents elsewhere.

Hackers also piggyback malicious software on legitimate software. According to Gutmann, versions of coolwebsearch co-install a mail zombie and a keystroke logger, while some peer-to-peer and file-sharing applications come with bundled adware and spyware.

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In March, the price quoted on malware sites for the Gozi Trojan, which steals data and sends it to hackers in an encrypted form, was between $1,000 and $2,000 for the basic version. Buyers could purchase add-on services at varying prices starting at $20.

In the 2007 black economy, everything can be outsourced, according to Gutmann. A scammer can buy hosts for a phishing site, buy spam services to lure victims, buy drops to send the money to, and pay a cashier to cash out the accounts. …

Antidetection vendors sell services to malicious-software and botnet vendors, who sell stolen credit card data to middlemen. Those middlemen then sell that information to fraudsters who deal in stolen credit card data and pay a premium for verifiably active accounts. “The money seems to be in the middlemen,” Gutmann says.

One example of this is the Gozi Trojan. According to reports, the malware was available this summer as a service from iFrameBiz and stat482.com, who bought the Trojan from the HangUp team, a group of Russian hackers. The Trojan server was managed by 76service.com, and hosted by the Russian Business Network, which security vendors allege offered “bullet-proof” hosting for phishing sites and other illicit operations.

According to Gutmann, there are many independent malicious-software developers selling their wares online. Private releases can be tailored to individual clients, while vendors offer support services, often bundling antidetection. For example, the private edition of Hav-rat version 1.2, a Trojan written by hacker Havalito, is advertised as being completely undetectable by antivirus companies. If it does get detected then it will be replaced with a new copy that again is supposedly undetectable.

Hackers can buy denial-of-service attacks for $100 per day, while spammers can buy CDs with harvested e-mail addresses. Spammers can also send mail via spam brokers, handled via online forums such as specialham.com and spamforum.biz. In this environment, $1 buys 1,000 to 5,000 credits, while $1,000 buys 10,000 compromised PCs. Credit is deducted when the spam is accepted by the target mail server. The brokers handle spam distribution via open proxies, relays and compromised PCs, while the sending is usually done from the client’s PC using broker-provided software and control information.

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Carders, who mainly deal in stolen credit card details, openly publish prices, or engage in private negotiations to decide the price, with some sources giving bulk discounts for larger purchases. The rate for credit card details is approximately $1 for all the details down to the Card Verification Value (CVV); $10 for details with CVV linked to a Social Security number; and $50 for a full bank account.

Prices for various services and software in the underground Read More »