Intel 471

Security Blueprints of Many Companies Leaked in Hack of Swedish Firm Gunnebo

In March 2020, KrebsOnSecurity alerted Swedish security giant Gunnebo Group that hackers had broken into its network and sold the access to a criminal group which specializes in deploying ransomware. In August, Gunnebo said it had successfully thwarted a ransomware attack, but this week it emerged that the intruders stole and published online tens of thousands of sensitive documents — including schematics of client bank vaults and surveillance systems.

The Gunnebo Group is a Swedish multinational company that provides physical security to a variety of customers globally, including banks, government agencies, airports, casinos, jewelry stores, tax agencies and even nuclear power plants. The company has operations in 25 countries, more than 4,000 employees, and billions in revenue annually.

Acting on a tip from Milwaukee, Wis.-based cyber intelligence firm Hold Security, KrebsOnSecurity in March told Gunnebo about a financial transaction between a malicious hacker and a cybercriminal group which specializes in deploying ransomware. That transaction included credentials to a Remote Desktop Protocol (RDP) account apparently set up by a Gunnebo Group employee who wished to access the company’s internal network remotely.

Five months later, Gunnebo disclosed it had suffered a cyber attack targeting its IT systems that forced the shutdown of internal servers. Nevertheless, the company said its quick reaction prevented the intruders from spreading the ransomware throughout its systems, and that the overall lasting impact from the incident was minimal.

Earlier this week, Swedish news agency Dagens Nyheter confirmed that hackers recently published online at least 38,000 documents stolen from Gunnebo’s network. Linus Larsson, the journalist who broke the story, says the hacked material was uploaded to a public server during the second half of September, and it is not known how many people may have gained access to it.

Larsson quotes Gunnebo CEO Stefan Syrén saying the company never considered paying the ransom the attackers demanded in exchange for not publishing its internal documents. What’s more, Syrén seemed to downplay the severity of the exposure.

“I understand that you can see drawings as sensitive, but we do not consider them as sensitive automatically,” the CEO reportedly said. “When it comes to cameras in a public environment, for example, half the point is that they should be visible, therefore a drawing with camera placements in itself is not very sensitive.”

It remains unclear whether the stolen RDP credentials were a factor in this incident. But the password to the Gunnebo RDP account — “password01” — suggests the security of its IT systems may have been lacking in other areas as well.

After this author posted a request for contact from Gunnebo on Twitter, KrebsOnSecurity heard from Rasmus Jansson, an account manager at Gunnebo who specializes in protecting client systems from electromagnetic pulse (EMP) attacks or disruption, short bursts of energy that can damage electrical equipment.

Jansson said he relayed the stolen credentials to the company’s IT specialists, but that he does not know what actions the company took in response. Reached by phone today, Jansson said he quit the company in August, right around the time Gunnebo disclosed the thwarted ransomware attack. He declined to comment on the particulars of the extortion incident.

Ransomware attackers often spend weeks or months inside of a target’s network before attempting to deploy malware across the network that encrypts servers and desktop systems unless and until a ransom demand is met.

That’s because gaining the initial foothold is rarely the difficult part of the attack. In fact, many ransomware groups now have such an embarrassment of riches in this regard that they’ve taken to hiring external penetration testers to carry out the grunt work of escalating that initial foothold into complete control over the victim’s network and any data backup systems  — a process that can be hugely time consuming.

But prior to launching their ransomware, it has become common practice for these extortionists to offload as much sensitive and proprietary data as possible. In some cases, this allows the intruders to profit even if their malware somehow fails to do its job. In other instances, victims are asked to pay two extortion demands: One for a digital key to unlock encrypted systems, and another in exchange for a promise not to publish, auction or otherwise trade any stolen data.

While it may seem ironic when a physical security firm ends up having all of its secrets published online, the reality is that some of the biggest targets of ransomware groups continue to be companies which may not consider cybersecurity or information systems as their primary concern or business — regardless of how much may be riding on that technology.

Indeed, companies that persist in viewing cyber and physical security as somehow separate seem to be among the favorite targets of ransomware actors. Last week, a Russian journalist published a video on Youtube claiming to be an interview with the cybercriminals behind the REvil/Sodinokibi ransomware strain, which is the handiwork of a particularly aggressive criminal group that’s been behind some of the biggest and most costly ransom attacks in recent years.

https://youtube.com/watch?v=ZyQCQ1VZp8s

In the video, the REvil representative stated that the most desirable targets for the group were agriculture companies, manufacturers, insurance firms, and law firms. The REvil actor claimed that on average roughly one in three of its victims agrees to pay an extortion fee.

Mark Arena, CEO of cybersecurity threat intelligence firm Intel 471, said while it might be tempting to believe that firms which specialize in information security typically have better cybersecurity practices than physical security firms, few organizations have a deep understanding of their adversaries. Intel 471 has published an analysis of the video here.

Arena said this is a particularly acute shortcoming with many managed service providers (MSPs), companies that provide outsourced security services to hundreds or thousands of clients who might not otherwise be able to afford to hire cybersecurity professionals.

“The harsh and unfortunate reality is the security of a number of security companies is shit,” Arena said. “Most companies tend to have a lack of ongoing and up to date understanding of the threat actors they face.”

Amid an Embarrassment of Riches, Ransom Gangs Increasingly Outsource Their Work

There’s an old adage in information security: “Every company gets penetration tested, whether or not they pay someone for the pleasure.” Many organizations that do hire professionals to test their network security posture unfortunately tend to focus on fixing vulnerabilities hackers could use to break in. But judging from the proliferation of help-wanted ads for offensive pentesters in the cybercrime underground, today’s attackers have exactly zero trouble gaining that initial intrusion: The real challenge seems to be hiring enough people to help everyone profit from the access already gained.

One of the most common ways such access is monetized these days is through ransomware, which holds a victim’s data and/or computers hostage unless and until an extortion payment is made. But in most cases, there is a yawning gap of days, weeks or months between the initial intrusion and the deployment of ransomware within a victim organization.

That’s because it usually takes time and a good deal of effort for intruders to get from a single infected PC to seizing control over enough resources within the victim organization where it makes sense to launch the ransomware.

This includes pivoting from or converting a single compromised Microsoft Windows user account to an administrator account with greater privileges on the target network; the ability to sidestep and/or disable any security software; and gaining the access needed to disrupt or corrupt any data backup systems the victim firm may have.

Each day, millions of malware-laced emails are blasted out containing booby-trapped attachments. If the attachment is opened, the malicious document proceeds to quietly download additional malware and hacking tools to the victim machine (here’s one video example of a malicious Microsoft Office attachment from the malware sandbox service any.run). From there, the infected system will report home to a malware control server operated by the spammers who sent the missive.

At that point, control over the victim machine may be transferred or sold multiple times between different cybercriminals who specialize in exploiting such access. These folks are very often contractors who work with established ransomware groups, and who are paid a set percentage of any eventual ransom payments made by a victim company.

THE DOCTOR IS IN

Enter subcontractors like “Dr. Samuil,” a cybercriminal who has maintained a presence on more than a dozen top Russian-language cybercrime forums over the past 15 years. In a series of recent advertisements, Dr. Samuil says he’s eagerly hiring experienced people who are familiar with tools used by legitimate pentesters for exploiting access once inside of a target company — specifically, post-exploit frameworks like the closely-guarded Cobalt Strike.

“You will be regularly provided select accesses which were audited (these are about 10-15 accesses out of 100) and are worth a try,” Dr. Samuil wrote in one such help-wanted ad. “This helps everyone involved to save time. We also have private software that bypasses protection and provides for smooth performance.”

From other classified ads he posted in August and September 2020, it seems clear Dr. Samuil’s team has some kind of privileged access to financial data on targeted companies that gives them a better idea of how much cash the victim firm may have on hand to pay a ransom demand. To wit:

“There is huge insider information on the companies which we target, including information if there are tape drives and clouds (for example, Datto that is built to last, etc.), which significantly affects the scale of the conversion rate.

Requirements:
– experience with cloud storage, ESXi.
– experience with Active Directory.
– privilege escalation on accounts with limited rights.

* Serious level of insider information on the companies with which we work. There are proofs of large payments, but only for verified LEADs.
* There is also a private MEGA INSIDE , which I will not write about here in public, and it is only for experienced LEADs with their teams.
* We do not look at REVENUE / NET INCOME / Accountant reports, this is our MEGA INSIDE, in which we know exactly how much to confidently squeeze to the maximum in total.

According to cybersecurity firm Intel 471, Dr. Samuil’s ad is hardly unique, and there are several other seasoned cybercriminals who are customers of popular ransomware-as-a-service offerings that are hiring sub-contractors to farm out some of the grunt work.

“Within the cybercriminal underground, compromised accesses to organizations are readily bought, sold and traded,” Intel 471 CEO Mark Arena said. “A number of security professionals have previously sought to downplay the business impact cybercriminals can have to their organizations.”

“But because of the rapidly growing market for compromised accesses and the fact that these could be sold to anyone, organizations need to focus more on efforts to understand, detect and quickly respond to network compromises,” Arena continued. “That covers faster patching of the vulnerabilities that matter, ongoing detection and monitoring for criminal malware, and understanding the malware you are seeing in your environment, how it got there, and what it has or could have dropped subsequently.”

WHO IS DR. SAMUIL?

In conducting research for this story, KrebsOnSecurity learned that Dr. Samuil is the handle used by the proprietor of multi-vpn[.]biz, a long-running virtual private networking (VPN) service marketed to cybercriminals who are looking to anonymize and encrypt their online traffic by bouncing it through multiple servers around the globe.

Have a Coke and a Molotov cocktail. Image: twitter.com/multivpn

MultiVPN is the product of a company called Ruskod Networks Solutions (a.k.a. ruskod[.]net), which variously claims to be based in the offshore company havens of Belize and the Seychelles, but which appears to be run by a guy living in Russia.

The domain registration records for ruskod[.]net were long ago hidden by WHOIS privacy services. But according to Domaintools.com [an advertiser on this site], the original WHOIS records for the site from the mid-2000s indicate the domain was registered by a Sergey Rakityansky.

This is not an uncommon name in Russia or in many surrounding Eastern European nations. But a former business partner of MultiVPN who had a rather public falling out with Dr. Samuil in the cybercrime underground told KrebsOnSecurity that Rakityansky is indeed Dr. Samuil’s real surname, and that he is a 32- or 33-year-old currently living in Bryansk, a city located approximately 200 miles southwest of Moscow.

Neither Dr. Samuil nor MultiVPN have responded to requests for comment.

Attacks Aimed at Disrupting the Trickbot Botnet

Over the past 10 days, someone has been launching a series of coordinated attacks designed to disrupt Trickbot, an enormous collection of more than two million malware-infected Windows PCs that are constantly being harvested for financial data and are often used as the entry point for deploying ransomware within compromised organizations.

A text snippet from one of the bogus Trickbot configuration updates. Source: Intel 471

On Sept. 22, someone pushed out a new configuration file to Windows computers currently infected with Trickbot. The crooks running the Trickbot botnet typically use these config files to pass new instructions to their fleet of infected PCs, such as the Internet address where hacked systems should download new updates to the malware.

But the new configuration file pushed on Sept. 22 told all systems infected with Trickbot that their new malware control server had the address 127.0.0.1, which is a “localhost” address that is not reachable over the public Internet, according to an analysis by cyber intelligence firm Intel 471.

It’s not known how many Trickbot-infected systems received the phony update, but it seems clear this wasn’t just a mistake by Trickbot’s overlords. Intel 471 found that it happened yet again on Oct. 1, suggesting someone with access to the inner workings of the botnet was trying to disrupt its operations.

“Shortly after the bogus configs were pushed out, all Trickbot controllers stopped responding correctly to bot requests,” Intel 471 wrote in a note to its customers. “This possibly means central Trickbot controller infrastructure was disrupted. The close timing of both events suggested an intentional disruption of Trickbot botnet operations.”

Intel 471 CEO Mark Arena said it’s anyone’s guess at this point who is responsible.

“Obviously, someone is trying to attack Trickbot,” Arena said. “It could be someone in the security research community, a government, a disgruntled insider, or a rival cybercrime group. We just don’t know at this point.

Arena said it’s unclear how successful these bogus configuration file updates will be given that the Trickbot authors built a fail-safe recovery system into their malware. Specifically, Trickbot has a backup control mechanism: A domain name registered on EmerDNS, a decentralized domain name system.

“This domain should still be in control of the Trickbot operators and could potentially be used to recover bots,” Intel 471 wrote.

But whoever is screwing with the Trickbot purveyors appears to have adopted a multi-pronged approach: Around the same time as the second bogus configuration file update was pushed on Oct. 1, someone stuffed the control networks that the Trickbot operators use to keep track of data on infected systems with millions of new records.

Alex Holden is chief technology officer and founder of Hold Security, a Milwaukee-based cyber intelligence firm that helps recover stolen data. Holden said at the end of September Trickbot held passwords and financial data stolen from more than 2.7 million Windows PCs.

By October 1, Holden said, that number had magically grown to more than seven million.

“Someone is flooding the Trickbot system with fake data,” Holden said. “Whoever is doing this is generating records that include machine names indicating these are infected systems in a broad range of organizations, including the Department of Defense, U.S. Bank, JP Morgan Chase, PNC and Citigroup, to name a few.”

Holden said the flood of new, apparently bogus, records appears to be an attempt by someone to dilute the Trickbot database and confuse or stymie the Trickbot operators. But so far, Holden said, the impact has been mainly to annoy and aggravate the criminals in charge of Trickbot.

“Our monitoring found at least one statement from one of the ransomware groups that relies on Trickbot saying this pisses them off, and they’re going to double the ransom they’re asking for from a victim,” Holden said. “We haven’t been able to confirm whether they actually followed through with that, but these attacks are definitely interfering with their business.”

Intel 471’s Arena said this could be part of an ongoing campaign to dismantle or wrest control over the Trickbot botnet. Such an effort would hardly be unprecedented. In 2014, for example, U.S. and international law enforcement agencies teamed up with multiple security firms and private researchers to commandeer the Gameover Zeus Botnet, a particularly aggressive and sophisticated malware strain that had enslaved up to 1 million Windows PCs globally.

Trickbot would be an attractive target for such a takeover effort because it is widely viewed as a platform used to find potential ransomware victims. Intel 471 describes Trickbot as “a malware-as-a-service platform that caters to a relatively small number of top-tier cybercriminals.”

One of the top ransomware gangs in operation today — which deploys ransomware strains known variously as “Ryuk” and “Conti,” is known to be closely associated with Trickbot infections. Both ransomware families have been used in some of the most damaging and costly malware incidents to date.

The latest Ryuk victim is Universal Health Services (UHS), a Fortune 500 hospital and healthcare services provider that operates more than 400 facilities in the U.S. and U.K.

On Sunday, Sept. 27, UHS shut down its computer systems at healthcare facilities across the United States in a bid to stop the spread of the malware. The disruption has reportedly caused the affected hospitals to redirect ambulances and relocate patients in need of surgery to other nearby hospitals.

Ukraine Nabs Suspect in 773M Password ‘Megabreach’

In January 2019, dozens of media outlets raised the alarm about a new “megabreach” involving the release of some 773 million stolen usernames and passwords that was breathlessly labeled “the largest collection of stolen data in history.” A subsequent review by KrebsOnSecurity quickly determined the data was years old and merely a compilation of credentials pilfered from mostly public data breaches. Earlier today, authorities in Ukraine said they’d apprehended a suspect in the case.

The Security Service of Ukraine (SBU) on Tuesday announced the detention of a hacker known as Sanix (a.k.a. “Sanixer“) from the Ivano-Frankivsk region of the country. The SBU said they found on Sanix’s computer records showing he sold databases with “logins and passwords to e-mail boxes, PIN codes for bank cards, e-wallets of cryptocurrencies, PayPal accounts, and information about computers hacked for further use in botnets and for organizing distributed denial-of-service (DDoS) attacks.”

Items SBU authorities seized after raiding Sanix’s residence. Image: SBU.

Sanix became famous last year for posting to hacker forums that he was selling the 87GB password dump, labeled “Collection #1.” Shortly after his sale was first detailed by Troy Hunt, who operates the HaveIBeenPwned breach notification service, KrebsOnSecurity contacted Sanix to find out what all the fuss was about. From that story:

“Sanixer said Collection#1 consists of data pulled from a huge number of hacked sites, and was not exactly his ‘freshest’ offering. Rather, he sort of steered me away from that archive, suggesting that — unlike most of his other wares — Collection #1 was at least 2-3 years old. His other password packages, which he said are not all pictured in the above screen shot and total more than 4 terabytes in size, are less than a year old, Sanixer explained.”

Alex Holden, chief technology officer and founder of Milwaukee-based Hold Security, said Sanixer’s claim to infamy was simply for disclosing the Collection #1 data, which was just one of many credential dumps amalgamated by other cyber criminals.

“Today, it is even a more common occurrence to see mixing new and old breached credentials,” Holden said. “In fact, large aggregations of stolen credentials have been around since 2013-2014. Even the original attempt to sell the Yahoo breach data was a large mix of several previous unrelated breaches. Collection #1 was one of many credentials collections output by various cyber criminals gangs.”

Sanix was far from a criminal mastermind, and left a long trail of clues that made it almost child’s play to trace his hacker aliases to the real-life identity of a young man in Burshtyn, a city located in Ivano-Frankivsk Oblast in western Ukraine.

Still, perhaps Ukraine’s SBU detained Sanix for other reasons in addition to his peddling of Collection 1. According to cyber intelligence firm Intel 471, Sanix has stayed fairly busy selling credentials that would allow customers to remotely access hacked resources at several large organizations. For example, as recently as earlier this month, Intel 471 spotted Sanix selling access to nearly four dozen universities worldwide, and to a compromised VPN account for the government of San Bernadino, Calif.

KrebsOnSecurity is covering Sanix’s detention mainly to close the loop on an incident that received an incredible amount of international attention. But it’s also another excuse to remind readers about the importance of good password hygiene. A core reason so many accounts get compromised is that far too many people have the nasty habit(s) of choosing poor passwords, re-using passwords and email addresses across multiple sites, and not taking advantage of multi-factor authentication options when available.

By far the most important passwords are those protecting our email inbox(es). That’s because in nearly all cases, the person who is in control of that email address can reset the password of any services or accounts tied to that email address – merely by requesting a password reset link via email. For more on this dynamic, please see The Value of a Hacked Email Account.

Your email account may be worth far more than you imagine.

And instead of thinking about passwords, consider using unique, lengthy passphrases — collections of words in an order you can remember — when a site allows it. In general, a long, unique passphrase takes far more effort to crack than a short, complex one. Unfortunately, many sites do not let users choose passwords or passphrases that exceed a small number of characters, or they will otherwise allow long passphrases but ignore anything entered after the character limit is reached.

If you are the type of person who likes to re-use passwords, then you definitely need to be using a password manager, which helps you pick and remember strong and unique passwords/passphrases and essentially lets you use the same strong master password/passphrase across all Web sites.

Finally, if you haven’t done so lately, mosey on over to twofactorauth.org and see if you are taking full advantage of the strongest available multi-factor authentication option at sites you trust with your data. The beauty of multi-factor is that even if thieves manage to guess or steal your password just because they hacked some Web site, that password will be useless to them unless they can also compromise that second factor — be it your mobile device, phone number, or security key. Not saying these additional security methods aren’t also vulnerable to compromise (they absolutely are), but they’re definitely better than just using a password.

This Service Helps Malware Authors Fix Flaws in their Code

Almost daily now there is news about flaws in commercial software that lead to computers getting hacked and seeded with malware. But the reality is most malicious software also has its share of security holes that open the door for security researchers or ne’er-do-wells to liberate or else seize control over already-hacked systems. Here’s a look at one long-lived malware vulnerability testing service that is used and run by some of the Dark Web’s top cybercriminals.

It is not uncommon for crooks who sell malware-as-a-service offerings such as trojan horse programs and botnet control panels to include backdoors in their products that let them surreptitiously monitor the operations of their customers and siphon data stolen from victims. More commonly, however, the people writing malware simply make coding mistakes that render their creations vulnerable to compromise.

At the same time, security companies are constantly scouring malware code for vulnerabilities that might allow them peer to inside the operations of crime networks, or to wrest control over those operations from the bad guys. There aren’t a lot of public examples of this anti-malware activity, in part because it wades into legally murky waters. More importantly, talking publicly about these flaws tends to be the fastest way to get malware authors to fix any vulnerabilities in their code.

Enter malware testing services like the one operated by “RedBear,” the administrator of a Russian-language security site called Krober[.]biz, which frequently blogs about security weaknesses in popular malware tools.

For the most part, the vulnerabilities detailed by Krober aren’t written about until they are patched by the malware’s author, who’s paid a small fee in advance for a code review that promises to unmask any backdoors and/or harden the security of the customer’s product.

RedBear’s profile on the Russian-language xss[.]is cybercrime forum.

RedBear’s service is marketed not only to malware creators, but to people who rent or buy malicious software and services from other cybercriminals. A chief selling point of this service is that, crooks being crooks, you simply can’t trust them to be completely honest.

“We can examine your (or not exactly your) PHP code for vulnerabilities and backdoors,” reads his offering on several prominent Russian cybercrime forums. “Possible options include, for example, bot admin panels, code injection panels, shell control panels, payment card sniffers, traffic direction services, exchange services, spamming software, doorway generators, and scam pages, etc.”

As proof of his service’s effectiveness, RedBear points to almost a dozen articles on Krober[.]biz which explain in intricate detail flaws found in high-profile malware tools whose authors have used his service in the past, including; the Black Energy DDoS bot administration panel; malware loading panels tied to the Smoke and Andromeda bot loaders; the RMS and Spyadmin trojans; and a popular loan scan script.

ESTRANGED BEDFELLOWS

RedBear doesn’t operate this service on his own. Over the years he’s had several partners in the project, including two very high-profile cybercriminals (or possibly just one, as we’ll see in a moment) who until recently operated under the hacker aliases “upO” and “Lebron.”

From 2013 to 2016, upO was a major player on Exploit[.]in — one of the most active and venerated Russian-language cybercrime forums in the underground — authoring almost 1,500 posts on the forum and starting roughly 80 threads, mostly focusing on malware. For roughly one year beginning in 2016, Lebron was a top moderator on Exploit.

One of many articles Lebron published on Krober[.]biz that detailed flaws found in malware submitted to RedBear’s vulnerability testing service.

In 2016, several members began accusing upO of stealing source code from malware projects under review, and then allegedly using or incorporating bits of the code into malware projects he marketed to others.

up0 would eventually be banned from Exploit for getting into an argument with another top forum contributor, wherein both accused the other of working for or with Russian and/or Ukrainian federal authorities, and proceeded to publish personal information about the other that allegedly outed their real-life identities.

The cybercrime actor “upO” on Exploit[.]in in late 2016, complaining that RedBear was refusing to pay a debt owed to him.

Lebron first appeared on Exploit in September 2016, roughly two months before upO was banished from the community. After serving almost a year on the forum while authoring hundreds of posts and threads (including many articles first published on Krober), Lebron abruptly disappeared from Exploit.

His departure was prefaced by a series of increasingly brazen accusations by forum members that Lebron was simply upO using a different nickname. His final post on Exploit in May 2017 somewhat jokingly indicated he was joining an upstart ransomware affiliate program.

RANSOMWARE DREAMS

According to research from cyber intelligence firm Intel 471, upO had a strong interest in ransomware and had partnered with the developer of the Cerber ransomware strain, an affiliate program operating between Feb. 2016 and July 2017 that sought to corner the increasingly lucrative and competitive market for ransomware-as-a-service offerings.

Intel 471 says a rumor has been circulating on Exploit and other forums upO frequented that he was the mastermind behind GandCrab, another ransomware-as-a-service affiliate program that first surfaced in January 2018 and later bragged about extorting billions of dollars from hacked businesses when it closed up shop in June 2019.

Multiple security companies and researchers (including this author) have concluded that GandCrab didn’t exactly go away, but instead re-branded to form a more exclusive ransomware-as-a-service offering dubbed “REvil” (a.k.a. “Sodin” and “Sodinokibi”). REvil was first spotted in April 2019 after being installed by a GandCrab update, but its affiliate program didn’t kick into high gear until July 2019.

Last month, the public face of the REvil ransomware affiliate program — a cybercriminal who registered on Exploit in July 2019 using the nickname “UNKN” (a.k.a. “Unknown”) — found himself the target of a blackmail scheme publicly announced by a fellow forum member who claimed to have helped bankroll UNKN’s ransomware business back in 2016 but who’d taken a break from the forum on account of problems with the law.

That individual, using the nickname “Vivalamuerte,” said UNKN still owed him his up-front investment money, which he reckoned amounted to roughly $190,000. Vivalamuerte said he would release personal details revealing UNKN’s real-life identity unless he was paid what he claims he is owed.

In this Google-translated blackmail post by Vivalamuerte to UNKN, the latter’s former nickname was abbreviated to “L”.

Vivalamuerte also claimed UNKN has used four different nicknames, and that the moniker he interacted with back in 2016 began with the letter “L.” The accused’s full nickname was likely redacted by forum administrators because a search on the forum for “Lebron” brings up the same post even though it is not visible in any of Vivalamuerte’s threatening messages.

Reached by KrebsOnSecurity, Vivalamuerte declined to share what he knew about UNKN, saying the matter was still in arbitration. But he said he has proof that Lebron was the principle coder behind the GandCrab ransomware, and that the person behind the Lebron identity plays a central role in the REvil ransomware extortion enterprise as it exists today.

How Cybercriminals are Weathering COVID-19

In many ways, the COVID-19 pandemic has been a boon to cybercriminals: With unprecedented numbers of people working from home and anxious for news about the virus outbreak, it’s hard to imagine a more target-rich environment for phishers, scammers and malware purveyors. In addition, many crooks are finding the outbreak has helped them better market their cybercriminal wares and services. But it’s not all good news: The Coronavirus also has driven up costs and disrupted key supply lines for many cybercriminals. Here’s a look at how they’re adjusting to these new realities.

FUELED BY MULES

One of the more common and perennial cybercriminal schemes is “reshipping fraud,” wherein crooks buy pricey consumer goods online using stolen credit card data and then enlist others to help them collect or resell the merchandise.

Most online retailers years ago stopped shipping to regions of the world most frequently associated with credit card fraud, including Eastern Europe, North Africa, and Russia. These restrictions have created a burgeoning underground market for reshipping scams, which rely on willing or unwitting residents in the United States and Europe — derisively referred to as “reshipping mules” — to receive and relay high-dollar stolen goods to crooks living in the embargoed areas.

A screen shot from a user account at “Snowden,” a long-running reshipping mule service.

But apparently a number of criminal reshipping services are reporting difficulties due to the increased wait time when calling FedEx or UPS (to divert carded goods that merchants end up shipping to the cardholder’s address instead of to the mule’s). In response, these operations are raising their prices and warning of longer shipping times, which in turn could hamper the activities of other actors who depend on those services.

That’s according to Intel 471, a cyber intelligence company that closely monitors hundreds of online crime forums. In a report published today, the company said since late March 2020 it has observed several crooks complaining about COVID-19 interfering with the daily activities of their various money mules (people hired to help launder the proceeds of cybercrime).

“One Russian-speaking actor running a fraud network complained about their subordinates (“money mules”) in Italy, Spain and other countries being unable to withdraw funds, since they currently were afraid to leave their homes,” Intel 471 observed. “Also some actors have reported that banks’ customer-support lines are being overloaded, making it difficult for fraudsters to call them for social-engineering activities (such as changing account ownership, raising withdrawal limits, etc).”

Still, every dark cloud has a silver lining: Intel 471 noted many cybercriminals appear optimistic that the impending global economic recession (and resultant unemployment) “will make it easier to recruit low-level accomplices such as money mules.”

Alex Holden, founder and CTO of Hold Security, agreed. He said while the Coronavirus has forced reshipping operators to make painful shifts in several parts of their business, the overall market for available mules has never looked brighter.

“Reshipping is way up right now, but there are some complications,” he said.

For example, reshipping scams have over the years become easier for both reshipping mule operators and the mules themselves. Many reshipping mules are understandably concerned about receiving stolen goods at their home and risking a visit from the local police. But increasingly, mules have been instructed to retrieve carded items from third-party locations.

“The mules don’t have to receive stolen goods directly at home anymore,” Holden said. “They can pick them up at Walgreens, Hotel lobbies, etc. There are a ton of reshipment tricks out there.”

But many of those tricks got broken with the emergence of COVID-19 and social distancing norms. In response, more mule recruiters are asking their hires to do things like reselling goods shipped to their homes on platforms like eBay and Amazon.

“Reshipping definitely has become more complicated,” Holden said. “Not every mule will run 10 times a day to the post office, and some will let the goods sit by the mailbox for days. But on the whole, mules are more compliant these days.”

GIVE AND TAKE

KrebsOnSecurity recently came to a similar conclusion: Last month’s story, “Coronavirus Widens the Money Mule Pool,” looked at one money mule operation that had ensnared dozens of mules with phony job offers in a very short period of time. Incidentally, the fake charity behind that scheme — which promised to raise money for Coronavirus victims — has since closed up shop and apparently re-branded itself as the Tessaris Foundation.

Charitable cybercriminal endeavors were the subject of a report released this week by cyber intel firm Digital Shadows, which looked at various ways computer crooks are promoting themselves and their hacking services using COVID-19 themed discounts and giveaways.

Like many commercials on television these days, such offers obliquely or directly reference the economic hardships wrought by the virus outbreak as a way of connecting on an emotional level with potential customers.

“The illusion of philanthropy recedes further when you consider the benefits to the threat actors giving away goods and services,” the report notes. “These donors receive a massive boost to their reputation on the forum. In the future, they may be perceived as individuals willing to contribute to forum life, and the giveaways help establish a track record of credibility.”

Brian’s Club — one of the underground’s largest bazaars for selling stolen credit card data and one that has misappropriated this author’s likeness and name in its advertising — recently began offering “pandemic support” in the form of discounts for its most loyal customers.

It stands to reason that the virus outbreak might depress cybercriminal demand for “dumps,” or stolen account data that can be used to create physical counterfeit credit cards. After all, dumps are mainly used to buy high-priced items from electronics stores and other outlets that may not even be open now thanks to the widespread closures from the pandemic.

If that were the case, we’d also expect to see dumps prices fall significantly across the cybercrime economy. But so far, those price changes simply haven’t materialized, says Gemini Advisory, a New York based company that monitors the sale of stolen credit card data across dozens of stores in the cybercrime underground.

Stas Alforov, Gemini’s director of research and development, said there’s been no notable dramatic changes in pricing for both dumps and card data stolen from online merchants (a.k.a. “CVVs”) — even though many cybercrime groups appear to be massively shifting their operations toward targeting online merchants and their customers.

“Usually, the huge spikes upward or downward during a short period is reflected by a large addition of cheap records that drive the median price change,” Alforov said, referring to the small and temporary price deviations depicted in the graph above.

Intel 471 said it came to a similar conclusion.

“You might have thought carding activity, to include support aspects such as checker services, would decrease due to both the global lockdown and threat actors being infected with COVID-19,” the company said. “We’ve even seen some actors suggest as much across some shops, but the reality is there have been no observations of major changes.”

CONSCIENCE VS. COMMERCE

Interestingly, the Coronavirus appears to have prompted discussion on a topic that seldom comes up in cybercrime communities — i.e., the moral and ethical ramifications of their work. Specifically, there seems to be much talk these days about the potential karmic consequences of cashing in on the misery wrought by a global pandemic.

For example, Digital Shadows said some have started to question the morality of targeting healthcare providers, or collecting funds in the name of Coronavirus causes and then pocketing the money.

“One post on the gated Russian-language cybercriminal forum Korovka laid bare the question of threat actors’ moral obligation,” the company wrote. “A user initiated a thread to canvass opinion on the feasibility of faking a charitable cause and collecting donations. They added that while they recognized that such a plan was ‘cruel,’ they found themselves in an ‘extremely difficult financial situation.’ Responses to the proposal were mixed, with one forum user calling the plan ‘amoral,’ and another pointing out that cybercrime is inherently an immoral affair.”

Russians Shut Down Huge Card Fraud Ring

Federal investigators in Russia have charged at least 25 people accused of operating a sprawling international credit card theft ring. Cybersecurity experts say the raid included the charging of a major carding kingpin thought to be tied to dozens of carding shops and to some of the bigger data breaches targeting western retailers over the past decade.

In a statement released this week, the Russian Federal Security Service (FSB) said 25 individuals were charged with circulating illegal means of payment in connection with some 90 websites that sold stolen credit card data.

A still image from a video of the raids released by the Russian FSB this week shows stacks of hundred dollar bills and cash counting machines seized at a residence of one of the accused.

The FSB has not released a list of those apprehended, but the agency’s statement came several days after details of the raids were first leaked on the LiveJournal blog of cybersecurity blogger Andrey Sporov. The post claimed that among those apprehended was the infamous cybercriminal Alexey Stroganov, who goes by the hacker names “Flint” and “Flint24.”

According to cyber intelligence firm Intel 471, Stroganov has been a long-standing member of major underground forums since at least 2001. In 2006, Stroganov and an associate Gerasim Silivanon (a.k.a. “Gabrik“) were sentenced to six years of confinement in Russia, but were set free just two years into their sentence. Intel 471 says Selivanon also was charged along with Stroganov in this past week’s law enforcement action.

“Our continuous monitoring of underground activity revealed despite the conviction, Flint24 never left the cybercrime scene,” reads an analysis penned by Intel 471.

“You can draw your own conclusions [about why he was released early],” Sporaw wrote, suggesting that perhaps the accused bribed someone to get out of jail before his sentence was up.

Flint is among the biggest players in the crowded underground market for stolen credit card data, according to a U.S. law enforcement source who asked to remain anonymous because he was not authorized to speak to the media. The source described Flint’s role as that of a wholesaler of credit card data stolen in some of the biggest breaches at major Western retailers.

“He moved hundreds of millions of dollars through BTC-e,” the source said, referring to a cryptocurrency exchange that was seized by U.S. authorities in 2017. “Flint had a piece of almost every major hack because in many cases it was his guys doing it. Whether or not his marketplaces sold it, his crew had a role in a lot of the big breaches over the last ten years.”

Intel 471’s analysis seemed to support that conclusion, noting that Flint worked closely with other major carding shops that were not his, and that he associated with a number of cybercrooks who regularly bought stolen credit cards in batches of 100,000 pieces at once.

Top denizens of several cybercrime forums who’ve been tracking the raids posited that Stroganov and others were busted because they had a habit of violating the golden rule for criminal hackers residing in Russia or in a former Soviet country: Don’t target your own country’s people and/or banks.

A longtime moderator of perhaps the cybercrime underground’s most venerated Russian hacking forum posted a list of more than 40 carding sites thought to be tied to the group’s operations that are no longer online. Among them is MrWhite[.]biz, a carding site whose slick video ads were profiled in a KrebsOnSecurity post last year.

A snippet from a promotional video from the carding/dumps shop MrWhite.

KNOW YOUR FRAUDSTER

Nearly all of the carding sites allegedly tied to this law enforcement action — including those with such catchy names as BingoDumps, DumpsKindgom, GoldenDumps, HoneyMoney and HustleBank — were united by a common innovation designed to win loyalty among cybercriminals who buy stolen cards or “dumps” in bulk: Namely, a system that allowed buyers to get instant refunds on “bad” stolen cards without having to first prove that the cards were canceled by the issuing bank before they could be used for fraud.

Most carding sites will offer customers a form of buyer’s insurance known as a “checker,” which is an automated, à la carte service customers can use after purchasing cards to validate whether the cards they just bought are still active.

These checking services are tied to “moneyback” guarantees that will automatically refund the purchase price for any cards found to be invalid shortly after the cards are bought (usually a window of a few minutes up to a few hours), provided the buyer agrees to pay an added fee of a few cents per card to use the shop’s own checking service.

But many cybercrooks have long suspected some checkers at the more popular carding sites routinely give inaccurate results that favor the card shop (i.e., intentionally flagging some percentage of inactive cards as valid). So, the innovation that Flint’s gang came up with was a policy called “Trust Your Client” or “TYC,” which appears to be a sly dig on the banking industry’s “know your customer” or KYC rules to help fight fraud and money laundering.

With TYC, if a customer claimed a card they bought was declined for fraudulent transaction attempts made within six hours of purchase, the carding shop would refund the price of that card — no questions asked. However, it seems likely these shops that observed TYC ran their own checkers on the back-end to protect themselves against dishonest customers.

An ad for the “Trust Your Client” or TYC policy observed by virtually all of the carding shops taken down in this past week’s Russian law enforcement operation.

Want to learn more about how carding shops work and all the lingo that comes with them? Check out my behind-the-scenes profile of one major fraud store — Peek Inside a Professional Carding Shop.