Reuters

U.S. Treasury, Commerce Depts. Hacked Through SolarWinds Compromise

Communications at the U.S. Treasury and Commerce Departments were reportedly compromised by a supply chain attack on SolarWinds, a security vendor that helps the federal government and a range of Fortune 500 companies monitor the health of their IT networks. Given the breadth of the company’s customer base, experts say the incident may be just the first of many such disclosures.

Some of SolarWinds’ customers. Source: solarwinds.com

According to a Reuters story, hackers believed to be working for Russia have been monitoring internal email traffic at the U.S. Treasury and Commerce departments. Reuters reports the attackers were able to surreptitiously tamper with updates released by SolarWinds for its Orion platform, a suite of network management tools.

In a security advisory, Austin, Texas based SolarWinds acknowledged its systems “experienced a highly sophisticated, manual supply chain attack on SolarWinds Orion Platform software builds for versions 2019.4 HF 5 through 2020.2.1, released between March 2020 and June 2020.”

In response to the intrusions at Treasury and Commerce, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) took the unusual step of issuing an emergency directive ordering all federal agencies to immediately disconnect the affected Orion products from their networks.

“Treat all hosts monitored by the SolarWinds Orion monitoring software as compromised by threat actors and assume that further persistence mechanisms have been deployed,” CISA advised.

A blog post by Microsoft says the attackers were able to add malicious code to software updates provided by SolarWinds for Orion users. “This results in the attacker gaining a foothold in the network, which the attacker can use to gain elevated credentials,” Microsoft wrote.

From there, the attackers would be able to forge single sign-on tokens that impersonate any of the organization’s existing users and accounts, including highly privileged accounts on the network.

“Using highly privileged accounts acquired through the technique above or other means, attackers may add their own credentials to existing application service principals, enabling them to call APIs with the permission assigned to that application,” Microsoft explained.

Malicious code added to an Orion software update may have gone undetected by antivirus software and other security tools on host systems thanks in part to guidance from SolarWinds itself. In this support advisory, SolarWinds says its products may not work properly unless their file directories are exempted from antivirus scans and group policy object restrictions.

The Reuters story quotes several anonymous sources saying the intrusions at the Commerce and Treasury departments could be just the tip of the iceberg. That seems like a fair bet.

SolarWinds says it has over 300,000 customers including:

-more than 425 of the U.S. Fortune 500
-all ten of the top ten US telecommunications companies
-all five branches of the U.S. military
-all five of the top five U.S. accounting firms
-the Pentagon
-the State Department
-the National Security Agency
-the Department of Justice
-The White House.

It’s unclear how many of the customers listed on SolarWinds’ website are users of the affected Orion products. But Reuters reports the supply chain attack on SolarWinds is connected to a broad campaign that also involved the recently disclosed hack at FireEye, wherein hackers gained access to a slew of proprietary tools the company uses to help customers find security weaknesses in their computers and networks.

The compromises at the U.S. federal agencies are thought to date back to earlier this summer, and are being blamed on hackers working for the Russian government.

In its own advisory, FireEye said multiple updates poisoned with a malicious backdoor program were digitally signed with a SolarWinds certificate from March through May 2020, and posted to the SolarWindws update website.

FireEye posits the impact of the hack on SolarWinds is widespread, affecting public and private organizations around the world.

“The victims have included government, consulting, technology, telecom and extractive entities in North America, Europe, Asia and the Middle East,” the company’s analysts wrote. “We anticipate there are additional victims in other countries and verticals.”

Update, 8:30 p.m. ET: An earlier version of this story incorrectly stated that FireEye attributed the SolarWinds attack to APT29. That information has been removed from the story.

FBI, DHS, HHS Warn of Imminent, Credible Ransomware Threat Against U.S. Hospitals

On Monday, Oct. 26, KrebsOnSecurity began following up on a tip from a reliable source that an aggressive Russian cybercriminal gang known for deploying ransomware was preparing to disrupt information technology systems at hundreds of hospitals, clinics and medical care facilities across the United States. Today, officials from the FBI and the U.S. Department of Homeland Security hastily assembled a conference call with healthcare industry executives warning about an “imminent cybercrime threat to U.S. hospitals and healthcare providers.”

The agencies on the conference call, which included the U.S. Department of Health and Human Services (HHS), warned participants about “credible information of an increased and imminent cybercrime threat to US hospitals and healthcare providers.”

The agencies said they were sharing the information “to provide warning to healthcare providers to ensure that they take timely and reasonable precautions to protect their networks from these threats.”

The warning came less than two days after this author received a tip from Alex Holden, founder of Milwaukee-based cyber intelligence firm Hold Security. Holden said he saw online communications this week between cybercriminals affiliated with a Russian-speaking ransomware group known as Ryuk in which group members discussed plans to deploy ransomware at more than 400 healthcare facilities in the U.S.

One participant on the government conference call today said the agencies offered few concrete details of how healthcare organizations might better protect themselves against this threat actor or purported malware campaign.

“They didn’t share any IoCs [indicators of compromise], so it’s just been ‘patch your systems and report anything suspicious’,” said a healthcare industry veteran who sat in on the discussion.

However, others on the call said IoCs may be of little help for hospitals that have already been infiltrated by Ryuk. That’s because the malware infrastructure used by the Ryuk gang is often unique to each victim, including everything from the Microsoft Windows executable files that get dropped on the infected hosts to the so-called “command and control” servers used to transmit data between and among compromised systems.

Nevertheless, cybersecurity incident response firm Mandiant today released a list of domains and Internet addresses used by Ryuk in previous attacks throughout 2020 and up to the present day. Mandiant refers to the group by the threat actor classification “UNC1878,” and aired a webcast today detailing some of Ryuk’s latest exploitation tactics.

Charles Carmakal, senior vice president for Mandiant, told Reuters that UNC1878 is one of most brazen, heartless, and disruptive threat actors he’s observed over the course of his career.

“Multiple hospitals have already been significantly impacted by Ryuk ransomware and their networks have been taken offline,” Carmakal said.

One health industry veteran who participated in the call today and who spoke with KrebsOnSecurity on condition of anonymity said if there truly are hundreds of medical facilities at imminent risk here, that would seem to go beyond the scope of any one hospital group and may implicate some kind of electronic health record provider that integrates with many care facilities.

So far, however, nothing like hundreds of facilities have publicly reported ransomware incidents. But there have been a handful of hospitals dealing with ransomware attacks in the past few days.

Becker’s Hospital Review reported today that a ransomware attack hit Klamath Falls, Ore.-based Sky Lakes Medical Center’s computer systems.

WWNY’s Channel 7 News in New York reported yesterday that a Ryuk ransomware attack on St. Lawrence Health System led to computer infections at Caton-Potsdam, Messena and Gouverneur hospitals.

SWNewsMedia.com on Monday reported on “unidentified network activity” that caused disruption to certain operations at Ridgeview Medical Center in Waconia, Minn. SWNews says Ridgeview’s system includes Chaska’s Two Twelve Medical Center, three hospitals, clinics and other emergency and long-term care sites around the metro area.

NBC5 reports The University of Vermont Health Network is dealing with a “significant and ongoing system-wide network issue” that could be a malicious cyber attack.

This is a developing story. Stay tuned for further updates.

Update, 10:11 p.m. ET: The FBI, DHS and HHS just jointly issued an alert about this, available here.

NY Charges First American Financial for Massive Data Leak

In May 2019, KrebsOnSecurity broke the news that the website of mortgage title insurance giant First American Financial Corp. had exposed approximately 885 million records related to mortgage deals going back to 2003. On Wednesday, regulators in New York announced that First American was the target of their first ever cybersecurity enforcement action in connection with the incident, charges that could bring steep financial penalties.

First American Financial Corp.

Santa Ana, Calif.-based First American [NYSE:FAF] is a leading provider of title insurance and settlement services to the real estate and mortgage industries. It employs some 18,000 people and brought in $6.2 billion in 2019.

As first reported here last year, First American’s website exposed 16 years worth of digitized mortgage title insurance records — including bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts, and drivers license images.

The documents were available without authentication to anyone with a Web browser.

According to a filing (PDF) by the New York State Department of Financial Services (DFS), the weakness that exposed the documents was first introduced during an application software update in May 2014 and went undetected for years.

Worse still, the DFS found, the vulnerability was discovered in a penetration test First American conducted on its own in December 2018.

“Remarkably, Respondent instead allowed unfettered access to the personal and financial data of millions of its customers for six more months until the breach and its serious ramifications were widely publicized by a nationally recognized cybersecurity industry journalist,” the DFS explained in a statement on the charges.

A redacted screenshot of one of many millions of sensitive records exposed by First American’s Web site.

Reuters reports that the penalties could be significant for First American: The DFS considers each instance of exposed personal information a separate violation, and the company faces penalties of up to $1,000 per violation.

In a written statement, First American said it strongly disagrees with the DFS’s findings, and that its own investigation determined only a “very limited number” of consumers — and none from New York — had personal data accessed without permission.

In August 2019, the company said a third-party investigation into the exposure identified just 32 consumers whose non-public personal information likely was accessed without authorization.

When KrebsOnSecurity asked last year how long it maintained access logs or how far back in time that review went, First American declined to be more specific, saying only that its logs covered a period that was typical for a company of its size and nature.

But in Wednesday’s filing, the DFS said First American was unable to determine whether records were accessed prior to Jun 2018.

“Respondent’s forensic investigation relied on a review of web logs retained from June 2018 onward,” the DFS found. “Respondent’s own analysis demonstrated that during this 11-month period, more than 350,000 documents were accessed without authorization by automated ‘bots’ or ‘scraper’ programs designed to collect information on the Internet.

The records exposed by First American would have been a virtual gold mine for phishers and scammers involved in so-called Business Email Compromise (BEC) scams, which often impersonate real estate agents, closing agencies, title and escrow firms in a bid to trick property buyers into wiring funds to fraudsters. According to the FBI, BEC scams are the most costly form of cybercrime today.

First American’s stock price fell more than 6 percent the day after news of their data leak was published here. In the days that followed, the DFS and U.S. Securities and Exchange Commission each announced they were investigating the company.

First American released its first quarter 2020 earnings today. A hearing on the charges alleged by the DFS is slated for Oct. 26.