2017’s biggest cybersecurity facepalms

2017 was a year like no other for cybersecurity. It was the year we found out the horrid truths at Uber and Equifax, and border security took our passwords . A year of WannaCry and Kaspersky , VPNs and blockchains going mainstream, healthcare hacking , Russian hackers , WikiLeaks playing for Putin’s team , and hacking back . In 2017 we learned that cybersecurity is a Lovecraftian game in which you trade sanity for information. Let’s review the year that was (and hopefully will never be again). Moscow mules This was the year Kaspersky finally got all the big press they’ve been angling for. Unfortunately for them, it wasn’t for their research. The antivirus company spent an uncomfortable year in the headlines being accused of working with Russia’s FSB (former KGB) . Eventually those suspicions got it banned from use by US government agencies. Kaspersky’s alleged coziness with Putin’s inner circle has made the rounds in the press and infosec gossip for years. But it came to a head when an NSA probe surfaced, the Senate pushed for a ban, and — oddly — the Trump administration came with the executioner’s axe. Obviously, Kaspersky — the company, and its CEO of the same name — denied the accusations, and offered to work with the US government. They offered up their code for review and filed suit when the ban passed. At this point, the only thing that might save Kaspersky’s reputation in the US is finding us that pee tape. Fingers crossed. Be still my backdoored heart A ransomware attack on Hollywood Presbyterian Hospital in 2016 put health care hacking center stage, but in 2017 it turned into a true nightmare. The WannaCry ransomware attack spread like wildfire, locking up a third of the National Health Service (NHS) in England. That was followed by other worms, like Petya/NotPetya, which hit US hospitals in June. The security of pacemakers was exposed as being awful, specifically in the case of medical device manufacturer St. Jude Medical (now rebranded as Abbott). A lot of people hated on researcher Justine Bone and MedSec for the way they went about exposing pacemaker flaws, but they were right . The FDA put a painful pin in it when it notified the public of a voluntary recall (as a firmware update) of 465, 000 pacemakers made by St. Jude Medical. Meanwhile, white hat hackers put together the first Cyber Med Summit — a doctor-run, hacker boot camp for medical professionals. That the Summit exists is a tiny bit of good news in our medical mess, but it also proved that you should probably make sure your doctor keeps a hacker on staff. Medical staff at the Summit got a wake-up call about medical devices exploits, and concluded they need to add “hacking” to their list of possible problems to assess and diagnose. I’m not crying, you’re crying On May 12, over 150 countries were hit in one weekend by a huge ransomware crimewave named WannaCry . The attack was derived from a remote code execution vulnerability (in Windows XP up through Windows Server 2012) called “EternalBlue, ” found in the April Shadow Brokers/NSA dump. Those who did their Windows updates were not affected. WannaCry demanded $300 in Bitcoin from each victim and among those included were the UK’s National Health Service (NHS). The ransomworm was stopped in its tracks by the registration of a single domain that behaved like a killswitch. The creators apparently neglected to secure their own self destruct button. Researcher MalwareTech was the hero of the day with his quick thinking, but was sadly repaid by having his identity outed by British tabloids. Adding injury to insult, he was later arrested on unrelated charges as he attempted to fly home after the DEF CON hacking conference in August. Two weeks after the attack, Symantec published a report saying the ransomware showed strong links to the Lazarus group (North Korea). Others independently came to the same conclusion. Eight months later, and just in time for his boss’ warmongering on North Korea, Trump team member Thomas P. Bossert wrote in the Wall Street Journal that “the U.S. today publicly attributes the massive “WannaCry” cyberattack to North Korea.” Maybe he’s just a backdoor man US Deputy Attorney General Rod Rosenstein in October introduced the world to the new and totally made-up concept of ” responsible encryption ” — and was promptly laughed out of the collective infosec room. “Responsible encryption is effective secure encryption, coupled with access capabilities, ” he said . He suggested that the feds won’t mandate encryption backdoors “so long as companies can cough up an unencrypted copy of every message, call, photo or other form of communications they handle.” Even non-infosec people thought his new PR buzzwords were suspect. “Look, it’s real simple. Encryption is good for our national security; it’s good for our economy. We should be strengthening encryption, not weakening it. And it’s technically impossible to have strong encryption with any kind of backdoor, ” said Rep. Will Hurd (R-Texas) at The Atlantic’s Cyber Frontier event in Washington, D.C. Politico wrote : It’s a cause Rosenstein has quietly pursued for years, including two cases in 2014 and 2015 when, as the US attorney in Maryland, he sought to take companies to court to make them unscramble their data, a DOJ official told POLITICO. But higher-ups in President Barack Obama’s Justice Department decided against it, said the official, who isn’t authorized to speak to the news media about the cases. To everyone’s dismay, Rosenstein doubled down on his “responsible encryption” campaign when he capitalized on a mass shooting (using as his example the phone of Devin Patrick Kelley who opened fire on a congregation in Texas, killing 26 people). He said , “Nobody has a legitimate privacy interest in that phone … But the company that built it claims that it purposely designed the operating system so that the company cannot open the phone even with an order from a federal judge.” Like Uber, but for Equifax If there was some kind of reverse beauty pageant for worst look, worst behavior, and best example of what not to do with security, we’d need a tiebreaker for 2017. Equifax and Uber dominated the year with their awfulness. Equifax was forced to admit it was hacked badly in both March and July, with the latter affecting around 200 million people (plus 400, 000 in the UK). Motherboard reported that “six months after the researcher first notified the company about the vulnerability, Equifax patched it — but only after the massive breach that made headlines had already taken place… This revelation opens the possibility that more than one group of hackers broke into the company.” Shares of Equifax plummeted 35% after the July disclosure. And news that some of its execs sold off stock before the breach was made public triggered a criminal probe. Which brings us to the “unicorn” that fell from grace . In late November Uber admitted it was hacked in October 2016, putting 57 million users and over half a million drivers at risk. Uber didn’t report the breach to anyone — victims or regulators — then paid $100K to the hackers to keep it quiet, and hid the payment as a bug bounty. All of which led to the high-profile firing and departures of key security team members. Just a couple weeks later, in mid-December, the now-notorious ‘Jacobs letter’ was unsealed, accusing Uber of spying and hacking . “It was written by the attorney of a former employee, Richard Jacobs, and it contains claims that the company routinely tried to hack its competitors to gain an edge, ” Engadget wrote , and “used a team of spies to steal secrets or surveil political figures and even bugged meetings between transport regulators — with some of this information delivered directly to former CEO Travis Kalanick.” The letter was so explosive it’s now the trial between Uber and Waymo — so we can be sure we haven’t seen the last of Uber’s security disasters in the news. Images: Getty Images/iStockphoto (Wannacry); D. Thomas Magee (All illustrations)

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2017’s biggest cybersecurity facepalms

Armed robbers steal $1.8 million worth of cryptocurrency

The Manhattan District Attorney has charged a man with robbery and kidnapping after he swiped a digital wallet containing a fortune in ethereum cryptocurrency. Louis Meza and an associate allegedly held up the victim at gunpoint after luring him into a vehicle, then stole his keys, wallet and cellphone. Meza used the keys to enter the victim’s apartment and make off with his digital wallet. Shortly afterwards, he transferred $1.8 million in “ether” cryptocurrency to his own wallet. According to the DA’s press release, Meza knew the victim and knew he had a large amount of ethereum. After meeting the victim on the evening of November 4th, “Meza insisted on ordering a car service for the victim, who entered a minivan after parting ways with Meza, ” the DA stated. The perpetrator was also charged with computer tampering, criminal possession of stolen property, and computer trespass. The DA notes that the crime is a vivid illustration that hacking isn’t the only way crooks can get their hands on your Bitcoins and other crypto-cash. “This case demonstrates the increasingly common intersection between cyber and violent crime, ” said NY County District Attorney Cyrus Vance. “We can expect this type of crime to become increasingly common as cryptocurrency values surge upward.” Via: Coindesk Source: New York County District Attorney

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Armed robbers steal $1.8 million worth of cryptocurrency

Feds in California are aggressively going after Silk Road, AlphaBay vendors

Enlarge / A stack of bitcoins sits among twisted copper wiring inside a communications room at an office in this arranged photograph in London on Tuesday, September 5, 2017. (credit: Bloomberg / Getty Images News ) Next month, a California drug dealer who recently pleaded guilty to selling on Silk Road, AlphaBay, and other sites is scheduled to be sentenced. According to federal authorities, David Ryan Burchard was one of the largest online merchants of marijuana and cocaine—he sold over $1.4 million worth of narcotics. Burchard was prosecuted in federal court in the Eastern District of California, which has quietly become a hub of cases against dealers from those notorious and now-shuttered Dark Web marketplaces. According to Lauren Horwood, a spokeswoman for the US Attorney’s Office in Sacramento, one of the primary hubs of this federal judicial district, there are currently 11 Silk Road and AlphaBay-related prosecutions underway. Four of the defendants have pleaded guilty, and, of those, two have already been sentenced, while the others’ cases are still ongoing. Read 21 remaining paragraphs | Comments

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Feds in California are aggressively going after Silk Road, AlphaBay vendors

Equifax tries to explain its response to a massive security breach

A day after announcing that hackers stole personal information tied to 143 million people in the US , Equifax’s response to the breach has come under scrutiny. Language on the website where people could find out if they were affected seemed to say that by signing up they would waive any right to join a class action suit against the company — something New York Attorney General Eric Schneiderman said is “unacceptable and unenforceable.” The company has since explained it does not apply to the data breach at all, but that hasn’t stopped misinformation from spreading. After conversations w my office, @Equifax has clarified its policy re: arbitration. We are continuing to closely review. pic.twitter.com/WcPZ9OqMcL — Eric Schneiderman (@AGSchneiderman) September 8, 2017 Equifax: In response to consumer inquiries, we have made it clear that the arbitration clause and class action waiver included in the Equifax and TrustedID Premier terms of use does not apply to this cybersecurity incident, Of course, considering the extent of what has leaked and the number of people affected, a hyperbolic reaction to anything surrounding this incident is understandable. Still, there are a few steps that people can and should take, now that we know someone has stolen more than enough information to perpetrate identity theft on a massive scale. Now that the language has been clarified, it appears legally clear to use Equifax’s website to check things out. Among Engadget staff, a few of us received notices that we aren’t among those impacted, but most weren’t so lucky. Still, there are questions about how secure the site itself is, since it requests the last six digits of each person’ social security number (and guessing first three isn’t as hard as you might think). Also, it doesn’t appear to work particularly well , responding to test and “gibberish” input with a claim that it’s part of the breach also. The best information on how to respond is available from the FTC . The government agency lays out solid next steps, like checking your credit report for any suspicious entries, as well as placing a freeze (there’s more advice on that here ) and/or fraud alert on your account with the major credit bureaus. This will make it harder for a thief to create a fake account for you and should force creditors to verify your identity. Finally, it’s important to file your taxes early, before a scammer potentially can. Source: Equifax , FTC

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Equifax tries to explain its response to a massive security breach

Former Epix exec pleads guilty over $7 million fraud

In 2009, Viacom, Lionsgate and MGM joined forces to launch a premium movie channel called Epix, with Emil Rensing as its Chief Digital Officer. Turns out hiring Rensing was a bad move: according to the Justice Department , he has just pleaded guilty to defrauding the network $7 million over his five-year employment with the company. The former exec apparently used his position to forge contracts between the network and vendor companies he himself owned and controlled. He then used the names of business associates and acquaintances as vendor personnel, setting up fake email accounts for each one of them to make them look legit. Rensing would apparently use those dummy accounts to pose as the people whose identities he stole in order to communicate with the network about payment. The vendors never performed the services they promised, though, and the real people behind the names had no idea what the exec was doing. Acting US Attorney Joon H. Kim said in a statement: “Emil Rensing, an executive at a premium cable network, defrauded his employer out of more than $7 million by causing the network to pay companies Rensing controlled for services that were never rendered. To conceal his role in the payments, Rensing used false and stolen identities and dummy email accounts. I want to thank the FBI for their work to hold Rensing accountable for his crimes.” A few months ago, Rensing pleaded not guilty to embezzling $8.5 million — people familiar with the matter said part of that amount is likely made up of legitimate expenses. He has changed his plea now that the amount is down to $7 million, admitting guilt to one count of wire fraud, which could lead to a maximum sentence of 20 years in prison and three years of supervised release. It was probably the best course of action for him, since his deal with prosecutors didn’t require him to plead guilty to aggravated identity theft, as well. According to Variety , Rensing is far from the only entertainment executive who got tempted by all the millions thrown around in the industry. The publication says the industry is “ripe for thievery” since media companies have grown so big in recent years, overwhelming their financial departments. As a result, questionable transactions take years to discover, if they’re even discovered at all. Source: Reuters , US Department of Justice

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Former Epix exec pleads guilty over $7 million fraud

New York forces smart lock maker to improve its security

Smart locks promise the security of a traditional lock without the need to carry around a key. Most can be unlocked with a mobile app or an RFID-equipped card you can store in your wallet. Unfortunately, they’re also pretty easy to hack open. The office of New York’s attorney general, Eric T. Schneiderman, announced a settlement today with one such smart lock manufacturer. Utah-based Safetech Products has agreed to encrypt all of its smart lock passwords, electronic keys and other credentials within its locks, prompt users to change the default password upon initial setup and establish a more comprehensive security program. Safetech makes both padlocks and door locks, each available on Amazon. According to the New York AG’s office, independent security researchers found that the company’s locks did not secure passwords or other security information in its locks, which left customers open to hacking and theft. “Companies employing new technologies must implement and promote good security practices and ensure that their products are secure, including through the use of encryption, ” Schneiderman said in a statement. “Together, with the help of companies like Safetech, we can safeguard against breaches and illegal intrusions on our private data.” While this may be the first time an attorney general has taken legal action against a smart lock company like this, it won’t likely be the last. Kwikset was sued recently for its Smart key lock’s alleged culpability in the rape and murder of a young woman in Florida by the building security guard. While not a true smart lock, the lock in question has a programmable cylinder that can be made to work with any key, which can be used to give temporary access to anyone. It’s also easily broken into with a screwdriver and a paper clip. As we all turn to smart devices and the Internet of Things in our lives, it becomes even more important to make sure we’re being protected from both hackers and ourselves. The settlement with Safetech could be the first big step towards companies building better security into their smart devices. The devices in our homes are increasingly connected to the internet—posing new privacy & security risks to consumers. We’re taking action. — Eric Schneiderman (@AGSchneiderman) May 23, 2017 Source: New York Attorney General’s office

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New York forces smart lock maker to improve its security

NY sues Charter/Time Warner Cable, alleges false promise of fast Internet

(credit: Aurich Lawson) New York Attorney General Eric Schneiderman today filed a lawsuit against Charter and its Time Warner Cable (TWC) subsidiary, claiming that the Internet provider “allegedly conduct[ed] a deliberate scheme to defraud and mislead New Yorkers by promising Internet service that they knew they could not deliver.” State officials said they conducted a 16-month investigation that reviewed internal corporate communications “and hundreds of thousands of subscriber speed tests,” concluding that Spectrum-TWC customers were “dramatically short-changed on both speed and reliability,” the attorney general’s announcement said . The 87-page summons and complaint filed in the New York State Supreme Court is available here . “The suit alleges that subscribers’ wired Internet speeds for the premium plan (100, 200, and 300 Mbps) were up to 70 percent slower than promised; Wi-Fi speeds were even slower, with some subscribers getting speeds that were more than 80 percent slower than what they had paid for,” the announcement said. “As alleged in the complaint, Spectrum-TWC charged New Yorkers as much as $109.99 per month for premium plans [that] could not achieve speeds promised in their slower plans.” Read 13 remaining paragraphs | Comments

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NY sues Charter/Time Warner Cable, alleges false promise of fast Internet

Acer penalized $115k for leaving credit card info unprotected

It wasn’t nearly as bad as Yahoo leaking 500 million users’ data, but Acer had its own hacking scare last year. Back in June, the Taiwanese computer manufacturer admitted that somebody stole credit card information for nearly 35, 000 individuals who bought from the company’s online store. The electronics giant finally settled with the New York Attorney General’s office to the tune of $115, 000 in penalties along with an assurance to shore up their digital security. During their investigation, the attorney general’s office discovered that Acer’s technical support had made serious security errors. First, they left Acer’s e-commerce platform in debugging mode from July 2015 until April 2016. This setting stores all data transferred through the website in an unencrypted, plain-text log file. Then they misconfigured the company website to allow directory browsing by any unauthorized user. At least one hacking group noticed and stole data between November 2015 and April 2016. This amounted to leaked legal names, usernames and passwords, physical addresses and credit card numbers with verification codes for over 35, 000 individuals in the US, Canada and Puerto Rico. Thankfully, the haul didn’t include social security numbers, but it’s still a painful security snafu from a known computer brand. Source: New York Attorney General’s office

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Acer penalized $115k for leaving credit card info unprotected

Police IT staff checked wrong box, deleted 25% of body cam footage

Enlarge (credit: Justin Sullivan / Getty Images News) One quarter of all body-worn camera footage from the Oakland, Calif. police was accidentally deleted in October 2014, according to the head of the relevant unit. As per the San Francisco Chronicle , Sgt. Dave Burke testified on Tuesday at a murder trial that this was, in fact, a mistake. This incident marks yet another setback in the efforts to roll out body-worn cameras to police agencies nationwide. Read 7 remaining paragraphs | Comments

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Police IT staff checked wrong box, deleted 25% of body cam footage

Acer admits hackers stole up to 34,000 customer credit cards

If you bought an Acer device from the company’s store in the last year, there’s a chance that your credit card info was hijacked. The Taiwan-based company informed California’s attorney general that attackers made off with the “name, address, card number, expiration date and three-digit security codes” of users between May 12, 2015 and April 28, 2016. It sent form letters to the 34, 500 affected customers, all of whom are in the US, Canada and Puerto Rico. The theft isn’t particularly large and no social security numbers were taken. However, it’s one of the few we’ve seen involving a major PC company’s online store. Acer hasn’t yet revealed how it happened, but such breaches are usually a result of employees opening infected email, not any fancy hacking . While the breach was still ongoing, Acer recently held an event to reveal its latest laptops and desktop computers. If you bought something from its stores soon after, you may want to ensure that your credentials weren’t stolen. Via: ZDNet Source: US Attorney General

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Acer admits hackers stole up to 34,000 customer credit cards