Security

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Justice Department indicts 7 accused in 14-year hack campaign by Chinese gov

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INDICTED —

Hacks allegedly targeted US officials and politicians, their spouses and dozens of companies.

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Justice Department indicts 7 accused in 14-year hack campaign by Chinese gov

peterschreiber.media | Getty Images

The US Justice Department on Monday unsealed an indictment charging seven men with hacking or attempting to hack dozens of US companies in a 14-year campaign furthering an economic espionage and foreign intelligence gathering by the Chinese government.

All seven defendants, federal prosecutors alleged, were associated with Wuhan Xiaoruizhi Science & Technology Co., Ltd. a front company created by the Hubei State Security Department, an outpost of the Ministry of State Security located in Wuhan province. The MSS, in turn, has funded an advanced persistent threat group tracked under names including APT31, Zirconium Violet Typhoon, Judgment Panda, and Altaire.

Relentless 14-year campaign

“Since at least 2010, the defendants … engaged in computer network intrusion activity on behalf of the HSSD targeting numerous US government officials, various US economic and defense industries and a variety of private industry officials, foreign democracy activists, academics and parliamentarians in response to geopolitical events affecting the PRC,” federal prosecutors alleged. “These computer network intrusion activities resulted in the confirmed and potential compromise of work and personal email accounts, cloud storage accounts and telephone call records belonging to millions of Americans, including at least some information that could be released in support of malign influence targeting democratic processes and institutions, and economic plans, intellectual property, and trade secrets belonging to American businesses, and contributed to the estimated billions of dollars lost every year as a result of the PRC’s state-sponsored apparatus to transfer US technology to the PRC.”

The relentless, 14-year campaign targeted thousands of individuals and dozens of companies through the use of zero-day attacks, website vulnerability exploitation, and the targeting of home routers and personal devices of high-ranking US government officials and politicians and election campaign staff from both major US political parties.

“The targeted US government officials included individuals working in the White House, at the Departments of Justice, Commerce, Treasury and State, and US Senators and Representatives of both political parties,” Justice Department officials said. “The defendants and others in the APT31 Group targeted these individuals at both professional and personal email addresses. Additionally in some cases, the defendants also targeted victims’ spouses, including the spouses of a high-ranking Department of Justice official, high-ranking White House officials and multiple United States Senators. Targets also included election campaign staff from both major US political parties in advance of the 2020 election.”

One technique the defendants allegedly used was the sending of emails to journalists, political officials, and companies. The messages, which were made to appear as originating from news outlets or journalists, contained hidden tracking links, which, when activated, gave APT31 members information about the locations, IP addresses, network schematics, and specific devices of the targets for use in follow-on attacks. Some of the targets of these emails included foreign government officials who were part of the Inter-Parliamentary Alliance on China, a group formed after the 1989 Tiananmen Square massacre that’s critical of the Chinese government; every European Union member of that’s a member of that group; and 43 UK parliamentary accounts part of the group or critical of the People’s Republic of China.

APT31 used a variety of methods to infect networks of interest with custom malware such as RAWDOOR, Trochilus, EvilOSX, DropDoor/DropCa, and later the widely available Cobalt Strike Beacon security testing tool. In late 2016, the hacking group exploited what was then a zero-day vulnerability in unnamed software to gain access to an unidentified defense contractor. In their indictment, prosecutors wrote:

Using the zero-day privilege escalation exploit, the Conspirators first obtained administrator access to a subsidiary’s network before ultimately pivoting into the Defense Contractor’s core corporate network,” prosecutors wrote in the indictment. “The Conspirators used a SQL injection, in which they entered malicious code into a web form input box to gain access to information that was not intended to be displayed, to create an account on the subsidiary’s network with the username “testdew23.” The Conspirators used malicious software to grant administrator privileges to the “testdew23” user account. Next, the Conspirators uploaded a web shell, or a script that enables remote administration of the computer, named “Welcome to Chrome,” onto the subsidiary’s web server. Thereafter, the Conspirators used the web shell to upload and execute at least two malicious files on the web server, which were configured to open a connection between the victim’s network and computers outside that network that were controlled by the Conspirators. Through this method, the Conspirators successfully gained unauthorized access to the Defense Contractor’s network.

Other APT31 targets include military contractors and companies in the aerospace, IT services, software, telecommunications, manufacturing, and financial services industries. APT31 has long been known to target not only individuals and entities with information of primary interest but also companies or services that the primary targets rely on. Primary targets were dissidents and critics of the PRC and Western companies in possession of technical information of value to the PRC.

Prosecutors said targets successfully hacked by APT31 include:

  • a cleared defense contractor based in Oklahoma that designed and manufactured military flight simulators for the US military
  • a cleared aerospace and defense contractor based in Tennessee
  • an Alabama-based research corporation in the aerospace and defense industries
  • a Maryland-based professional support services company that serviced the Department of Defense and other government agencies
  • a leading American manufacturer of software and computer services based in California
  • a leading global provider of wireless technology based in Illinois; a technology company based in New York
  • a software company servicing the industrial controls industry based in California
  • an IT consulting company based in California; an IT services and spatial processing company based in Colorado
  • a multifactor authentication company; an American trade association
  • multiple information technology training and support companies
  • a leading provider of 5G network equipment in the United States
  • an IT solutions and 5G integration service company based in Idaho
  • a telecommunications company based in Illinois
  • a voice technology company headquartered in California;
  • a prominent trade organization with offices in New York and elsewhere
  • a manufacturing association based in Washington, DC
  • a steel company
  • an apparel company based in New York
  • an engineering company based in California
  • an energy company based in Texas
  • a finance company headquartered in New York
  • A US multi-national management consulting company with offices in Washington, DC, and elsewhere
  • a financial ratings company based in New York
  • an advertising agency based in New York
  • a consulting company based in Virginia;
  • multiple global law firms based in New York and throughout the United States
  • a law firm software provider
  • a machine learning laboratory based in Virginia
  • a university based in California
  • multiple research hospitals and institutes located in New York and Massachusetts
  • an international non-profit organization headquartered in Washington, DC.

The defendants are:

  • Ni Gaobin (倪高彬), age 38
  • Weng Ming (翁明), 37
  • Cheng Feng (程锋), 34
  • Peng Yaowen (彭耀文), 38
  • Sun Xiaohui (孙小辉), 38
  • Xiong Wang (熊旺), 35
  • Zhao Guangzong (赵光宗), 38

The men were charged with conspiracy to commit computer intrusions and conspiracy to commit wire fraud. While none of the men are in US custody or likely to face prosecution, the US Department of Treasury on Monday sanctioned Wuhan Xiaoruizhi Science and Technology Company, Limited. The department also designated Zhao Guangzong and Ni Gaobin for their roles in hacks targeting US critical infrastructure.

“As a result of today’s action, all property and interests in property of the designated persons and entity described above that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC,” Treasury officials wrote. “In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by US persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.”

The US State Department is offering $10 million for information leading to the identification or location of any of the defendants or others associated with the campaign.

Justice Department indicts 7 accused in 14-year hack campaign by Chinese gov Read More »

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Hackers can unlock over 3 million hotel doors in seconds

Dormakaba, hotels, key card reader, Security, syndication / /
Picture of Saflok lock on hotel door

Enlarge / A Saflok branded lock.

Dormakaba

When thousands of security researchers descend on Las Vegas every August for what’s come to be known as “hacker summer camp,” the back-to-back Black Hat and Defcon hacker conferences, it’s a given that some of them will experiment with hacking the infrastructure of Vegas itself, the city’s elaborate array of casino and hospitality technology. But at one private event in 2022, a select group of researchers were actually invited to hack a Vegas hotel room, competing in a suite crowded with their laptops and cans of Red Bull to find digital vulnerabilities in every one of the room’s gadgets, from its TV to its bedside VoIP phone.

One team of hackers spent those days focused on the lock on the room’s door, perhaps its most sensitive piece of technology of all. Now, more than a year and a half later, they’re finally bringing to light the results of that work: a technique they discovered that would allow an intruder to open any of millions of hotel rooms worldwide in seconds, with just two taps.

Today, Ian Carroll, Lennert Wouters, and a team of other security researchers are revealing a hotel keycard hacking technique they call Unsaflok. The technique is a collection of security vulnerabilities that would allow a hacker to almost instantly open several models of Saflok-brand RFID-based keycard locks sold by the Swiss lock maker Dormakaba. The Saflok systems are installed on 3 million doors worldwide, inside 13,000 properties in 131 countries.

By exploiting weaknesses in both Dormakaba’s encryption and the underlying RFID system Dormakaba uses, known as MIFARE Classic, Carroll and Wouters have demonstrated just how easily they can open a Saflok keycard lock. Their technique starts with obtaining any keycard from a target hotel—say, by booking a room there or grabbing a keycard out of a box of used ones—then reading a certain code from that card with a $300 RFID read-write device, and finally writing two keycards of their own. When they merely tap those two cards on a lock, the first rewrites a certain piece of the lock’s data, and the second opens it.

“Two quick taps and we open the door,” says Wouters, a researcher in the Computer Security and Industrial Cryptography group at the KU Leuven University in Belgium. “And that works on every door in the hotel.”

Wouters and Carroll, an independent security researcher and founder of travel website Seats.aero, shared the full technical details of their hacking technique with Dormakaba in November 2022. Dormakaba says that it’s been working since early last year to make hotels that use Saflok aware of their security flaws and to help them fix or replace the vulnerable locks. For many of the Saflok systems sold in the last eight years, there’s no hardware replacement necessary for each individual lock. Instead, hotels will only need to update or replace the front desk management system and have a technician carry out a relatively quick reprogramming of each lock, door by door.

Wouters and Carroll say they were nonetheless told by Dormakaba that, as of this month, only 36 percent of installed Safloks have been updated. Given that the locks aren’t connected to the Internet and some older locks will still need a hardware upgrade, they say the full fix will still likely take months longer to roll out, at the very least. Some older installations may take years.

Hackers can unlock over 3 million hotel doors in seconds Read More »

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Never-before-seen data wiper may have been used by Russia against Ukraine

Biz & IT, data wipers, russia, Security, Ukraine / /

KREMLIN FINGERPRINTS —

AcidRain, discovered in 2022, is tied to AcidPour. Both are attributed to Russia.

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Never-before-seen data wiper may have been used by Russia against Ukraine

Getty Images

Researchers have unearthed never-before-seen wiper malware tied to the Kremlin and an operation two years ago that took out more than 10,000 satellite modems located mainly in Ukraine on the eve of Russia’s invasion of its neighboring country.

AcidPour, as researchers from security firm Sentinel One have named the new malware, has stark similarities to AcidRain, a wiper discovered in March 2022 that Viasat has confirmed was used in the attack on its modems earlier that month. Wipers are malicious applications designed to destroy stored data or render devices inoperable. Viasat said AcidRain was installed on more than 10,000 Eutelsat KA-SAT modems used by the broadband provider seven days prior to the March 2022 discovery of the wiper. AcidRain was installed on the devices after attackers gained access to the company’s private network.

Sentinel One, which also discovered AcidRain, said at the time that the earlier wiper had enough technical overlaps with malware the US government attributed to the Russian government in 2018 to make it likely that AcidRain and the 2018 malware, known as VPNFilter, were closely linked to the same team of developers. In turn, Sentinel One’s report Thursday noting the similarities between AcidRain and AcidPour provides evidence that AcidPour was also created by developers working on behalf of the Kremlin.

Technical similarities include:

  • Use of the same reboot mechanism
  • The exact logic of recursive directory wiping
  • The same IOCTL-based wiping mechanism.

AcidPour also shares programming similarities with another piece of malware attributed to Sandworm: CaddyWiper, which was used against various targets in Ukraine.

“AcidPour is programmed in C without relying on statically compiled libraries or imports,” Thursday’s report noted. “Most functionality is implemented via direct syscalls, many called through the use of inline assembly and opcodes.” Developers of CaddyWiper used the same approach.

Bolstering the theory that AcidPour was created by the same Russian threat group behind previous attacks on Ukraine, a representative with Ukraine’s State Service of Special Communications and Information Protection told Cyberscoop that AcidPour was linked to UAC-0165, a splinter group associated with Sandworm (a much larger threat group run by Russia’s military intelligence unit, GRU). Representatives with the State Service of Special Communications and Information Protection of Ukraine didn’t immediately answer an email seeking comment for this post.

Sandworm has a long history of targeting Ukrainian critical infrastructure. Ukrainian officials said last September that UAC-0165 regularly props up fake hacktivist personas to take credit for attacks the group carries out.

Sentinel One researchers Juan Andrés Guerrero-Saade and Tom Hegel went on to speculate that AcidPour was used to disrupt multiple Ukrainian telecommunications networks, which have been down since March 13, three days before the researchers discovered the new wiper. They point to statements a persona known as SolntsepekZ made on Telegram that took responsibility for hacks that took out Triangulum, a consortium providing telephone and Internet services under the Triacom brand, and Misto TV.

A message a persona known as SolntsepekZ posted to Telegram.

A message a persona known as SolntsepekZ posted to Telegram.

Sentinel One

The weeklong outage has been confirmed anecdotally and by Network intelligence firm Kentik and content delivery network Cloudflare, with the latter indicating the sites remained inoperable at the time this post went live on Ars. As of Thursday afternoon California time, Misto-TV’s website displayed the following network outage notice:

Outage notice displayed on Misto-TV's website.

Enlarge / Outage notice displayed on Misto-TV’s website.

“At this time, we cannot confirm that AcidPour was used to disrupt these ISPs,” Guerrero-Saade and Hegel wrote in Thursday’s post. “The longevity of the disruption suggests a more complex attack than a simple DDoS or nuisance disruption. AcidPour, uploaded 3 days after this disruption started, would fit the bill for the requisite toolkit. If that’s the case, it could serve as another link between this hacktivist persona and specific GRU operations.”

The researchers added:

“The transition from AcidRain to AcidPour, with its expanded capabilities, underscores the strategic intent to inflict significant operational impact. This progression reveals not only a refinement in the technical capabilities of these threat actors but also their calculated approach to select targets that maximize follow-on effects, disrupting critical infrastructure and communications.”

Never-before-seen data wiper may have been used by Russia against Ukraine Read More »

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Fujitsu says it found malware on its corporate network, warns of possible data breach

Biz & IT, data breach, Fujitsu, malware, Security / /

HACKED —

Company apologizes for the presence of malware on company computers.

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Fujitsu says it found malware on its corporate network, warns of possible data breach

Getty Images

Japan-based IT behemoth Fujitsu said it has discovered malware on its corporate network that may have allowed the people responsible to steal personal information from customers or other parties.

“We confirmed the presence of malware on several of our company’s work computers, and as a result of an internal investigation, it was discovered that files containing personal information and customer information could be illegally taken out,” company officials wrote in a March 15 notification that went largely unnoticed until Monday. The company said it continued to “investigate the circumstances surrounding the malware’s intrusion and whether information has been leaked.” There was no indication how many records were exposed or how many people may be affected.

Fujitsu employs 124,000 people worldwide and reported about $25 billion in its fiscal 2023, which ended at the end of last March. The company operates in 100 countries. Past customers include the Japanese government. Fujitsu’s revenue comes from sales of hardware such as computers, servers, and telecommunications gear, storage systems, software, and IT services.

In 2021, Fujitsu took ProjectWEB, the company’s enterprise software-as-a-service platform, offline following the discovery of a hack that breached multiple Japanese government agencies, including the Ministry of Land, Infrastructure, Transport, and Tourism; the Ministry of Foreign Affairs; and the Cabinet Secretariat. Japan’s Narita Airport was also affected.

Last July, Japan’s Ministry of Internal Affairs and Communications reportedly rebuked Fujitsu over a security failing that led to a separate breach of Fenics, another of the company’s cloud services, which is used by both government agencies and corporations. Earlier this year, the company apologized for playing a leading role in the wrongful conviction of more than 900 sub-postmasters and postmistresses who were accused of theft or fraud when the software wrongly made it appear that money was missing from their branches. A company executive said some of the software bugs responsible for the mistakes had been known since 1999.

Fujitsu representatives didn’t respond to requests for comment about last week’s breach disclosure. The company said it reported the incident to Japan’s data protection authority. “We deeply apologize for the great concern and inconvenience this has caused to everyone involved,” last week’s statement said. So far, the company has found no evidence of any affected customer data being misused.

Fujitsu says it found malware on its corporate network, warns of possible data breach Read More »

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Hackers can read private AI-assistant chats even though they’re encrypted

AI, Artificial Intelligence, Biz & IT, Encryption, Features, gpt, privacy, Security, side channel / /

CHATBOT KEYLOGGING —

All non-Google chat GPTs affected by side channel that leaks responses sent to users.

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Hackers can read private AI-assistant chats even though they’re encrypted

Aurich Lawson | Getty Images

AI assistants have been widely available for a little more than a year, and they already have access to our most private thoughts and business secrets. People ask them about becoming pregnant or terminating or preventing pregnancy, consult them when considering a divorce, seek information about drug addiction, or ask for edits in emails containing proprietary trade secrets. The providers of these AI-powered chat services are keenly aware of the sensitivity of these discussions and take active steps—mainly in the form of encrypting them—to prevent potential snoops from reading other people’s interactions.

But now, researchers have devised an attack that deciphers AI assistant responses with surprising accuracy. The technique exploits a side channel present in all of the major AI assistants, with the exception of Google Gemini. It then refines the fairly raw results through large language models specially trained for the task. The result: Someone with a passive adversary-in-the-middle position—meaning an adversary who can monitor the data packets passing between an AI assistant and the user—can infer the specific topic of 55 percent of all captured responses, usually with high word accuracy. The attack can deduce responses with perfect word accuracy 29 percent of the time.

Token privacy

“Currently, anybody can read private chats sent from ChatGPT and other services,” Yisroel Mirsky, head of the Offensive AI Research Lab at Ben-Gurion University in Israel, wrote in an email. “This includes malicious actors on the same Wi-Fi or LAN as a client (e.g., same coffee shop), or even a malicious actor on the Internet—anyone who can observe the traffic. The attack is passive and can happen without OpenAI or their client’s knowledge. OpenAI encrypts their traffic to prevent these kinds of eavesdropping attacks, but our research shows that the way OpenAI is using encryption is flawed, and thus the content of the messages are exposed.”

Mirsky was referring to OpenAI, but with the exception of Google Gemini, all other major chatbots are also affected. As an example, the attack can infer the encrypted ChatGPT response:

  • Yes, there are several important legal considerations that couples should be aware of when considering a divorce, …

as:

  • Yes, there are several potential legal considerations that someone should be aware of when considering a divorce. …

and the Microsoft Copilot encrypted response:

  • Here are some of the latest research findings on effective teaching methods for students with learning disabilities: …

is inferred as:

  • Here are some of the latest research findings on cognitive behavior therapy for children with learning disabilities: …

While the underlined words demonstrate that the precise wording isn’t perfect, the meaning of the inferred sentence is highly accurate.

Attack overview: A packet capture of an AI assistant’s real-time response reveals a token-sequence side-channel. The side-channel is parsed to find text segments that are then reconstructed using sentence-level context and knowledge of the target LLM’s writing style.

Enlarge / Attack overview: A packet capture of an AI assistant’s real-time response reveals a token-sequence side-channel. The side-channel is parsed to find text segments that are then reconstructed using sentence-level context and knowledge of the target LLM’s writing style.

Weiss et al.

The following video demonstrates the attack in action against Microsoft Copilot:

Token-length sequence side-channel attack on Bing.

A side channel is a means of obtaining secret information from a system through indirect or unintended sources, such as physical manifestations or behavioral characteristics, such as the power consumed, the time required, or the sound, light, or electromagnetic radiation produced during a given operation. By carefully monitoring these sources, attackers can assemble enough information to recover encrypted keystrokes or encryption keys from CPUs, browser cookies from HTTPS traffic, or secrets from smartcards. The side channel used in this latest attack resides in tokens that AI assistants use when responding to a user query.

Tokens are akin to words that are encoded so they can be understood by LLMs. To enhance the user experience, most AI assistants send tokens on the fly, as soon as they’re generated, so that end users receive the responses continuously, word by word, as they’re generated rather than all at once much later, once the assistant has generated the entire answer. While the token delivery is encrypted, the real-time, token-by-token transmission exposes a previously unknown side channel, which the researchers call the “token-length sequence.”

Hackers can read private AI-assistant chats even though they’re encrypted Read More »

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Never-before-seen Linux malware gets installed using 1-day exploits

Biz & IT, Security / /
Never-before-seen Linux malware gets installed using 1-day exploits

Getty Images

Researchers have unearthed Linux malware that circulated in the wild for at least two years before being identified as a credential stealer that’s installed by the exploitation of recently patched vulnerabilities.

The newly identified malware is a Linux variant of NerbianRAT, a remote access Trojan first described in 2022 by researchers at security firm Proofpoint. Last Friday, Checkpoint Research revealed that the Linux version has existed since at least the same year, when it was uploaded to the VirusTotal malware identification site. Checkpoint went on to conclude that Magnet Goblin—the name the security firm uses to track the financially motivated threat actor using the malware—has installed it by exploiting “1-days,” which are recently patched vulnerabilities. Attackers in this scenario reverse engineer security updates, or copy associated proof-of-concept exploits, for use against devices that have yet to install the patches.

Checkpoint also identified MiniNerbian, a smaller version of NerbianRAT for Linux that’s used to backdoor servers running the Magento ecommerce server, primarily for use as command-and-control servers that devices infected by NerbianRAT connect to. Researchers elsewhere have reported encountering servers that appear to have been compromised with MiniNerbian, but Checkpoint Research appears to have been the first to identify the underlying binary.

“Magnet Goblin, whose campaigns appear to be financially motivated, has been quick to adopt 1-day vulnerabilities to deliver their custom Linux malware, NerbianRAT and MiniNerbian,” Checkpoint researchers wrote. “Those tools have operated under the radar as they mostly reside on edge-devices. This is part of an ongoing trend for threat actors to target areas which until now have been left unprotected.”

Checkpoint discovered the Linux malware while researching recent attacks that exploit critical vulnerabilities in Ivanti Secure Connect, which have been under mass exploitation since early January. In the past, Magnet Goblin has installed the malware by exploiting one-day vulnerabilities in Magento, Qlink Sense, and possibly Apache ActiveMQ.

In the course of its investigation into the Ivanti exploitation, Checkpoint found the Linux version of NerbianRAT on compromised servers that were under the control of Magnet Goblin. URLs included:

http://94.156.71[.]115/lxrt

http://91.92.240[.]113/aparche2

http://45.9.149[.]215/aparche2

The Linux variants connect back to the attacker-controlled IP 172.86.66[.]165.

Besides deploying NerbianRAT, Magnet Goblin also installed a custom variant of malware tracked as WarpWire, a piece of stealer malware recently reported by security firm Mandiant. The variant Checkpoint encountered stole VPN credentials and sent them to a server at the domain miltonhouse[.]nl.

Checkpoint Research

NerbianRAT Windows featured robust code that took pains to hide itself and to prevent reverse engineering by rivals or researchers.

“Unlike its Windows equivalent, the Linux version barely has any protective measures,” Checkpoint said. “It is sloppily compiled with DWARF debugging information, which allows researchers to view, among other things, function names and global variable names.”

Never-before-seen Linux malware gets installed using 1-day exploits Read More »

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Microsoft says Kremlin-backed hackers accessed its source and internal systems

apts, Biz & IT, microsoft, midnight blizzard, Security, source code / /

THE PLOT THICKENS —

Midnight Blizzard is now using stolen secrets in follow-on attacks against customers.

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Microsoft says Kremlin-backed hackers accessed its source and internal systems

Microsoft said that Kremlin-backed hackers who breached its corporate network in January have expanded their access since then in follow-on attacks that are targeting customers and have compromised the company’s source code and internal systems.

The intrusion, which the software company disclosed in January, was carried out by Midnight Blizzard, the name used to track a hacking group widely attributed to the Federal Security Service, a Russian intelligence agency. Microsoft said at the time that Midnight Blizzard gained access to senior executives’ email accounts for months after first exploiting a weak password in a test device connected to the company’s network. Microsoft went on to say it had no indication any of its source code or production systems had been compromised.

Secrets sent in email

In an update published Friday, Microsoft said it uncovered evidence that Midnight Blizzard had used the information it gained initially to further push into its network and compromise both source code and internal systems. The hacking group—which is tracked under multiple other names, including APT29, Cozy Bear, CozyDuke, The Dukes, Dark Halo, and Nobelium—has been using the proprietary information in follow-on attacks, not only against Microsoft but also its customers.

“In recent weeks, we have seen evidence that Midnight Blizzard is using information initially exfiltrated from our corporate email systems to gain, or attempt to gain, unauthorized access,” Friday’s update said. “This has included access to some of the company’s source code repositories and internal systems. To date we have found no evidence that Microsoft-hosted customer-facing systems have been compromised.

In January’s disclosure, Microsoft said Midnight Blizzard used a password-spraying attack to compromise a “legacy non-production test tenant account” on the company’s network. Those details meant that the account hadn’t been removed once it was decommissioned, a practice that’s considered essential for securing networks. The details also meant that the password used to log in to the account was weak enough to be guessed by sending a steady stream of credentials harvested from previous breaches—a technique known as password spraying.

In the months since, Microsoft said Friday, Midnight Blizzard has been exploiting the information it obtained earlier in follow-on attacks that have stepped up an already high rate of password spraying.

Unprecedented global threat

Microsoft officials wrote:

It is apparent that Midnight Blizzard is attempting to use secrets of different types it has found. Some of these secrets were shared between customers and Microsoft in email, and as we discover them in our exfiltrated email, we have been and are reaching out to these customers to assist them in taking mitigating measures. Midnight Blizzard has increased the volume of some aspects of the attack, such as password sprays, by as much as 10-fold in February, compared to the already large volume we saw in January 2024.

Midnight Blizzard’s ongoing attack is characterized by a sustained, significant commitment of the threat actor’s resources, coordination, and focus. It may be using the information it has obtained to accumulate a picture of areas to attack and enhance its ability to do so. This reflects what has become more broadly an unprecedented global threat landscape, especially in terms of sophisticated nation-state attacks.

The attack began in November and wasn’t detected until January. Microsoft said then that the breach allowed Midnight Blizzard to monitor the email accounts of senior executives and security personnel, raising the possibility that the group was able to read sensitive communications for as long as three months. Microsoft said one motivation for the attack was for Midnight Blizzard to learn what the company knew about the threat group. Microsoft said at the time and reiterated again Friday that it had no evidence the hackers gained access to customer-facing systems.

Midnight Blizzard is among the most prolific APTs, short for advanced persistent threats, the term used for skilled, well-funded hacking groups that are mostly backed by nation-states. The group was behind the SolarWinds supply-chain attack that led to the hacking of the US Departments of Energy, Commerce, Treasury, and Homeland Security and about 100 private-sector companies.

Last week, the UK National Cyber Security Centre (NCSC) and international partners warned that in recent months, the threat group has expanded its activity to target aviation, education, law enforcement, local and state councils, government financial departments, and military organizations.

Microsoft says Kremlin-backed hackers accessed its source and internal systems Read More »

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Attack wrangles thousands of web users into a password-cracking botnet

Biz & IT, botnets, password cracking, passwords, Security, websites / /

DISTRIBUTED PASSWORD CRACKING —

Ongoing attack is targeting thousands of sites, continues to grow.

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Attack wrangles thousands of web users into a password-cracking botnet

Getty Images

Attackers have transformed hundreds of hacked sites running WordPress software into command-and-control servers that force visitors’ browsers to perform password-cracking attacks.

A web search for the JavaScript that performs the attack showed it was hosted on 708 sites at the time this post went live on Ars, up from 500 two days ago. Denis Sinegubko, the researcher who spotted the campaign, said at the time that he had seen thousands of visitor computers running the script, which caused them to reach out to thousands of domains in an attempt to guess the passwords of usernames with accounts on them.

Visitors unwittingly recruited

“This is how thousands of visitors across hundreds of infected websites unknowingly and simultaneously try to bruteforce thousands of other third-party WordPress sites,” Sinegubko wrote. “And since the requests come from the browsers of real visitors, you can imagine this is a challenge to filter and block such requests.”

Like the hacked websites hosting the malicious JavaScript, all the targeted domains are running the WordPress content management system. The script—just 3 kilobits in size—reaches out to an attacker-controlled getTaskURL, which in turn provides the name of a specific user on a specific WordPress site, along with 100 common passwords. When this data is fed into the browser visiting the hacked site, it attempts to log in to the targeted user account using the candidate passwords. The JavaScript operates in a loop, requesting tasks from the getTaskURL, reporting the results to the completeTaskURL, and then performing the steps again and again.

A snippet of the hosted JavaScript appears below, and below that, the resulting task: 

const getTaskUrl = 'hxxps://dynamic-linx[.]com/getTask.php';  const completeTaskUrl = 'hxxps://dynamic-linx[.]com/completeTask.php';  …  
[871,"https://REDACTED","redacted","60","junkyard","johncena","jewish","jakejake","invincible","intern","indira","hawthorn","hawaiian","hannah1","halifax","greyhound","greene","glenda","futbol","fresh","frenchie","flyaway","fleming","fishing1","finally","ferris","fastball","elisha","doggies","desktop","dental","delight","deathrow","ddddddd","cocker","chilly","chat","casey1","carpenter","calimero","calgary","broker","breakout","bootsie","bonito","black123","bismarck","bigtime","belmont","barnes","ball","baggins","arrow","alone","alkaline","adrenalin","abbott","987987","3333333","123qwerty","000111","zxcv1234","walton","vaughn","tryagain","trent","thatcher","templar","stratus","status","stampede","small","sinned","silver1","signal","shakespeare","selene","scheisse","sayonara","santacruz","sanity","rover","roswell","reverse","redbird","poppop","pompom","pollux","pokerface","passions","papers","option","olympus","oliver1","notorious","nothing1","norris","nicole1","necromancer","nameless","mysterio","mylife","muslim","monkey12","mitsubishi"]

With 418 password batches as of Tuesday, Sinegubko has concluded the attackers are trying 41,800 passwords against each targeted site.

Sinegubko wrote:

Attack stages and lifecycle

The attack consists of five key stages that allow a bad actor to leverage already compromised websites to launch distributed brute force attacks against thousands of other potential victim sites.

  • Stage 1: Obtain URLs of WordPress sites. The attackers either crawl the Internet themselves or use various search engines and databases to obtain lists of target WordPress sites.
  • Stage 2: Extract author usernames. Attackers then scan the target sites, extracting real usernames of authors that post on those domains.
  • Stage 3: Inject malicious scripts. Attackers then inject their dynamic-linx[.]com/chx.js script to websites that they have already compromised.
  • Stage 4: Brute force credentials. As normal site visitors open infected web pages, the malicious script is loaded. Behind the scenes, the visitors’ browsers conduct a distributed brute force attack on thousands of target sites without any active involvement from attackers.
  • Stage 5: Verify compromised credentials. Bad actors verify brute forced credentials and gain unauthorized access to sites targeted in stage 1.

So, how do attackers actually accomplish a distributed brute force attack from the browsers of completely innocent and unsuspecting website visitors? Let’s take a look at stage 4 in closer detail.

Distributed brute force attack steps:

  1. When a site visitor opens an infected web page, the user’s browser requests a task from the hxxps://dynamic-linx[.]com/getTask.php URL.
  2. If the task exists, it parses the data and obtains the URL of the site to attack along with a valid username and a list of 100 passwords to try.
  3. For every password in the list, the visitor’s browser sends the wp.uploadFile XML-RPC API request to upload a file with encrypted credentials that were used to authenticate this specific request. That’s 100 API requests for each task! If authentication succeeds, a small text file with valid credentials is created in the WordPress uploads directory.
  4. When all the passwords are checked, the script sends a notification to hxxps://dynamic-linx[.]com/completeTask.php that the task with a specific taskId (probably a unique site) and checkId (password batch) has been completed.
  5. Finally, the script requests the next task and processes a new batch of passwords. And so on indefinitely while the infected page is open.

As of Tuesday, the researcher had observed “dozens of thousands of requests” to thousands of unique domains that checked for files uploaded by the visitor browsers. Most files reported 404 web errors, an indication that the login using the guessed password failed. Roughly 0.5 percent of cases returned a 200 response code, leaving open the possibility that password guesses may have been successful. On further inspection, only one of the sites was compromised. The others were using non-standard configurations that returned the 200 response, even for pages that weren’t available.

Over a four-day span ending Tuesday, Sinegubko recorded more than 1,200 unique IP addresses that tried to download the credentials file. Of those, five addresses accounted for over 85 percent of the requests:

IP % ASN
146.70.199.169 34.37% M247, RO
138.199.60.23 28.13% CDNEXT, GB
138.199.60.32 10.96% CDNEXT, GB
138.199.60.19 6.54% CDNEXT, GB
87.121.87.178 5.94% SOUZA-AS, BR

Last month, the researcher observed one of the addresses—87.121.87.178—hosting a URL used in a cryptojacking attack. One possibility for the change is that the earlier campaign failed because the malicious URL it relied on wasn’t hosted on enough hacked sites and, in response, the same attacker is using the password-cracking script in an attempt to recruit more sites.

As Sinegubko notes, the more recent campaign is significant because it leverages the computers and Internet connections of unwitting visitors who have done nothing wrong. One way end users can stop this is to use NoScript or another tool that blocks JavaScript from running on unknown sites. NoScript breaks enough sites that it’s not suitable for less experienced users, and even those with more experience often find the hassle isn’t worth the benefit. One other possible remedy is to use certain ad blockers.

Attack wrangles thousands of web users into a password-cracking botnet Read More »

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After collecting $22 million, AlphV ransomware group stages FBI takedown

alphv, Biz & IT, blackcat, exit scam, ransomware, Security / /
A ransom note is plastered across a laptop monitor.

The ransomware group responsible for hamstringing the prescription drug market for two weeks has suddenly gone dark, just days after receiving a $22 million payment and standing accused of scamming an affiliate out of its share of the loot.

The events involve AlphV, a ransomware group also known as BlackCat. Two weeks ago, it took down Change Healthcare, the biggest US health care payment processor, leaving pharmacies, health care providers, and patients scrambling to fill prescriptions for medicines. On Friday, the bitcoin ledger shows, the group received nearly $22 million in cryptocurrency, stoking suspicions the deposit was payment by Change Healthcare in exchange for AlphV decrypting its data and promising to delete it.

Representatives of Optum, the parent company, declined to say if the company has paid AlphV.

Honor among thieves

On Sunday, two days following the payment, a party claiming to be an AlphV affiliate said in an online crime forum that the nearly $22 million payment was tied to the Change Healthcare breach. The party went on to say that AlphV members had cheated the affiliate out of the agreed-upon cut of the payment. In response, the affiliate said it hadn’t deleted the Change Healthcare data it had obtained.

A message left in a crime forum from a party claiming to be an AlphV affiliate. The post claims AlphV scammed the affiliate out of its cut.

Enlarge / A message left in a crime forum from a party claiming to be an AlphV affiliate. The post claims AlphV scammed the affiliate out of its cut.

vxunderground

On Tuesday—four days after the bitcoin payment was made and two days after the affiliate claimed to have been cheated out of its cut—AlphV’s public dark web site started displaying a message saying it had been seized by the FBI as part of an international law enforcement action.

The AlphV extortion site as it appeared on Tuesday.

Enlarge / The AlphV extortion site as it appeared on Tuesday.

The UK’s National Crime Agency, one of the agencies the seizure message said was involved in the takedown, said the agency played no part in any such action. The FBI, meanwhile, declined to comment. The NCA denial, as well as evidence the seizure notice was copied from a different site and pasted into the AlphV one, has led multiple researchers to conclude the ransomware group staged the takedown and took the entire $22 million payment for itself.

“Since people continue to fall for the ALPHV/BlackCat cover up: ALPHV/BlackCat did not get seized,” Fabian Wosar, head of ransomware research at security firm Emsisoft, wrote on social media. “They are exit scamming their affiliates. It is blatantly obvious when you check the source code of the new takedown notice.”

After collecting $22 million, AlphV ransomware group stages FBI takedown Read More »

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Hackers exploited Windows 0-day for 6 months after Microsoft knew of it

Biz & IT, lazarus group, microsoft, Security / /
The word ZERO-DAY is hidden amidst a screen filled with ones and zeroes.

Hackers backed by the North Korean government gained a major win when Microsoft left a Windows zero-day unpatched for six months after learning it was under active exploitation.

Even after Microsoft patched the vulnerability last month, the company made no mention that the North Korean threat group Lazarus had been using the vulnerability since at least August to install a stealthy rootkit on vulnerable computers. The vulnerability provided an easy and stealthy means for malware that had already gained administrative system rights to interact with the Windows kernel. Lazarus used the vulnerability for just that. Even so, Microsoft has long said that such admin-to-kernel elevations don’t represent the crossing of a security boundary, a possible explanation for the time Microsoft took to fix the vulnerability.

A rootkit “holy grail”

“When it comes to Windows security, there is a thin line between admin and kernel,” Jan Vojtěšek, a researcher with security firm Avast, explained last week. “Microsoft’s security servicing criteria have long asserted that ‘[a]dministrator-to-kernel is not a security boundary,’ meaning that Microsoft reserves the right to patch admin-to-kernel vulnerabilities at its own discretion. As a result, the Windows security model does not guarantee that it will prevent an admin-level attacker from directly accessing the kernel.”

The Microsoft policy proved to be a boon to Lazarus in installing “FudModule,” a custom rootkit that Avast said was exceptionally stealthy and advanced. Rootkits are pieces of malware that have the ability to hide their files, processes, and other inner workings from the operating system itself and at the same time control the deepest levels of the operating system. To work, they must first gain administrative privileges—a major accomplishment for any malware infecting a modern OS. Then, they must clear yet another hurdle: directly interacting with the kernel, the innermost recess of an OS reserved for the most sensitive functions.

In years past, Lazarus and other threat groups have reached this last threshold mainly by exploiting third-party system drivers, which by definition already have kernel access. To work with supported versions of Windows, third-party drivers must first be digitally signed by Microsoft to certify that they are trustworthy and meet security requirements. In the event Lazarus or another threat actor has already cleared the admin hurdle and has identified a vulnerability in an approved driver, they can install it and exploit the vulnerability to gain access to the Windows kernel. This technique—known as BYOVD (bring your own vulnerable driver)—comes at a cost, however, because it provides ample opportunity for defenders to detect an attack in progress.

The vulnerability Lazarus exploited, tracked as CVE-2024-21338, offered considerably more stealth than BYOVD because it exploited appid.sys, a driver enabling the Windows AppLocker service, which comes preinstalled in the Microsoft OS. Avast said such vulnerabilities represent the “holy grail,” as compared to BYOVD.

In August, Avast researchers sent Microsoft a description of the zero-day, along with proof-of-concept code that demonstrated what it did when exploited. Microsoft didn’t patch the vulnerability until last month. Even then, the disclosure of the active exploitation of CVE-2024-21338 and details of the Lazarus rootkit came not from Microsoft in February but from Avast 15 days later. A day later, Microsoft updated its patch bulletin to note the exploitation.

Hackers exploited Windows 0-day for 6 months after Microsoft knew of it Read More »

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Researchers create AI worms that can spread from one system to another

AI, malware, Security, syndication, worms / /

There’s always a downside —

Worms could potentially steal data and deploy malware.

–

Researchers create AI worms that can spread from one system to another

Jacqui VanLiew; Getty Images

As generative AI systems like OpenAI’s ChatGPT and Google’s Gemini become more advanced, they are increasingly being put to work. Startups and tech companies are building AI agents and ecosystems on top of the systems that can complete boring chores for you: think automatically making calendar bookings and potentially buying products. But as the tools are given more freedom, it also increases the potential ways they can be attacked.

Now, in a demonstration of the risks of connected, autonomous AI ecosystems, a group of researchers has created one of what they claim are the first generative AI worms—which can spread from one system to another, potentially stealing data or deploying malware in the process. “It basically means that now you have the ability to conduct or to perform a new kind of cyberattack that hasn’t been seen before,” says Ben Nassi, a Cornell Tech researcher behind the research.

Nassi, along with fellow researchers Stav Cohen and Ron Bitton, created the worm, dubbed Morris II, as a nod to the original Morris computer worm that caused chaos across the Internet in 1988. In a research paper and website shared exclusively with WIRED, the researchers show how the AI worm can attack a generative AI email assistant to steal data from emails and send spam messages—breaking some security protections in ChatGPT and Gemini in the process.

The research, which was undertaken in test environments and not against a publicly available email assistant, comes as large language models (LLMs) are increasingly becoming multimodal, being able to generate images and video as well as text. While generative AI worms haven’t been spotted in the wild yet, multiple researchers say they are a security risk that startups, developers, and tech companies should be concerned about.

Most generative AI systems work by being fed prompts—text instructions that tell the tools to answer a question or create an image. However, these prompts can also be weaponized against the system. Jailbreaks can make a system disregard its safety rules and spew out toxic or hateful content, while prompt injection attacks can give a chatbot secret instructions. For example, an attacker may hide text on a webpage telling an LLM to act as a scammer and ask for your bank details.

To create the generative AI worm, the researchers turned to a so-called “adversarial self-replicating prompt.” This is a prompt that triggers the generative AI model to output, in its response, another prompt, the researchers say. In short, the AI system is told to produce a set of further instructions in its replies. This is broadly similar to traditional SQL injection and buffer overflow attacks, the researchers say.

To show how the worm can work, the researchers created an email system that could send and receive messages using generative AI, plugging into ChatGPT, Gemini, and open source LLM, LLaVA. They then found two ways to exploit the system—by using a text-based self-replicating prompt and by embedding a self-replicating prompt within an image file.

In one instance, the researchers, acting as attackers, wrote an email including the adversarial text prompt, which “poisons” the database of an email assistant using retrieval-augmented generation (RAG), a way for LLMs to pull in extra data from outside its system. When the email is retrieved by the RAG, in response to a user query, and is sent to GPT-4 or Gemini Pro to create an answer, it “jailbreaks the GenAI service” and ultimately steals data from the emails, Nassi says. “The generated response containing the sensitive user data later infects new hosts when it is used to reply to an email sent to a new client and then stored in the database of the new client,” Nassi says.

In the second method, the researchers say, an image with a malicious prompt embedded makes the email assistant forward the message on to others. “By encoding the self-replicating prompt into the image, any kind of image containing spam, abuse material, or even propaganda can be forwarded further to new clients after the initial email has been sent,” Nassi says.

In a video demonstrating the research, the email system can be seen forwarding a message multiple times. The researchers also say they could extract data from emails. “It can be names, it can be telephone numbers, credit card numbers, SSN, anything that is considered confidential,” Nassi says.

Although the research breaks some of the safety measures of ChatGPT and Gemini, the researchers say the work is a warning about “bad architecture design” within the wider AI ecosystem. Nevertheless, they reported their findings to Google and OpenAI. “They appear to have found a way to exploit prompt-injection type vulnerabilities by relying on user input that hasn’t been checked or filtered,” a spokesperson for OpenAI says, adding that the company is working to make its systems “more resilient” and saying developers should “use methods that ensure they are not working with harmful input.” Google declined to comment on the research. Messages Nassi shared with WIRED show the company’s researchers requested a meeting to talk about the subject.

While the demonstration of the worm takes place in a largely controlled environment, multiple security experts who reviewed the research say that the future risk of generative AI worms is one that developers should take seriously. This particularly applies when AI applications are given permission to take actions on someone’s behalf—such as sending emails or booking appointments—and when they may be linked up to other AI agents to complete these tasks. In other recent research, security researchers from Singapore and China have shown how they could jailbreak 1 million LLM agents in under five minutes.

Sahar Abdelnabi, a researcher at the CISPA Helmholtz Center for Information Security in Germany, who worked on some of the first demonstrations of prompt injections against LLMs in May 2023 and highlighted that worms may be possible, says that when AI models take in data from external sources or the AI agents can work autonomously, there is the chance of worms spreading. “I think the idea of spreading injections is very plausible,” Abdelnabi says. “It all depends on what kind of applications these models are used in.” Abdelnabi says that while this kind of attack is simulated at the moment, it may not be theoretical for long.

In a paper covering their findings, Nassi and the other researchers say they anticipate seeing generative AI worms in the wild in the next two to three years. “GenAI ecosystems are under massive development by many companies in the industry that integrate GenAI capabilities into their cars, smartphones, and operating systems,” the research paper says.

Despite this, there are ways people creating generative AI systems can defend against potential worms, including using traditional security approaches. “With a lot of these issues, this is something that proper secure application design and monitoring could address parts of,” says Adam Swanda, a threat researcher at AI enterprise security firm Robust Intelligence. “You typically don’t want to be trusting LLM output anywhere in your application.”

Swanda also says that keeping humans in the loop—ensuring AI agents aren’t allowed to take actions without approval—is a crucial mitigation that can be put in place. “You don’t want an LLM that is reading your email to be able to turn around and send an email. There should be a boundary there.” For Google and OpenAI, Swanda says that if a prompt is being repeated within its systems thousands of times, that will create a lot of “noise” and may be easy to detect.

Nassi and the research reiterate many of the same approaches to mitigations. Ultimately, Nassi says, people creating AI assistants need to be aware of the risks. “This is something that you need to understand and see whether the development of the ecosystem, of the applications, that you have in your company basically follows one of these approaches,” he says. “Because if they do, this needs to be taken into account.”

This story originally appeared on wired.com.

Researchers create AI worms that can spread from one system to another Read More »