North Korea ships malware-infected games to South Korean users, uses them to launch DDoS attacks

According to an independent report published in Korea’s JoongAng Daily, Seoul’s Metropolitan Police Agency has intercepted a cyber attack plot orchestrated by North Korea’s Reconnaissance General Bureau, which successfully shipped malware-infected games to South Korean users which were later on used to launch a DDoS attack against the web site of Incheon Airport. More details: According to the police, the South Korean man, identified by the surname Jo, traveled to Shenyang, northeastern China, starting in September 2009 and met agents of an alleged North Korean trading company. He allegedly asked them to develop game software to be used in the South. Jo purchased dozens of computer game software for tens of millions of won, which was a third the cost of the same kind of software in the South. The games were infected with malignant viruses, of which Jo knew, an official at the police agency said. Jo sold the games to South Korean operators of online games. When people played the games, the viruses used their computers as zombies, through which the cyberattack was launched. This is the second attempt by North Korea in recent months to engage in electronic warfare with South Korea, following the use of GPS jammers causing difficulties in air and marine traffic controls. What’s particularly interesting about North Korea’s infection vector in this campaign, is that it’s not a novel approach to spread malware. Instead, it relies on a chain of trust, from the unknown origin of the produced games, to the sellers claims that they are malware-free, and ultimately targets bargain hunters. In the past, software piracy has proven to be a key driving force behind the growth of malware campaigns internationally. Distribution of malware-infected games greatly reminds me of a case which happened in Eastern Europe in the 90s where a malware coder participating in a popular IT magazine’s coding contest, on purposely backdoored his game, which ended being shipped to thousands of subscribers on a magazine-branded CD. Although a good example of a flawed QA (Quality Assurance) on behalf of the magazine, South Korean authorities claim that the person who purchased the games actually knew that they were infected with malware, hence the lower price for purchasing them. Just how big of a cyber threat is North Korea? It’s an emerging market player, having actively invested in the concept over the years, that’s for sure. In my recent conversation with cyber warfare expert Jeffrey Carr, he pointed out that he doubts Russia or China will knowingly supply the irrational North Korea with cyber warfare ‘know how’. However, Russia or China’s chain of command doesn’t need to know that this outsourcing will ever take place, as North Korea could easily outsource to sophisticated cybercriminals doing it for the money, not for the fame. Summary: Seoul’s Metropolitan Police Agency has intercepted a cyber attack plot orchestrated by North Korea’s Reconnaissance General Bureau, which successfully shipped malware-infected games to South Korean users. Source: http://www.zdnet.com/blog/security/north-korea-ships-malware-infected-games-to-south-korean-users-uses-them-to-launch-ddos-attacks/12383

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North Korea ships malware-infected games to South Korean users, uses them to launch DDoS attacks

Anonymous’ open letter to Indian govt claims DDoS attack on sites are legal

Last night hacktivist group Anonymous sent out an open letter to the government of India criticizing the government and ISP companies for blocking torrent and video sharing websites. While doing so, the group clarified the definition of a DDoS attack, a type of online attack the group has been ravaging against government websites. Less of a threatening letter and more of a Hacking 101 course book for the government and mainstream media alike, Anonymous clarified that a DDoS attack is not a hack, which is legally defined as unauthorized access to a network. In fact, a DDoS attack is overflowing the server capacity by an excess of user traffic, or in simpler terms a traffic jam of sorts occurs at website server due to the enormous traffic attracted, in this case the large influx of anonymous group members. Anonymous believes this is a peaceful way to protest the government blocks and also states how websites were blocked when there was no court order asking for specific sites to be blocked like the Air India employee Facebook protest pages. The group has made its intentions clear to go after the government and its supporters, the ISPs that are blocking access to torrents and some other sites like Vimeo. It is also urging Indians to participate in peaceful demonstrations across the country on June 9. In meantime read the whole letter below. Source: http://www.bgr.in/news/anonymous-open-letter-to-indian-govt-claims-ddos-attack-on-sites-are-legal/

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Anonymous’ open letter to Indian govt claims DDoS attack on sites are legal

Indian ISPs targeted in Anonymous censorship protest

The websites of Indian government-run communications company Mahanagar Telephone Nigam and the Internet Service Providers Association of India faced DDoS (distributed denial of service) attacks from Anonymous on Wednesday as some Internet service providers continue to block file-sharing websites following a court order. ISPs are only following the orders of the court which are supreme, said Rajesh Chharia, president of ISPAI, who was doubtful that the association’s website had been affected by the hackers. The Indian arm of Anonymous previously attacked some government websites, and those of some political parties. Last month, users reported that the hackers tinkered with the service of a large ISP, Reliance Communications, redirecting its users from sites like Facebook and Twitter to a protest page. The hackers also claimed to have attacked the website and servers of Reliance, and got access to a large list of URLs blocked by the company. Reliance denied its servers were hacked. The attacks follow a March court order directing ISPs to prevent a newly released local movie from being available online in pirated versions. Some ISPs blocked some file-sharing sites altogether, rather than any offending URLs. The measures taken by the ISPs have differed depending on their interpretation of the order, Chharia said. Some websites such as The Pirate Bay continue to be blocked by some ISPs and carried the message, “This website/URL has been blocked until further notice either pursuant to Court orders or on the Directions issued by the Department of Telecommunications.” Pastebin is also not accessible through some ISPs. Internet service providers are against censorship, and also against piracy, Chharia said. “It is up to the government and various groups to come to a resolution,” he added. The responsibility of intermediaries has been a controversial issue in India, with some Internet companies including Google and Facebook sued in court late last year for objectionable content found on their sites. Their websites have been attacked as blocks on some file-sharing sites continue Anonymous meanwhile plans on June 9 what it describes as non-violent protests across many cities in India against censorship of the Internet in the country. It claims to have already received police permission for some of the protests. The scope of the protests has widened to include demands for changes in the India’s Information Technology Act, which among other things allows the government to block websites under certain conditions, and also allows the removal of online content by notice to ISPs. The government is also in the process of framing rules that will put curbs on freedom on social media, according to the hacker group. Source: http://www.computerworld.com/s/article/9227804/Indian_ISPs_targeted_in_Anonymous_censorship_protest

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Indian ISPs targeted in Anonymous censorship protest

Counting the cost of a DDoS attack

In the past month, the Information Commissioner’s Office (ICO), the Leveson inquiry website, Visa and Virgin Media have all been hit by distributed denial of service (DDoS) attacks. Much had been made of the motives for such attacks, and the methods that attackers use, but what impact do they have on the victim’s finances? John Pescatore, analyst at research firm Gartner, told Computing that there were three main costs associated with attacks. “There is the cost of the outage, as it means that a business’s customers cannot reach them through the internet. Then there is the cost of making the attack stop – and, often, a third cost in the form of a potential extortion fee,” he said. Obviously losses vary, depending on how much revenue is generated directly from a company’s web presence. John Roberts, head of managed services at MSP Redstone, said: “If a betting organisation trades £600m a year – or £2m a day in revenue terms – and 50 per cent of that comes from the web, then they are losing £1m a day.” Any web-dependent organisation within the global 1,000 might incur similar losses, he added. But there are some less obvious victims of these blunt-instrument attacks. “A Scottish football club who were playing in a European match had its website taken down by the opposing teams’ fans with a DDoS attack. The club was not able to generate significant revenue, because a number of its customers were signed up to stream live games on a monthly fee basis. So an organisation as innocuous as a football club can lose hundreds of thousands of pounds as well,” Roberts said. Public-sector bodies can also suffer substantial financial damage through loss of productivity. “There is a cost implication for local government as people will be looking to procure services over the internet. If those services are unavailable, public-sector staff will receive a lot more incoming phone calls,” he said. Other repercussions are harder to assess and quantify. For example, businesses can suffer reputational damage from DDoS attacks, said Andrew Kellett, analyst at research firm Ovum. “With [the attack on] the Serious Organised Crime Authority [SOCA], the issue was that this was not the first time it had been exposed to a DDoS attack. You would have thought that enough resilience would have been built after the first attack to deal with something similar a year later,” he said. But Gartner’s Pescatore said that reputational damage is often less severe than many organisations fear; customers are used to websites not working for any number of other reasons that are not related to DDoS attacks. “There is reputational damage if the website is defaced or if the website is attacked and customers’ financial information is disclosed, but DDoS generally does not have much of a reputational impact,” he argued. Kellett disagreed and emphasised that reputational damage can itself cause financial loss to enterprises, as their customers opt for an alternative service from a similar provider. He warned that DDoS attacks could also be used as cover for a simultaneous assault on the targeted business. “The noise around DDoS attacks can be used to hide another backdoor-style assault, such as data being stolen from within the organisation. “There is an example of clerical records, including credit card information, being stolen from an organisation when a DDoS attack was taking place. It was a hacktivist attack where the credit card details were used to make donations to a charity. For any organisation protecting those details it would be both embarrassing and expensive, as they could lose customers and have to repay anyone who has had money taken from their accounts,” he said. Pescatore said that, of the three costs typically associated with DDoS attacks, extortion attempts have reduced significantly. “In the last two years, businesses have not paid off extortion attempts and are focusing on putting in place services to mitigate DDoS attacks. Several years ago there were incidents where it was deemed less expensive to pay off the attackers as they would only be asking for €5,000,” he said. Source: http://www.computing.co.uk/ctg/analysis/2181680/analysis-counting-cost-ddos-attack

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Counting the cost of a DDoS attack

White House unveils initiatives to combat botnets

The Obama administration on Wednesday revealed new initiatives to combat botnets, believed to present one of the greatest threats to the integrity of the internet. Botnets are employed by cyber thieves to gain control of computers to perform illegal activities, including siphoning off assets, initiating denial of service (DoS) attacks, which could shut down a targeted website, or distributing spam. The initiatives stem from a voluntary public-private partnership between the White House Cybersecurity Office and the U.S. Departments of Commerce and Homeland Security (DHS), which coordinate with private industry to lead the Industry Botnet Group (IBG), a group of nine trade associations and nonprofit organizations representing thousands of companies. “The issue of botnets is larger than any one industry or country,” said White House Cybersecurity Coordinator Howard Schmidt at an event to announce the program (Schmidt recently announced his resignation). Also present at the event were Federal Communications Commission Chairman Julius Genachowski, Department of Homeland Security Secretary Janet Napolitano, Under Secretary of Commerce for Standards and Technology Patrick Gallagher, and a number of industry CEOs. According to an administration official who spoke with SCMagazineUS.com on Friday, “industry deserves credit for the real work in getting this done.” He said that the strategy goes back to a Commerce greenpaper on cyber security looking at areas where the government saw a solution in the private sector that could alleviate the botnet problem, but was not gaining traction and collective action. “Companies didn’t want to invest if other companies weren’t,” the administration official said. A call went out from the Departments of Commerce and Homeland Security to the private sector to find ways to build incentives for companies to implement best practices around botnets. “We were pleasantly surprised to find so much agreement,” the official said. A series of meetings at the White House followed, led by Schmidt, which led to the writing of IBG’s “Principles for Voluntary Efforts to Reduce the Impact of Botnets in Cyberspace,” he said. “Cybersecurity is a shared responsibility – the responsibility of government, our private sector partners and every computer user,” Napolitano said at Wednesday’s event, according to a release. “DHS has set out on a path to build a cyber system that supports secure and resilient infrastructure, encourages innovation, and protects openness, privacy and civil liberties.” The Online Trust Alliance (OTA) was also at the event to support the IBG’s principles. “We have a shared responsibility to commit resources to address the growing threats from botnets, which threaten to undermine the digital economy,” Craig Spiezle, executive director and president, Online Trust Alliance, said in a statement. “Preserving online trust and confidence needs to be a priority and the broad adoption of the Industry Botnet Group principles is an important step toward protecting the internet.” Source: http://www.scmagazine.com/white-house-unveils-initiatives-to-combat-botnets/article/243712/

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White House unveils initiatives to combat botnets

WHMCS under renewed DDoS blitz after patching systems

‘Undesirable people’ are all over us WHMCS, the UK-based billing and customer support tech supplier, has once again come under denial of service attacks, on this occasion following an upgrade of its systems to defend against a SQL injection vulnerability.…

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WHMCS under renewed DDoS blitz after patching systems

Man arrested for hacking into billing provider

The FBI has arrested hacker “Cosmo”, according to a report by Eduard Kovacs of Softpedia. Cosmo is alleged to be the leader of four-man hacktivist group UGNazi, which took control of the web site of major payment services provider WHMCS just over a week ago. Previously, UGNazi had been known primarily for distributed denial-of-service (DDoS) attacks carried out using its own botnet. Earlier this month, for example, it briefly took down the US Department of Education web site. UGNazi received even more attention when, on 21 May, it hacked into servers belonging to UK billing company WHMCS and copied private internal information, which it posted online two days later. The stolen data included a MySQL dump of the company’s customer database containing nearly 130,000 records, and data from the main server. The hackers gained access to WHMCS’ Twitter account and infiltrated the user forum. The group also carried out DDoS attacks to take down the WHMCS domain for several hours. The UGNazi hackers reportedly used basic social engineering techniques to gain access to the WHMCS domain. One of the hackers, probably Cosmo, phoned WHMCS’s hosting company claiming to be the company’s CEO and correctly answered the security question. They were then given full access to the company’s main server. WHMCS provides payment systems for small to medium-sized web sites. At the time of the intrusion, the customer database contained just under 13,000 credit card numbers, which were encrypted using a symmetrical AES algorithm. Passwords were salted, which should have made them harder to decrypt – but since the salt was recorded directly after the password, not impossible. Following the attack, the hackers spent several days taunting WHMCS. They posted tweets in the name of the company and rewrote some company blog and forum postings. In a statement on PasteBin, UGNazi stated that its motivation for the hack was simply to open the eyes of WHMCS users. The group’s US-based web site is now offline – having been, according to a tweet by Cosmo, seized by the FBI. Members of the group have told Kovacs that they are confident that the FBI will not be able to prove anything in relation to Cosmo. A fifth member left the group shortly before the attack on WHMCS. According to Softpedia, another member of the group hasn’t been online “for the past couple of days”. WHMCS has now reset all passwords for its customer area and warned its customers to be vigilant for ongoing consequences of the hack. Yesterday the company was forced to inform its customers of a further security concern, when a programmer informed WHMCS of a vulnerability in its payment processing system, for which the company released an immediate patch. Source: http://www.h-online.com/security/news/item/Man-arrested-for-hacking-into-billing-provider-1587517.html

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Man arrested for hacking into billing provider

DoS crashes updated iPads, iPhones

A denial of service attack has been disclosed in the latest version of Apple iOS. The attack targets Safari in iOS 5.1.1 and a proof of concept was published online. Alienvault security researcher Alberto Ortega said the attack may also affect previous versions of the Apple operating system. The attack was successfully demonstrated on iPhone, iPad and iPod Touch. Ortega said the error was a “step to achieve a real exploitation”. “iOS has a lot of mitigations to avoid successful exploitation,” Ortega said. “This software has errors and holes but you will need to bypass those hard mitigations and find more weaknesses to have something “usable’.” Ortega reported the error to Apple at the time of disclosure but had no response from the notoriously security silent company. “When JavaScript function match() gets a big buffer as parameter the browser unexpectedly crashes. By extension, the function search() is affected too,” Ortega said in the advisory. Source: http://www.crn.com.au/News/302620,dos-crashes-updated-ipads-iphones.aspx

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DoS crashes updated iPads, iPhones

FBI Warns Companies of Anonymous DDoS Attacks

The Cyber Division of the Federal Bureau of Investigation warned several large corporations of the potential for distributed denial of service (DDoS) and data exfiltration attacks scheduled for today, May 25. The attacks are being coordinated by the rogue movement Anonymous in an an exercise termed “Operation NewSon”. In denial of service attacks, generally a large amount of information is sent to a web server at such high frequency that it overwhelms the processing capacity or causes the system to shut down. The net effect is that the server can not longer operate correctly and the targeted website is rendered inaccessible. DDoS attacks can also inflict serious damage to targeted systems, as well as collateral damage to associated nodes. Anonymous is known for having targeted the websites of businesses like PayPal, Visa, MasterCard, PostFinance Bank, Amazon, Bank of America, as well as numerous government agencies, and continues to use DDoS attacks as a method of furthering their political views in various conflicts around the world. Anonymous was also behind the HBGary Federal breach had led to the release of tens-of-thousands of company emails which revealed multiple instances of ethically questionable covert operations involving the security company. Swedish file-sharing website The Pirate Bay – typically aligned with Anonymous in their anti-copyright orientation – recently issued a statement in opposition to the popular hacktivist tactic of DDoS attacks. Source: http://threatpost.com/en_us/blogs/fbi-warns-top-firms-anonymous-protest-hacks-may-25-052412?

US Firms Are Over-Reliant on Firewalls to Protect Against DDoS Attacks

By John E Dunn, techworld.com More than half of US businesses still rely on conventional firewalls or intrusion prevention systems to shield themselves from the scourge of DDoS attacks, a survey by services firm Neustar has found. The survey of 1,000 US-based IT professionals across a range of industries found that only 3 percent were using DDoS mitigation systems or services, with a quarter claiming they had no protection whatsoever against the threat. Eleven percent used intrusion detection/prevention systems even though such technology is (in common with firewalls, routers and switches) widely seen as an inadequate defence against contemporary DDoS bombardment, Neustar said. “Experts point out that during DDoS attacks these ‘defences’ become part of the problem. They quickly become bottlenecks, helping achieve an attacker’s goal of slowing or shutting you down. Moreover, firewalls won’t repel attacks on the application layer, an increasingly popular DDoS vector,” the authors note. A third of those questioned said DDoS attacks lasted for a day or more with 11 percent mentioning over a week. There didn’t appear to be any clear pattern that related attack length to industry segment, except that the travel industry appeared slightly more vulnerable to attacks lasting longer than 24 hours. Two thirds said the direct cost of all this DDoS was about $10,000 (£6,200) per hour or $240,000 per day, with 13 percent reckoning it as being $100,000 per hour. The most vulnerable to high costs was retail, a sector that depends on online sales to generate cashflow, followed by finance. The main anxiety in advance of DDoS attacks was the negative impact on customers, ahead of brand reputation damage and even direct costs. Companies such as Neustar have a vested interest in talking up the difficulty of dealing with DDoS the better to market protection services. However, the company said it accepted that there was no simple answer to countering DDoS attacks; even the best protection systems available still required trained, skilled staff to deploy and manage them. “With attacks becoming more sophisticated – mixing brute-force bandwidth assaults and surgical strikes on applications – in-depth knowledge and experience make a huge difference. There is no ‘magic box’ that can out-think attackers on its own.” Source: http://www.pcworld.com/businesscenter/article/255772/us_firms_are_overreliant_on_firewalls_to_protect_against_ddos_attacks.html

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US Firms Are Over-Reliant on Firewalls to Protect Against DDoS Attacks