Biz & IT

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DOGE software engineer’s computer infected by info-stealing malware

Biz & IT, CISA, credentials, cybersecurity and infrastructure security agency, department of government efficiency, kyle schutt, passwords, Policy, Security / /

Login credentials belonging to an employee at both the Cybersecurity and Infrastructure Security Agency and the Department of Government Efficiency have appeared in multiple public leaks from info-stealer malware, a strong indication that devices belonging to him have been hacked in recent years.

Kyle Schutt is a 30-something-year-old software engineer who, according to Dropsite News, gained access in February to a “core financial management system” belonging to the Federal Emergency Management Agency. As an employee of DOGE, Schutt accessed FEMA’s proprietary software for managing both disaster and non-disaster funding grants. Under his role at CISA, he likely is privy to sensitive information regarding the security of civilian federal government networks and critical infrastructure throughout the US.

A steady stream of published credentials

According to journalist Micah Lee, user names and passwords for logging in to various accounts belonging to Schutt have been published at least four times since 2023 in logs from stealer malware. Stealer malware typically infects devices through trojanized apps, phishing, or software exploits. Besides pilfering login credentials, stealers can also log all keystrokes and capture or record screen output. The data is then sent to the attacker and, occasionally after that, can make its way into public credential dumps.

“I have no way of knowing exactly when Schutt’s computer was hacked, or how many times,” Lee wrote. “I don’t know nearly enough about the origins of these stealer log datasets. He might have gotten hacked years ago and the stealer log datasets were just published recently. But he also might have gotten hacked within the last few months.”

Lee went on to say that credentials belonging to a Gmail account known to belong to Schutt have appeared in 51 data breaches and five pastes tracked by breach notification service Have I Been Pwned. Among the breaches that supplied the credentials is one from 2013 that pilfered password data for 3 million Adobe account holders, one in a 2016 breach that stole credentials for 164 million LinkedIn users, a 2020 breach affecting 167 million users of Gravatar, and a breach last year of the conservative news site The Post Millennial.

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WhatsApp provides no cryptographic management for group messages

Biz & IT, confidentiality, group messages, privacy, Security, whatsapp / /

The flow of adding new members to a WhatsApp group message is:

  • A group member sends an unsigned message to the WhatsApp server that designates which users are group members, for instance, Alice, Bob, and Charlie
  • The server informs all existing group members that Alice, Bob, and Charlie have been added
  • The existing members have the option of deciding whether to accept messages from Alice, Bob, and Charlie, and whether messages exchanged with them should be encrypted

With no cryptographic signatures verifying an existing member who wants to add a new member, additions can be made by anyone with the ability to control the server or messages that flow into it. Using the common fictional scenario for illustrating end-to-end encryption, this lack of cryptographic assurance leaves open the possibility that Malory can join a group and gain access to the human-readable messages exchanged there.

WhatsApp isn’t the only messenger lacking cryptographic assurances for new group members. In 2022, a team that included some of the same researchers that analyzed WhatsApp found that Matrix—an open source and proprietary platform for chat and collaboration clients and servers—also provided no cryptographic means for ensuring only authorized members join a group. The Telegram messenger, meanwhile, offers no end-to-end encryption for group messages, making the app among the weakest for ensuring the confidentiality of group messages.

By contrast, the open source Signal messenger provides a cryptographic assurance that only an existing group member designated as the group admin can add new members. In an email, researcher Benjamin Dowling, also of King’s College, explained:

Signal implements “cryptographic group management.” Roughly this means that the administrator of a group, a user, signs a message along the lines of “Alice, Bob and Charley are in this group” to everyone else. Then, everybody else in the group makes their decision on who to encrypt to and who to accept messages from based on these cryptographically signed messages, [meaning] who to accept as a group member. The system used by Signal is a bit different [than WhatsApp], since [Signal] makes additional efforts to avoid revealing the group membership to the server, but the core principles remain the same.

On a high-level, in Signal, groups are associated with group membership lists that are stored on the Signal server. An administrator of the group generates a GroupMasterKey that is used to make changes to this group membership list. In particular, the GroupMasterKey is sent to other group members via Signal, and so is unknown to the server. Thus, whenever an administrator wants to make a change to the group (for instance, invite another user), they need to create an updated membership list (authenticated with the GroupMasterKey) telling other users of the group who to add. Existing users are notified of the change and update their group list, and perform the appropriate cryptographic operations with the new member so the existing member can begin sending messages to the new members as part of the group.

Most messaging apps, including Signal, don’t certify the identity of their users. That means there’s no way Signal can verify that the person using an account named Alice does, in fact, belong to Alice. It’s fully possible that Malory could create an account and name it Alice. (As an aside, and in sharp contrast to Signal, the account members that belong to a given WhatsApp group are visible to insiders, hackers, and to anyone with a valid subpoena.)

WhatsApp provides no cryptographic management for group messages Read More »

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VMware perpetual license holders receive cease-and-desist letters from Broadcom

Biz & IT, Broadcom, cease and desist, Tech, vmware / /

Broadcom has been sending cease-and-desist letters to owners of VMware perpetual licenses with expired support contracts, Ars Technica has confirmed.

Following its November 2023 acquisition of VMware, Broadcom ended VMware perpetual license sales. Users with perpetual licenses can still use the software they bought, but they are unable to renew support services unless they had a pre-existing contract enabling them to do so. The controversial move aims to push VMware users to buy subscriptions to VMware products bundled such that associated costs have increased by 300 percent or, in some cases, more.

Some customers have opted to continue using VMware unsupported, often as they research alternatives, such as VMware rivals or devirtualization.

Over the past weeks, some users running VMware unsupported have reported receiving cease-and-desist letters from Broadcom informing them that their contract with VMware and, thus, their right to receive support services, has expired. The letter [PDF], reviewed by Ars Technica and signed by Broadcom managing director Michael Brown, tells users that they are to stop using any maintenance releases/updates, minor releases, major releases/upgrades extensions, enhancements, patches, bug fixes, or security patches, save for zero-day security patches, issued since their support contract ended.

The letter tells users that the implementation of any such updates “past the Expiration Date must be immediately removed/deinstalled,” adding:

Any such use of Support past the Expiration Date constitutes a material breach of the Agreement with VMware and an infringement of VMware’s intellectual property rights, potentially resulting in claims for enhanced damages and attorneys’ fees.

Some customers of Members IT Group, a managed services provider (MSP) in Canada, have received this letter, despite not receiving VMware updates since their support contracts expired, CTO Dean Colpitts told Ars. One customer, he said, received a letter six days after their support contract expired.

Similarly, users online have reported receiving cease-and-desist letters even though they haven’t issued updates since losing VMware support. One user on Spiceworks’ community forum reported receiving such a letter even though they migrated off of VMware and to Proxmox.

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Jury orders NSO to pay $167 million for hacking WhatsApp users

Biz & IT, exploits, nso group, pegasus, Policy, Security, whatsapp / /

A jury has awarded WhatsApp $167 million in punitive damages in a case the company brought against Israel-based NSO Group for exploiting a software vulnerability that hijacked the phones of thousands of users.

The verdict, reached Tuesday, comes as a major victory not just for Meta-owned WhatsApp but also for privacy- and security-rights advocates who have long criticized the practices of NSO and other exploit sellers. The jury also awarded WhatsApp $444 million in compensatory damages.

Clickless exploit

WhatsApp sued NSO in 2019 for an attack that targeted roughly 1,400 mobile phones belonging to attorneys, journalists, human-rights activists, political dissidents, diplomats, and senior foreign government officials. NSO, which works on behalf of governments and law enforcement authorities in various countries, exploited a critical WhatsApp vulnerability that allowed it to install NSO’s proprietary spyware Pegasus on iOS and Android devices. The clickless exploit worked by placing a call to a target’s app. A target did not have to answer the call to be infected.

“Today’s verdict in WhatsApp’s case is an important step forward for privacy and security as the first victory against the development and use of illegal spyware that threatens the safety and privacy of everyone,” WhatsApp said in a statement. “Today, the jury’s decision to force NSO, a notorious foreign spyware merchant, to pay damages is a critical deterrent to this malicious industry against their illegal acts aimed at American companies and the privacy and security of the people we serve.”

NSO created WhatsApp accounts in 2018 and used them a year later to initiate calls that exploited the critical vulnerability on phones, which, among others, included 100 members of “civil society” from 20 countries, according to an investigation research group Citizen Lab performed on behalf of WhatsApp. The calls passed through WhatsApp servers and injected malicious code into the memory of targeted devices. The targeted phones would then use WhatsApp servers to connect to malicious servers maintained by NSO.

Jury orders NSO to pay $167 million for hacking WhatsApp users Read More »

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Man pleads guilty to using malicious AI software to hack Disney employee

AI, Biz & IT, guilty plea, nullbulge, Security, us courts / /

A California man has pleaded guilty to hacking an employee of The Walt Disney Company by tricking the person into running a malicious version of a widely used open source AI image-generation tool.

Ryan Mitchell Kramer, 25, pleaded guilty to one count of accessing a computer and obtaining information and one count of threatening to damage a protected computer, the US Attorney for the Central District of California said Monday. In a plea agreement, Kramer said he published an app on GitHub for creating AI-generated art. The program contained malicious code that gave access to computers that installed it. Kramer operated using the moniker NullBulge.

Not the ComfyUI you’re looking for

According to researchers at VPNMentor, the program Kramer used was ComfyUI_LLMVISION, which purported to be an extension for the legitimate ComfyUI image generator and had functions added to it for copying passwords, payment card data, and other sensitive information from machines that installed it. The fake extension then sent the data to a Discord server that Kramer operated. To better disguise the malicious code, it was folded into files that used the names OpenAI and Anthropic.

Two files automatically downloaded by ComfyUI_LLMVISION, as displayed by a user’s Python package manager. Credit: VPNMentor

The Disney employee downloaded ComfyUI_LLMVISION in April 2024. After gaining unauthorized access to the victim’s computer and online accounts, Kramer accessed private Disney Slack channels. In May, he downloaded roughly 1.1 terabytes of confidential data from thousands of the channels.

In early July, Kramer contacted the employee and pretended to be a member of a hacktivist group. Later that month, after receiving no reply from the employee, Kramer publicly released the stolen information, which, besides private Disney material, also included the employee’s bank, medical, and personal information.

In the plea agreement, Kramer admitted that two other victims had installed ComfyUI_LLMVISION, and he gained unauthorized access to their computers and accounts as well. The FBI is investigating. Kramer is expected to make his first court appearance in the coming weeks.

Man pleads guilty to using malicious AI software to hack Disney employee Read More »

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Signal clone used by Trump official stops operations after report it was hacked

Biz & IT, mike waltz, Security, signal / /

Waltz was removed from his post late last week, with Trump nominating him to serve as ambassador to the United Nations.

TeleMessage website removes Signal mentions

The TeleMessage website until recently boasted the ability to “capture, archive and monitor mobile communication” through text messages, voice calls, WhatsApp, WeChat, Telegram, and Signal, as seen in an Internet Archive capture from Saturday. Another archived page says that TeleMessage “captures and records Signal calls, messages, deletions, including text, multimedia, [and] files,” and “maintain[s] all Signal app features and functionality as well as the Signal encryption.”

The TeleMessage home page currently makes no mention of Signal, and links on the page have been disabled.

The anonymous hacker who reportedly infiltrated TeleMessage told 404 Media that it took about 15 to 20 minutes and “wasn’t much effort at all.” While the hacker did not obtain Waltz’s messages, “the hack shows that the archived chat logs are not end-to-end encrypted between the modified version of the messaging app and the ultimate archive destination controlled by the TeleMessage customer,” according to 404 Media.

“Data related to Customs and Border Protection (CBP), the cryptocurrency giant Coinbase, and other financial institutions are included in the hacked material, according to screenshots of messages and backend systems obtained by 404 Media,” the report said. 404 Media added that the “hacker did not access all messages stored or collected by TeleMessage, but could have likely accessed more data if they decided to, underscoring the extreme risk posed by taking ordinarily secure end-to-end encrypted messaging apps such as Signal and adding an extra archiving feature to them.”

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OpenAI scraps controversial plan to become for-profit after mounting pressure

AI, Biz & IT, chatgpt, chatgtp, large language models, machine learning, microsoft, non-profit, openai, public benefit corporation, sam altman / /

The restructuring would have also allowed OpenAI to remove the cap on returns for investors, potentially making the firm more appealing to venture capitalists, with the nonprofit arm continuing to exist but only as a minority stakeholder rather than maintaining governance control. This plan emerged as the company sought a funding round that would value it at $150 billion, which later expanded to the $40 billion round at a $300 billion valuation.

However, the new change in course follows months of mounting pressure from outside the company. In April, a group of legal scholars, AI researchers, and tech industry watchdogs openly opposed OpenAI’s plans to restructure, sending a letter to the attorneys general of California and Delaware.

Former OpenAI employees, Nobel laureates, and law professors also sent letters to state officials requesting that they halt the restructuring efforts out of safety concerns about which part of the company would be in control of hypothetical superintelligent future AI products.

“OpenAI was founded as a nonprofit, is today a nonprofit that oversees and controls the for-profit, and going forward will remain a nonprofit that oversees and controls the for-profit,” he added. “That will not change.”

Uncertainty ahead

While abandoning the restructuring that would have ended nonprofit control, OpenAI still plans to make significant changes to its corporate structure. “The for-profit LLC under the nonprofit will transition to a Public Benefit Corporation (PBC) with the same mission,” Altman explained. “Instead of our current complex capped-profit structure—which made sense when it looked like there might be one dominant AGI effort but doesn’t in a world of many great AGI companies—we are moving to a normal capital structure where everyone has stock. This is not a sale, but a change of structure to something simpler.”

But the plan may cause some uncertainty for OpenAI’s financial future. When OpenAI secured a massive $40 billion funding round in March, it came with strings attached: Japanese conglomerate SoftBank, which committed $30 billion, stipulated that it would reduce its contribution to $20 billion if OpenAI failed to restructure into a fully for-profit entity by the end of 2025.

Despite the challenges ahead, Altman expressed confidence in the path forward: “We believe this sets us up to continue to make rapid, safe progress and to put great AI in the hands of everyone.”

OpenAI scraps controversial plan to become for-profit after mounting pressure Read More »

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Hundreds of e-commerce sites hacked in supply-chain attack

backdoors, Biz & IT, magento, malware, Security, supply chain attack / /

Hundreds of e-commerce sites, at least one owned by a large multinational company, were backdoored by malware that executes malicious code inside the browsers of visitors, where it can steal payment card information and other sensitive data, security researchers said Monday.

The infections are the result of a supply-chain attack that compromised at least three software providers with malware that remained dormant for six years and became active only in the last few weeks. At least 500 e-commerce sites that rely on the backdoored software were infected, and it’s possible that the true number is double that, researchers from security firm Sansec said.

Among the compromised customers was a $40 billion multinational company, which Sansec didn’t name. In an email Monday, a Sansec representative said that “global remediation [on the infected customers] remains limited.”

Code execution on visitors’ machines

The supply chain attack poses a significant risk to the thousands or millions of people visiting the infected sites, because it allows attackers to execute code of their choice on ecommerce site servers. From there, the servers run info-stealing code on visitor machines.

“Since the backdoor allows uploading and executing arbitrary PHP code, the attackers have full remote code execution (RCE) and can do essentially anything they want,” the representative wrote. “In nearly all Adobe Commerce/Magento breaches we observe, the backdoor is then used to inject skimming software that runs in the user’s browser and steals payment information (Magecart).”

The three software suppliers identified by Sansec were Tigren, Magesolution (MGS), and Meetanshi. All three supply software that’s based on Magento, an open source e-commerce platform used by thousands of online stores. A software version sold by a fourth provider named Weltpixel has been infected with similar code on some of its customers’ stores, but Sansec so far has been unable to confirm whether it was the stores or Weltpixel that were hacked. Adobe has owned Megento since 2018.

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Claude’s AI research mode now runs for up to 45 minutes before delivering reports

AI, AI agents, AI research agents, Anthropic, Anthropic Claude, Biz & IT, chatgpt, chatgtp, Claude, Deep Research, Google, large language models, machine learning, openai / /

Still, the report contained a direct quote statement from William Higinbotham that appears to combine quotes from two sources not cited in the source list. (One must always be careful with confabulated quotes in AI because even outside of this Research mode, Claude 3.7 Sonnet tends to invent plausible ones to fit a narrative.) We recently covered a study that showed AI search services confabulate sources frequently, and in this case, it appears that the sources Claude Research surfaced, while real, did not always match what is stated in the report.

There’s always room for interpretation and variation in detail, of course, but overall, Claude Research did a relatively good job crafting a report on this particular topic. Still, you’d want to dig more deeply into each source and confirm everything if you used it as the basis for serious research. You can read the full Claude-generated result as this text file, saved in markdown format. Sadly, the markdown version does not include the source URLS found in the Claude web interface.

Integrations feature

Anthropic also announced Thursday that it has broadened Claude’s data access capabilities. In addition to web search and Google Workspace integration, Claude can now search any connected application through the company’s new “Integrations” feature. The feature reminds us somewhat of OpenAI’s ChatGPT Plugins feature from March 2023 that aimed for similar connections, although the two features work differently under the hood.

These Integrations allow Claude to work with remote Model Context Protocol (MCP) servers across web and desktop applications. The MCP standard, which Anthropic introduced last November and we covered in April, connects AI applications to external tools and data sources.

At launch, Claude supports Integrations with 10 services, including Atlassian’s Jira and Confluence, Zapier, Cloudflare, Intercom, Asana, Square, Sentry, PayPal, Linear, and Plaid. The company plans to add more partners like Stripe and GitLab in the future.

Each integration aims to expand Claude’s functionality in specific ways. The Zapier integration, for instance, reportedly connects thousands of apps through pre-built automation sequences, allowing Claude to automatically pull sales data from HubSpot or prepare meeting briefs based on calendar entries. With Atlassian’s tools, Anthropic says that Claude can collaborate on product development, manage tasks, and create multiple Confluence pages and Jira work items simultaneously.

Anthropic has made its advanced Research and Integrations features available in beta for users on Max, Team, and Enterprise plans, with Pro plan access coming soon. The company has also expanded its web search feature (introduced in March) to all Claude users on paid plans globally.

Claude’s AI research mode now runs for up to 45 minutes before delivering reports Read More »

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Time saved by AI offset by new work created, study suggests

AI, AI and work, AI assistants, AI study, Biz & IT, generative ai, large language models, machine learning, The Register, University of Chicago, University of Copenhagen / /

A new study analyzing the Danish labor market in 2023 and 2024 suggests that generative AI models like ChatGPT have had almost no significant impact on overall wages or employment yet, despite rapid adoption in some workplaces. The findings, detailed in a working paper by economists from the University of Chicago and the University of Copenhagen, provide an early, large-scale empirical look at AI’s transformative potential.

In “Large Language Models, Small Labor Market Effects,” economists Anders Humlum and Emilie Vestergaard focused specifically on the impact of AI chatbots across 11 occupations often considered vulnerable to automation, including accountants, software developers, and customer support specialists. Their analysis covered data from 25,000 workers and 7,000 workplaces in Denmark.

Despite finding widespread and often employer-encouraged adoption of these tools, the study concluded that “AI chatbots have had no significant impact on earnings or recorded hours in any occupation” during the period studied. The confidence intervals in their statistical analysis ruled out average effects larger than 1 percent.

“The adoption of these chatbots has been remarkably fast,” Humlum told The Register about the study. “Most workers in the exposed occupations have now adopted these chatbots… But then when we look at the economic outcomes, it really has not moved the needle.”

AI creating more work?

During the study, the researchers investigated how company investment in AI affected worker adoption and how chatbots changed workplace processes. While corporate investment boosted AI tool adoption—saving time for 64 to 90 percent of users across studied occupations—the actual benefits were less substantial than expected.

The study revealed that AI chatbots actually created new job tasks for 8.4 percent of workers, including some who did not use the tools themselves, offsetting potential time savings. For example, many teachers now spend time detecting whether students use ChatGPT for homework, while other workers review AI output quality or attempt to craft effective prompts.

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Why MFA is getting easier to bypass and what to do about it

Biz & IT, mfa, multi factor authentication, passwords, phishing, Security, webauthn / /

These sorts of adversary-in-the-middle attacks have grown increasingly common. In 2022, for instance, a single group used it in a series of attacks that stole more than 10,000 credentials from 137 organizations and led to the network compromise of authentication provider Twilio, among others.

One company that was targeted in the attack campaign but wasn’t breached was content delivery network Cloudflare. The reason the attack failed was because it uses MFA based on WebAuthn, the standard that makes passkeys work. Services that use WebAuthn are highly resistant to adversary-in-the-middle attacks, if not absolutely immune. There are two reasons for this.

First, WebAuthn credentials are cryptographically bound to the URL they authenticate. In the above example, the credentials would work only on https://accounts.google.com. If a victim tried to use the credential to log in to https://accounts.google.com.evilproxy[.]com, the login would fail each time.

Additionally, WebAuthn-based authentication must happen on or in proximity to the device the victim is using to log in to the account. This occurs because the credential is also cryptographically bound to a victim device. Because the authentication can only happen on the victim device, it’s impossible for an adversary in the middle to actually use it in a phishing attack on their own device.

Phishing has emerged as one of the most vexing security problems facing organizations, their employees, and their users. MFA in the form of a one-time password, or traditional push notifications, definitely adds friction to the phishing process, but with proxy-in-the-middle attacks becoming easier and more common, the effectiveness of these forms of MFA is growing increasingly easier to defeat.

WebAuthn-based MFA comes in multiple forms; a key, known as a passkey, stored on a phone, computer, Yubikey, or similar dongle is the most common example. Thousands of sites now support WebAuthn, and it’s easy for most end users to enroll. As a side note, MFA based on U2F, the predecessor standard to WebAuthn, also prevents adversary-in-the-middle attacks from succeeding, although the latter provides flexibility and additional security.

Post updated to add details about passkeys.

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