[SecurityRatty] tag: margin

Should BRIC be BIIC?

Sat, 16 Aug 2008 06:14:34 +0000

People who follow emerging economies know BRIC (Brazil, Russia, India, China). There are some serious doubts on Russia's margin of safety for investors,(see previous post), noted China bull Jim Rogers

"Q: Where do you see Russia fitting into this as it comes onto the scene?
Rogers: I don’t. Russia will continue to disintegrate. The Soviet Union has already broken up into 15 countries. Putin controls Petersburg, Moscow, a few airports, et cetera, but Russia never has been a homogeneous [nation] - I mean, in the Soviet Union there were 124 - the "official" number was 124 - ethnic, linguistic, religious, historic and national groups.
It’s broken up into 15 states. It’ll be 50 … it’ll be 100 [states] before it’s over. Ukraine may break up next. Who knows who’ll break up [after that]? Maybe even parts of Russia.
To the bulls who say I’m wrong, my rejoinder is this: Let me ask you about Chechnya. The Russians have been trying to deal with Chechnya for 15 years with no success.
Chechnya’s the size of Connecticut. Chechnya has a million-and-a-half people. If they can’t handle Chechnya, how is the Soviet Union, or Russia, going to handle these other places that are pulling away?
There’s capitalism there, but it’s outlaw capitalism. If you’re good with dealing with the Mafia, you can probably make a fortune, if you’re on the ground [there]. For the most part, they have a lot of natural resources, which has been great.
They have huge foreign reserves, but they’re stripping the assets.
They’re not reinvesting for the most part in productive capacity. They’re stripping the assets. You know, oil production has peaked in Russia, even though there could conceivably be gigantic amounts of oil there somewhere. Nearly everything has peaked, because they have been stripping the assets, rather than reinvesting. "

To quote Charles Barkley "that's why I don't eat shrimp." The future for all the BRIC countries is probably bright in the long run, but in the short run where is the margin of safety for an investor in Russia?

Maybe instead of BRIC it should BIIC - Brazil, India, Indonesia and China. Indonesia just reported its seventh consecutive quarter of GDP growth in excess of 6%. Its the fourth largest country in the world with 240 million people and 17,000 islands. Its one to watch.

Corporate Identity Theft

Sat, 16 Aug 2008 05:58:30 +0000

I remember a talk by the value investor Mason Hawkins (Longleaf Funds) where someone asked him about investing overseas. He answered that he does, but mainly in places where the British flag flew at some point, where there is a rule of law. Here is one example of what he is worried about and why investing in places where your assets have no legal protection does not give the investor a margin of safety.

Hermitage Fund was until recently the largest fund in Russia. From the Business Week story "Hijacking the Hermitage Fund"

Corruption, intimidation, robbery, violent assault, forgery, large-scale fraud. No, not the subject of the latest John Grisham novel, but sensational allegations, made public Apr. 4 by Hermitage Capital Management -- until recently the largest foreign portfolio investor in Russia. In a detailed and damning report, titled Criminal Justice -- Russian-Style, Hermitage alleges the fund's Russian subsidiaries have fallen victim to an elaborate con designed to defraud the fund of hundreds of millions of dollars.

The most sensational part of Hermitage's allegations is that the attempted larceny was carried out with the direct connivance of officials in the Russian police. Hermitage alleges the police seized documents and equipment that were instrumental to the attempted fraud, which involved bogus court cases based on forged documents, the aim of which was to sue Hermitage subsidiaries for hundreds of millions of dollars. "The most shocking thing is not that there are corporate raiders in Russia who attempt to steal your shares," says Jamison Firestone, managing partner of Firestone Duncan, Hermitage's law firm. "The shocking thing is that the police worked hand-in-hand with them, and actually performed the theft of the documents so that the corporate raiders could then do their work."

From the most recent Hermitage Fund letter, here is the current state:

So the two-pronged scam worked in one area and failed in another. The perpetrators weren’t able to steal the assets from us based on the fake court claims, but they were able to steal $230 million from the Russian government by filing amended tax returns on behalf of our stolen companies. What makes this story even more shocking is that we filed six 255-page criminal complaints with the Russian authorities in December last year, one month before the tax fraud took place, and they did nothing to stop it. Two complaints were sent to the Russian General Prosecutor, two to the Russian State Investigative Committee and two to the Internal Affairs Department of the Interior Ministry. There was enough information to prevent the fraud and indict a number of people behind it if the government had acted.
Instead of doing anything to save the Russian state from this highly sophisticated and organized looting, two of our complaints were thrown out immediately; two were returned to the same Interior Ministry official we were complaining about (essentially, he was being asked to “investigate himself”); and one was thrown out for “lack of any crime committed.” Only one complaint was taken seriously. It was taken up by the Russian State Investigative Committee in early February, but before it could get any traction, the case was lowered to the South region of the Moscow district of the State Investigative Committee (the lowest level of the Committee) and by June, another senior Interior Ministry official whom we had named in our complaint had joined the “investigation” team (again, to “investigate himself”). To this day there has been no serious response by the Russian authorities to this massive fraud against the Russian state.
As we described in our April letter, the problem of corporate “raiding” is now so endemic in Russia that President Medvedev speaks about it as one of the biggest problems faced by Russian businesses. In this case, raiders have taken this problem to a new and absurd extreme by “raiding” the Russian state itself and so far getting away with it. Together with HSBC, we will shortly be filing new criminal complaints with the Russian General Prosecutor and Russian State Investigative Committee as well as with many law enforcement authorities outside of Russia. It is hard to predict what will happen next in this unfolding and unbelievable saga, but as always we will keep you updated on any further developments as they arise.

Of course we see individual identity theft on a regular basis (actually as Ross Anderson points out its not really identity theft but poor controls on the bank's parts using SSNs as secrets and so on), but you dont see a major corporation stolen every day.

Summarizing July's Threatscape

Fri, 01 Aug 2008 12:08:24 +0000

July's threatscape -- consider going through June's summary as well -- once again demonstrated that nothing is impossible, the impossible just takes a little longer where the incentive would be the ultimate monetization of the process.

Russian hacktivists attacking Lithuania and Georgia, several Storm Worm campaigns, a couple of new malware tools, Neosploit team abandoning support for their web malware exploitation kit, CAPTCHA for several of the most popular free email providers getting efficiently attacked in order to resell the bogus accounts registered in the process, several copycat SQL injects next to the evasion techniques applied by the copycats, botnets continuing to commit click fraud and generate revenue for those who own or have rented them, an infamous money mule recruitment service taking advantage of the fast-fluxed network provided by the ASProx botnet - pretty interesting month indeed.

01. Decrypting and Restoring GPcode Encrypted Files -
The GPcode authors read the news too, and are catching up with the major weaknesses pointed out in their previous release in order to come with a virtually unbreakable algorithm. And since more evidence of who's behind the GPcode ransomware was gathered, vendors and independent researchers realized that the latest release is also susceptible to a plain simple flaw, namely the encrypted files were basically getting deleting and not securely erased making them fairly easy to recover.

02. Chinese Bloggers Bypassing Censorship by Blogging Backward -
When you know how it works, you can either improve, abuse or destroy it in that very particular order. Chinese bloggers are always very adaptive in respect to spreading their message by obfuscating their messages in a way that common keywords filtering software wouldn't be able to pick them.

03. Gmail, Yahoo and Hotmail’s CAPTCHA Broken -
This has been an urban legend for a while, but with more services starting to offer hundreds of thousands of pre-registered accounts at these providers, it's surprising that spam and phishing emails coming from legitimate email providers is increasing. The "vendors" behind these propositions are naturally starting to "vertically integrate" by offering value-added services for extra payments, namely, scripts to automatically abuse the pre-registered accounts for automatic registration of splogs and anything else malicious or blackhat SEO related.

04. The Antivirus Industry in 2008 -
If it were anyone else but a security vendor to come up with such a realistic cartoon aiming to stimulate innovation by emphasizing on how prolific and sophisticated malware groups have become, it would have been a biased cartoon. However, this one is courtesy of a security vendor, and it's pretty objective.

05. Lithuania Attacked by Russian Hacktivists, 300 Sites Defaced -
This attack is a good example of a decent PSYOPS operation. Of course they have already build the capabilities to deface and even execute DDoS attacks against Lithuania, so why not put them in a "stay tuned" mode, by speculating on the upcoming attack and then executing it making it look like they delived what they've promised? This a lone gunman mass defacement given that the sites were all hosted on a single ISP, with no indication of any kind of coordination whatsoever. The same for the Georgia President’s web site which was under DDoS attack from Russian hackers later this month. Despite that the hacktivists behind it dedicated a separate C&C for the attack, one that hasn't been used in any type of previous attacks so far, they did a minor mistake by using a secondary command and control location that's known to have been connected with a particular "botnet on demand" service in the past. The second attack once again proves that you don't need to build capacity when you can basically outsource the process to someone else.

06. The ICANN Responds to the DNS Hijacking, Its Blog Under Attack -
The ICANN finally issued a statement concerning the DNS hijacking of some of their domains, which is in fact what Comcast.net and Photobucket.com should have done as well, next to stating it was a "glitch". The ICANN also took advantage of the moment and also pointed out that their blog has also been under attack during the month. There's no better example of how the combination of tactics can result in the hijacking of the domains of the organizations implementing procedures aiming to protect against these very same attacks. And while Photobucket.com remained silent during the entire incident, the hosting provider that was used by the Netdevilz team in the two attacks, since they were also responsible for the ICANN and IANA DNS hijackings, technological and social engineeringissued a statement.

07. The Risks of Outdated Situational Awareness -
Security vendors are often in a "catch-up mode" and if I were an average Internet user not knowing that real-time situational awareness speaks for the degree to which my vendor knows what going on online, I'd be pretty excited. However, I'm not. Prevx were catching up with a service which I covered approximately two months ago, I even had the chance to constructively confront with one of the affected sites on how despite their security measures in place, this attack was still possible. Recently Prevx have once again demonstrated an outdated situational awareness by coming across a banking malware in July 2008, whereas the malware has been around since July 2007, and earlier depending on which version you're referring to.

08. Fake Porn Sites Serving Malware - Part Two -
Yet another domain portfolio of fake porn sites serving rogue codecs and live exploit URLs, just the tip of the iceberg as usual, however their centralization is greatly assisting in tracking them down.

09. Storm Worm's U.S Invasion of Iran Campaign -
Stormy Wormy is once again making the headlines with their ability to actually make up the headlines on their own.

10. Mobile Malware Scam iSexPlayer Wants Your Money -
The best scams are the ones to which you've personally agreed to be scammed with without even knowing it. Like this one, which was tracked down and analyzed a couple of hours once a uset tipped on it.

11. The Template-ization of Malware Serving Sites -
The increase of fake porn and celebrity sites is due to the overall template-ization of these, with the people behind them basically implementing several malicious doorways to ensure that the domains get rotated on the fly. Despite that they all look the same, they all sever different type of malware, and zero porn of celebrity content at all except the thumbnails.

12. Violating OPSEC for Increasing the Probability of Malware Infection -
No better way to expose your affiliations and several unknown bad netblocks so far, by adding the netblocks and the malicious domains as trusted sites upon infecting a PC with the malware. Of course, the usual suspects lead the "trusted netblocks".

13. Monetizing Compromised Web Sites -
Several years ago, a script kiddie would install Apache on a mail server, they claim that they defaced it. Today, these amusing situations are replaced by monetization of the compromised sites, by reselling the access to them to blackhat SEO-ers, malware authors, phishers, or personally starting to manage a scammy infrastructure on them, by earning money on an affiliate based model, like this particular attack.

14. Malware and Office Documents Joining Forces -
A recent DIY malware kit, sold as a proprietary tool basically crunching out malware infected office documents, whose built-in obfuscation makes them harder to detect. It will sooner or later leak out, turning into a commodity tool, a process that's been pretty evident for web malware exploitation kits as well.

15. Are Stolen Credit Card Details Getting Cheaper? -
Depends on who you're buying them from, and whether or not they offer discounts on a volume basis, namely the more you buy the cheaper the price of a card is supposed to get. With the current oversupply of stolen credit card details, what used to be an exclusive good once where they could enjoy a higher profit-margin, is today's commodity good.

16. The Neosploit Malware Kit Updated with Snapshot ActiveX Exploit -
Since alll the web malware exploitation kits are open source, and leaked in the wild at large, their modularity allows everyone to easily embed any type of exploit that they want to, resulting in Neosploit's single most beneficial feature, the fact that certain versions include all the publicly available exploits targeting Internet Explorer, Firefox and Opera. Moreover, the open source nature of the kit is resulting in a countless number of modified versions yet to be detected and analyzed, therefore keeping track of the exploits included in a malware kit can only be realistic if you take into considered the exploits that come with the default installation.

17. Obfuscating Fast-fluxed SQL Injected Domains -
Now that's a very good example of different tactics combined to attack, ensure survivability, and apply a certain degree of evasion in between.

18. The Unbreakable CAPTCHA -
There's never been a shortage of ideas, there's always been an issue of usability.

19. The Ayyildiz Turkish Hacking Group VS Everyone -
That's a pretty inspiring mission if you are to ensure your future in the next couple of years, by targeting everyone, everywhere that has ever publicly stated their disagreement with the Turkish foreign policy.

20. Money Mule Recruiters use ASProx's Fast Fluxing Services -
A true multitasking in action with a botnet that's been crunching out phishing emails, SQL injecting and now hosting a well known money mule recruitment service.

21. SQL Injecting Malicious Doorways to Serve Malware -
Constantly switching tactics and combining different ones to achive an objective that used to be accomplished by plain simple techniques, is only starting to take place. In this case, instead of a hard coded SQL injected domain, we have the typical malicious doorways the result of the converging traffic management tools with web malware exploitation kits.

22. Impersonating StopBadware.org to Serve Fake Security Warnings -
Typosquatting popular security vendors and services is nothing new, by having HostFresh providing the hosting for the parked domains promoting the rogue security software, is a privilege and flattery for the success of the Stopbadware initiative.

23. Coding Spyware and Malware for Hire -
Customerization -- not customization -- has been taking place for a while, that's the process of tailoring your upcoming products to the needs of your future customers, compared to the product concept myopia where the malware coder would code something that he believes would be valuable to the potential customers. End user agreements, issuing licenses for the malware tool, as well as forbidding the reverse engineering of the malware so that no remotely exploitable flaws could be, are among the requirements the coder assists on.

24. Lazy Summer Days at UkrTeleGroup Ltd -
Taking a random snapshot of the current malicious activity at a well known provider of hosting services for rogue security applications, live exploit URLs and botnet command&control locations, always provides an insight into what are their customers up to. In this case, centralization of their scammy ecosystem, and parking a countless number of rogue domains on the same server.

25. Email Hacking Going Commercial -
Cybercrime is in fact getting easier to outsource, and while the number of scammers trying to offer non-existent services, or at least services where they cannot deliver the goods, the business model of this service that is that you only pay once they show you a proof that they've managed to hack the email address you game them. How are they doing it? Social engineering and enticing the user to click on live exploit URL from where they'll infect the PC and obtain the email password, of course, next to definitely abusing it for many other purposes in the process.

26. Vulnerabilities in Antivirus Software - Conflict of Interest -
You can easily twist the number of vulnerabilities found in your antivirus solution, but not recognizing them as vulnerabilities at the first place. It's all a matter of what you define as a vulnerability, or perhaps what you admit as a serious vulnerability - remote code execution through a security software, or a flaw that's allowing malware to bypass the security solution itself.

27. Counting the Bullets on the (Malware) Front -
Emphasizing on the number of malware/threats/viruses/worms/slugs your solution detects may be marketable in the short-term, but is damaging the end user's understanding of the threatscape in the long-term. So, by the time he catches up with what exactly is going on, he'll recall the moment in time where he was using the number of threats his solution was detecting as the main benchmark for its usefulness. In reality through, the number is irrelevant from a pro-active point of view, with zero day malware like the one coded for hire undermining the signatures based scanning model.

28. Smells Like a Copycat SQL Injection In the Wild -
It was pretty obvious that copycats seeing the success of SQL injections the the huge number of sites susceptible to exploitation, would also starting taking advantage of the practice. Some are, however, targeting local communities and trying to avoid detection by using targeted SQL injections.

29. Click Fraud, Botnets and Parked Domains - All Inclusive -
The scheme is nothing new, what's new is that the botnet masters are trying to limit the revenues that used to go out to affiliate networks they were participating in, and are trying to own or rent the entire infrastructure on their own.

30. Over 80 percent of Storm Worm Spam Sent by Pharmaceutical Spam Kings -
With access to Storm Worm sold and resold, and new malware introduced on Storm Worm infected hosts used as foundation for the propagation of the new malware in this case, it's questionable whether or not the Storm Worm-ers themselves are sending out the junk emails, or are they people who've rented access to the botnet doing it.

31. Neosploit Team Leaving the IT Underground -
Pretty surprising at the first place, but in reality it clearly demonstrates that when you cannot enforce the end user agreement on your crimeware kit, but continue seeing it used in a very profitable malware operations, you basically shut down the support for the public version. The team is not going to stop innovating for their own purposes, and in the long-term they may in fact re-appear with an updated malware kit that's converging different services next to the product itself.

32. Dissecting a Managed Spamming Service -
Managed spamming services using botnets as the foundation for the campaigns are starting to introduce improved metrics for the delivery, as well as experienced customer support ensuring the spam messages make it through spam filters, or at least increase the probability of making the happen. This is an example of a random service emphasizing on the improved metrics they're capable of delivering.

33. Storm Worm's Lazy Summer Campaigns -
Looks like a "cybercrime intern" launched this campaign, lacking any of the usual Storm Worm evasive practices, no exploitation of client side vulnerabilities, as well as no survivability offered by their usual fast-flux nodes.

Simulating Email in .NET

Fri, 01 Aug 2008 09:59:01 +0000

I use email as a notification mechanism a lot, and often in class I'll demo sending email via a technique that I use frequently when developing code. It allows you to simulate sending an email message.

The trick to doing this is not to hardcode things like host, port, etc. for your SMTP server when you use System.Net.Mail to send mail. Instead, use the default ctor for SmtpClient as I've done in the code below.

static void Main(string[] args)
{
    // note the use of the MailAddress class
    // this allows me to specify display names as well as email addresses
    MailAddress from = new MailAddress("admin@fabrikam.com", "Fabrikam Website");
    MailAddress to = new MailAddress("mari@fabrikam.com", "Mari Joyce");

    MailMessage msg = new MailMessage(from, to);
    msg.Subject  = "Testing 123";
    msg.Body = "This is only a test!";

    // note use of default ctor
    // this looks in config to figure out how to send mail
    new SmtpClient().Send(msg);
}

.csharpcode, .csharpcode pre { font-size: small; color: black; font-family: consolas, "Courier New", courier, monospace; background-color: #ffffff; /*white-space: pre;*/ } .csharpcode pre { margin: 0em; } .csharpcode .rem { color: #008000; } .csharpcode .kwrd { color: #0000ff; } .csharpcode .str { color: #006080; } .csharpcode .op { color: #0000c0; } .csharpcode .preproc { color: #cc6633; } .csharpcode .asp { background-color: #ffff00; } .csharpcode .html { color: #800000; } .csharpcode .attr { color: #ff0000; } .csharpcode .alt { background-color: #f4f4f4; width: 100%; margin: 0em; } .csharpcode .lnum { color: #606060; }

What you're telling .NET by using the default ctor for SmtpClient is, "please use my config file to figure out how to send mail". Now you can use the system.net/mailSettings/smtp section in config to specify the details of your mail server, and all of the code in your app that is written to use the default SmtpClient ctor will inherit these settings. Here's an example of what the config on a production server might look like (if you put passwords in your config files, be sure to encrypt those sections):

<configuration>
  <system.net>
    <mailSettings>
      <smtp deliveryMethod="Network">
        <network host="mail.fabrikam.com"
                 port="25"
                 userName="WebsiteMailAccount"
                 password="whatever"/>
      smtp>
    mailSettings>
  system.net>
configuration>

During development, I use different settings because I don't usually want to deal with the hassle of installing an SMTP server on my development box. Instead, I want email messages delivered as individual files in a directory on my hard drive (I always have a c:\mail directory on my development box for just this purpose):

<configuration>
  <system.net>
    <mailSettings>
      <smtp deliveryMethod="SpecifiedPickupDirectory">
        <specifiedPickupDirectory pickupDirectoryLocation="c:\mail"/>
      smtp>
    mailSettings>
  system.net>
configuration>

Now when I run the program above, I get a .EML file in my c:\mail directory:

Outlook Express is normally registered as the viewer for .EML files, so double-click the file to view it:

If you've never seen this method of simulating email before, I hope you find it as useful as I have. Happy coding!

StubHub millionaires?

Wed, 02 Jul 2008 22:07:37 +0000

One of the cool things about the first dot com bubble was the "ebay millionaire". These were people who built businesses around selling goods at auction on ebay. There has been much written and said about the methods of these people and certainly it was a big attraction to people selling on ebay. I had an interesting plane ride home today where I met someone and discovered todays equivalent. I call it the StubHub millionaire. It is a testament to American ingenuity and shows that given the tools, people will find a way to exploit and make money.

Up until fairly recently you bought tickets to sporting events and other entertainment from a box office or ticket agent such as ticketron. The "after market" in ticket sales or scalping as it was called in NY was often times illegal. There were though some legal ticket brokers that you could buy tickets from. Now with the advent of StubHub and similar type of ticket reselling outlets on the web though, the infrastructure is in place for anyone to sell tickets on line. You would think that most of these people selling tickets were people who had either extra tickets to an event or perhaps a season ticket holder looking to unload some tickets to help defray the costs. Not the case!

There is a now a whole class of businessman who buys season tickets to multiple teams, sports and cities and than uses outlets like StubHub and others to sell these tickets. The guy I spoke to today had season tickets to 6 different NFL teams, 3 major league baseball teams and multiple basketball and hockey teams. Many of his tickets are sold months and weeks before the event. If any are left within 14 days of the event he puts them on ebay. His average mark up is about 40 to 50% of face value, but by buying season tickets he pays below face, so his actual margin is closer to 60 to 70%. He keeps a few tickets for him and his family to go to a few games a year.

This started as a hobby for him with Yankee season tickets, but he has done an analysis and compared to what he would make investing that money in the market, he has come out way, way ahead. He thinks that on a 12,500 investment, he makes about 40k! That is not bad. This year when all is said and done he will make six figure income from the resale of tickets he bought. Think about it, no office or anything. Just list your tickets and let people buy them. Take some of the money and buy more tickets.

So what the heck am I doing trying to show people why it is important that they put good security in place on their computers? There has got to be a better way.

StubHub millionaires?

Wed, 02 Jul 2008 21:08:05 +0000

So what the heck am I doing trying to show people why it is important that they put good security in place on their computers? There has got to be a better way.

Summarizing June's Threatscape

Tue, 01 Jul 2008 03:05:01 +0000

June's threatscape that I'll summarize in this post based on all the research conducted during the month, was a very vibrant one. With the return of GPcode, a remotely exploitable flaw in the Zeus crimeware kit allowing both, researchers and malicious parties to assess the severity of a particular banker malware campaign, the increasing use of malicious doorways next to ICANN and IANA's DNS hijacking, all speak for themselves and how diverse the threats and, of course, the abilities to maintain a decent situatiational awareness about what's going on have become.

01. U.K's Crime Reduction Portal Hosting Phishing Pages - nothing new here since vulnerable sites are to be "remotely file included" and SQL injected to locally host anything on behalf of a malicious party. Risk and responsibility forwarding is one thing, but having a crime reduction portal hosting phishing pages is entirely another. The phishing pages was shut down in less than 12 hours upon notification

02. Price Discrimination in the Market for Stolen Credit Cards - Tracking down "yet another stolen credit cards for sale" service in the wild, the price discremination that they applied greatly reflects the current lack of transpararency for a potential buyer of stolen credit cards, and how higher profit margins are driving the entire business model. With script kiddies running their own botnets and undermining the sophisticated botnet master's high profit margin business model by undercutting their prices, stolen credit cards are not what they used to be - an exclussive good. Nowadays, they are a commodity good and often a bargain

03. Blackhat SEO Redirects to Malware and Rogue Software - Sampling an active blackhat SEO campaign out of the hundreds of thousands currently active online, releaved a large portfolio of domains serving Zlob variants by pitching them as fake codecs that the end user should download if they are to view the non existent adult content at the sites. Where's the OSINT mean? It's in the fact that the codecs and the fake security software phone back to UkrTeleGroup Ltd's network

04. Using Market Forces to Disrupt Botnets - With the current oversupply of malware infected hosts, and botnet masters embracing the services model for anything malicious, in this post I discussed the radical security approach of puchasing already infected malware hosts on a per country basis, disinfecting them and forcing them to update all the software on the infected PCs. Of course, on an opt-in basis. The possibility to directly provide incentives for botnet hunters to shut down whatever they come across to on a daily basis, and that's a lot of botnets, is also there

05. Who's Behind the GPcode Ransomware? - The title speaks for itself, the research with enough actionable intelligence gathered in the shortest timeframe possible is already proving accurate and highly valuable. How come? Stay tuned for more developments

06. ImageShack Typosquatted to Serve Malware - In a rare instance of a creative attack combining typosquatting in order to impersonate ImageShack and serve malware by redirecting users to an image file that is actually forwarding to the binary, I was recently tipped by the folks at TrendMicro who are also following this that the site is up and running again. Not for long

07. Fake YouTube Site Serving Flash Exploits - Next to using the usual set of exploits courtesy of a commodity web malware exploitation kit, this campaign was also using flash exploits. Even more interesting is the fact that the password stealer obtained was attempting to phone back to a misconfigured malware command and control interface, basically allowing you to assess the campaign from the eyes of the "campaigner"

08. Monetizing Web Site Defacements - Web site defacements are getting monetized just like SQL injections are in order to locally host a blackhat search engine optimization campaign on a vulnerable site with a high page rank. In this post I've assessed such monetization courtesy of a web site defacer at The Africa Middle Market Fund

09. Malicious Doorways Redirecting to Malware - Yet another large domains portfolio exposed though a malicious doorway redirecting to fake porn and video sites serving Zlob variants, tracking down the initial spamming of the malicious doorways across multiple vulnerable forums and guestbooks

10. The Zeus Crimeware Kit Vulnerable to Remotely Exploitable Flaw - When cyber criminals get advised to patch their vulnerable versons of the Zeus Crimeware Kit, you know there's a monoculture in the crimeware market. This flaw released publicly in May, 2008, not just allows others to hijack someone's ebanking botnet, but also, vendors and researchers to better assess a vulnerable Zeus command and control location

11. Fake Celebrity Video Sites Serving Malware - When templates for fake video and adult sites are just as available as they are now, anyone can take advantage of this cheap social engineering track that seems to work just fine. Compared to relying on blackhat search optimization to acquire traffic, some of the campaigns were SQL injected at vulnerable sites in order to drive traffic to them, next to several other tactics which when combined can result in a lot of people unknowingly visiting the sites

12. Phishing Campaign Spreading Across Facebook - An internal phishing campaign was circulating across Facebook, which got taken care of thanks to coordinated efforts with Facebook's security folks. There's also an indicating tha they are currently typosquatting other social networking sites like Hi5 for instance

13. Underground Multitasking in Action - As a firm believed in taking a random sample for a particular threat segment, this was once of these cases confirming the confidence I've built into anticipating upcoming tactics and strategies to be used

14. An Update to Photobucket's DNS Hijacking - Despite that Photobucket didn't oficially acknowledge the DNS hijacking, the hosting provider the NetDevilz hacking team used issued a statement. Ironically, the Turkish hacking group used the same provider weeks later to redirect ICANN and IANA's domains to Atspace.com

15. Fake Porn Sites Serving Malware - Among the largest domains portfolio of malware serving porn sites I've exposed in a while, all of them naturally remain active since they are hosted on a partition of RBN's diverse network. Visualizing a malicious doorway or the entire ecosystem provides a better understanding at how structured the ecosystems are

16. Backdoording Cyber Jihadist Ebooks for Surveillance Purposes - Despite that in this case we have a cyber jihadist backdoording his own released books, the international intelligence community next to law enforcement are known to have expressed interest in backdooring suspect's PCs, so why not SQL inject the cyber jihadist forums themselves?
17. Right Wing Israeli Hackers Deface Hamas's Site - When you read that Hamas's site is hacked, you ask yourself the following, do they even have a web site that's up the running? The answer to which would be the fact that even Hezbollah has been maintaining an Internet infrastructure since 1998
18. ICANN and IANA's Domain Names Hijacked by the NetDevilz Hacking Group - A fact is a fact, no comment here, go through all the technical details of the hijacking, including some actionable intelligence on who's behind the hijacking
19. The Malicious ISPs You Rarely See in Any Report - Who's tolerating malicious activities on their network, and how is the RBN related to all this? Well, when combined, the tiny parts of these ISPs represent a tiny part of the Russian Business Network itself

NISTS FISMA Pase IIWho Certifies Those who Certify the Certifiers?

Tue, 17 Jun 2008 17:22:09 +0000

Check out this slideshow and this workshop paper from 2006 on some ideas that NIST and a fairly large advisory panel have put together about certification of C&A service providers. I’ve heard about this for several years now, and it’s been fairly much on a hiatus since 2006, but it’s starting to get some eartime lately.

The interesting thing to me is the big question of certifying companies v/s individuals. I think the endgame will involve doing both because you certify companies for methodology and you certify people for skills.

This is the problem with certification and accreditation services as I see it today:

Security staffing shortage means lower priority: If you are an agency CISO and have 2 skilled people, where are you going to put them? Odds are, architecture, engineering, or some other high-payoff activity, meaning that C&A services are candidates for entry-level security staff.
Centralized v/s project-specific funding: Some agencies have a “stable” of C&A staff, if it’s done wrong, you end up with standardization and complete compliance but not real risk management. The opposite of this is where all the C&A activities are done on a per-project basis and huge repetition of effort ensues. Basic management technique is to blend the 2 approaches.
Crossover of personnel from “risk-avoidance” cultures: Taking people from compliance-centric roles such as legal and accounting and putting them into a risk-based culture is a sure recipe for failure, overspending, and frustration.
Accreditation is somewhat broken: Not a new concept–teaching business owners about IT security risk is always hard to do, even more so when they have to sign off on the risk.
C&A services are a commodity market: I covered this last week. This is pivotal, remember it for later.
Misinformation abounds: Because the NIST Risk Management Framework evolves so rapidly, what’s valid today is not the same that will be valid in 2 years.

So what we’re looking at with this blog post is how would a program to certify the C&A service providers look like. NIST has 3 viable options:

Use Existing Certs: Require basic certification levels for role descriptions. DoD 8570.1M follows this approach. Individual-level certification would be CAP, CISSP, CG.*, CISA, etc. The company-level certification would be something like ITIL or CMMI.
Second-Party Credentialing: The industry creates a new certification program to satisfy NIST’s need without any input from NIST. Part of this has already happened with some of the certifications like CAP.
NIST-Sponsored Certification: NIST becomes the “owner” of the certification and commissions organizations to test each other.

Now just like DoD 8570.1M, I’m torn on this issue. On one hand, it means that you’ll get a higher caliber of person performing services because they have to meet some kind of minimum standard. On the other hand, introducing scarcity means that there will be even less people available to do the job. But the big problem that I have is that if you introduce higher requirements on commodity services, you’re squeezing the market severely: costs as a customer go up for basic services, vendors get even less of a margin on services, more charlatans show up because you’ve tipped over into higher-priced boutique services, and mayhem ensues.

Guys, I’m not really a rocket scientist on this, but really after all this effort, it seems to me that the #1 problem that the Government has is a lack of skilled people. Yes, certifying people is a good thing because it helps weed out the dirtballs with a very rough sieve, but I get the feeling that maybe what we should be doing instead is trying to create more people with the skills we need. Alas, that’s a future blog post….

However, the last thing that I want to see happen is a meta-game of what’s going on with certifications right now–who certifies those who certify? I think it’s a vicious cycle of cross-certification that will end up with the entire Government security industry becoming one huge self-licking ice cream cone. =)

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Security Assessment Economics

Thu, 12 Jun 2008 17:03:59 +0000

I’ve spent a couple of days traveling around to agencies to teach. It was fun but tiring, and the best part of it is that since I’m not teaching pure doctrine, I can include the “here’s how it works in real life” parts and some of the BSOFH parts–what I refer to as the “security management heretic thoughts”.

Some basic statements, the rest of this post will explain:

C&A is a commodity market
Security controls assessment is a commodity market
PCI assessment is a commodity market
Most MSSP (or rather, Security Device Management Service Providers) services are commodity markets

Now my boss said the first one to me about 4 months ago and it really needed some time for me to grasp the implications. What we mean by “commodity market” is that since there isn’t really much of a difference between vendors, the vendors have to compete on having the lower price.

Now what the smart people will try to do is to take the commodity service and try to make it more of a boutique service by increasing the value. Problem is that it only works if the customers play along and figure out how your service is different–usually what happens is you lose in the market simply because now you’re “too expensive”.

Where Boutique Sits by miss_rogue.

Since the security assessment world is a services business, the only way to compete in a commodity market is to pay your people less and try to charge more. But oh yeah, we compete on price, so that only leaves the paychecks as the way to keep the margin up.

Some ways that vendors will try to keep the assessment costs down:

Hire cheaper people (yes, paper CISSPs)
Try to reduce the engegement to a formula/methodlogy (ack, a checklist)
It’s all about billability: what percentage of your people’s time is not billable to clients?
Put people on assessments who have tangential skills just to keep them billable
Use Cost-Plus-Margin or Time-Plus-Materials so that you can work more hours
Use Firm-Fixed-Price contracts with highly reduced services ($150 PCI assessments)

Now inside Government contracting, there’s a fact that’s not known outside of the beltway: your margins are fixed by the Government. In other words, they only allow you to have around a 13-15% margin. The way to make money is that the pie is a much bigger pie, even though you only get a small piece of it. And yes, they do look at your accounting records and yes, there are loopholes, but for the most part, you can only collect this little margin. If you stop and think about it, the Government almost forces the majority of its contractors into a commodity market.

Then we wonder why C&A engagements go so haywire…

The problem with commodity markets and vulnerability/risk/pen-test assessments is that your results, and by extension your ability to secure your data, are only as good as the skills and creativity of the people that the vendor sends. Sounds like a problem? It is.

So knowing this, how can you as the client get the most out of your service providers? This is a quick list:

Every year (or every other), get an assessment from somebody who has a good reputation for being thorough (ie, a boutique)
Be willing to pay more for services than the bottom of the market but be sure that you get quality people to go along with it, otherwise you’ve just added to the vendor’s margin with no real improvements to yourself
Get assessments from multiple vendors across the span of a year or two–more eyes means different checklists
Provide the assessors with your own checklists so you can steer them (tip from Dave Mortman)
Self-identify vulnerabilities when appropriate (especially with vulnerabilities from previous assessments)
Typical contracting fixes such as scope management, reviewing resumes of key personnel, etc
Get lucky when the vendor hires really good people who don’t know how much they’re really worth (that was me 5 years ago)
More than I’m sure will end up in the comments to this post =)

And the final technique is that it’s all about what you do with the assessment results. If you feed them into a mitigation plan (goviespeak: POA&M) and improve your security, it’s a win.

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Hannaford Supermarkets

Sat, 22 Mar 2008 09:27:00 +0000

This is going to get very interesting. Hannaford Supermarkets announced on Mar 17 that they lost 4.2 million card numbers to a hacker (Began Dec 7, discovered on Feb 27) . They also claim to be certified as compliant with PCI DSS. So what value does the certification hold ?

Instead of saying PCI is worthless, lets step back for a minute and think about this. If this was an inside job, PCI Co can't be blamed. Also, as it stands today, the QSAs/ASVs can claim that their assessment was a point in time and as such, they shouldn't be held responsible for a company getting hacked after they gave it a clean chit. Change that and watch the number of QSAs/ASVs drop like a brick, and PCI Co get better value out of these QSAs and ASVs.

Lets see what the Hannaford CEO Ron Hodge said
"
Hannaford has contained a data intrusion into its computer network that resulted in the theft of customer credit and debit card numbers. No personal information, such as names or addresses, was accessed. Hannaford doesn’t collect, know or keep any personally identifiable customer information from transactions.

We sincerely regret this intrusion into our systems, which we believe, are among the strongest in the industry. The stolen data was limited to credit and debit card numbers and expiration dates, and was illegally accessed from our computer systems during transmission of card authorization.

"

Huh ?

No personal information such as names or addresses was accessed.

If that is the case, the authorizations should fail for most transactions of medium to high value when those numbers are reused since they don't have the name (I say most - because most auth engines typically use a complicated formula depending on location of purchase, amount of purchase, a margin for errors in reads during swipes etc before authorizing a transaction).

[Interesting Update: According to this article, there are around 1800 cases of related fraud so far, and they talk about a $1270 charge going through. Which really means there are authorization engines out there that don't seem to care about the customer name in a transaction. Either that, or someone is lying.]

Could there be a sniffer installed on the network ?

Track data has your name, card number, expiration date and encrypted IPIN among other things. If a sniffer was present at the swipe location, it surely would've got the name. But he clearly states no names were accessed. But what if it was in the scenario described a few posts below - about the ATM authorizations ? If you look at the message formats, they have card numbers and expiration dates. What was compromised ? Card numbers and expiration dates. (ISO 8583 seems to have track data in its message transmissions - but not until a long way into the stream, and for some reason, I didn't notice it in my raw transaction data log review. The attackers probably just captured the initial bytes of the transmission ?)

"But they were PCI Compliant and hence would've had to encrypt their data in transmission" you say.

Thanks to the vagueness of PCI, even if rule 4.1 were to be applied -
Use strong cryptography and security protocols such as secure sockets layer (SSL) / transport layer security (TLS) and Internet protocol security (IPSEC) to safeguard sensitive cardholder data during transmission over open, public networks.

Could they have used the excuse that the network was not open or public ? And then - they could always use the compensating controls excuse to not encrypt.

I'm willing to bet there was some form of sniffing involved - and this probably is sniffing of the POS/ATM transaction in the ISO8583 format. (a scenario I was afraid of in this post)