Biz & IT

newly-discovered-ransomware-uses-bitlocker-to-encrypt-victim-data

Newly discovered ransomware uses BitLocker to encrypt victim data

GOING NATIVE —

ShrinkLocker is the latest ransomware to use Windows’ full-disk encryption.

A previously unknown piece of ransomware, dubbed ShrinkLocker, encrypts victim data using the BitLocker feature built into the Windows operating system.

BitLocker is a full-volume encryptor that debuted in 2007 with the release of Windows Vista. Users employ it to encrypt entire hard drives to prevent people from reading or modifying data in the event they get physical access to the disk. Starting with the rollout of Windows 10, BitLocker by default has used the 128-bit and 256-bit XTS-AES encryption algorithm, giving the feature extra protection from attacks that rely on manipulating cipher text to cause predictable changes in plain text.

Recently, researchers from security firm Kaspersky found a threat actor using BitLocker to encrypt data on systems located in Mexico, Indonesia, and Jordan. The researchers named the new ransomware ShrinkLocker, both for its use of BitLocker and because it shrinks the size of each non-boot partition by 100 MB and splits the newly unallocated space into new primary partitions of the same size.

“Our incident response and malware analysis are evidence that attackers are constantly refining their tactics to evade detection,” the researchers wrote Friday. “In this incident, we observed the abuse of the native BitLocker feature for unauthorized data encryption.”

ShrinkLocker isn’t the first malware to leverage BitLocker. In 2022, Microsoft reported that ransomware attackers with a nexus to Iran also used the tool to encrypt files. That same year, the Russian agricultural business Miratorg was attacked by ransomware that used BitLocker to encrypt files residing in the system storage of infected devices.

Once installed on a device, ShrinkLocker runs a VisualBasic script that first invokes the Windows Management Instrumentation and Win32_OperatingSystem class to obtain information about the operating system.

“For each object within the query results, the script checks if the current domain is different from the target,” the Kaspersky researchers wrote. “If it is, the script finishes automatically. After that, it checks if the name of the operating system contains ‘xp,’ ‘2000,’ ‘2003,’ or ‘vista,’ and if the Windows version matches any one of these, the script finishes automatically and deletes itself.”

A screenshot showing initial conditions for execution.

Enlarge / A screenshot showing initial conditions for execution.

Kaspersky

The script then continues to use the WMI for querying information about the OS. It goes on to perform the disk resizing operations, which can vary depending on the OS version detected. The ransomware performs these operations only on local, fixed drives. The decision to leave network drives alone is likely motivated by the desire not to trigger network detection protections.

Eventually, ShrinkLocker disables protections designed to secure the BitLocker encryption key and goes on to delete them. It then enables the use of a numerical password, both as a protector against anyone else taking back control of BitLocker and as an encryptor for system data. The reason for deleting the default protectors is to disable key recovery features by the device owner. ShrinkLocker then goes on to generate a 64-character encryption key using random multiplication and replacement of:

  • A variable with the numbers 0–9;
  • The famous pangram, “The quick brown fox jumps over the lazy dog,” in lowercase and uppercase, which contains every letter of the English alphabet;
  • Special characters.

After several additional steps, data is encrypted. The next time the device reboots, the display looks like this:

Screenshot showing the BitLocker recovery screen.

Enlarge / Screenshot showing the BitLocker recovery screen.

Kaspersky

Decrypting drives without the attacker-supplied key is difficult and likely impossible in many cases. While it is possible to recover some of the passphrases and fixed values used to generate the keys, the script uses variable values that are different on each infected device. These variable values aren’t easy to recover.

There are no protections specific to ShrinkLocker for preventing successful attacks. Kaspersky advises the following:

  • Use robust, properly configured endpoint protection to detect threats that try to abuse BitLocker;
  • Implement Managed Detection and Response (MDR) to proactively scan for threats;
  • If BitLocker is enabled, make sure it uses a strong password and that the recovery keys are stored in a secure location;
  • Ensure that users have only minimal privileges. This prevents them from enabling encryption features or changing registry keys on their own;
  • Enable network traffic logging and monitoring. Configure the logging of both GET and POST requests. In case of infection, the requests made to the attacker’s domain may contain passwords or keys;
  • Monitor for events associated with VBS execution and PowerShell, then save the logged scripts and commands to an external repository storing activity that may be deleted locally;
  • Make backups frequently, store them offline, and test them.

Friday’s report also includes indicators that organizations can use to determine if they have been targeted by ShrinkLocker.

Listing image by Getty Images

Newly discovered ransomware uses BitLocker to encrypt victim data Read More »

google’s-“ai-overview”-can-give-false,-misleading,-and-dangerous-answers

Google’s “AI Overview” can give false, misleading, and dangerous answers

This is fine.

Enlarge / This is fine.

Getty Images

If you use Google regularly, you may have noticed the company’s new AI Overviews providing summarized answers to some of your questions in recent days. If you use social media regularly, you may have come across many examples of those AI Overviews being hilariously or even dangerously wrong.

Factual errors can pop up in existing LLM chatbots as well, of course. But the potential damage that can be caused by AI inaccuracy gets multiplied when those errors appear atop the ultra-valuable web real estate of the Google search results page.

“The examples we’ve seen are generally very uncommon queries and aren’t representative of most people’s experiences,” a Google spokesperson told Ars. “The vast majority of AI Overviews provide high quality information, with links to dig deeper on the web.”

After looking through dozens of examples of Google AI Overview mistakes (and replicating many ourselves for the galleries below), we’ve noticed a few broad categories of errors that seemed to show up again and again. Consider this a crash course in some of the current weak points of Google’s AI Overviews and a look at areas of concern for the company to improve as the system continues to roll out.

Treating jokes as facts

  • The bit about using glue on pizza can be traced back to an 11-year-old troll post on Reddit. (via)

    Kyle Orland / Google

  • This wasn’t funny when the guys at Pep Boys said it, either. (via)

    Kyle Orland / Google

  • Weird Al recommends “running with scissors” as well! (via)

    Kyle Orland / Google

Some of the funniest example of Google’s AI Overview failing come, ironically enough, when the system doesn’t realize a source online was trying to be funny. An AI answer that suggested using “1/8 cup of non-toxic glue” to stop cheese from sliding off pizza can be traced back to someone who was obviously trying to troll an ongoing thread. A response recommending “blinker fluid” for a turn signal that doesn’t make noise can similarly be traced back to a troll on the Good Sam advice forums, which Google’s AI Overview apparently trusts as a reliable source.

In regular Google searches, these jokey posts from random Internet users probably wouldn’t be among the first answers someone saw when clicking through a list of web links. But with AI Overviews, those trolls were integrated into the authoritative-sounding data summary presented right at the top of the results page.

What’s more, there’s nothing in the tiny “source link” boxes below Google’s AI summary to suggest either of these forum trolls are anything other than good sources of information. Sometimes, though, glancing at the source can save you some grief, such as when you see a response calling running with scissors “cardio exercise that some say is effective” (that came from a 2022 post from Little Old Lady Comedy).

Bad sourcing

  • Washington University in St. Louis says this ratio is accurate, but others disagree. (via)

    Kyle Orland / Google

  • Man, we wish this fantasy remake was real. (via)

    Kyle Orland / Google

Sometimes Google’s AI Overview offers an accurate summary of a non-joke source that happens to be wrong. When asking about how many Declaration of Independence signers owned slaves, for instance, Google’s AI Overview accurately summarizes a Washington University of St. Louis library page saying that one-third “were personally enslavers.” But the response ignores contradictory sources like a Chicago Sun-Times article saying the real answer is closer to three-quarters. I’m not enough of a history expert to judge which authoritative-seeming source is right, but at least one historian online took issue with the Google AI’s answer sourcing.

Other times, a source that Google trusts as authoritative is really just fan fiction. That’s the case for a response that imagined a 2022 remake of 2001: A Space Odyssey, directed by Steven Spielberg and produced by George Lucas. A savvy web user would probably do a double-take before citing citing Fandom’s “Idea Wiki” as a reliable source, but a careless AI Overview user might not notice where the AI got its information.

Google’s “AI Overview” can give false, misleading, and dangerous answers Read More »

crooks-plant-backdoor-in-software-used-by-courtrooms-around-the-world

Crooks plant backdoor in software used by courtrooms around the world

DISORDER IN THE COURT —

It’s unclear how the malicious version of JAVS Viewer came to be.

Crooks plant backdoor in software used by courtrooms around the world

JAVS

A software maker serving more than 10,000 courtrooms throughout the world hosted an application update containing a hidden backdoor that maintained persistent communication with a malicious website, researchers reported Thursday, in the latest episode of a supply-chain attack.

The software, known as the JAVS Viewer 8, is a component of the JAVS Suite 8, an application package courtrooms use to record, play back, and manage audio and video from proceedings. Its maker, Louisville, Kentucky-based Justice AV Solutions, says its products are used in more than 10,000 courtrooms throughout the US and 11 other countries. The company has been in business for 35 years.

JAVS Viewer users at high risk

Researchers from security firm Rapid7 reported that a version of the JAVS Viewer 8 available for download on javs.com contained a backdoor that gave an unknown threat actor persistent access to infected devices. The malicious download, planted inside an executable file that installs the JAVS Viewer version 8.3.7, was available no later than April 1, when a post on X (formerly Twitter) reported it. It’s unclear when the backdoored version was removed from the company’s download page. JAVS representatives didn’t immediately respond to questions sent by email.

“Users who have version 8.3.7 of the JAVS Viewer executable installed are at high risk and should take immediate action,” Rapid7 researchers Ipek Solak, Thomas Elkins, Evan McCann, Matthew Smith, Jake McMahon, Tyler McGraw, Ryan Emmons, Stephen Fewer, and John Fenninger wrote. “This version contains a backdoored installer that allows attackers to gain full control of affected systems.”

The installer file was titled JAVS Viewer Setup 8.3.7.250-1.exe. When executed, it copied the binary file fffmpeg.exe to the file path C:Program Files (x86)JAVSViewer 8. To bypass security warnings, the installer was digitally signed, but with a signature issued to an entity called “Vanguard Tech Limited” rather than to “Justice AV Solutions Inc.,” the signing entity used to authenticate legitimate JAVS software.

fffmpeg.exe, in turn, used Windows Sockets and WinHTTP to establish communications with a command-and-control server. Once successfully connected, fffmpeg.exe sent the server passwords harvested from browsers and data about the compromised host, including hostname, operating system details, processor architecture, program working directory, and the user name.

The researchers said fffmpeg.exe also downloaded the file chrome_installer.exe from the IP address 45.120.177.178. chrome_installer.exe went on to execute a binary and several Python scripts that were responsible for stealing the passwords saved in browsers. fffmpeg.exe is associated with a known malware family called GateDoor/Rustdoor. The exe file was already flagged by 30 endpoint protection engines.

A screenshot from VirusTotal showing detections from 30 endpoint protection engines.

Enlarge / A screenshot from VirusTotal showing detections from 30 endpoint protection engines.

Rapid7

The number of detections had grown to 38 at the time this post went live.

The researchers warned that the process of disinfecting infected devices will require care. They wrote:

To remediate this issue, affected users should:

  • Reimage any endpoints where JAVS Viewer 8.3.7 was installed. Simply uninstalling the software is insufficient, as attackers may have implanted additional backdoors or malware. Re-imaging provides a clean slate.
  • Reset credentials for any accounts that were logged into affected endpoints. This includes local accounts on the endpoint itself as well as any remote accounts accessed during the period when JAVS Viewer 8.3.7 was installed. Attackers may have stolen credentials from compromised systems.
  • Reset credentials used in web browsers on affected endpoints. Browser sessions may have been hijacked to steal cookies, stored passwords, or other sensitive information.
  • Install the latest version of JAVS Viewer (8.3.8 or higher) after re-imaging affected systems. The new version does not contain the backdoor present in 8.3.7.

Completely re-imaging affected endpoints and resetting associated credentials is critical to ensure attackers have not persisted through backdoors or stolen credentials. All organizations running JAVS Viewer 8.3.7 should take these steps immediately to address the compromise.

The Rapid7 post included a statement from JAVS that confirmed that the installer for version 8.3.7 of the JAVS viewer was malicious.

“We pulled all versions of Viewer 8.3.7 from the JAVS website, reset all passwords, and conducted a full internal audit of all JAVS systems,” the statement read. “We confirmed all currently available files on the JAVS.com website are genuine and malware-free. We further verified that no JAVS Source code, certificates, systems, or other software releases were compromised in this incident.”

The statement didn’t explain how the installer became available for download on its site. It also didn’t say if the company retained an outside firm to investigate.

The incident is the latest example of a supply-chain attack, a technique that tampers with a legitimate service or piece of software with the aim of infecting all downstream users. These sorts of attacks are usually carried out by first hacking the provider of the service or software. There’s no sure way to prevent falling victim to supply-chain attacks, but one potentially useful measure is to vet a file using VirusTotal before executing it. That advice would have served JAVS users well.

Crooks plant backdoor in software used by courtrooms around the world Read More »

bing-outage-shows-just-how-little-competition-google-search-really-has

Bing outage shows just how little competition Google search really has

Searching for new search —

Opinion: Actively searching without Google or Bing is harder than it looks.

Google logo on a phone in front of a Bing logo in the background

Getty Images

Bing, Microsoft’s search engine platform, went down in the very early morning today. That meant that searches from Microsoft’s Edge browsers that had yet to change their default providers didn’t work. It also meant that services relying on Bing’s search API—Microsoft’s own Copilot, ChatGPT search, Yahoo, Ecosia, and DuckDuckGo—similarly failed.

Services were largely restored by the morning Eastern work hours, but the timing feels apt, concerning, or some combination of the two. Google, the consistently dominating search platform, just last week announced and debuted AI Overviews as a default addition to all searches. If you don’t want an AI response but still want to use Google, you can hunt down the new “Web” option in a menu, or you can, per Ernie Smith, tack “&udm=14” onto your search or use Smith’s own “Konami code” shortcut page.

If dismay about AI’s hallucinations, power draw, or pizza recipes concern you—along with perhaps broader Google issues involving privacy, tracking, news, SEO, or monopoly power—most of your other major options were brought down by a single API outage this morning. Moving past that kind of single point of vulnerability will take some work, both by the industry and by you, the person wondering if there’s a real alternative.

Search engine market share, as measured by StatCounter, April 2023–April 2024.

Search engine market share, as measured by StatCounter, April 2023–April 2024.

StatCounter

Upward of a billion dollars a year

The overwhelming majority of search tools offering an “alternative” to Google are using Google, Bing, or Yandex, the three major search engines that maintain massive global indexes. Yandex, being based in Russia, is a non-starter for many people around the world at the moment. Bing offers its services widely, most notably to DuckDuckGo, but its ad-based revenue model and privacy particulars have caused some friction there in the past. Before his company was able to block more of Microsoft’s own tracking scripts, DuckDuckGo CEO and founder Gabriel Weinberg explained in a Reddit reply why firms like his weren’t going the full DIY route:

… [W]e source most of our traditional links and images privately from Bing … Really only two companies (Google and Microsoft) have a high-quality global web link index (because I believe it costs upwards of a billion dollars a year to do), and so literally every other global search engine needs to bootstrap with one or both of them to provide a mainstream search product. The same is true for maps btw — only the biggest companies can similarly afford to put satellites up and send ground cars to take streetview pictures of every neighborhood.

Bing makes Microsoft money, if not quite profit yet. It’s in Microsoft’s interest to keep its search index stocked and API open, even if its focus is almost entirely on its own AI chatbot version of Bing. Yet if Microsoft decided to pull API access, or it became unreliable, Google’s default position gets even stronger. What would non-conformists have to choose from then?

Bing outage shows just how little competition Google search really has Read More »

a-root-server-at-the-internet’s-core-lost-touch-with-its-peers-we-still-don’t-know-why.

A root-server at the Internet’s core lost touch with its peers. We still don’t know why.

A root-server at the Internet’s core lost touch with its peers. We still don’t know why.

For more than four days, a server at the very core of the Internet’s domain name system was out of sync with its 12 root server peers due to an unexplained glitch that could have caused stability and security problems worldwide. This server, maintained by Internet carrier Cogent Communications, is one of the 13 root servers that provision the Internet’s root zone, which sits at the top of the hierarchical distributed database known as the domain name system, or DNS.

Here’s a simplified recap of the way the domain name system works and how root servers fit in:

When someone enters wikipedia.org in their browser, the servers handling the request first must translate the human-friendly domain name into an IP address. This is where the domain name system comes in. The first step in the DNS process is the browser queries the local stub resolver in the local operating system. The stub resolver forwards the query to a recursive resolver, which may be provided by the user’s ISP or a service such as 1.1.1.1 or 8.8.8.8 from Cloudflare and Google, respectively.

If it needs to, the recursive resolver contacts the c-root server or one of its 12 peers to determine the authoritative name server for the .org top level domain. The .org name server then refers the request to the Wikipedia name server, which then returns the IP address. In the following diagram, the recursive server is labeled “iterator.”

Given the crucial role a root server provides in ensuring one device can find any other device on the Internet, there are 13 of them geographically dispersed all over the world. Each root sever is, in fact, a cluster of servers that are also geographically dispersed, providing even more redundancy. Normally, the 13 root servers—each operated by a different entity—march in lockstep. When a change is made to the contents they host, it generally occurs on all of them within a few seconds or minutes at most.

Strange events at the C-root name server

This tight synchronization is crucial for ensuring stability. If one root server directs traffic lookups to one intermediate server and another root server sends lookups to a different intermediate server, the Internet as we know it could collapse. More important still, root servers store the cryptographic keys necessary to authenticate some of intermediate servers under a mechanism known as DNSSEC. If keys aren’t identical across all 13 root servers, there’s an increased risk of attacks such as DNS cache poisoning.

For reasons that remain unclear outside of Cogent—which declined to comment for this post—all 12 instances of the c-root it’s responsible for maintaining suddenly stopped updating on Saturday. Stéphane Bortzmeyer, a French engineer who was among the first to flag the problem in a Tuesday post, noted then that the c-root was three days behind the rest of the root servers.

A mismatch in what's known as the zone serials shows root-c is three days behind.

Enlarge / A mismatch in what’s known as the zone serials shows root-c is three days behind.

The lag was further noted on Mastodon.

By mid-day Wednesday, the lag was shortened to about one day.

By late Wednesday, the c-root was finally up to date.

A root-server at the Internet’s core lost touch with its peers. We still don’t know why. Read More »

emtech-digital-2024:-a-thoughtful-look-at-ai’s-pros-and-cons-with-minimal-hype

EmTech Digital 2024: A thoughtful look at AI’s pros and cons with minimal hype

Massachusetts Institute of Sobriety —

At MIT conference, experts explore AI’s potential for “human flourishing” and the need for regulation.

Nathan Benaich of Air Street capital delivers the opening presentation on the state of AI at EmTech Digital 2024 on May 22, 2024.

Enlarge / Nathan Benaich of Air Street Capital delivers the opening presentation on the state of AI at EmTech Digital 2024 on May 22, 2024.

Benj Edwards

CAMBRIDGE, Massachusetts—On Wednesday, AI enthusiasts and experts gathered to hear a series of presentations about the state of AI at EmTech Digital 2024 on the Massachusetts Institute of Technology’s campus. The event was hosted by the publication MIT Technology Review. The overall consensus is that generative AI is still in its very early stages—with policy, regulations, and social norms still being established—and its growth is likely to continue into the future.

I was there to check the event out. MIT is the birthplace of many tech innovations—including the first action-oriented computer video game—among others, so it felt fitting to hear talks about the latest tech craze in the same building that hosts MIT’s Media Lab on its sprawling and lush campus.

EmTech’s speakers included AI researchers, policy experts, critics, and company spokespeople. A corporate feel pervaded the event due to strategic sponsorships, but it was handled in a low-key way that matches the level-headed tech coverage coming out of MIT Technology Review. After each presentation, MIT Technology Review staff—such as Editor-in-Chief Mat Honan and Senior Reporter Melissa Heikkilä—did a brief sit-down interview with the speaker, pushing back on some points and emphasizing others. Then the speaker took a few audience questions if time allowed.

EmTech Digital 2024 took place in building E14 on MIT's Campus in Cambridge, MA.

Enlarge / EmTech Digital 2024 took place in building E14 on MIT’s Campus in Cambridge, MA.

Benj Edwards

The conference kicked off with an overview of the state of AI by Nathan Benaich, founder and general partner of Air Street Capital, who rounded up news headlines about AI and several times expressed a favorable view toward defense spending on AI, making a few people visibly shift in their seats. Next up, Asu Ozdaglar, deputy dean of Academics at MIT’s Schwarzman College of Computing, spoke about the potential for “human flourishing” through AI-human symbiosis and the importance of AI regulation.

Kari Ann Briski, VP of AI Models, Software, and Services at Nvidia, highlighted the exponential growth of AI model complexity. She shared a prediction from consulting firm Gartner research that by 2026, 50 percent of customer service organizations will have customer-facing AI agents. Of course, Nvidia’s job is to drive demand for its chips, so in her presentation, Briski painted the AI space as an unqualified rosy situation, assuming that all LLMs are (and will be) useful and reliable, despite what we know about their tendencies to make things up.

The conference also addressed the legal and policy aspects of AI. Christabel Randolph from the Center for AI and Digital Policy—an organization that spearheaded a complaint about ChatGPT to the FTC last year—gave a compelling presentation about the need for AI systems to be human-centered and aligned, warning about the potential for anthropomorphic models to manipulate human behavior. She emphasized the importance of demanding accountability from those designing and deploying AI systems.

  • Asu Ozdaglar, deputy dean of Academics at MIT’s Schwarzman College of Computing, spoke about the potential for “human flourishing” through AI-human symbiosis at EmTech Digital on May 22, 2024.

    Benj Edwards

  • Asu Ozdaglar, deputy dean of Academics at MIT’s Schwarzman College of Computing spoke with MIT Technology Review Editor-in-Chief Mat Honan at EmTech Digital on May 22, 2024.

    Benj Edwards

  • Kari Ann Briski, VP of AI Models, Software, and Services at NVIDIA, highlighted the exponential growth of AI model complexity at EmTech Digital on May 22, 2024.

    Benj Edwards

  • MIT Technology Review Senior Reporter Melissa Heikkilä introduces a speaker at EmTech Digital on May 22, 2024.

    Benj Edwards

  • After her presentation, Christabel Randolph from the Center for AI and Digital Policy sat with MIT Technology Review Senior Reporter Melissa Heikkilä at EmTech Digital on May 22, 2024.

    Benj Edwards

  • Lawyer Amir Ghavi provided an overview of the current legal landscape surrounding AI at EmTech Digital on May 22, 2024.

    Benj Edwards

  • Lawyer Amir Ghavi provided an overview of the current legal landscape surrounding AI at EmTech Digital on May 22, 2024.

    Benj Edwards

Amir Ghavi, an AI, Tech, Transactions, and IP partner at Fried Frank LLP, who has defended AI companies like Stability AI in court, provided an overview of the current legal landscape surrounding AI, noting that there have been 24 lawsuits related to AI so far in 2024. He predicted that IP lawsuits would eventually diminish, and he claimed that legal scholars believe that using training data constitutes fair use. He also talked about legal precedents with photocopiers and VCRs, which were both technologies demonized by IP holders until courts decided they constituted fair use. He pointed out that the entertainment industry’s loss on the VCR case ended up benefiting it by opening up the VHS and DVD markets, providing a brand new revenue channel that was valuable to those same companies.

In one of the higher-profile discussions, Meta President of Global Affairs Nick Clegg sat down with MIT Technology Review Executive Editor Amy Nordrum to discuss the role of social media in elections and the spread of misinformation, arguing that research suggests social media’s influence on elections is not as significant as many believe. He acknowledged the “whack-a-mole” nature of banning extremist groups on Facebook and emphasized the changes Meta has undergone since 2016, increasing fact-checkers and removing bad actors.

EmTech Digital 2024: A thoughtful look at AI’s pros and cons with minimal hype Read More »

financial-institutions-have-30-days-to-disclose-breaches-under-new-rules

Financial institutions have 30 days to disclose breaches under new rules

REGULATION S-P —

Amendments contain loopholes that may blunt their effectiveness.

Financial institutions have 30 days to disclose breaches under new rules

The Securities and Exchange Commission (SEC) will require some financial institutions to disclose security breaches within 30 days of learning about them.

On Wednesday, the SEC adopted changes to Regulation S-P, which governs the treatment of the personal information of consumers. Under the amendments, institutions must notify individuals whose personal information was compromised “as soon as practicable, but not later than 30 days” after learning of unauthorized network access or use of customer data. The new requirements will be binding on broker-dealers (including funding portals), investment companies, registered investment advisers, and transfer agents.

“Over the last 24 years, the nature, scale, and impact of data breaches has transformed substantially,” SEC Chair Gary Gensler said. “These amendments to Regulation S-P will make critical updates to a rule first adopted in 2000 and help protect the privacy of customers’ financial data. The basic idea for covered firms is if you’ve got a breach, then you’ve got to notify. That’s good for investors.”

Notifications must detail the incident, what information was compromised, and how those affected can protect themselves. In what appears to be a loophole in the requirements, covered institutions don’t have to issue notices if they establish that the personal information has not been used in a way to result in “substantial harm or inconvenience” or isn’t likely to.

The amendments will require covered institutions to “develop, implement, and maintain written policies and procedures” that are “reasonably designed to detect, respond to, and recover from unauthorized access to or use of customer information.” The amendments also:

• Expand and align the safeguards and disposal rules to cover both nonpublic personal information that a covered institution collects about its own customers and nonpublic personal information it receives from another financial institution about customers of that financial institution;

• Require covered institutions, other than funding portals, to make and maintain written records documenting compliance with the requirements of the safeguards rule and disposal rule;

• Conform Regulation S-P’s annual privacy notice delivery provisions to the terms of an exception added by the FAST Act, which provide that covered institutions are not required to deliver an annual privacy notice if certain conditions are met; and

• Extend both the safeguards rule and the disposal rule to transfer agents registered with the Commission or another appropriate regulatory agency.

The requirements also broaden the scope of nonpublic personal information covered beyond what the firm itself collects. The new rules will also cover personal information the firm has received from another financial institution.

SEC Commissioner Hester M. Peirce voiced concern that the new requirements may go too far.

“Today’s Regulation S-P modernization will help covered institutions appropriately prioritize safeguarding customer information,” she https://www.sec.gov/news/statement/peirce-statement-reg-s-p-051624 wrote. “Customers will be notified promptly when their information has been compromised so they can take steps to protect themselves, like changing passwords or keeping a closer eye on credit scores. My reservations stem from the breadth of the rule and the likelihood that it will spawn more consumer notices than are helpful.”

Regulation S-P hadn’t been substantially updated since its adoption in 2000.

Last year, the SEC adopted new regulations requiring publicly traded companies to disclose security breaches that materially affect or are reasonably likely to materially affect business, strategy, or financial results or conditions.

The amendments take effect 60 days after publication in the Federal Register, the official journal of the federal government that publishes regulations, notices, orders, and other documents. Larger organizations will have 18 months to comply after modifications are published. Smaller organizations will have 24 months.

Public comments on the amendments are available here.

Financial institutions have 30 days to disclose breaches under new rules Read More »

arizona-woman-accused-of-helping-north-koreans-get-remote-it-jobs-at-300-companies

Arizona woman accused of helping North Koreans get remote IT jobs at 300 companies

“STAGGERING FRAUD” —

Alleged $6.8M conspiracy involved “laptop farm,” identity theft, and résumé coaching.

Illustration of a judge's gavel on a digital background resembling a computer circuit board.

Getty Images | the-lightwriter

An Arizona woman has been accused of helping generate millions of dollars for North Korea’s ballistic missile program by helping citizens of that country land IT jobs at US-based Fortune 500 companies.

Christina Marie Chapman, 49, of Litchfield Park, Arizona, raised $6.8 million in the scheme, federal prosecutors said in an indictment unsealed Thursday. Chapman allegedly funneled the money to North Korea’s Munitions Industry Department, which is involved in key aspects of North Korea’s weapons program, including its development of ballistic missiles.

Part of the alleged scheme involved Chapman and co-conspirators compromising the identities of more than 60 people living in the US and using their personal information to get North Koreans IT jobs across more than 300 US companies.

In the indictment, prosecutors wrote:

The conspiracy perpetrated a staggering fraud on a multitude of industries, at the expense of generally unknowing US companies and persons. It impacted more than 300 US companies, compromised more than 60 identities of US persons, caused false information to be conveyed to DHS on more than 100 occasions, created false tax liabilities for more than 35 US persons, and resulted in at least $6.8 million of revenue to be generated for the overseas IT workers. The overseas IT workers worked at blue-chip US companies, including a top-5 national television network and media company, a premier Silicon Valley technology company, an aerospace and defense manufacturer, an iconic American car manufacturer, a high-end retail chain, and one of the most recognizable media and entertainment companies in the world, all of which were Fortune 500 companies.

As another part of the alleged conspiracy, Chapman operated a “laptop farm” at one of her residences to give the employers the impression the North Korean IT staffers were working from within the US; the laptops were issued by the employers. By using proxies and VPNs, the overseas workers appeared to be connecting from US-based IP addresses. Chapman also received employees’ paychecks at her home, prosecutors said.

Federal prosecutors said that Chapman and three North Korean IT workers—using the aliases of Jiho Han, Chunji Jin, Haoran Xu, and others—had been working since at least 2020 to plan a remote-work scheme. In March of that year, prosecutors said, an individual messaged Chapman on LinkedIn and invited her to “be the US face” of their company. From August to November of 2022, the North Korean IT workers allegedly amassed guides and other information online designed to coach North Koreans on how to write effective cover letters and résumés and falsify US Permanent Resident Cards.

Under the alleged scheme, the foreign workers developed “fictitious personas and online profiles to match the job requirements” and submitted fake documents to the Homeland Security Department as part of an employment eligibility check. Chapman also allegedly discussed with co-conspirators about transferring the money earned from their work.

“The charges in this case should be a wakeup call for American companies and government agencies that employ remote IT workers,” Nicole Argentieri, head of the Justice Department’s Criminal Division, said. “These crimes benefited the North Korean government, giving it a revenue stream and, in some instances, proprietary information stolen by the co-conspirators.”

The indictment came alongside a criminal complaint charging a Ukrainian man with carrying out a similar multiyear scheme. Oleksandr Didenko, 27, of Kyiv, Ukraine, allegedly helped individuals in North Korea “market” themselves as remote IT workers.

Chapman was arrested Wednesday. It wasn’t immediately known when she or Didenko were scheduled to make their first appearance in court. If convicted, Chapman faces 97.5 years in prison, and Didenko faces up to 67.5 years.

Arizona woman accused of helping North Koreans get remote IT jobs at 300 companies Read More »

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Archie, the Internet’s first search engine, is rescued and running

Search for the Lost Searcher —

A journey through busted tapes, the Internet Old Farts Club, and SPARCstations.

Screenshot from The Serial Port's Archie project showing an Archie prompt with orange text on a black screen.

The Serial Code/YouTube

It’s amazing, and a little sad, to think that something created in 1989 that changed how people used and viewed the then-nascent Internet had nearly vanished by 2024.

Nearly, that is, because the dogged researchers and enthusiasts at The Serial Port channel on YouTube have found what is likely the last existing copy of Archie. Archie, first crafted by Alan Emtage while a student at McGill University in Montreal, Quebec, allowed for the searching of various “anonymous” FTP servers around what was then a very small web of universities, researchers, and government and military nodes. It was groundbreaking; it was the first echo of the “anything, anywhere” Internet to come. And when The Serial Port went looking, it very much did not exist.

The Serial Port’s journey from wondering where the last Archie server was to hosting its own.

While Archie would eventually be supplanted by Gopher, web portals, and search engines, it remains a useful way to index FTP sites and certainly should be preserved. The Serial Port did this, and the road to get there is remarkable and intriguing. You are best off watching the video of their rescue, along with its explanatory preamble. But I present here some notable bits of the tale, perhaps to tempt you into digging further.

The Serial Port notes the general loss of the Internet’s FTP era, including the recent shutdown of the Hobbes OS/2 Archive. Emtage, interviewed at length by the team, sent a tape copy of Archie to the Computer History Museum in Mountain View, California, but it was unrecoverable. Emtage’s company, Bunyip Information Systems, last sold version 3.5 of Archie’s server software for $6,000 in the mid-1990s (almost $12,000 today), and yet you can’t find it anywhere on the web. The Internet Archive wasn’t really running until 1996, just as Archie was fading from the web and, likely, memory.

The Serial Port team works dozens and dozens of resources to find a working copy of Archie’s code, including the Internet Old Farts Club on Facebook. I won’t give away the surprising source of their victory, but cheers (or na zdrowie) to the folks who keep old things running for everyone’s knowledge.

Kevin Purdy

Not only did The Serial Code rescue the last working version of Archie (seemingly a 3.5 beta), but they posted its docs and now run an actual Archie server on an emulated Sun SPARCstation 5. It’s currently indexing its own mirror of the Hobbes archive, along with the FTP sites for FreeBSD, Adobe, and D Bit emulation. Searching for “word” in Archie found me a bunch of files, including the classic “Antiword” app and password managers and generators for OS/2.

Emtage, who would later help define the Uniform Resource Locator (URL) standard, gave his blessing to The Serial Port’s efforts to recapture and preserve the code of Archie’s server. It’s a happy ending to a story about archiving the early Internet in a way that’s relevant to today, with hopefully more to come.

Listing image by The Serial Port/YouTube

Archie, the Internet’s first search engine, is rescued and running Read More »

breachforums,-an-online-bazaar-for-stolen-data,-seized-by-fbi

BreachForums, an online bazaar for stolen data, seized by FBI

BUSTED —

An earlier iteration of the site was taken down last year; now its reincarnation is gone.

The front page of BreachForums.

Enlarge / The front page of BreachForums.

The FBI and law enforcement partners worldwide have seized BreachForums, a website that openly trafficked malware and data stolen in hacks.

The site has operated for years as an online trading post where criminals could buy and sell all kinds of compromised data, including passwords, customer records, and other often-times sensitive data. Last week, a site user advertised the sale of Dell customer data that was obtained from a support portal, forcing the computer maker to issue a vague warning to those affected. Also last week, Europol confirmed to Bleeping Computer that some of its data had been exposed in a breach of one of its portals. The data was put up for sale on BreachForums, Bleeping Computer reported.

On Wednesday, the normal BreachForums front page was replaced with one that proclaimed: “This website has been taken down by the FBI and DOJ with assistance from international partners.” It went on to say agents are analyzing the backend data and invited those with information about the site to contact them. A graphic shown prominently at the top showed the forum profile images of the site’s two administrators, Baphomet and ShinyHunters, positioned behind prison bars.

The FBI also created a dedicated subdomain on its IC3.gov domain that said: “From June 2023 until May 2024, BreachForums (hosted at breachforums.st/.cx/.is/.vc and run by ShinyHunters) was operating as a clear-net marketplace for cybercriminals to buy, sell, and trade contraband, including stolen access devices, means of identification, hacking tools, breached databases, and other illegal services.” The page provided a form that visitors could fill out to provide tips. At the time this post went live, breachforums.ic3.gov was not available.

The FBI and the Department of Justice declined to comment.

The action on Wednesday is the second time within a year that the online data bazaar has been taken down by law enforcement. Last June, a different domain used to host the site was seized three months after the FBI arrested its alleged founder and operator. Conor Brian Fitzpatrick, then 21 years old, pleaded guilty to multiple charges. In January, he was sentenced to 20 years of supervised release. Prosecutors said that under Fitzpatrick, BreachForums had provided access to the personal information of millions of US citizens.

Shortly after the June takedown of the site, a new individual stepped forward and revived the forum by hosting it on a new domain, which the FBI said had changed three times. This time around, the FBI also seized the official BreachForums Telegram channel and a second one belonging to Baphomet. Both channels displayed the same graphic appearing on the newly seized BreachForums site. It’s not clear how authorities took control of the Telegram channels.

The claim that authorities have access to the BreachForums’ backend data raises the possibility that they are now in possession of email addresses, IP addresses, and other data that could be used to prosecute site users.

In 2022, the FBI seized RaidForums, another site for buying and selling malware and compromised data.

Listing image by Shutterstock

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Linux maintainers were infected for 2 years by SSH-dwelling backdoor with huge reach

ONGOING LINUX THREAT —

Ebury backdoors SSH servers in hosting providers, giving the malware extraordinary reach.

A cartoon door leads to a wall of computer code.

Infrastructure used to maintain and distribute the Linux operating system kernel was infected for two years, starting in 2009, by sophisticated malware that managed to get a hold of one of the developers’ most closely guarded resources: the /etc/shadow files that stored encrypted password data for more than 550 system users, researchers said Tuesday.

The unknown attackers behind the compromise infected at least four servers inside kernel.org, the Internet domain underpinning the sprawling Linux development and distribution network, the researchers from security firm ESET said. After obtaining the cryptographic hashes for 551 user accounts on the network, the attackers were able to convert half into plaintext passwords, likely through password-cracking techniques and the use of an advanced credential-stealing feature built into the malware. From there, the attackers used the servers to send spam and carry out other nefarious activities. The four servers were likely infected and disinfected at different times, with the last two being remediated at some point in 2011.

Stealing kernel.org’s keys to the kingdom

An infection of kernel.org came to light in 2011, when kernel maintainers revealed that 448 accounts had been compromised after attackers had somehow managed to gain unfettered, or “root,” system access to servers connected to the domain. Maintainers reneged on a promise to provide an autopsy of the hack, a decision that has limited the public’s understanding of the incident.

Besides revealing the number of compromised user accounts, representatives of the Linux Kernel Organization provided no details other than saying that the infection:

  • Occurred no later than August 12, 2011, and wasn’t detected for another 17 days
  • Installed an off-the-shelf rootkit known as Phalanx on multiple servers and personal devices belonging to a senior Linux developer
  • Modified the files that both servers and end user devices inside the network used to connect through OpenSSH, an implementation of the SSH protocol for securing remote connections.

In 2014, ESET researchers said the 2011 attack likely infected kernel.org servers with a second piece of malware they called Ebury. The malware, the firm said, came in the form of a malicious code library that, when installed, created a backdoor in OpenSSH that provided the attackers with a remote root shell on infected hosts with no valid password required. In a little less than 22 months, starting in August 2011, Ebury spread to 25,000 servers. Besides the four belonging to the Linux Kernel Organization, the infection also touched one or more servers inside hosting facilities and an unnamed domain registrar and web hosting provider.

A 47-page report summarizing Ebury’s 15-year history said that the infection hitting the kernel.org network began in 2009, two years earlier than the domain was previously thought to have been compromised. The report said that since 2009, the OpenSSH-dwelling malware has infected more than 400,000 servers, all running Linux except for about 400 FreeBSD servers, a dozen OpenBSD and SunOS servers, and at least one Mac.

Researcher Marc-Etienne M. Léveillé wrote:

In our 2014 paper, we mentioned that there was evidence that kernel.org, hosting the source code of the Linux kernel, had been a victim of Ebury. Data now at our disposal reveals additional details about the incident. Ebury had been installed on at least four servers belonging to the Linux Foundation between 2009 and 2011. It seems these servers acted as mail servers, name servers, mirrors, and source code repositories at the time of the compromise. We cannot tell for sure when Ebury was removed from each of the servers, but since it was discovered in 2011 it is likely that two of the servers were compromised for as long as two years, one for one year and the other for six months.

The perpetrator also had copies of the /etc/shadow files, which overall contained 551 unique username and hashed password pairs. The cleartext passwords for 275 of those users (50%) are in possession of the attackers. We believe that the cleartext passwords were obtained by using the installed Ebury credential stealer, and by brute force.

The researcher said in an email that the Ebury and Phalanx infections appear to be separate compromises by two unrelated threat groups. Representatives of the Linux Kernel Organization didn’t respond to emails asking if they were aware of the ESET report or if its claims were accurate. There is no indication that either infection resulted in tampering with the Linux kernel source code.

Linux maintainers were infected for 2 years by SSH-dwelling backdoor with huge reach Read More »

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Apple, SpaceX, Microsoft return-to-office mandates drove senior talent away

The risk of RTO —

“It’s easier to manage a team that’s happy.”

Someone holding a box with their belonging in an office

A study analyzing Apple, Microsoft, and SpaceX suggests that return to office (RTO) mandates can lead to a higher rate of employees, especially senior-level ones, leaving the company, often to work at competitors.

The study (PDF), published this month by University of Chicago and University of Michigan researchers and reported by The Washington Post on Sunday, says:

In this paper, we provide causal evidence that RTO mandates at three large tech companies—Microsoft, SpaceX, and Apple—had a negative effect on the tenure and seniority of their respective workforce. In particular, we find the strongest negative effects at the top of the respective distributions, implying a more pronounced exodus of relatively senior personnel.

The study looked at résumé data from People Data Labs and used “260 million résumés matched to company data.” It only examined three companies, but the report’s authors noted that Apple, Microsoft, and SpaceX represent 30 percent of the tech industry’s revenue and over 2 percent of the technology industry’s workforce. The three companies have also been influential in setting RTO standards beyond their own companies. Robert Ployhart, a professor of business administration and management at the University of South Carolina and scholar at the Academy of Management, told the Post that despite the study being limited to three companies, its conclusions are a broader reflection of the effects of RTO policies in the US.

“Taken together, our findings imply that return to office mandates can imply significant human capital costs in terms of output, productivity, innovation, and competitiveness for the companies that implement them,” the report reads.

For example, after Apple enacted its RTO mandate, which lets employees work at home part-time, the portion of its employee base considered senior-level decreased by 5 percentage points, according to the paper. Microsoft, which also enacted a hybrid RTO approach, saw a decline of 5 percentage points. SpaceX’s RTO mandate, meanwhile, requires workers to be in an office full time. Its share of senior-level employees fell 15 percentage points after the mandate, the study found.

“We find experienced employees impacted by these policies at major tech companies seek work elsewhere, taking some of the most valuable human capital investments and tools of productivity with them,” one of the report’s authors, Austin Wright, an assistant professor of public policy at the University of Chicago, told the Post.

Christopher Myers, associate professor of management and organization health at Johns Hopkins University, suggested to the Post that the departure of senior-level workers could be tied to the hurt morale that comes from RTO mandates, noting that “it’s easier to manage a team that’s happy.”

Debated topic

Since the lifting of COVID-19 restrictions, whether having employees return to work in an office is necessary or beneficial to companies is up for debate. An estimated 75 percent of tech companies in the US are considered “fully flexible,” per a 2023 report from Scoop. As noted by the Post, however, the US’s biggest metro areas have, on average, 51 percent office occupancy, per data from managed security services firm Kastle Systems, which says it analyzes “keycard, fob and KastlePresence app access data across 2,600 buildings and 41,000 businesses.”

Microsoft declined to comment on the report from University of Chicago and University of Michigan researchers, while SpaceX didn’t respond. Apple representative Josh Rosenstock told The Washington Post that the report drew “inaccurate conclusions” and “does not reflect the realities of our business.” He claimed that “attrition is at historically low levels.”

Yet some companies have struggled to make employees who have spent months successfully doing their jobs at home eager to return to the office. Dell, Amazon, Google, Meta, and JPMorgan Chase have tracked employee badge swipes to ensure employees are coming into the office as often as expected. Dell also started tracking VPN usage this week and has told workers who work remotely full time that they can’t get a promotion.

Some company leaders are adamant that remote work can disrupt a company’s ability to innovate. However, there’s research suggesting that RTO mandates aren’t beneficial to companies. A survey of 18,000 Americans released in March pointed to flexible work schedules helping mental health. And an analysis of 457 S&P 500 companies in February found RTO policies hurt employee morale and don’t increase company value.

Apple, SpaceX, Microsoft return-to-office mandates drove senior talent away Read More »