Revenge Hacking is The New Black in the Cybercrime Underworld

Revenge hacking encompasses the expansive set of motivations behind cybercrime. Every victimized industry has seen some form of cyber-attack backed that links back to their own hostile actions or policies toward the attackers.

Motives range from low profile disgruntled ex-employees to self-publicizing groups like Anonymous providing occasional media updates about their attacks on ISIS cybertargets. Sovereign states have long been suspected of hacking behavior and even Vladmir Putin is reported to be in on the act. Sexual revenge or jealousy was behind the infamous theft of subscriber data from the dating site Ashley Madison, specifically set up to facilitate affairs involving married individuals.

The latest set story circles around the Buzzfeed hack that surfaced in retaliation for identifying an alleged Saudi Arabian member of the OneMore hacking group.

Revenge hacking is not confined to the “outlaws”. Corporations have occasionally felt the urge to strike back at their tormentors, which is probably illegal everywhere in the world. Sometimes it’s considered as a pre-emptive strike to ward off a perceived threat. However, taking out a target server that appears to be the source of a threat could be extremely ill-advised. That server could be a component of a public utility, hospital, municipal authority or anything really. Hackers can compromise a server and use it as a proxy for launching attacks originating from half way across the globe.

No network or website can prevent hacking attempts from taking place. Even brand new simple WordPress blog sites are not immune. Automated systems are constantly probing for easily cracked access credentials. Such systems cost practically nothing to run and represent the bottom end of the attack spectrum. Strong passwords represent the simple and obvious defense, easily available through free online password generators.

At the other end of the scale are what could be considered “professional hackers” and the criminal element. Technically minded individuals with varying degrees of talent but with time on their hands occupy the middle ground. Large corporations present a happy hunting ground because the bigger the IT infrastructure, the greater the number of attack surfaces to be explored and exploited. This is the constant battleground between the security experts and technologies that form the defensive zone, and the attackers.

There is no central record for collating data on thwarted hacking attacks. That makes it impossible to measure the success levels of the security defenses. Security teams are only as good as their last failure, as in many walks of life. However, despite the high-profile names of the victims, the count of those that have not yet suffered the same fate greatly outnumbers the number of victims.

Every new technology and every new online service is highly likely to contain security vulnerabilities. The incessant drive to deliver newer functionality to outstrip the competition will constantly expose weaknesses. New functionality means new systems being exposed. The reality is that the game is loaded in favor of the hackers, who only have to breach a security system once to reach the prize and the headlines.

Corporations will continue to spend on security measures because there is no other option if they are to remain ahead of the risk of attack. Add the unpredictable nature of motivation for revenge hacking and the element of surprise is added to the mix. The only unknown is the motive for the next high profile attack.

Tesla Remote Hack: Passengers Exposed to Frightening Risks

In the midst of all the hype surrounding next-gen automobile capabilities featured on Tesla vehicles, the company receives its share of bad press when something goes wrong with a sci-fi Tesla feature. Last week was no different, when one Shanghai-based Internet security firm demonstrated vulnerabilities in the Tesla software and performed unauthorized remote control on Tesla cars.

What is startling about these latest exploits is the range of actions that hackers managed to trigger remotely, some while the car was in motion, and one from 12 miles distant.

Here’s what the white hat hackers at Keen Security were able to achieve:

  1. On the research car when parked up, they remotely operated the sunroof, the indicator lights and adjusted the position and vertical tilt of the car seat.

 

The team claimed they had researched several Tesla models and, to demonstrate that claim, they exploited a brand new Tesla S75D to which they had not previously had physical access.

  1. While parked up and switched off, with the driver searching for the nearest charging station, the team remotely took control of the system using a laptop and planted a hacked message on the display consoles to prove the point. The driver was unable to regain use of the screens. Then they the unlocked the driver’s door remotely, from the laptop.

 

The more alarming exploits were demonstrated on the vehicle while it was in motion.

  1. From a laptop inside the car, the security researcher was able to switch on the windscreen wipers. Then indicator control was hacked during a lane change maneuver and the researcher was able to fold the wing mirror closed.

 

A vivid visual came next, again while the car was in motion.

  1. From the laptop, the researcher was able to unlock the trunk, which flew open in an abrupt and startling manner when viewed from inside the vehicle.

 

The final demonstration was the most unsettling. While the previous exploits were amusing and in the parlor game category, none of them could be considered life threatening to other road users.

  1. From an office 12 miles away, the researcher was able to remotely activate the emergency stop brake on a moving car. The effect was quite dramatic on the occupants. It was a fitting finale to an extremely interesting demonstration.

 

Connected cars loaded with automated functionality have already become a commonplace in the world of automobile research and development. Drivers are relieved of mundane tasks that otherwise keep drivers engaged in a traditional car, which means that Tesla drivers are not always in full control of their machines. The recent exploits therefore pose extremely high-risk to Tesla passengers. The security research firm, Keen Security, published a blog article and video detailing their exploits.

It should be noted that it took the Keen Security team many months of focused investigation to uncover the secrets for these contactless remote access exploits. However, it’s not the first time such exploits have been discovered.

Last year, a Tesla was exploited via its entertainment system and there were previous exploits before that. The general consensus is that the Tesla software is now very difficult to crack and that can only be a good thing. Tesla has already updated the firmware and owners are urged to download it as a matter of urgency. Not that your average computer geek will be easily able to uncover exploits. The guys at Keen Security are the crème de la crème of geekdom in that they dedicate 12 hours a day to their chosen career and insist that they work only on the side of the angels.

The best solution for now: Update the Tesla software with (some) patches to these vulnerabilities.

Four-Year-Old DropBox Hack Comes Back to Haunt

It’s hard to believe that Dropbox is almost 10 years old. It seems to have been around forever. It’s now a $10 billion cap corporation and as close to being a household name as something as mundane as data storage can get for an operation.

The numbers are staggering. Almost 500 million of us use it or have used it at some point. That means a major chunk of social responsibility for Drobox to maintain the robust and impenetrable security required and expected by all us users. But they dropped the ball back in 2012. Security was penetrated and some 68+ million email addresses and hashed (scrambled) passwords were stolen. Fortunately, the repercussions have not been as bad as they could have been because of the scrambled nature of the passwords.

Dropbox advised users to change their passwords at the time but PR and reputation damage limitation now seems to have been uppermost on the priorities list. Last week, four years later, we are told that 60 million users were affected.

The thing is that all of us regular consumers who use online services of any description still have the mentality of the free Internet. We really don’t like paying very much and we are astounded if the service is not rock solid and utterly professional for our $5/mth or whatever.

Many of us, even hardened IT veterans, have not taken on board the vital necessity of using strong, secure passwords. The “it happens to other people, not to me” mentality is deadly because when it does happen, the impact can be scarily bad. I wonder how many people use Dropbox as their automatic backup for their laptops and devices? And of those, how many keep confidential documents like passport scans and bank account details (yes, even passwords too) in a Notepad file. Everything is probably replicated at Dropbox and, over time, users can forget that fact and forget that the security of their data has a massive dependency on an outside agent that is under constant security attack.

The incident at Dropbox stemmed from one user whose email account was hacked. The intruder then managed to locate and retrieve four files that contained the data. The lesson here is that every touchpoint with the outside world is a potential vulnerability. Every corporation invests significantly in security expertise but the defenders have to win 100% of the time 24/7/365. The attackers need to get lucky only once. And passwords with their very human creators and maintainers are still one of the weakest links.

Enterprises do instigate password security processes, such as encouraging users to change passwords frequently. However, users typically access a number of different applications, each of which requires a password, so the temptation to take the convenient route of weak but memorable passwords and reusing them is a constant. It is the individual that needs to change, and changing one’s habits is not something that can be done without an internal driver. That driver does not exist for too many of us.

Dropbox has moved to restrict the downside from the incident. It encourages users to adopt their two-step authentication process, which is a must-do no-brainer for any users of the service who have been made aware of it. Dropbox and their user base were lucky on this occasion because the stolen passwords were salted (obfuscated with a secret text string) before hashing, which means that cracking them is unlikely. However, they are now out there and may be cracked one day. Therefore any reuse of a password that was used for a Dropbox account should be changed immediately.

It goes to show that, as users of Internet services, we simply must take nothing for granted. Any service is a potential victim of a security breach.

If we truly want to create a virtual Fort Knox for our critical and sensitive data, images, plans, or anything else that is in digital format – the best way (and according to many experts, the only way) is to encrypt the data and hold those encryption keys ourselves. Stay tuned for some announcements from us at Scram Software on how we’ll make it easy for you to do exactly that.

Cyber Criminals Demand Ransom for 655,000 Patient Records

The famous American criminal Willie Sutton was asked once why he robbed banks, to which he is reported to have answered, “Because that’s where the money is”. The statement is apropos to a question that many people are asking in response to the accelerating frequency of cyberattacks on hospitals. Because that’s where the personal information is. Personal information equals money! In fact, it is estimated that personal information is worth ten times more on the black market than a credit card number. As Paul Syverson, Co-creator of the Tor web browser says, “Your medical records have bullseyes on them.”

Therefore, it should come as no surprise to read the numerous headlines in 2016 concerning cyber attacks on healthcare organizations. The year started with a highly publicized ransomware attack on the Hollywood Presbyterian Medical Center in February of this year shut down the hospital for nearly a week until management agreed to pay $17K to the cyber criminals.

Unfortunately, that attack proved simply the opening shot across the bow at the health care industry. Earlier this summer a trio of data breaches culminated in a loot of 655,000 patient records. The breach was discovered when a hacker or hacker group using the name, “The DarkOverLord,” a former ransomware expert who has now chosen pursue the high stakes game of stealing patient health information records or PHI. The breach was discovered when the hacker contacted the three health organization involved to alert them that their patient databases had been captured and that samples had been posted on a site called RealDealMarket, a unscrupulous site on the dark web where cybercriminals sell everything from stolen credit cards to drugs.

The data breach included the following:

  • 48,000 patient records from a clinic in Farmington, Missouri, United States. The records were acquired from a Microsoft Access Database in plain text.

  • 210,000 patient records from clinic in the central Midwest United States that was captured in plain text. The records include Social Security numbers, first and last names, middle initial, gender, date of birth, and postal address.

  • The largest breach was a database of 397,000 records from a large clinic based in Atlanta, Georgia which also included, including primary and secondary health insurance and policy numbers. Like the other incidents, the data was not encrypted.

The DarkOverLord is demanding a ransom of $1 per record from each of the organizations and has assigned a separate deadline to each victimized organization. If his demands are not met by those dates, the records will then be sold to multiple buyers. The hacker claims that he contacted all three organizations prior to stealing the patient records to inform them that he had breached their networks and was asking for funds to inform them of their vulnerabilities but heard nothing. “Next time an adversary comes to you and offers you an opportunity to cover this up and make it go away for a small fee to prevent the leak, take the offer,” The Dark Overlord said in an interview to a news site that reports on the hacking community.

The three attacks all share the same means of incursion as they were affiliated with a third party health care information management application. The hacker was able to infiltrate the vendors network and took advantage of several SQL exploits. The attacker(s) then used a zero-day RDP exploit to gain access to the three clinics.

All three clinics contacted their patients to alert them of the breach and the impending risk of identity theft. In the case of the Atlanta based firm, local police have already begun documenting police reports from patient victims reporting that their credit has been compromised. All three organizations must now suffer major hits to their credibility and reputation and impending lawsuits will undoubtedly be coming soon. According to a study in 2016 by the Ponemon Institute, the average cost per stolen record in the United States healthcare industry is $355 and $158 globally.

All of this points to the importance of encrypting your data, especially in the cloud. The of storing data in the form of plain text is over. No one wants to ever be contacted by a hacker.

Australia shows the world how NOT to run an online census as someone stuffed up their load calculations in a BIG WAY. #CensusFail

On 9th August 2016, Australia was meant to have had its first online census.

What happened instead out to be a farce – a non-event as millions of us tried to log in to complete the form, only to find that the website was down.

The lead up to the census was controversial enough, with strong privacy concerns over the retention of personally identifiable information. But that was only a sneak preview of the monumental stuff up that would happen on Census Night when millions were unable to participate in the census because the servers were down.

While hackers were initially blamed for the downtime, could it have been plain incompetence? But before I dive into that, here’s some background for our friends living outside Australia.

Privacy concerns

The Census 2016 had already drawn oppositions from politicians who raised strong privacy concerns over sharing sensitive personally identifiable information with the Australian Bureau of Statistics (ABS). The problem was twofold: the retention of names for a period of 4 years (previously only 18 months) and the assigning of a unique ID to each person to personally track individuals over the course of their lives in subsequent censuses. Thus the census would change from being a snapshot view into a longitudinal study.

However, it is compulsory to answer every question in the census form, including names and addresses. The government had announced to fine every citizen $180 per day cumulatively for every day of non-compliance. Despite this, several senators announced they would refuse to divulge their name and address in the census form. The hope was that if enough Australians followed suit, it would become exceedingly difficult to fine the large number who failed to comply with census regulations.

The Government’s counter argument to privacy concerns were rather nonsensical: statements that the collection of personal data by the ABS was no worse than “Facebook” or a “supermarket loyalty card”.

On census night things worked for a bit… and then fell over…

census.abs.gov.au – that’s where Australians had to go to complete their census forums.

About 2 million census forms were submitted on census night, before the system fell over. Australians looking to complete the census later in the night, myself included, were greeted with this wonderful page.

CensusFail

And a day later it got worse – the server appeared to be completely offline.

CensusFail2

And now, another day later, the server is back online but unavailable:

CensusFail - Australian online census becomes farce

Predictably, the ABS was forced to relax the $180-per-day punishment of non-compliance.

The 2016 census, described as the “worst-handled census in history”, will cost Australian taxpayers $470 million.

The Census Blame Game

Predictably, the entire census farce has sparked a blame game amongst politicians, ABS spokespersons and the wider tech world.

  1. Early reports from the ABS were that organized cybercriminals from outside the country were responsible for bringing down the website.
  2. Security experts were quick to dig deep into the alleged Denial of Service (DoS) attack and identified little evidence of a cyber-attack.
  3. The government eventually acknowledged the ABS network failed not because of hackers or a malicious attack, but because of an “overcautious” response to the sudden influx of traffic perceived as a possible DoS attack. The issue was tracked down to overloaded routers and false alarm mechanisms.

That’s right: according to the latest explanations, the ABS servers received so much traffic it looked like a DDoS attack, so the overloaded routers were shut down.

Is that actually true? It wouldn’t be surprising if further changes in explanation were given. But let’s run with this argument for a while and see where it leads…

How bad at statistics are the Australian Bureau of Statistics?

The ABS claimed that they had load tested the website to handle 1 million forms per hour, paying a total of $504,017.50 for load testing services, scripts and licences in the last 12 months.

CensusFail RevolutionIT

Let’s think that through – 1 million form submissions per hour.

Australia has a population of approximately 24.1 million people, with an average household size of 2.6 people per household – meaning approximately 9.27 million households. At one census form per household, that means about 9.27 million census forms.

All Australians are supposed to complete the census on the night of 9th August, with fines for late submissions. Let’s say that gives a window of 6 hours – between 6pm and midnight – where we come home from work and get busy filling in the forms. (And yes, Perth is 2 hours behind, so technically I should allow for that, but we’re just talking averages here.)

Even if all the census forms submissions were evenly distributed across those 6 hours, that’s an average of just over 1.5 million forms per hour – or 50% higher than the ABS claimed their load testing.

However, anyone who understands statistical modelling (yes, ABS, that should be you) understands that things just don’t happen uniformly. During times of peak demand, the load can spike to several times the average. If TV stations understand that there are most viewers in prime time, how could the ABS not have predicted the same?

Factors of Safety

Without going into the statistical modelling (let’s leave that to the ABS), it wouldn’t surprise me if at peak times, 3 million forms per hour (twice the average) would have been submitted if the website was actually working.

Therefore, in my opinion, the Census website should have been load tested to 5 million forms per hour. The extra 2 million is called a “safety factor”. Civil engineers regularly incorporate a safety factor into the design of bridges and buildings, and so should software engineers in their designs.

So whoever thought that 1 million form submissions per hour was sufficient didn’t appear to know what they were doing.

What was actually load tested?

My next question was – what was actually load tested?

    • Was it just the web servers, perhaps put into an artificial testing environment and network?
    • OR was it the entire system, including the live production routers and complete network?

Often, testing is done in artificial environments. It’s possible that the web servers were load tested, but not the production network. We don’t know, so that’s only speculation. However, if the entire network were tested adequately, I don’t believe the problems should have occurred.

Questions unanswered…

IBM were paid $9.6m to develop the eCensus solution. The last few days have shown that creating robust cloud services are not quite as easy as baking a cake.

As we all know, cloud computing is not immune to outages. For #CensusFail, the apparent root cause was tracked back to flawed network design and protection mechanism. In essence, the incident was more of a performance issue than a security issue that isn’t inherent to a well-designed cloud network.

But this should get everyone thinking: what would have happened if there actually was a DDoS attack on the Census website? What if there was a privacy breach, and data was either deleted maliciously or copied?

What is your safety factor?

When you use the cloud to store, share and communicate, do you have a safety factor?

What would happen if there were a hacking or DDoS attack on your cloud provider? Organizations must not treat cloud vendors as the last line of defence against security, privacy and even performance related risks.

Advanced tools to backup critical data locally ensure the required information is always available, even during cloud outages.

Let’s treat #CensusFail as a learning experience for us all.

Webcam hacking and randomware: Man videoed with pants off then blackmailed

Have you ever been caught doing something that should have been kept private? Unfortunately, webcam hackers can turn private moments into public humiliation… and that’s what happened to a Melbourne man just recently.

Once his computer was infected with ransomware, hackers were able to record footage from his webcam. And he was recorded in bed… pleasuring himself. The hackers then demanded $10,000 to prevent the video from being leaked to all his Facebook friends. Read the full article here:

Webcam hackers caught me wanking, demanded $10k ransom

Many people don’t know the dangers of webcam hacking. It’s a hacker’s best friend – recording your private moments and then demanding random money in exchange for keeping it private!

How can we protect ourselves? I’ve been using sticky labels over my webcam for some time now – not because I visit dubious websites, but because operating systems and applications are so complex nowadays, it’s simply not possible to know what personal information gets transmitted, and to whom.

Apparently I’m not alone. In this report from The Guardian, Mark Zuckerberg does one step further, taping over both his webcam and microphone.

Mark Zuckerberg tapes over his webcam. Should you?

There are many security measures that we should take to protect ourselves – from using anti-virus and anti-malware software on Windows, to using personal firewalls, to using a VPN whenever connecting to unprotected open wifi connections.

Other basic measures for privacy include using encrypted email and encrypting all sensitive information that gets stored in the cloud. Unfortunately, encrypted email is a pain to use, and none of the big cloud storage companies provide encrypted storage to the level of privacy that I want. That’s why we’re developing our own encryption technologies that will work with existing cloud services and that are designed and audited by independent experts in the field of cryptography. Stay tuned for some product announcements in the next 3-6 months!