STE WILLIAMS

Former ICE top lawyer raided US govt database to steal aliens’ identities

Yet again an insider has been caught misusing a workplace computer system to conduct identity theft and fraud.

Unusually, the perp was, at the time, serving as the head lawyer for the US government’s Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor (OPLA) at the time. And rather than turning to the dark web for people’s personal information, he instead plundered ICE’s database of non-Americans.

Raphael A. Sanchez, 44, former chief counsel of the OPLA, which provides legal services to ICE, pleaded guilty today to wire fraud and aggravated identity theft for using information stolen from numerous non-citizens for personal enrichment.

What an ICE-hole

“Raphael Sanchez betrayed that solemn responsibility and abused his official position to prey upon aliens for his own personal gain,” said Acting Assistant Attorney General John P. Cronan in a statement, adding that we should not let one bad actor mar the work of ICE – which generally involves rounding up undocumented aliens and booting them from the US.

In his guilty plea, Sanchez, who oversaw deportation proceedings in Alaska, Idaho, Oregon and Washington, acknowledged that, from October 2013 through October 2017, he defrauded seven aliens who were in various stages of court proceedings to be ejected from or excluded from the country.

Sanchez admitted misusing ICE’s database and paper immigration A-files to forge identification documents on his work computer, such as social security cards and Washington State driver’s licenses. And with these fake documents, he opened credit card accounts and bank accounts in victims’ names.

Loans ranger

“For his own personal gain, Sanchez used personally identifiable information of victim aliens to open lines of credit and personal loans in their names, manipulated their credit bureau files, transferred funds and purchased goods using credit cards issued in their names,” explained the statement of facts provided to the US courts.

Sanchez used credit monitoring services to check victims’ credit scores, and wrote to credit bureaus to change his marks’ home addresses and challenge account closures. He even claimed three aliens as dependents on his tax returns from 2014 through 2016, presumably for tax breaks.

Nearly two-hundred large pocketed

Sanchez’s scheme involved making charges or drawing payments in the names of his victims. He set up a corporation called “Royal Weddings,” an Amazon Marketplace account, and trade names like “Cool and Quirky Classic Cars” to funnel funds from his victims’ accounts to his own pockets.

He also used PayPal and mobile payment terminals from Amazon, Coin, Square, and Venmo to process fraudulent purchases.

All told, the losses incurred in the names of victims at various financial institutions amounted to more than $190,000.

The statement of facts points out that the victims were particularly susceptible to Sanchez’s criminal conduct because they were in the process of being deported or otherwise excluded from the country by ICE.

In addition to information related to the seven individuals victimized, ICE investigators found personal data for another 20 individuals, in the form of Legal Permanent Resident cards and other immigration documents, at Sanchez’s home.

Sanchez is due to be sentenced on May 11, 2018, in a Washington state court. His agreement to plead guilty, drawn up by prosecutors to avoid a lengthy trial, recommends a four-year sentence. ®

Sponsored:
Minds Mastering Machines – Call for papers now open

Article source: http://go.theregister.com/feed/www.theregister.co.uk/2018/02/15/former_ice_chief_counsel_identity_theft/

Former ICE top lawyer raided US govt database to steal aliens’ identities

Yet again an insider has been caught misusing a workplace computer system to conduct identity theft and fraud.

Unusually, the perp was, at the time, serving as the head lawyer for the US government’s Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor (OPLA) at the time. And rather than turning to the dark web for people’s personal information, he instead plundered ICE’s database of non-Americans.

Raphael A. Sanchez, 44, former chief counsel of the OPLA, which provides legal services to ICE, pleaded guilty today to wire fraud and aggravated identity theft for using information stolen from numerous non-citizens for personal enrichment.

What an ICE-hole

“Raphael Sanchez betrayed that solemn responsibility and abused his official position to prey upon aliens for his own personal gain,” said Acting Assistant Attorney General John P. Cronan in a statement, adding that we should not let one bad actor mar the work of ICE – which generally involves rounding up undocumented aliens and booting them from the US.

In his guilty plea, Sanchez, who oversaw deportation proceedings in Alaska, Idaho, Oregon and Washington, acknowledged that, from October 2013 through October 2017, he defrauded seven aliens who were in various stages of court proceedings to be ejected from or excluded from the country.

Sanchez admitted misusing ICE’s database and paper immigration A-files to forge identification documents on his work computer, such as social security cards and Washington State driver’s licenses. And with these fake documents, he opened credit card accounts and bank accounts in victims’ names.

Loans ranger

“For his own personal gain, Sanchez used personally identifiable information of victim aliens to open lines of credit and personal loans in their names, manipulated their credit bureau files, transferred funds and purchased goods using credit cards issued in their names,” explained the statement of facts provided to the US courts.

Sanchez used credit monitoring services to check victims’ credit scores, and wrote to credit bureaus to change his marks’ home addresses and challenge account closures. He even claimed three aliens as dependents on his tax returns from 2014 through 2016, presumably for tax breaks.

Nearly two-hundred large pocketed

Sanchez’s scheme involved making charges or drawing payments in the names of his victims. He set up a corporation called “Royal Weddings,” an Amazon Marketplace account, and trade names like “Cool and Quirky Classic Cars” to funnel funds from his victims’ accounts to his own pockets.

He also used PayPal and mobile payment terminals from Amazon, Coin, Square, and Venmo to process fraudulent purchases.

All told, the losses incurred in the names of victims at various financial institutions amounted to more than $190,000.

The statement of facts points out that the victims were particularly susceptible to Sanchez’s criminal conduct because they were in the process of being deported or otherwise excluded from the country by ICE.

In addition to information related to the seven individuals victimized, ICE investigators found personal data for another 20 individuals, in the form of Legal Permanent Resident cards and other immigration documents, at Sanchez’s home.

Sanchez is due to be sentenced on May 11, 2018, in a Washington state court. His agreement to plead guilty, drawn up by prosecutors to avoid a lengthy trial, recommends a four-year sentence. ®

Sponsored:
Minds Mastering Machines – Call for papers now open

Article source: http://go.theregister.com/feed/www.theregister.co.uk/2018/02/15/former_ice_chief_counsel_identity_theft/

Former ICE top lawyer raided US govt database to steal aliens’ identities

Yet again an insider has been caught misusing a workplace computer system to conduct identity theft and fraud.

Unusually, the perp was, at the time, serving as the head lawyer for the US government’s Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor (OPLA) at the time. And rather than turning to the dark web for people’s personal information, he instead plundered ICE’s database of non-Americans.

Raphael A. Sanchez, 44, former chief counsel of the OPLA, which provides legal services to ICE, pleaded guilty today to wire fraud and aggravated identity theft for using information stolen from numerous non-citizens for personal enrichment.

What an ICE-hole

“Raphael Sanchez betrayed that solemn responsibility and abused his official position to prey upon aliens for his own personal gain,” said Acting Assistant Attorney General John P. Cronan in a statement, adding that we should not let one bad actor mar the work of ICE – which generally involves rounding up undocumented aliens and booting them from the US.

In his guilty plea, Sanchez, who oversaw deportation proceedings in Alaska, Idaho, Oregon and Washington, acknowledged that, from October 2013 through October 2017, he defrauded seven aliens who were in various stages of court proceedings to be ejected from or excluded from the country.

Sanchez admitted misusing ICE’s database and paper immigration A-files to forge identification documents on his work computer, such as social security cards and Washington State driver’s licenses. And with these fake documents, he opened credit card accounts and bank accounts in victims’ names.

Loans ranger

“For his own personal gain, Sanchez used personally identifiable information of victim aliens to open lines of credit and personal loans in their names, manipulated their credit bureau files, transferred funds and purchased goods using credit cards issued in their names,” explained the statement of facts provided to the US courts.

Sanchez used credit monitoring services to check victims’ credit scores, and wrote to credit bureaus to change his marks’ home addresses and challenge account closures. He even claimed three aliens as dependents on his tax returns from 2014 through 2016, presumably for tax breaks.

Nearly two-hundred large pocketed

Sanchez’s scheme involved making charges or drawing payments in the names of his victims. He set up a corporation called “Royal Weddings,” an Amazon Marketplace account, and trade names like “Cool and Quirky Classic Cars” to funnel funds from his victims’ accounts to his own pockets.

He also used PayPal and mobile payment terminals from Amazon, Coin, Square, and Venmo to process fraudulent purchases.

All told, the losses incurred in the names of victims at various financial institutions amounted to more than $190,000.

The statement of facts points out that the victims were particularly susceptible to Sanchez’s criminal conduct because they were in the process of being deported or otherwise excluded from the country by ICE.

In addition to information related to the seven individuals victimized, ICE investigators found personal data for another 20 individuals, in the form of Legal Permanent Resident cards and other immigration documents, at Sanchez’s home.

Sanchez is due to be sentenced on May 11, 2018, in a Washington state court. His agreement to plead guilty, drawn up by prosecutors to avoid a lengthy trial, recommends a four-year sentence. ®

Sponsored:
Minds Mastering Machines – Call for papers now open

Article source: http://go.theregister.com/feed/www.theregister.co.uk/2018/02/15/former_ice_chief_counsel_identity_theft/

Techno-senator tells Tinder to hook up its app with better security

Cyber-senator Ron Wyden (D-OR) is asking execs from the parent company of Tinder to please use protection when spreading the love around.

Wyden, a ranking member on the US Senate committee on finance (and a member of four other committees), said in a letter addressed to Match Group CEO Greg Blatt that he wants Tinder to use secure connections for all traffic the app transmits, including photos and actions.

This after a January report from researchers at security firm Checkmarx found much of Tinder’s app traffic was sent over a mix of encrypted HTTPS and unsecured HTTP connections that would allow an attacker on, say, the same Wi-Fi network to view things like profile views and swipe decisions.

“These security oversights leave Americans vulnerable to snooping in their most intimate activities,” Wyden tsk-tsk-tsked [PDF] on Wednesday.

“Tinder can easily enhance privacy to its users by encrypting all data transmitted between its app and servers, and padding sensitive transactions to thwart snooping.”

Wyden asked that Tinder adopt secure connections when transmitting all data in order to keep people using public Wi-Fi networks from having their privacy compromised. Actions, such as swiping left or right, should not be discerned from packet sizes, for example. The application emits over HTTPS a 278-byte block for a left swipe to reject a lonely heart, 374 bytes for a right swipe to approve of a potential lover, and 581 bytes to really like someone. Combining this with profile data over HTTP, it is possible to work out who someone fancies and wants to shag by snooping on their network traffic.

Getting all up in Tinder’s swipes must be a welcome departure for Wyden from the other maddening tech cases he has got mixed up with. The Oregon senator is also currently in the thick of the FBI’s debate over backdoors in phones and has been critical of parts of the government’s surveillance policies.

By contrast, with Tinder all Wyden really wants is for the site to use HTTPS connections, with suitably padded packets, when transmitting data between phones and servers.

“Tinder can easily enhance privacy to its users by encrypting all data transmitted between its app and servers, and padding sensitive transactions to thwart snooping,” the congresscritter wrote.

“These common-sense security fixes would provide Tinder users with the level of security and privacy they expect from a service that holds some of their most private information.”

Tinder did not respond to a request for comment on the letter. ®

Sponsored:
Minds Mastering Machines – Call for papers now open

Article source: http://go.theregister.com/feed/www.theregister.co.uk/2018/02/16/wyden_tinder/

Techno-senator tells Tinder to hook up its app with better security

Cyber-senator Ron Wyden (D-OR) is asking execs from the parent company of Tinder to please use protection when spreading the love around.

Wyden, a ranking member on the US Senate committee on finance (and a member of four other committees), said in a letter addressed to Match Group CEO Greg Blatt that he wants Tinder to use secure connections for all traffic the app transmits, including photos and actions.

This after a January report from researchers at security firm Checkmarx found much of Tinder’s app traffic was sent over a mix of encrypted HTTPS and unsecured HTTP connections that would allow an attacker on, say, the same Wi-Fi network to view things like profile views and swipe decisions.

“These security oversights leave Americans vulnerable to snooping in their most intimate activities,” Wyden tsk-tsk-tsked [PDF] on Wednesday.

“Tinder can easily enhance privacy to its users by encrypting all data transmitted between its app and servers, and padding sensitive transactions to thwart snooping.”

Wyden asked that Tinder adopt secure connections when transmitting all data in order to keep people using public Wi-Fi networks from having their privacy compromised. Actions, such as swiping left or right, should not be discerned from packet sizes, for example. The application emits over HTTPS a 278-byte block for a left swipe to reject a lonely heart, 374 bytes for a right swipe to approve of a potential lover, and 581 bytes to really like someone. Combining this with profile data over HTTP, it is possible to work out who someone fancies and wants to shag by snooping on their network traffic.

Getting all up in Tinder’s swipes must be a welcome departure for Wyden from the other maddening tech cases he has got mixed up with. The Oregon senator is also currently in the thick of the FBI’s debate over backdoors in phones and has been critical of parts of the government’s surveillance policies.

By contrast, with Tinder all Wyden really wants is for the site to use HTTPS connections, with suitably padded packets, when transmitting data between phones and servers.

“Tinder can easily enhance privacy to its users by encrypting all data transmitted between its app and servers, and padding sensitive transactions to thwart snooping,” the congresscritter wrote.

“These common-sense security fixes would provide Tinder users with the level of security and privacy they expect from a service that holds some of their most private information.”

Tinder did not respond to a request for comment on the letter. ®

Sponsored:
Minds Mastering Machines – Call for papers now open

Article source: http://go.theregister.com/feed/www.theregister.co.uk/2018/02/16/wyden_tinder/

Techno-senator tells Tinder to hook up its app with better security

Cyber-senator Ron Wyden (D-OR) is asking execs from the parent company of Tinder to please use protection when spreading the love around.

Wyden, a ranking member on the US Senate committee on finance (and a member of four other committees), said in a letter addressed to Match Group CEO Greg Blatt that he wants Tinder to use secure connections for all traffic the app transmits, including photos and actions.

This after a January report from researchers at security firm Checkmarx found much of Tinder’s app traffic was sent over a mix of encrypted HTTPS and unsecured HTTP connections that would allow an attacker on, say, the same Wi-Fi network to view things like profile views and swipe decisions.

“These security oversights leave Americans vulnerable to snooping in their most intimate activities,” Wyden tsk-tsk-tsked [PDF] on Wednesday.

“Tinder can easily enhance privacy to its users by encrypting all data transmitted between its app and servers, and padding sensitive transactions to thwart snooping.”

Wyden asked that Tinder adopt secure connections when transmitting all data in order to keep people using public Wi-Fi networks from having their privacy compromised. Actions, such as swiping left or right, should not be discerned from packet sizes, for example. The application emits over HTTPS a 278-byte block for a left swipe to reject a lonely heart, 374 bytes for a right swipe to approve of a potential lover, and 581 bytes to really like someone. Combining this with profile data over HTTP, it is possible to work out who someone fancies and wants to shag by snooping on their network traffic.

Getting all up in Tinder’s swipes must be a welcome departure for Wyden from the other maddening tech cases he has got mixed up with. The Oregon senator is also currently in the thick of the FBI’s debate over backdoors in phones and has been critical of parts of the government’s surveillance policies.

By contrast, with Tinder all Wyden really wants is for the site to use HTTPS connections, with suitably padded packets, when transmitting data between phones and servers.

“Tinder can easily enhance privacy to its users by encrypting all data transmitted between its app and servers, and padding sensitive transactions to thwart snooping,” the congresscritter wrote.

“These common-sense security fixes would provide Tinder users with the level of security and privacy they expect from a service that holds some of their most private information.”

Tinder did not respond to a request for comment on the letter. ®

Sponsored:
Minds Mastering Machines – Call for papers now open

Article source: http://go.theregister.com/feed/www.theregister.co.uk/2018/02/16/wyden_tinder/

North Korea-Linked Cyberattacks Spread Out of Control: Report

New details on old cyberattacks originating from North Korea indicate several forms of malware unintentionally spread wider than authors intended.

New research points to the broader range and related collateral damage caused by North Korea-linked cyberattacks that spread out of control. Researchers believe two of these threats likely originated from North Korea; one of them was likely an external group attacking North Korea.

Analysts at AlienVault published details on multiple attacks after collecting evidence from the millions of malicious files it scans each day. All of these attacks are separate but share commonalities, including a link to the Democratic People’s Republic of Korea (DPRK), and causing more harm than was likely intended.

“These are all quite different attacks,” explains Chris Doman, AlienVault security researcher and threat engineer. “They’re all part of a broader trend of accidental damage from North Korea.”

In a blog post on the research, Doman digs into the details of all the attacks, explaining where and when they were discovered, their relation to the DPRK, and how they spread outside the author’s control.

Rivts Virus

Rivts is a malware family created in 2009 and still regularly seen by AlienVault, Doman explains, noting that the new files seen today are not the result of new developments from the author but of new files being infected with the original malware.

This is a file-infecting worm that spreads across USB drives and hard drives, and attaches itself to files to continue moving, he says, adding that it was first detected in January 2011 on the Voice of Korea, the DPRK’s international broadcasting service. Doman hypothesizes that Rivts leaked from this site and moved around DPRK systems for two years before escaping from the Voice of Korea.

Doman calls Rivts a “fairly boring” virus but notes an interesting detail: it initially checks for system files normally found on Windows XP but looks for two pieces of unusual software in the Windows System folder. Both are pieces of DPRK software built by the Korea Computer Center.

“It was interesting to find a piece of malware that looked for North Korean software,” Doman points out. “We thought at first it was something attacking North Korean systems.”

It’s more likely Rivts was a prototype or learning project, as indicated by the word “test” in multiple places, he notes, observing that the virus also doesn’t have a backdoor, as many attacks from North Korea do. While Rivts “doesn’t rank highly” on the threat scale, Doman says, it serves as a reminder that once a worm is released, it continues to spread for a long time.

JML Virus

It’s possible Rivts is a new version of an early file-infector called the JML virus, another homemade attack from North Korea, according to Doman. JML, which started on Visual C++5.0 and MASM 6.0, was reportedly created in 1997 as part of a student’s university project and later became a North Korean military standard. Mutations of the virus have spread outside the DPRK ever since.

“It’s not interesting in terms of damage … it’s interesting in terms of how far it could go,” says Doman of JML. “I think what happened is it was probably an accident, copied over from another system in North Korea.”

He links JML and Rivts with “low confidence.” Both originated in North Korea, include the word “test,” and built with Visual Studio C++ 5.0, a compiler rarely seen today. However, he says technical details make it impossible to positively determine a sample of the JML virus.

Faedevour Worm

In January 2015 an independent researcher discovered the Korean Central News Agency (KCNA) was distributing a form of malware called Faedevour. Unlike Rivts and the Voice of Korea site, researchers at Kaspersky report this was an intentional compromise by an outside attacker.

Analysis by Kaspersky indicates the DarkHotel group is responsible. Faedevour, like Rivts, is a worm and contains references to DPRK software it seeks on systems, explains Doman. It copies itself across to infect network shares and USB disks. While there is a possibility both were created by DarkHotel, Doman says this “does not seem to be the most likely explanation.”

Doman says Faedevour accidentally spread in a supply chain compromise in April 2017. IBM and Lenovo had both sent storage server customers USB sticks containing installation software. Later on, he says, they learned the USB sticks had been infected with the Faedevour worm. Specifically, it was infected with the same exact malware file spotted on the KCNA website.

According to Doman, it’s more likely this was an accidental infection than an intentional attack by DarkHotel, which would not likely use malware that had been created, and reported on, years earlier.

WannaCry and the Brambul Malware

Doman notes WannaCry, the attack that was created by Lazarus Group and spread via SMB file-shares, shares some of the same code base as the Brambul malware variant also released by Lazarus Group over the years. He says earlier forms of WannaCry do the same brute-forcing as Brambul and, to an extent, the massive attack could be described as a variant of Brambul.

“There are so many Brambul worms bouncing around the Internet,” says Doman, that WannaCry is another instance in which the attacker lost control. “I would be surprised if the guys who wrote WannaCry expected to cause this much damage around the world. They created this thing that didn’t make much money but caused a lot of damage … if I was going to try and make a lot of money, I probably wouldn’t draw too much attention to myself.”

Related Content:

 

 

 

Black Hat Asia returns to Singapore with hands-on technical Trainings, cutting-edge Briefings, Arsenal open-source tool demonstrations, top-tier solutions and service providers in the Business Hall. Click for information on the conference and to register.

Kelly Sheridan is Associate Editor at Dark Reading. She started her career in business tech journalism at Insurance Technology and most recently reported for InformationWeek, where she covered Microsoft and business IT. Sheridan earned her BA at Villanova University. View Full Bio

Article source: https://www.darkreading.com/threat-intelligence/north-korea-linked-cyberattacks-spread-out-of-control-report/d/d-id/1331075?_mc=rss_x_drr_edt_aud_dr_x_x-rss-simple

North Korea-Linked Cyberattacks Spread Out of Control: Report

New details on old cyberattacks originating from North Korea indicate several forms of malware unintentionally spread wider than authors intended.

New research points to the broader range and related collateral damage caused by North Korea-linked cyberattacks that spread out of control. Researchers believe two of these threats likely originated from North Korea; one of them was likely an external group attacking North Korea.

Analysts at AlienVault published details on multiple attacks after collecting evidence from the millions of malicious files it scans each day. All of these attacks are separate but share commonalities, including a link to the Democratic People’s Republic of Korea (DPRK), and causing more harm than was likely intended.

“These are all quite different attacks,” explains Chris Doman, AlienVault security researcher and threat engineer. “They’re all part of a broader trend of accidental damage from North Korea.”

In a blog post on the research, Doman digs into the details of all the attacks, explaining where and when they were discovered, their relation to the DPRK, and how they spread outside the author’s control.

Rivts Virus

Rivts is a malware family created in 2009 and still regularly seen by AlienVault, Doman explains, noting that the new files seen today are not the result of new developments from the author but of new files being infected with the original malware.

This is a file-infecting worm that spreads across USB drives and hard drives, and attaches itself to files to continue moving, he says, adding that it was first detected in January 2011 on the Voice of Korea, the DPRK’s international broadcasting service. Doman hypothesizes that Rivts leaked from this site and moved around DPRK systems for two years before escaping from the Voice of Korea.

Doman calls Rivts a “fairly boring” virus but notes an interesting detail: it initially checks for system files normally found on Windows XP but looks for two pieces of unusual software in the Windows System folder. Both are pieces of DPRK software built by the Korea Computer Center.

“It was interesting to find a piece of malware that looked for North Korean software,” Doman points out. “We thought at first it was something attacking North Korean systems.”

It’s more likely Rivts was a prototype or learning project, as indicated by the word “test” in multiple places, he notes, observing that the virus also doesn’t have a backdoor, as many attacks from North Korea do. While Rivts “doesn’t rank highly” on the threat scale, Doman says, it serves as a reminder that once a worm is released, it continues to spread for a long time.

JML Virus

It’s possible Rivts is a new version of an early file-infector called the JML virus, another homemade attack from North Korea, according to Doman. JML, which started on Visual C++5.0 and MASM 6.0, was reportedly created in 1997 as part of a student’s university project and later became a North Korean military standard. Mutations of the virus have spread outside the DPRK ever since.

“It’s not interesting in terms of damage … it’s interesting in terms of how far it could go,” says Doman of JML. “I think what happened is it was probably an accident, copied over from another system in North Korea.”

He links JML and Rivts with “low confidence.” Both originated in North Korea, include the word “test,” and built with Visual Studio C++ 5.0, a compiler rarely seen today. However, he says technical details make it impossible to positively determine a sample of the JML virus.

Faedevour Worm

In January 2015 an independent researcher discovered the Korean Central News Agency (KCNA) was distributing a form of malware called Faedevour. Unlike Rivts and the Voice of Korea site, researchers at Kaspersky report this was an intentional compromise by an outside attacker.

Analysis by Kaspersky indicates the DarkHotel group is responsible. Faedevour, like Rivts, is a worm and contains references to DPRK software it seeks on systems, explains Doman. It copies itself across to infect network shares and USB disks. While there is a possibility both were created by DarkHotel, Doman says this “does not seem to be the most likely explanation.”

Doman says Faedevour accidentally spread in a supply chain compromise in April 2017. IBM and Lenovo had both sent storage server customers USB sticks containing installation software. Later on, he says, they learned the USB sticks had been infected with the Faedevour worm. Specifically, it was infected with the same exact malware file spotted on the KCNA website.

According to Doman, it’s more likely this was an accidental infection than an intentional attack by DarkHotel, which would not likely use malware that had been created, and reported on, years earlier.

WannaCry and the Brambul Malware

Doman notes WannaCry, the attack that was created by Lazarus Group and spread via SMB file-shares, shares some of the same code base as the Brambul malware variant also released by Lazarus Group over the years. He says earlier forms of WannaCry do the same brute-forcing as Brambul and, to an extent, the massive attack could be described as a variant of Brambul.

“There are so many Brambul worms bouncing around the Internet,” says Doman, that WannaCry is another instance in which the attacker lost control. “I would be surprised if the guys who wrote WannaCry expected to cause this much damage around the world. They created this thing that didn’t make much money but caused a lot of damage … if I was going to try and make a lot of money, I probably wouldn’t draw too much attention to myself.”

Related Content:

 

 

 

Black Hat Asia returns to Singapore with hands-on technical Trainings, cutting-edge Briefings, Arsenal open-source tool demonstrations, top-tier solutions and service providers in the Business Hall. Click for information on the conference and to register.

Kelly Sheridan is Associate Editor at Dark Reading. She started her career in business tech journalism at Insurance Technology and most recently reported for InformationWeek, where she covered Microsoft and business IT. Sheridan earned her BA at Villanova University. View Full Bio

Article source: https://www.darkreading.com/threat-intelligence/north-korea-linked-cyberattacks-spread-out-of-control-report/d/d-id/1331075?_mc=rss_x_drr_edt_aud_dr_x_x-rss-simple

North Korea-Linked Cyberattacks Spread Out of Control: Report

New details on old cyberattacks originating from North Korea indicate several forms of malware unintentionally spread wider than authors intended.

New research points to the broader range and related collateral damage caused by North Korea-linked cyberattacks that spread out of control. Researchers believe two of these threats likely originated from North Korea; one of them was likely an external group attacking North Korea.

Analysts at AlienVault published details on multiple attacks after collecting evidence from the millions of malicious files it scans each day. All of these attacks are separate but share commonalities, including a link to the Democratic People’s Republic of Korea (DPRK), and causing more harm than was likely intended.

“These are all quite different attacks,” explains Chris Doman, AlienVault security researcher and threat engineer. “They’re all part of a broader trend of accidental damage from North Korea.”

In a blog post on the research, Doman digs into the details of all the attacks, explaining where and when they were discovered, their relation to the DPRK, and how they spread outside the author’s control.

Rivts Virus

Rivts is a malware family created in 2009 and still regularly seen by AlienVault, Doman explains, noting that the new files seen today are not the result of new developments from the author but of new files being infected with the original malware.

This is a file-infecting worm that spreads across USB drives and hard drives, and attaches itself to files to continue moving, he says, adding that it was first detected in January 2011 on the Voice of Korea, the DPRK’s international broadcasting service. Doman hypothesizes that Rivts leaked from this site and moved around DPRK systems for two years before escaping from the Voice of Korea.

Doman calls Rivts a “fairly boring” virus but notes an interesting detail: it initially checks for system files normally found on Windows XP but looks for two pieces of unusual software in the Windows System folder. Both are pieces of DPRK software built by the Korea Computer Center.

“It was interesting to find a piece of malware that looked for North Korean software,” Doman points out. “We thought at first it was something attacking North Korean systems.”

It’s more likely Rivts was a prototype or learning project, as indicated by the word “test” in multiple places, he notes, observing that the virus also doesn’t have a backdoor, as many attacks from North Korea do. While Rivts “doesn’t rank highly” on the threat scale, Doman says, it serves as a reminder that once a worm is released, it continues to spread for a long time.

JML Virus

It’s possible Rivts is a new version of an early file-infector called the JML virus, another homemade attack from North Korea, according to Doman. JML, which started on Visual C++5.0 and MASM 6.0, was reportedly created in 1997 as part of a student’s university project and later became a North Korean military standard. Mutations of the virus have spread outside the DPRK ever since.

“It’s not interesting in terms of damage … it’s interesting in terms of how far it could go,” says Doman of JML. “I think what happened is it was probably an accident, copied over from another system in North Korea.”

He links JML and Rivts with “low confidence.” Both originated in North Korea, include the word “test,” and built with Visual Studio C++ 5.0, a compiler rarely seen today. However, he says technical details make it impossible to positively determine a sample of the JML virus.

Faedevour Worm

In January 2015 an independent researcher discovered the Korean Central News Agency (KCNA) was distributing a form of malware called Faedevour. Unlike Rivts and the Voice of Korea site, researchers at Kaspersky report this was an intentional compromise by an outside attacker.

Analysis by Kaspersky indicates the DarkHotel group is responsible. Faedevour, like Rivts, is a worm and contains references to DPRK software it seeks on systems, explains Doman. It copies itself across to infect network shares and USB disks. While there is a possibility both were created by DarkHotel, Doman says this “does not seem to be the most likely explanation.”

Doman says Faedevour accidentally spread in a supply chain compromise in April 2017. IBM and Lenovo had both sent storage server customers USB sticks containing installation software. Later on, he says, they learned the USB sticks had been infected with the Faedevour worm. Specifically, it was infected with the same exact malware file spotted on the KCNA website.

According to Doman, it’s more likely this was an accidental infection than an intentional attack by DarkHotel, which would not likely use malware that had been created, and reported on, years earlier.

WannaCry and the Brambul Malware

Doman notes WannaCry, the attack that was created by Lazarus Group and spread via SMB file-shares, shares some of the same code base as the Brambul malware variant also released by Lazarus Group over the years. He says earlier forms of WannaCry do the same brute-forcing as Brambul and, to an extent, the massive attack could be described as a variant of Brambul.

“There are so many Brambul worms bouncing around the Internet,” says Doman, that WannaCry is another instance in which the attacker lost control. “I would be surprised if the guys who wrote WannaCry expected to cause this much damage around the world. They created this thing that didn’t make much money but caused a lot of damage … if I was going to try and make a lot of money, I probably wouldn’t draw too much attention to myself.”

Related Content:

 

 

 

Black Hat Asia returns to Singapore with hands-on technical Trainings, cutting-edge Briefings, Arsenal open-source tool demonstrations, top-tier solutions and service providers in the Business Hall. Click for information on the conference and to register.

Kelly Sheridan is Associate Editor at Dark Reading. She started her career in business tech journalism at Insurance Technology and most recently reported for InformationWeek, where she covered Microsoft and business IT. Sheridan earned her BA at Villanova University. View Full Bio

Article source: https://www.darkreading.com/threat-intelligence/north-korea-linked-cyberattacks-spread-out-of-control-report/d/d-id/1331075?_mc=rss_x_drr_edt_aud_dr_x_x-rss-simple

IRS Reports Steep Decline in Tax-Related ID Theft

Research group Javelin confirms that the numbers are trending in the right direction, with total fraud losses dropping more than 14% to $783 million.

The Internal Revenue Service has reported a significant decrease in tax-related identity theft for the second year in a row, pointing to its Security Summit program with state tax agencies and the tax industry as the reason for the improved numbers.

The Security Summit program, which was formed in 2015 to combat tax-related identity theft, provides multiple behind-the-scenes safeguards to protect taxpayers such as providing security best practices tips and enhancing taxpayer authentication procedures, for example. 

According to the IRS, the agency in 2017 received 242,000 reports from taxpayers that they were victims of tax-related identity theft, compared to 401,000 in 2016 – a drop of nearly 40%.

“These dramatic declines reflect the continuing success of the Security Summit effort,” says Acting IRS Commissioner David Kautter. “This partnership between the IRS, states and tax community is helping protect taxpayers against identity theft. More work remains in this effort, an we look forward to continuing this collaborative effort to fight identity theft and refund fraud.”

Some Progress

Al Pascual, senior vice president, research director and head of fraud and security at Javelin Strategy Research, says that while the IRS has made progress, taxpayers need to understand that criminals are still keeping up the pressure.

Javelin, which tracks and conducts research on identity theft, found that reported incidents of tax-related identity fraud actually increased from 392,000 in 2016 to 425,000 in 2017. Pascual says these are people who told Javelin they were hit with tax-related identity fraud, but might not have necessarily reported it to the IRS.

The good news overall is that the total number of actual refund loss has gone down – as has the average amount, he says. Actual refund loss declined to $783 million in 2017, from $914 million in 2016. And the average individual refund loss dropped a little more than 14% to $1,750 in 2017, down from $2,214 in 2016.

“What’s happened is that there are more cases, but the criminals are getting away with less money,” Pascual says. “Overall, it’s trending in the right direction because the total amount of money stolen has gone down.”

Related Content:

 

 

Black Hat Asia returns to Singapore with hands-on technical Trainings, cutting-edge Briefings, Arsenal open-source tool demonstrations, top-tier solutions and service providers in the Business Hall. Click for information on the conference and to register.

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

Article source: https://www.darkreading.com/attacks-breaches/irs-reports-steep-decline-in-tax-related-id-theft--/d/d-id/1331077?_mc=rss_x_drr_edt_aud_dr_x_x-rss-simple