Exchange Halts Payouts as DDoS Attack Pummels Bitcoin

A second major bitcoin exchange suspended withdrawals on Tuesday, amidst widespread attacks on the vast software system that drives the digital currency. Bitstamp, an exchange based on Slovenia, says that it suspended Bitcoin withdrawals due to “inconsistent results” from its online bitcoin wallet caused by a denial-of-service attack, according to a post on the exchange’s Facebook page. “Bitcoin withdrawal processing will be suspended temporarily until a software fix is issued,” the post reads. The news comes a week after the Tokyo-based exchange Mt. Gox suspended Bitcoin payouts, blaming a known bug in the bitcoin software. At the time, outside observers turned the blame on Mt. Gox’s accounting software, but it turns out that the company isn’t the only exchange struggling to cope with the bug. That a known issue like this could lead to the suspension of payouts on two of the world’s most popular bitcoin exchanges underscores the immaturity of bitcoin and the ongoing growing pains of the the world’s most popular digital currency. These growing pains are not just technical, but political. As Bitstamp battles against these attacks, it’s also worth noting that the Slovenian exchange is not listed as a money services business with FINCEN, the U.S. agency that registers money transmitters — even though it accepts US customers. Bitstamp did not respond to a press inquiry from WIRED. But according to Andreas Antonopoulos, the chief security officer with bitcoin wallet-maker, Blockchain, the effects of this week’s attack should be temporary. “It’s a griefer attack,” he says. “All it does is slow down these exchanges.” But the company could eventually run into serious problems with regulators in the U.S. FINCEN expects even foreign-based money transmitters to register if they service US customers. A Bored Teenager With a Computer? Bitstamp’s technical issues came to light after someone — nobody knows who, exactly — started flooding the worldwide bitcoin network with thousands of bad transaction records. Because of a flaw in the bitcoin protocol, it’s possible for the bad guys to create two unique transaction identifiers — called hashes — for legitimate transactions on the network. The official bitcoin ledger, or blockchain, is not fooled by these so-called “malleable transactions”, but some badly written wallet software could be confused. “It’s like creating a fake receipt,” says Antonopoulos. In theory, someone could try and use one of these fake receipts to try and trick an exchange into believing that a bitcoin transfer had not gone through, but a look at the blockchain would clear things up, he explains. It turns out that a small number of these bad transactions have been broadcast in the background of the bitcoin network for some time now, but after Mt. Gox went public with its problems, someone cranked up the volume. “Some joker is rewriting thousands of bitcoin transactions and rebroadcasting them,” says Jeff Garzik, a core developer on the bitcoin software. “It’s not a ‘massive and concerted’ attack, probably just a bored teenager with one computer.” Antonopoulos, who is working with other bitcoin companies to coordinate a response to the attack, says he’s spoken with five exchanges (not including Mt. Gox) about the issue, and that three of them are unaffected by the issue. None of the five exchanges that Antonopoulos has spoken with appear to have lost money because of the issue, he says. Source: http://www.wired.com/wiredenterprise/2014/02/bitcoin-ddos/

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Exchange Halts Payouts as DDoS Attack Pummels Bitcoin

Europe shrugs off largest DDoS attack yet, traffic tops 400Gbps

NTP flaw used again, effects minimal Once again hackers are targeting content-delivery firm Cloudfare, and the company says this latest attack is its biggest yet, peaking at over 400Gbps of traffic.…

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Europe shrugs off largest DDoS attack yet, traffic tops 400Gbps

Largest ever DDoS attack

CloudFlare said that the attack was close to 400Gbps in size, making it bigger than last year’s DDoS attack against anti-spam outfit Spamhaus, which was measured at just over 300Gbps. Confidentiality stopped CloudFlare from revealing the identify of the customer under attack, and there were few details on how many other companies had been affected. The DDoS attack did, however, seem to pose a bigger threat on European networks, with French hosting outfit OVH later reporting that it had fended off a 350Gbps attack. It’s not known if the same attacker was responsible.   Company CEO Matthew Prince responded to the news by saying on Twitter that “someone’s got a big, new cannon” and the attack was the “start of ugly things to come”.   While the size of this attack is likely to draw the headlines, it’s worth noting that hackers carried out the DDoS attack by using NTP reflection and amplification techniques, which are increasing common for overwhelming target servers by sending more data packets than switches can support.   The attack technique has been seen in relatively recent hacks against online gaming services like Steam, League of Legends and Battle and essentially aims to push big traffic to the target’s Network Timing Protocol (NTP) server.   In this instance, attackers used NTP reflection to exploit a weakness in the UDP-based NTP, which connects to the Internet to synchronise clocks on machines. The hackers then spoofed the IP address of the target, and sent DNS queries to open DNS resolvers that will answer requests from anywhere. As a result, overwhelming levels of traffic were sent back to the NTP server. CloudFlare has a detailed blog post on NTP reflection attacks.   Martin McKeay, senior security advocate at Akamai Technologies, told SCMagazineUK.com that this method of attack troubles unpatched DNS servers, and said that is attractive to attackers because it can reflect huge traffic back to the target. He added that it’s also favourable to the attacker because UTP is “easily spoofed” and because it’s hard for victims to see who is behind the intrusion.   “The main reason for using NTP as an attack tool is that it increases traffic by 100 or 200 percent. It’s a great reflection index and makes for a very effective tool if you’re an attacker.   “At 400Gbps, it’s conceivable that the attack is being run by a small botnet outputting 20Gbps to 30Gbps of traffic,” he added.   McKeay, and other industry commentators, have advised IT administrators to patch and upgrade their NTP servers in light of this attack, although the Akamai exec admitted that some can assume that NTP servers are safe.   “NTP servers are often stable and so haven’t often been looked at before. [IT departments] are having to now.”   IT administrators are advised, in light of this attack, to patch and upgrade their NTP servers and to check management rights.   Speaking recently to SCMagazineUK.com , Visiting Professor John Walker, of Nottingham Trent University, warned that DDoS attacks will continue to be a big threat in 2014, and added that, since company divisions struggle to get their heads around the issue, the firm itself struggles to establish an effective defence strategy.   “Since they see the issue solely from their perspective, they cannot hope to develop an effective strategy to deal with this security problem,” he said at the time.   A previously unknown division of the UK Government was recently accused of launching DDoS attacks against hactivisim groups such as Anonymous and LulzSec, while a report from the end of last year revealed that most UK companies ignore DDoS threats. Source: http://www.scmagazineuk.com/cloudflare-spots-largest-ever-ddos-attack/article/333480/

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Largest ever DDoS attack

Snapchat bug lets hackers aim DENIAL of SERVICE attacks at YOUR MOBE

Researcher allegedly blocked after he went public A security consultant who works for Telefonica has turned up a bug in how Snapchat handles authentication tokens, which enables a denial-of-service attack against users’ phones.…

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Snapchat bug lets hackers aim DENIAL of SERVICE attacks at YOUR MOBE

Snapchat Vulnerability Could Lead To iPhone DDoS Attacks

A cyber security researcher has discovered a vulnerability within the Snapchat mobile app that makes it possible for hackers to launch a denial-of-service attack that temporarily freezes a user’s iPhone. Jaime Sanchez, who works as a cyber-security consultant for Telefonica, a major telecommunications company in Spain, said he and another researcher found a weakness in Snapchat’s system that allows hackers to send thousands of messages to individual users in a matter of seconds. Sanchez said he and the fellow researcher discovered the glitch on their own time. Flooding one user with so many messages can clog their account to the point that the Snapchat app causes the entire device to freeze and ultimately crash, or require that the user perform a hard reset. Snapchat is a popular mobile app for iPhone and Android devices that allows users to send each other photo and video messages that disappear a few seconds after they are opened by their recipients. Every time a user attempts to send a message through Snapchat, a token, which is a code made up of letters and numbers, is generated to verify their identity. Sanchez, who wrote about his security findings on seguridadofensiva.com (in Spanish), said a flaw within Snapchat’s system allows hackers to reuse old tokens to send new messages. By reusing old tokens, hackers can send massive amounts of messages using powerful computers. This method could be used by spammers to send messages in mass quantities to numerous users, or it could be used to launch a cyber attack on specific individuals, he said. Sanchez demonstrated how this works by launching a Snapchat denial-of-service attack on my account. He sent my account 1,000 messages within five seconds, causing my device to freeze until it finally shut down and restarted itself. (See the video above.) Launching a denial-of-service attack on Android devices doesn’t cause those smartphones to crash, but it does slow their speed. It also makes it impossible to use the app until the attack has finished. Sanchez said he has not contacted Snapchat about the vulnerability because he claims the Los Angeles startup has no respect for the cyber security research community. He says Snapchat earned that reputation by ignoring advice in August and on Christmas Eve from Gibson Security, a security group that predicted a flaw within the app could be used to expose user data. On New Year’s Eve, another group exploited that vulnerability and exposed the user names and phone numbers of nearly 5 million Snapchat users. “They warned Snapchat about issues — about the possible dump of database — and Snapchat didn’t care,” he said. The Times asked Snapchat if it knew of the vulnerability claimed by Sanchez. Snapchat said it was not aware of the problem. “We are interested in learning more and can be contacted at security@snapchat.com,” a Snapchat spokeswoman wrote in an email reply. Source: http://www.latimes.com/business/technology/la-fi-tn-snapchat-shut-down-iphone-20140207,0,3127301.story#axzz2sixJmHSh

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Snapchat Vulnerability Could Lead To iPhone DDoS Attacks

Snowden documents show British digital spies using viruses and ‘honey traps’

JTRIG active intelligence unit boasts of bugging and burgling At the start of this week, documents released by whistleblower Edward Snowden detailed DDOS attacks on chatrooms by a British online intelligence unit dubbed the Joint Threat Research Intelligence Group (JTRIG). Now he has released a new trove showing that JTRIG is about much more than purely online annoyances.…

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Snowden documents show British digital spies using viruses and ‘honey traps’

Snowden documents show British digital spies use viruses and ‘honey traps’

JTRIG active intelligence unit boasts of bugging and burgling At the start of this week, documents released by whistleblower Edward Snowden detailed DDOS attacks on chatrooms by a British online intelligence unit dubbed the Joint Threat Research Intelligence Group (JTRIG). Now he has released a new trove showing that JTRIG is about much more than purely online annoyances.…

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Snowden documents show British digital spies use viruses and ‘honey traps’

The UK allegedly targeted Anonymous and LulzSec hacktivists via a DDOS attack, documents show

The UK allegedly created a spy unit that, other than mounting attacks on cyber enemies, also targeted hacktivists Anonymous and LulzSec, NBC News reports, citing documents taken from the US National Security Agency by whistleblower Edward Snowden. The Government Communications Headquarters Communications (GCHQ) — the UK’s intelligence service — launched a DDOS attack to scare away 80 percent of the users of Anonymous Internet chat rooms, according to the documents. NBC News notes that this makes the British government “the first Western government known to have conducted such an attack.” The British reportedly aimed the DDOS attack against IRC chat rooms where criminal hackers were believed to have been concentrated, after authorities were alarmed by a spate of hacking attacks in 2011, when online hackers wreaked havoc across the Internet, bringing down websites on a purported crusade of righteousness. The victims included the UK. A GCHQ spokesperson emphasized in a statement to NBC News that it carried out its work “in accordance with a strict legal and policy framework” and that its activities — which it didn’t elaborate on — were “authorized, necessary and proportionate.” Source: http://thenextweb.com/uk/2014/02/05/uk-allegedly-targeted-anonymous-lulzsec-hacktivists-via-ddos-attack-documents-show/#!uyXtM

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The UK allegedly targeted Anonymous and LulzSec hacktivists via a DDOS attack, documents show