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ADT Teams Up with SonicWall for SMB Security Services

More than half of all SMBs plan to rely on third party providers for their security tools and services, according to IDC.

SonicWall and ADT Cybersecurity, the managed services arm of ADT, best known for delivering physical security monitoring, today announced a partnership to offer cybersecurity services for small-to-midsized businesses.

Security service offerings for SMBs have been on the rise in the past year or two as these organizations increasingly have suffered cyberattacks. 

Bill Conner, president and CEO of SonicWall, says the partnership between the companies stemmed from an acquisition ADT made last year of Secure Designs, Inc. (SDI), one of the MSSPs from which SonicWall sold its SMB security products. According to Conner, ADT will concentrate on sales and security monitoring, and SonicWall will provide its layered security offerings, including network security via SonicWall TZ series firewalls, secure email from SonicWall Hosted Email Security, and encrypted traffic protection via SonicWall SPI-SSL technology.

SonicWall will also provide its patent-pending Real-Time Deep Memory Inspection (RTDMI) technology, designed to deliver more protection than traditional sandboxing. “What’s happened is that with large corporations doing a better job on security, the bad threat actors are moving to SMBs,” Conner says. “The idea behind this partnership is to give the same kind of protection that large corporations get from MSSPs at a price that SMBs can afford.”

Martha Vazquez, a senior research analyst at IDC, says SMBs have become the sweet spot for the industry to address.

“More than 50% of these businesses plan to outsource their security functions to a third party such as an MSSP,” Vazquez says. “These organizations are becoming more aware than ever of the security challenges as they become more reliant on the Internet and face ongoing advanced security threats.”

Vazquez says while it’s too soon to call the ADT Cybersecurity/SonicWall partnership a trend, she believes that cable companies and other service providers will form partnerships with security vendors – and it’s possible that other home security companies will look at the IT security space as well.

Meanwhile, SonicWall’s 2019 Cyber Threat Report found nearly 75,000 “never-before-seen” threats in 2018 alone. In an analysis of data from more than 200,000 malicious events and malware samples, SonicWall found:

  • 10.52 billion malware attacks were blocked in 2018
  • 217.5% increase in IoT attacks
  • More than 2.8 million encrypted malware attacks were blocked in 2018, a 27% year-over-year increase from 2017
  • 11% year-over-year increase in ransomware attacks
  • 56% increase in Web app attacks
  • 3.9 trillion intrusion attempts

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Steve Zurier has more than 30 years of journalism and publishing experience, most of the last 24 of which were spent covering networking and security technology. Steve is based in Columbia, Md. View Full Bio

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Senior Executives More Involved with SOC Operations, Report Finds

But they are still subject to the same alert fatigue and false-positive issues their junior employees face.

Front-line analysts in security operations centers (SOCs) are doing less while C-level executives are doing more, according to a new report. And even senior executives are subject to the same alert fatigue and false-positive issues as their junior employees.

The Exabeam annual “State of the SOC” report is based on surveys with 150 IT executives in the US and UK, carried out by Cicero Group. The surveys found 86% of CIOs and CISOs are now involved in incident response, up from 65% in last year’s report. And 67% of CIOs and CISOs are taking part in threat-hunting activities, up from 51% a year ago.

While fewer than half of the SOC analysts are using automation in their work (48%), 34% want to invest in more automation to save time in responding to incidents. It’s likely that they would also see this as a way to make the most of human resources, since roughly one-third of executives say their SOC is understaffed by 6–10 employees.

For more, read here.

Dark Reading’s Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio

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Feds Make New Arrest in Darkode Case

Another American was arrested and charged alongside three international suspects who remain at large, according to newly unsealed indictment.

Almost four years since an FBI sting infiltrated and dismantled the infamous Darkode cybercrime forum, the US Department of Justice (DOJ) has revealed a new arrest and more charges against four conspirators, including those against three international suspects that remain fugitives.

The suspects are being charged with racketeering conspiracy for allegedly developing and distributing malware through the Darkode forum, a black market bazaar for peddling malware, stolen identities, botnets, and vulnerability information, that was the centerpiece of the Dark Web in its heyday.

When the FBI shut down the invitation-only forum in 2015, Darkode had been extant for the better part of eight years, with anywhere between 250 to 300 active members participating.  

“Darkode was a criminal organization centered around an online, password-protected criminal forum where high-level international hackers and other cybercriminals convened,” the DOJ said in a statement this week on the latest arrest. 

The federal officials reported this week that they brought new charges against an American, a Slovinian, a Serbian, and a Spaniard in an indictment on December 4, 2018. A few days later they arrested the American, Thomas McCormick, aka fubar, on December 4, 2018 at the FBI’s Washington Field Office in Washington, D.C. Meanwhile, the following three suspects remain at large: 

·     Matjaz Skorjanc, aka iserdo or serdo, of Maribor Slovenia, who was widely known as the ringleader of Darkode;

·     Florencio Carro Ruiz, aka NeTK or Netkairo of Vizcaya, Spain; and 

·     Mentor Leniqi, aka Iceman, of Gurisnica, Slovinia.

US Attorney Jessie K. Liu alleges in the charging documents that the men were responsible for racketeering conspiracy and conspiracy to commit bank, wire, and access device fraud, identity theft, hacking, and extortion. The maximum penalty for racketeering conspiracy to commit bank fraud is 20 years in jail, while the maximum conspiracy to commit wire fraud and bank fraud is 30 years.

The action announced this week is cleanup after a years-long effort to address what one U.S. Attorney called “one of the gravest threats to the integrity of data on computers in the United States and around the world.”

The forum was the origination point of a number of devastating attacks and attack tools of the time, including the Android-targeting Dendroid malware, which was eventually found to be the partial brainchild of a former intern at security vendor FireEye.

The original takedown of Darkode was the result of Operation Shrouded Horizon, an international cooperation between the FBI and law enforcement from 19 nations that lead to the previous charges, arrests, and searches of 70 members of the forum. 

According to reporting from Forbes earlier this spring, a new iteration of Darkode is now back online though it’s no longer an exclusive Dark Web affair. The site is now on the regular Internet, and boasts over 12,000 members exchanging information and selling wares at prices between $200 to $1,000, utilizing Bitcoin to avoid being tracked.

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Ericka Chickowski specializes in coverage of information technology and business innovation. She has focused on information security for the better part of a decade and regularly writes about the security industry as a contributor to Dark Reading.  View Full Bio

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Cisco Buys Sentryo

Cisco is adding the French company’s network visibility products to its IoT network lineup.

Cisco has announced its intention to purchase Sentryo, a French company focused on device visibility and security for industrial control system (ICS) networks. According to Cisco, the addition of Sentryo’s products and technologies will allow it to provide deeper visibility into Internet of Things (IoT) devices for security and performance purposes.

Liz Centoni, senior vice president and general manager of Cisco IoT, says that Cisco’s 65,000+ IoT customers are in different stages of deployment, but most share a need to understand precisely what is attached to their IoT network (or operational technology — OT — network, in the industrial control sphere), so that they can take the next step into proper segmentation for security.

“While we have many success stories, the big thing that’s a roadblock is security,” Centoni says. “We have the right tools in terms of segmentation in what we call the ‘non-carpeted space,’ but the biggest problem is visibility,” she explains. “In the enterprise we’ve solved a lot of that, but customers say they may not know 30% to 40% of the assets on the IoT.”

Part of the difficulty in seeing those assets, says Joe Malenfant, director of marketing for Cisco IoT, is the sheer variety in the ways that the devices talk to one another. “The reason IT can’t solve [the visibility problem] is that we don’t talk the protocols. There are more than 3,500 different, sometime proprietary protocols,” Malenfant says, and Sentryo understands those protocols so that customers can identify the device and protocol.

Sentryo’s products are focused on industrial control systems rather than the IoT of wearable technology and smart assistants. Centoni says that, over time, Cisco plans to integrate Sentryo’s products with Cisco DNA Center and Identity Services Engine (ISE) to allow more control and segmentation, along with greater integration of OT system control into traditional IT operations.

The importance of protecting IoT networks when they are more tightly integrated into the enterprise network was highlighted by a US-CERT Alert showing critical updates to products in Cisco’s IoT and enterprise network lines, updates intended to close down vulnerabilities that could allow attackers to gain entry to the network at the IoT endpoint and leverage that entry into an enterprise network attack.

Asked about a timeline for the integration of Sentryo products into Cisco, Centoni says it’s too early to set a precise schedule for bringing the systems together. According to Cisco, the acquisition is expected to close before the end of Cisco’s first-quarter fiscal year 2020 (October 26, 2019) pending all customary closing conditions and regulatory approvals in the US and France.

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Curtis Franklin Jr. is Senior Editor at Dark Reading. In this role he focuses on product and technology coverage for the publication. In addition he works on audio and video programming for Dark Reading and contributes to activities at Interop ITX, Black Hat, INsecurity, and … View Full Bio

Article source: https://www.darkreading.com/iot/cisco-buys-sentryo/d/d-id/1334905?_mc=rss_x_drr_edt_aud_dr_x_x-rss-simple

Inside the Criminal Businesses Built to Target Enterprises

Researchers witness an increase in buying and selling targeted hacking services, custom malware, and corporate network access on the Dark Web.

The Dark Web, long known as a hotbed for buying and selling stolen credit cards, fake passports, drugs, weapons, and other contraband, is a growing market for cybercriminals seeking to target organizations with custom malware, access networks, and disrupt operations.

Dr. Mike McGuire, senior lecturer in criminology at the University of Surrey, has written a series of reports detailing investigations into the darkest corners of the Web. The pool of research, sponsored by Bromium, is broadly titled “Into the Web of Profit.” Its latest installment, “Behind the Dark Net Black Mirror: Threats Against the Enterprise,” digs into business-focused activity.

The idea behind “Into the Web of Profit” was to research the myriad ways cybercrime is changing and the different ways cybercriminals make money on the Dark Web, which generates $1.5 trillion each year. McGuire admits he didn’t intend to focus on businesses when he started.

“It wasn’t initially the idea to look directly at the enterprise here,” he explains. “But as I started to dig into the data, I realized just how central the enterprise was to this whole process.”

McGuire’s report examines how “platform criminality” – a form of cybercrime resembling platform-based business models similar to Amazon’s and Uber’s – is informing a new wave of cybercrime targeting enterprise victims, with data as its top commodity. In the report, Bromium CEO Gregory Webb calls this infrastructure a “candy store” for those hoping to steal intellectual property, trade in corporate secrets, interfere with operations, and spy on their targets.

“What they’re after is increasingly less old-fashioned cybercrime,” McGuire says. “What they want is operational information, they want revenues as well … it’s almost like a second level of the market.” The enterprise is being mined in different ways, he notes. It’s all corporate data, but different forms of corporate data have different price tags when sold on the Dark Web.

Risky Business
Compared with 2016, researchers found a 20% rise in the number of Dark Web listings that could potentially harm the enterprise: more targeted malware-for-sale, enterprise-specific DDoS services, corporate information for sale, and brand-spoofing phishing tools.

Sixty percent of listings (drugs excluded) represent opportunities for direct, immediate harm to enterprises, such as network compromises, suspension of online services, and financial loss. Another 15% represent chances for indirect harm, including brand reputation damage. Malware (25%), distributed denial-of-service (20%), and remote acess Trojans (17%) are the most common network compromise services. At least 60% of vendors asked about network access offer access to more than 10 business networks.

The market for specialized tools and data used in targeted attacks is growing. Custom malware outsells off-the-shelf malware 2-to-1, McGuire reports, noting a higher demand for zero-day and polymorphic malware, as well as malware tailored to specific industries. He also points to a greater demand for attacks against specific employees: Sellers offer data on financial performance, security systems, internal product manuals, and other sensitive information.

A Gray Area
Contrary to popular belief, the Dark Web is “not just a den of criminal activity,” McGuire says, and it presents businesses with an opportunity to learn more about the threats they face. But some companies toe the legal line when it comes to interacting with Dark Web sellers and collecting information on their competitors, or sharing customer or employee blacklists.

Competitive intelligence, or when businesses try to figure out how their rivals operate, is easily translated to the Dark Web, he explains. Information on others’ security weaknesses can be used to undermine them in the market; evidence of counterfeit products can damage their authority. Forums can be used to spread rumors or share consumers’ opinions, he adds.

Undercover researchers posed as representatives for a midsize organization and contacted 20 Dark Web vendors to ask whether they could obtain specific “items of interest,” including data on product trials, employee lists, annual accounts, directors’ salaries, and exec travel plans.

When they requested Dark Web hacking services targeting companies in the FTSE 100 or Fortune 500, about 40% of their attempts received positive responses. Prices for services ranged from $150 to $10,000, depending on the company involved. Espionage services (access to the CEO, for example) were offered to researchers for fees ranging from $1,000 to $15,000. Some vendors were suspicious when researchers wouldn’t pay up; others refused to respond.

Still, “in a lot of cases they just came back and said they could get that information for us,” McGuire says.

Businesses also dabble in sharing blacklists of rogue websites, new malware threats, or problematic customers and employees. Exchanging these lists is “at the boundaries of legality,” says McGuire, who calls it “a gray line between intelligence and overly engaging in espionage.”

The so-called “greynet” is a term used to describe business activity that isn’t quite illegal but not quite legal, either. Engaging in such “semi-licit” activity could risk brand damage or attract attention from law enforcement. Organizations must tread carefully on this quasi-legal ground.

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Kelly Sheridan is the Staff Editor at Dark Reading, where she focuses on cybersecurity news and analysis. She is a business technology journalist who previously reported for InformationWeek, where she covered Microsoft, and Insurance Technology, where she covered financial … View Full Bio

Article source: https://www.darkreading.com/threat-intelligence/inside-the-criminal-businesses-built-to-target-enterprises-/d/d-id/1334898?_mc=rss_x_drr_edt_aud_dr_x_x-rss-simple

Cyber Talent Gap? Don’t Think Like Tinder!

If your company truly is a great place to work, make sure your help-wanted ads steer clear of these common job-listing cliches.

If you’ve ever bought a house or participated in online dating, you may be familiar with the creative ways people euphemistically stretch the truth, or how they’ll bore you to tears with dry lists of facts. It’s not just dating and real estate where this is a problem; most job listings are every bit as bad, and cybersecurity is no exception.

We all know that when you see a listing for a “cozy” apartment, that it will have roughly the same floor space as a coat-closet. And if you see a dating profile with a list of “must haves” as long as your arm, you’re likely dealing with someone who’s nightmarishly impossible to please.

Typically, employers seem oblivious to the message their choice of wording sends to would-be employees. For example:

  • Pay commensurate with experience = “We will low-ball you on salary.”
  • Must be detail oriented = “We’re probing for any excuse not to hire you.”
  • Self-starter = “You’ll get no direction on what you’re expected to do,”
  • Fast-paced environment = “You’ll be putting out fires, day and night.”
  • Growth opportunity = “Employees will be ground into paste until they quit.”
  • Passionate = “Bring a sleeping bag, because you’ll be living at work.”

It’s entirely possible these conditions are accurate, in which case your next hire should be someone who can help you address your less-than-perfect cybersecurity work environment. But if your company truly is a great place to work, it might behoove you to steer clear of these and other common job listing clichés.

To start, don’t be that company with a massive list of “must haves.” Get realistic about what skills are truly required to do the job, rather than using commonly accepted signifiers for those skills. A particular degree, industry certification, or a specific number of years of experience is less indicative of ability than, say, fluency with a particular software language or technology. It’s also important to make sure that your HR department understands the reasoning behind these specific criteria so that they don’t undermine your efforts.

Sending the Right Message
After far too many years of online dating, I finally got the idea that dull lists describing either my ideal match or myself were not attracting the people I wanted to meet. So, I decided to include more creative and descriptive material in my profile. Right away, the people who contacted me were more compatible, which told me I was headed in the right direction.

To test the theory further, I asked a friend to participate in my experiment. I suggested that he describe the life he’d like to share with his match, rather than making exhaustive lists of hobbies and interests.

His first draft was rather rough: It included three paragraphs describing all the high-quality, grass-fed beef in his freezer. This was not the best use of a first impression. But subsequent drafts described his life in a way that sounded fun and inviting. The impression his words created was as warm and enthusiastic as he is in real life. Unsurprisingly, he found a long-term match very shortly after posting that update.

Work Culture? “I Love My Job”
If you want to attract the most suitable candidates to apply for a cybersecurity job, craft a story that answers a few questions:

  • What will the right candidate love about this job?
  • What would a great day at work be like?
  • How can they make a difference within the company, or in the world at large?
  • How would working for your company make their life better?
  • What strengths will help them succeed in this job?

Make sure the photos you include in the help-wanted ad and on your website are reasonably flattering and diverse; if they feature people from only one demographic, anyone who isn’t in that demographic is likely to keep scrolling. Make sure your social media presence creates an attractive image too. And lastly, make sure you’re doing a good job of communicating clearly, and in a timely fashion. (Nobody likes being ghosted!)

Whether you’re trying to attract a potential homebuyer, date, or employee, the first and most important step is to make sure that the environment you’re trying to draw people into is attractive, interesting, and functional. Once you’ve gotten that far, then you can create an appealing description to entice people to inquire further.

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Lysa Myers began her tenure in malware research labs in the weeks before the Melissa virus outbreak in 1999. She has watched both the malware landscape and the security technologies used to prevent threats from growing and changing dramatically. Because keeping up with all … View Full Bio

Article source: https://www.darkreading.com/threat-intelligence/cyber-talent-gap-dont-think-like-tinder!/a/d-id/1334871?_mc=rss_x_drr_edt_aud_dr_x_x-rss-simple

6 Security Scams Set to Sweep This Summer

Experts share the cybersecurity threats to watch for and advice to stay protected.PreviousNext

(Image: hd3dsh - stock.adobe.com)

(Image: hd3dsh – stock.adobe.com)

We look forward to summer’s warm weather, travel plans, and maybe some added relaxation. Cybercriminals look forward to summer’s new opportunities for scams and targeted attacks.

Seasonal threats aren’t new; for example, the holiday season typically brings phishing attacks in the form of fake package deliveries and fraudulent gift cards. Similarly, summertime, which drives an increase in flights and hotel stays, should put people on high alert for a wave of related scams.

Travelers taking time away from work and home are often too busy planning their vacations to protect their devices and data, but there’s no downtime for cyberattackers. Hackers are getting more advanced in their techniques to capture information, and they’re taking a closer look at the travel industry, targeting hotel chains and airlines with data breaches to capture loyalty program numbers, payment card data, and other personally identifiable information (PII).

But travel scams aren’t the only security threats to worry about this summer. Here, security experts weigh in on threats that should be top-of-mind for consumers and employees alike. Any threats you’re worried about that aren’t listed here? Feel free to share them in the Comments, below.

 

Kelly Sheridan is the Staff Editor at Dark Reading, where she focuses on cybersecurity news and analysis. She is a business technology journalist who previously reported for InformationWeek, where she covered Microsoft, and Insurance Technology, where she covered financial … View Full BioPreviousNext

Article source: https://www.darkreading.com/threat-intelligence/6-security-scams-set-to-sweep-this-summer/d/d-id/1334887?_mc=rss_x_drr_edt_aud_dr_x_x-rss-simple

ATM skimming crook behind bars after draining accounts for 2 years

A Boston federal court on Monday sentenced a Romanian national to 65 months in federal prison for a multi-state ATM card-skimming scheme through which he and his gang drained $868,706 from 531 people’s bank accounts.

The Justice Department said that Bogdan Viorel Rusu, 38, was also sentenced to five years of supervised release and ordered to pay restitution and forfeiture of $440,130.

Rusu pleaded guilty in September 2018 to one count each of conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. He had been arrested November 2016 and has been in custody since then.

ID’ed through his asylum application photos

According to court documents, video surveillance cameras picked up a man installing a pinhole camera and a skimmer device on a bank ATM machine located in Chicopee, Massachusetts in August 2014.

Thomas Roldan – a special agent with Homeland Security’s Immigration and Customs Enforcement (ICE) within the US Department of Homeland Security (DHS) – said in an affidavit that he identified Rusu based on photos that Rusu submitted in support of an asylum application to US Citizenship and Immigration, as well as Roldan’s own physical surveillance of the suspect.

The skimming devices were plugged in at around 16:26, and then the video cameras picked up footage of somebody else picking up the pinhole camera and skimmer a few hours later, at 20:01. Bank records showed that 85 customers used the ATM during that time, and 12 of them later reported losses totaling $8,399.43.

Next day, same thing, but this time, Rusu plugged in the skimming devices and picked them back up himself after a few hours. That time, customers lost $9,823.50.

It went on like that for almost two years: between August 2014 until his arrest in November 2016, Rusu and his skimming buddies skipped from bank to bank, from Massachusetts on down to New York and on to New Jersey, grabbing people’s account details through ATMs and then using those details to steal money from their bank accounts.

Their take: they lifted $364,419 from Massachusetts banks, $75,715 from New York banks, and another $428,581 from New Jersey banks.

The devices

According to the DOJ, Rusu and/or his co-conspirators installed electronic skimming devices on the ATMs to surreptitiously record customers’ bank account information on the banks’ card-readers at the vestibule door, the ATM machine, or both.

They also installed other devices – generally, either pinhole cameras or keypad overlays – to intercept the PINs people typed in to access their bank accounts.

Then, the skimming crooks came back, removed their devices, and went on to transfer the details onto counterfeit payment cards. From there, they’d visit other ATMs to use counterfeit cards – before the bank or the customers became aware of the ripoff – in order to withdraw money.

They used the risky type of skimmer

There are multiple types of card skimmers, and Rusu and his gang were apparently using the kind that sets crooks up to get caught, since they have to physically install the devices and then come back to the scene of the crime to retrieve them and their valuable stolen data.

Say hello to the nice people scrutinizing video camera footage, guys!

There are other types that enable crooks to get the stolen information via text message or from Bluetooth. From a thief’s point of view, Bluetooth has limitations, notably that the wireless technology has limited range, so any thief who uses a Bluetooth-enabled skimmer needs to hang around nearby.

It also means that anybody else using Bluetooth in the vicinity could see the payment card details and perhaps intercept them, thereby beating the crooks to the punch.

Speaking of which, no, you can’t really sniff out gas station card skimmers using Bluetooth, though there was a Facebook half-hoax (mostly a bunch of half-truths) that promised you could. That one made the rounds back in February.

Software skimmers

We’ve also seen incidents of credit card skimming code planted on websites: in April, skimming code showed up on the ecommerce site for the Atlanta Hawks basketball team.

The obfuscated code turned out to be keylogging software.

There are more varieties still of skimming tools. Security journalist Brian Krebs has cataloged all sorts of them installed at all manner of locations, from self-checkout lanes at some Walmart locations to gas stations to Safeway grocery stores to yes, bank ATM machines.

What to do?

You can wiggle the card point of entry on the reader device to see if it’s a fake that’s been installed over the authentic slot – is it a bit too big? Color or texture’s not quite a match? However, that won’t help with keylogging software like that found on the Atlanta Hawks’ site.

So make sure that you also grab and wiggle your bank account and credit card statements to see if any phishy transactions fall out. If they do, notify your card-issuing institution as soon as possible.

Article source: http://feedproxy.google.com/~r/nakedsecurity/~3/ux-9yjQV-4w/

Gang charged with $19 million iPhone scam

A gang in New York allegedly spent the past seven years using the ripped-off identities of cellphone subscribers to steal $19 million worth of iPhones, according to a now-unsealed complaint originally filed by federal prosecutors at the end of April 2019.

The six defendants have been charged with felony counts of mail fraud, conspiracy, and aggravated identity theft.

New York City Police Department (NYPD) detective Armando Coutinh, from the NYPD-FBI Joint Major Theft Task Force, said in the complaint that the ring of alleged fraudsters kept it up from at least 2012 to the present, selling new devices – mostly iPhones – through fencing operations.

A simple plan

Here’s how it worked, Coutinh explained: the fraud ring members would break into the accounts of existing cellphone subscribers and add their names as “authorized users.” Later on, they used stolen personally identifying information (PII) instead of their own names to cook up new, fraudulent accounts.

Then, they’d “upgrade” their phones, paying only a pittance, or nothing at all, in-store and putting the rest of the purchase price on pay-by-month plans on the identity theft victims’ dime.

The victims included both the service providers, which typically picked up the cost of the stolen phones, and the customers whose identities were stolen and/or whose accounts were broken into. The complaint didn’t specify which providers were targeted, nor how many people were defrauded.

Using the stolen PII, the fraudsters created fake ID cards and fraudulent credit and debit cards. Using those cards, they’d pose as legitimate subscribers and fan out across the country to waltz into phone stores for their “upgrades.”

A multi-layer fraud cake

Like most well-organized fraud rings, this one had multiple roles for its employees, each of which did their part in the multi-step process of stealing from people. The organizers at the top of the hierarchy called themselves “Top Dogs.” Their duties were to organize and fund the trips and to take care of selling the phones. Being top dogs, they, of course, made the top cut of illicit profits.

Next down were the forgers, who worked with stolen PII and crafted the ID/bank/credit cards. On the bottom rung were the gang members who got sent out on the trips and the drivers who put the stolen PII to use in getting their hands on the phones. That role also included shipping the phones back to the top dogs in NYC.

An insider ratted them out

The ring got ratted out by somebody who was recruited to go on an iPhone-ripoff run in 2013. Identified as “CW-1”, he told investigators that he went on about 18 out-of-state runs, and he was paid $100 for each iPhone he brought in.

CW-1 said he was accompanied by a driver on the trips. Before he left town, his bosses would give him a fake ID and bank card. The bank card was to back up his claims if he got questioned about the fake ID card, CW-1 said.

Like any business traveler, he’d get reimbursed for his travel costs, which included overnight shipping of the iPhones.

That’s a heck of a lot of packages going to NY

Investigators were also helped out by one of the shipping companies – identified as Shipper-1 in court documents – the gang used. In 2014, one of the company’s employees picked up on two notable patterns in all these deliveries: First, in spite of the frequency of the shipping, the package deliveries were always paid for with cash, check or credit card, indicating that the shipper likely didn’t hold an account with the shipping company.

They were always sent to the shipping company’s stores or desks, never to home or business addresses, and those destination stores were always in the Bronx or in Mount Vernon, New York.

The second pattern was pretty much the same, except that these were outgoing packages: they always came from the shipping company’s Mt. Vernon or Bronx stores, and they always got delivered to the shipping company’s stores in other states, never to home or business addresses.

Somewhere between 2014 and July 2017, (presumably in partnership with law enforcement), the shipping company cracked open 39 of the suspicious packages. They found about 250 mobile phones inside of them, as well as dozens of fraudulent credit cards, driver’s licenses, and passport cards.

For example, 16 packages addressed to one of the defendants, Gary Bierd, held a total of about 178 electronic devices. Another five packages addressed to defendant Wilkin de Los Santos had about 55.

All of the devices were listed by the phone service providers as having been obtained through fraudulent activity. Ditto for the phones found in packages searched by law enforcement after they got a series of search warrants.

Meanwhile, two alleged gang members were arrested on unrelated charges. When investigators searched their phones and laptops, they found evidence linking them to the ring carrying out the iPhone scam, including a slew of stolen PII and emails containing cellphone account details – accounts that were used to acquire devices.

Shiny new phones, fat prison sentences

This certainly isn’t the first time that people have gotten the idea to use hacked cellphone accounts to “upgrade” to nice, shiny new iPhones and other pricey gadgets, walking into stores to pay the small upgrade fees, sticking victims with the rest of the costs, selling the loot for full purchase price and then pocketing the profit.

Last August, the Feds indicted a dozen people for allegedly doing just that, with a similar modus operandi to the NY gang, but this gang changed tactics over time in order to evade the law.

For example, they allegedly used Bitcoin to buy stolen PII on the dark web. They also allegedly phished account details out of victims with emails that were laced with rigged links.

Sometimes, the gang members are reported to have bought phones with their real names and fake Social Security numbers that appeared to (and sometimes did) match the spelling of their real names. The taxpayer IDs actually belonged to other people, and those people had their credit damaged as a result of the fraud.

These crimes carry hefty penalties: As of August 2018, those dozen suspects were facing a maximum penalty of 20 years for conspiracy to commit wire fraud and two years for aggravated identity theft. Maximum sentences are rarely handed out, though.

The NY gang members listed in this more recent complaint have all pleaded not guilty. Each is free on $100,000 bond, pending trial.

Article source: http://feedproxy.google.com/~r/nakedsecurity/~3/PBh10k2_3Hg/

YouTube bans kids’ live-streaming without an adult present

In yet another step to scrape pedophiles off the bottom of its shoe, YouTube announced on Monday that it’s banning youngsters from live-streaming without adult supervision and that it’s limiting recommendations of videos that depict “minors in risky situations.”

In February, YouTube disabled comments on millions of videos featuring minors, in response to reports that creeps were leaving disgustingly sexual comments on videos featuring kids doing things like yoga or gymnastics, or playing games such as Twister.

At the same time, YouTube also implemented a classifier – a machine learning tool that helps to identify specific types of content – that it says helped it remove a significant number of violative comments.

It didn’t catch them all. On Monday, the New York Times published a writeup of research showing that YouTube’s automated recommendation system (which suggests what to watch next and which drives most of YouTube’s billions of views) was, months after the move to disable comments on kids’ videos, suggesting videos of partially clothed kids (think two-piece swimsuits) to users who watched “other videos of prepubescent, partially clothed children.”

Three researchers at Harvard’s Berkman Klein Center for Internet and Society – Jonas Kaiser, Yasodara Córdova and Adrian Rauchfleisch – stumbled onto the videos while looking into YouTube’s impact in Brazil, the Times reports.

They set a server up to open videos, then followed YouTube’s top recommendations for what to watch next. What they found was that you don’t need to look for videos of children to end up watching them: rather, you get sucked into a “black hole” where the platform offers a progression of recommendations that spirals in until you’re watching videos of young children. From the Times:

So a user who watches erotic videos might be recommended videos of women who become conspicuously younger, and then women who pose provocatively in children’s clothes. Eventually, some users might be presented with videos of girls as young as 5 or 6 wearing bathing suits, or getting dressed or doing a split.

YouTube won’t stop recommending kid videos

When alerted to the clusters of videos created by YouTube’s recommendation system, the platform took many down. But it hasn’t changed the one thing that the researchers say would fix this: it hasn’t turned off its recommendation system on videos of children, even though the platform automatically identifies the videos.

YouTube says that doing so would hurt the video creators who rely on those clicks. As it is, creators have felt like they’ve been punished for doing nothing wrong multiple times. The first was after the so-called Adpocalypse 1.0, when major advertisers yanked ads appearing on YouTube videos that espoused extremism and hate speech. YouTube responded by abruptly rolling out changes to its automated processes for placing ads across the platform.

The other move that caused creators to complain came after Adpocalypse 2.0 in February, when advertisers again pulled their ads in response to pedophiles filling up the comments sections, prompting YouTube to disable comments.

Though it’s shying away from ticking off content creators yet again, YouTube did say that it would limit recommendations on videos that it thinks put children at risk.

It said that it started reducing recommendations of “borderline content” earlier this year. Borderline content itself isn’t violative, YouTube said, but it’s aware that it could put minors at risk of online or offline exploitation. The platform says it’s already applied the changes to tens of millions of videos.

No more live-streaming without an adult nearby

In Monday’s announcement, YouTube said that it had updated its live-streaming policy to disallow “younger minors” from live-streaming unless there’s clearly an adult nearby. Channels that don’t comply could lose their ability to live stream.

The platform also launched new classifiers to find and remove the now-violative content.

From the blog post:

Responsibility is our number one priority, and chief among our areas of focus is protecting minors and families.

With this update, we’ll be able to better identify videos that may put minors at risk and apply our protections […] across even more videos.

Article source: http://feedproxy.google.com/~r/nakedsecurity/~3/O-HMY08hhIg/