Category Archives: Cyber War

281 Arrested Worldwide in Business Email Compromise

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Operation ReWired:

Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation reWired, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury, U.S. Postal Inspection Service, and the U.S. Department of State, was conducted over a four-month period, resulting in 281 arrests in the United States and overseas, including 167 in Nigeria, 18 in Turkey and 15 in Ghana. Arrests were also made in France, Italy, Japan, Kenya, Malaysia, and the United Kingdom (UK). The operation also resulted in the seizure of nearly $3.7 million.

Operation WireWire - Law enforcement arrested 74 ... photo

BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.

“The Department of Justice has increased efforts in taking aggressive enforcement action against fraudsters who are targeting American citizens and their businesses in business email compromise schemes and other cyber-enabled financial crimes,” said Deputy Attorney General Jeffrey Rosen. “In this latest four-month operation, we have arrested 74 people in the United States and 207 others have been arrested overseas for alleged financial fraud. The coordinated efforts with our domestic and international law enforcement partners around the world has made these most recent actions more successful. I want to thank the FBI, more than two dozen U.S. Attorney’s Offices, U.S. Secret Service, U.S. Postal Inspection Service, Homeland Security Investigations, IRS Criminal Investigation, U.S. Department of State’s Diplomatic Security Service, our partners in Nigeria, Ghana, Turkey, France, Italy, Japan, Kenya, Malaysia, and the UK, and our state and local law enforcement partners for all of their hard work to combat these fraud schemes and protect the hard-earned assets of our citizens. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable.”

“The FBI is working every day to disrupt and dismantle the criminal enterprises that target our businesses and our citizens,” said FBI Director Christopher A. Wray. “Cooperation is the backbone to effective law enforcement; without it, we aren’t as strong or as agile as we need to be. Through Operation reWired, we’re sending a clear message to the criminals who orchestrate these BEC schemes: We’ll keep coming after you, no matter where you are. And to the public, we’ll keep doing whatever we can to protect you. Reporting incidents of BEC and other internet-enabled crimes to the IC3 brings us one step closer to the perpetrators.”

“The Secret Service has taken a multi-layered approach to combating Business Email Compromise schemes through our Global Investigative Operations Center (GIOC),” said U.S. Secret Service Director James M. Murray. “Domestically, the GIOC assists Secret Service Field Offices and other law enforcement partners with analysis and investigative tactics to enhance the impact of local BEC investigations. Internationally, the GIOC targets and identifies transnational organized crime networks that perpetrate these cyber-enabled financial fraud schemes. Through this approach, the Secret Service continues to strive to protect the citizens of the United States and our financial infrastructure from these complex crimes.”

“Homeland Security Investigations (HSI), together with its law enforcement partners, has proven once again, that cyber-enabled financial fraud will not be tolerated in the United States,” said Acting Director Matthew T. Albence of U.S. Immigration and Customs Enforcement (ICE). “Operation reWired sends a clear message to criminals, that no matter how or where crimes are committed, we will do everything within our means to dismantle criminal enterprises that seek to manipulate U.S. institutions and taxpayers.”

“The consequences of this type of fraud scheme are far reaching, affecting not only people in the United States, but also across the world,” said Chief Postal Inspector Gary Barksdale. “This investigation is just another example of how effective law enforcement agencies can be when they join forces. By working together, we can keep our communities and our vulnerable populations safe from financial exploitation. The U.S. Postal Inspection Service is proud to be at the forefront of the fight against fraud and Postal Inspectors will continue to adapt to the ever changing landscape to stop the scammers and protect our customers.”

“In unraveling this complex, nationwide identity theft and tax fraud scheme, we discovered that the conspirators stole more than 250,000 identities and filed more than 10,000 fraudulent tax returns, attempting to receive more than $91 million in refunds,” said Chief Don Fort of IRS Criminal Investigation. “We will continue to work with our international, federal and state partners to pursue all those responsible for perpetrating this fraud, preying on innocent victims and attempting to cheat the U.S. out of millions of dollars.”

“The investigation of these crimes crossed international borders,” said Director Todd J. Brown of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s charges are another successful example of our commitment to working together with both foreign colleagues abroad as well as local, state and federal law enforcement partners here at home in the pursuit of those who commit cyber-related financial crimes.”

A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies affect not only the individual business but also the global economy. According to the Internet Crime Complaint Center (IC3), nearly $1.3 billion in loss was reported in 2018 from BEC and its variant, Email Account Compromise (EAC), nearly twice as much as was reported the prior year. BEC and EAC are prevalent scams and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.

Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams, though some money mules are knowing co-conspirators who launder the ill-gotten gains for profit.

BEC scams are related to, and often conducted together with, other forms of fraud such as:

“Romance scams,” where victims are lulled into believing they are in a legitimate relationship, and are tricked into sending or laundering money under the guise of assisting the paramour with an international business transaction, a U.S. visit, or some other cover story;

“Employment opportunities scams,” where victims are convinced to provide their PII to apply for work-from-home jobs, and, once “hired” and “overpaid” by a bad check, to wire the overpayment to the “employer’s” bank before the check bounces;

“Fraudulent online vehicle sales scams,” where victims are convinced they are purchasing a nonexistent vehicle and must pay for it by sending the codes of prepaid gift cards in the amount of the agreed upon sale price to the “seller;”

“Rental scams,” where a scammer agrees to rent a property, sends a bad check in excess of the agreed upon deposit, and requests the overpayment be returned via wire before the check bounces; and

“Lottery scams,” where victims are convinced they won an international lottery but must pay fees or taxes before receiving the payout.

Starting in May 2019, this coordinated enforcement action targeted hundreds of BEC scammers. Law enforcement agents executed over 214 domestic actions including arrests, money mule warning letters, and asset seizures and repatriations totaling nearly $3.7 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, also arrested alleged money mules for their role in defrauding victims.

Among those arrested on federal charges in BEC schemes include:

Following an investigation led by the FBI’s Chicago Division, Brittney Stokes, 27, of Country Club Hills, Illinois, and Kenneth Ninalowo, 40, of Chicago, Illinois, were charged in the Northern District of Illinois with laundering over $1.5 million from proceeds of BEC scams. According to the indictment, a community college and an energy company were defrauded into sending approximately $5 million to fraudulent bank accounts controlled by the scammers. Banks were able to freeze approximately $3.6 million of the $5 million defrauded in the two schemes. Law enforcement officials seized a 2019 Range Rover Velar S from Stokes and approximately $175,909 from Stokes and Ninalowo.

As a result of a joint investigation by the FBI, HSI, and DSS, Opeyemi Adeoso, 44, of Dallas, Texas, and Benjamin Ifebajo, 45, of Richardson, Texas, were arrested and charged in the Northern District of Texas with bank fraud, wire fraud, money laundering, and conspiracy. Adeoso and Ifebajo are alleged to have received and laundered at least $3.4 million. In furtherance of their scheme, they are alleged to have assumed 12 fictitious identities and defrauded 37 victims from across the United States.

As part of a larger investigation by the FBI and the USSS in Miami, Yamel Guevara Tamayo, 36, of Miami, Florida, and Yumeydi Govantes, 39, of Miami, Florida, were charged in the Southern District of Florida with laundering more than $950,000 of proceeds of BEC scams. The two individuals were also responsible for recruiting approximately 18 other individuals to serve as money mules, who laundered proceeds of BEC scams for an international money laundering network. The victims of the BEC scams included title companies, corporations, and individuals. The individuals were indicted June 18, 2019 and arrested June 20, 2019. The change of plea for both individuals is scheduled for Sept. 16.

In an investigation by FBI Atlanta, two individuals were charged in the Northern District of Georgia for their involvement in a Nigeria-based BEC scheme that began with a $3.5 million transfer of funds fraudulently misdirected from a Georgia-based health care provider to accounts across the United States. Two Nigerian nationals, Emmanuel Igomu, 35, of Atlanta, Georgia, and Jude Balogun, 29, of San Francisco, California, have been arrested on charges of aiding and abetting wire fraud for their part in receiving and transmitting monies derived from the BEC.

Following an investigation by the FBI, Cyril Ashu, 34, of Austell, Georgia; Ifeanyi Eke, 32, of Sandy Springs, Georgia; Joshua Ikejimba, 24, of Houston, Texas; and Chinedu Ironuah, 32, of Houston, Texas, were charged in the Southern District of New York with one count of conspiracy to commit wire fraud and one count of wire fraud for their involvement in a Nigeria-based BEC scheme that impacted hundreds of victims in the United States, with losses in excess of $10 million.

An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, ICE’s Homeland Security Investigations (HSI), IRS Criminal Investigation and U.S. Department of State’s Diplomatic Security Service. U.S. Attorney’s Offices in the Districts of Arizona; Central, Eastern and Southern California; Colorado; Delaware; Southern Florida; Northern Georgia; Northern Illinois; Kansas; Eastern Louisiana; Massachusetts; Nebraska; Nevada; Southern New York; Middle North Carolina; Northern Ohio; Oregon; Northern, Western and Southern Texas; Western Tennessee; Eastern Virginia; Eastern Washington, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section, and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Harris County, Texas; Fort Bend County, Texas; and Washington County, Arkansas are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Ghana Police Service (GPS) and Economic and Organized Crime Office (EOCO), Turkish National Police (TNP) Cyber Department, Direction Centrale de la Police aux Frontieres (PAF) of France, Squadra Mobile Di Caserta and Italian National Police, National Police Agency of Japan, Tokyo Metropolitan Police Department (TPMD), Royal Malaysian Police, Directorate of Criminal Investigations (DCI) of Kenya and the National Crime Agency (NCA), North Wales Police, Metropolitan Police Service and Hertfordshire Constabulary of the UK provided significant assistance.

This operation serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Deputy Attorney General Rosen expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.

The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.

The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.

Operation reWired was funded and coordinated by the FBI and the Justice Department’s International Organized Crime Intelligence and Operations Center (IOC-2) and follows “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.

Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.

Apply More Shame to Facebook

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Okay, so without much media attention, YouTube was just fined $170 million for children’s privacy violations. Hello Google? WTH? This was a settlement by the way between Google and the Federal Trade Commission.

But what about Facebook and protecting our data? We have heard and read items about how casual Facebook is with out data. But hold on, there is more.

Primer: Cambridge Analytica was a cyber spy network with political operations and twisted tactics.

In part:

The company at the centre of the Facebook data breach boasted of using honey traps, fake news campaigns and operations with ex-spies to swing election campaigns around the world, a new investigation reveals.

Executives from Cambridge Analytica spoke to undercover reporters from Channel 4 News about the dark arts used by the company to help clients, which included entrapping rival candidates in fake bribery stings and hiring prostitutes to seduce them.

In one exchange, the company chief executive, Alexander Nix, is recorded telling reporters: “It sounds a dreadful thing to say, but these are things that don’t necessarily need to be true as long as they’re believed.” More here.

Meanwhile:

Techcrunch: Hundreds of millions of phone numbers linked to Facebook accounts have been found online.

The exposed server contained more than 419 million records over several databases on users across geographies, including 133 million records on U.S.-based Facebook users, 18 million records of users in the U.K., and another with more than 50 million records on users in Vietnam.

But because the server wasn’t protected with a password, anyone could find and access the database.

Each record contained a user’s unique Facebook ID and the phone number listed on the account. A user’s Facebook ID is typically a long, unique and public number associated with their account, which can be easily used to discern an account’s username.

But phone numbers have not been public in more than a year since Facebook restricted access to users’ phone numbers.

TechCrunch verified a number of records in the database by matching a known Facebook user’s phone number against their listed Facebook ID. We also checked other records by matching phone numbers against Facebook’s own password reset feature, which can be used to partially reveal a user’s phone number linked to their account.

Some of the records also had the user’s name, gender and location by country.

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This is the latest security lapse involving Facebook data after a string of incidents since the Cambridge Analytica scandal, which saw more than 80 million profiles scraped to help identify swing voters in the 2016 U.S. presidential election.

Since then the company has seen several high-profile scraping incidents, including at Instagram, which recently admitted to having profile data scraped in bulk.

This latest incident exposed millions of users’ phone numbers just from their Facebook IDs, putting them at risk of spam calls and SIM-swapping attacks, which relies on tricking cell carriers into giving a person’s phone number to an attacker. With someone else’s phone number, an attacker can force-reset the password on any internet account associated with that number.

Sanyam Jain, a security researcher and member of the GDI Foundation, found the database and contacted TechCrunch after he was unable to find the owner. After a review of the data, neither could we. But after we contacted the web host, the database was pulled offline.

Jain said he found profiles with phone numbers associated with several celebrities.

Facebook spokesperson Jay Nancarrow said the data had been scraped before Facebook cut off access to user phone numbers.

“This data set is old and appears to have information obtained before we made changes last year to remove people’s ability to find others using their phone numbers,” the spokesperson said. “The data set has been taken down and we have seen no evidence that Facebook accounts were compromised.”

But questions remain as to exactly who scraped the data, when it was scraped from Facebook and why.

Facebook has long restricted developers‘ access to user phone numbers. The company also made it more difficult to search for friends’ phone numbers. But the data appeared to be loaded into the exposed database at the end of last month — though that doesn’t necessarily mean the data is new.

This latest data exposure is the most recent example of data stored online and publicly without a password. Although often tied to human error rather than a malicious breach, data exposures nevertheless represent an emerging security problem.

In recent months, financial giant First American left data exposed, as did MoviePass and the Senate Democrats.

Feds Prepare States for Foreign Voting Interference

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The Democrats have really lost their argument against voter ID if they are being fully candid about foreign interference. It is without question that several cities and states are victims of ransomware and Florida is especially concerned. Remember that a foreign actor, where clues point to Russia were able to gain access to voter registration databases and it stands to reason China will attempt the same.

Continually, the Democrats say that the Trump administration is virtually doing nothing to protect the election system. Read on as the Democrats know the mission and actions of the Cyber division of the Department of Homeland Security.

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As Reuters reports:

The U.S. government plans to launch a program in roughly one month that narrowly focuses on protecting voter registration databases and systems ahead of the 2020 presidential election.

These systems, which are widely used to validate the eligibility of voters before they cast ballots, were compromised in 2016 by Russian hackers seeking to collect information. Intelligence officials are concerned that foreign hackers in 2020 not only will target the databases but attempt to manipulate, disrupt or destroy the data, according to current and former U.S. officials.

“We assess these systems as high risk,” said a senior U.S. official, because they are one of the few pieces of election technology regularly connected to the Internet.

The Cybersecurity Infrastructure Security Agency, or CISA, a division of the Homeland Security Department, fears the databases could be targeted by ransomware, a type of virus that has crippled city computer networks across the United States, including recently in Texas, Baltimore and Atlanta.

“Recent history has shown that state and county governments and those who support them are targets for ransomware attacks,” said Christopher Krebs, CISA’s director. “That is why we are working alongside election officials and their private sector partners to help protect their databases and respond to possible ransomware attacks.”

A ransomware attack typically locks an infected computer system until payment, usually in the form of cryptocurrency, is sent to the hacker.

The effort to counter ransomware-style cyberattacks aimed at the election runs parallel to a larger intelligence community directive to determine the most likely vectors of digital attack in the November 2020 election, according to current and former U.S. officials.

“It is imperative that states and municipalities limit the availability of information about electoral systems or administrative processes and secure their websites and databases that could be exploited,” the FBI said in a statement, supporting the Homeland Security initiative.

CISA’s program will reach out to state election officials to prepare for such a ransomware scenario. It will provide educational material, remote computer penetration testing, and vulnerability scans as well as a list of recommendations on how to prevent and recover from ransomware.

These guidelines, however, will not offer advice on whether a state should ultimately pay or refuse to pay ransom to a hacker if one of its systems is already infected.

“Our thought is we don’t want the states to have to be in that situation,” said a Homeland Security official. “We’re focused on preventing it from happening.”

Over the last two years, cyber criminals and nation state hacking groups have used ransomware to extort victims and create chaos. In one incident in 2017, which has since been attributed to Russian hackers, a ransomware virus was used to mask a data deletion technique, rendering victim computers totally unusable.

That attack, dubbed “NotPetya,” went on to damage global corporations, including FedEx and Maersk, which had offices in Ukraine where the malware first spread.

The threat is concerning because of its potential impact on voting results, experts say.

“A pre-election undetected attack could tamper with voter lists, creating huge confusion and delays, disenfranchisement, and at large enough scale could compromise the validity of the election,” said John Sebes, chief technology officer of the ESET Institute, an election technology policy think tank.

The databases are also “particularly susceptible to this kind of attack because local jurisdictions and states actively add, remove, and change the data year-round,” said Maurice Turner, a senior technologist with the Center for Democracy and Technology. “If the malicious actor doesn’t provide the key, the data is lost forever unless the victim has a recent backup.”

Nationwide, the local governments that store and update voter registration data are typically ill-equipped to defend themselves against elite hackers.

State election officials told Reuters they have improved their cyber defenses since 2016, including in some cases preparing backups for voter registration databases in case of an attack. But there is no common standard for how often local governments should create backups, said a senior Homeland Security official.

“We have to remember that this threat to our democracy will not go away, and concern about ransomware attacks on voter registration databases is one clear example,” said Vermont Secretary of State Jim Condos. “We’re sure the threat is far from over.”

 

35 North Korean cyberattacks in 17 countries

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Pwned: North Korea's Facebook clone hacked by UK teen ...

According to a South Korean politician, last fall North Korean hackers gained access to South Korea’s Defense Integrated Data Center and stole 235 gigabytes of classified military plans. More here.

UNITED NATIONS (AP) — U.N. experts say they are investigating at least 35 instances in 17 countries of North Koreans using cyberattacks to illegally raise money for weapons of mass destruction programs — and they are calling for sanctions against ships providing gasoline and diesel to the country.

Last week, The Associated Press quoted a summary of a report from the experts which said that North Korea illegally acquired as much as $2 billion from its increasingly sophisticated cyber activities against financial institutions and cryptocurrency exchanges.

The lengthier version of the report, recently seen by the AP, reveals that neighboring South Korea was hardest-hit, the victim of 10 North Korean cyberattacks, followed by India with three attacks, and Bangladesh and Chile with two each.

Thirteen countries suffered one attack — Costa Rica, Gambia, Guatemala, Kuwait, Liberia, Malaysia, Malta, Nigeria, Poland, Slovenia, South Africa, Tunisia and Vietnam, it said.

The experts said they are investigating the reported attacks as attempted violations of U.N. sanctions, which the panel monitors.

The report cites three main ways that North Korean cyber hackers operate:

—Attacks through the Society for Worldwide Interbank Financial Telecommunication or SWIFT system used to transfer money between banks, “with bank employee computers and infrastructure accessed to send fraudulent messages and destroy evidence.”

—Theft of cryptocurrency “through attacks on both exchanges and users.”

— And “mining of cryptocurrency as a source of funds for a professional branch of the military.”

The experts stressed that implementing these increasingly sophisticated attacks “is low risk and high yield,” often requiring just a laptop computer and access to the internet.

The report to the Security Council gives details on some of the North Korean cyberattacks as well as the country’s successful efforts to evade sanctions on coal exports in addition to imports of refined petroleum products and luxury items including Mercedes Benz S-600 cars.

One Mercedes Maybach S-Class limousine and other S-600s, as well as a Toyota Land Cruiser, were transferred from North Korea to Vietnam for last February’s summit between the country’s leader Kim Jong Un and U.S. President Donald Trump, the experts said, adding that Vietnam said it asked for but was never provided a list of vehicles being brought into the country.

The panel also said it obtained information that the Taesong Department Store in Pyongyang, which reopened in April and is selling luxury goods, is part of the Taesong Group which includes two entities under U.N. sanctions and was previously linked to procurement for North Korea’s ballistic missile programs.

The panel recommended sanctions against six North Korean vessels for evading sanctions and illegally carrying out ship-to-ship transfers of refined petroleum products.

Under U.N. sanctions, North Korea is limited to importing 500,000 barrels of such products annually including gasoline and diesel. The U.S. and 25 other countries said North Korea exceeded the limit in the first four months of 2019.

The panel also recommended sanctions against the captain, owner, and parent company of the North Korean-flagged Wise Honest, which was detained by Indonesia in April 2018 with an illegal shipment of coal.

As for North Korea’s military cooperation with other countries, the experts said Iran rejected an unnamed country’s allegation that two North Korean entities under sanctions maintained offices in Iran — the Korea Mining Development Trading Corporation known as KOMID, which is the country’s primary arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons, and Saeng Pil Company.

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The experts said they have requested information from Rwanda on a report that North Koreans are conducting special forces training at a military camp in Gabiro. And they said they are also waiting for a response from Uganda “to multiple inquires” about reports indicating specialized training is being conducted in the country, and KOMID and North Korean workers maintain a presence.

As examples of North Korean cyberattacks, the panel said hackers in one unnamed country accessed the infrastructure managing its entire ATM system and installed malware modifying the way transactions are processed. As a result, it forced 10,000 cash distributions to individuals working for or on behalf of North Korea “across more than 20 countries in five hours.”

In Chile, the experts said, North Korean hackers demonstrated “increasing sophistication in social engineering,” by using LinkedIn to offer a job to an employee of the Chilean interbank network Redbanc, which connects the ATMs of all the country’s banks.

According to a report from one unnamed country cited by the experts, stolen funds following one cryptocurrency attack in 2018 “were transferred through at least 5,000 separate transactions and further routed to multiple countries before eventual conversion” to currency that a government has declared legal money, “making it highly difficult to track the funds.”

In South Korea, the experts said, North Korean cyber actors shifted focus in 2019 to targeting cryptocurrency exchanges, some repeatedly.

The panel said South Korea’s Bithumb, one of the largest cryptocurrency exchanges in the world, was reportedly attacked at least four times. It said the first two attacks in February 2017 and July 2017 each resulted in losses of approximately $7 million, while a June 2018 attack led to a $31 million loss and a March 2019 attack to a $20 million loss.

The panel said it also investigated instances of “cryptojacking” in which malware is used to infect a computer to illicitly use its resources to generate cryptocurrency. It said one report analyzed a piece of malware designed to mine the cryptocurrency Monero “and send any mined currency to servers located at Kim Il Sung University in Pyongyang.”

Fancy Bear, APT28, IoT, Hacking via Printers

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Primer: U.S Ambassador to Russia, Jon Huntsman just issued his letter of resignation to President Trump. He states that he wants to return home to Utah due to a growing family. Gotta wonder if Amb. Huntsman ever really challenged Moscow on hacking and security intrusions of the United States.

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MIT: A group of hackers linked to Russian spy agencies are using “internet of things” devices like internet-connected phones and printers to break into corporate networks, Microsoft announced on Monday.

Fancy Bear never hibernates: The Russian hackers, who go by names like Strontium, Fancy Bear, and APT28, are linked to the military intelligence agency GRU.

The group has been active since at least 2007. They are credited with a long list of infamous work including breaking into the Democratic National Committee in 2016, the crippling NotPetya attacks against Ukraine in 2017, and targeting political groups in Europe and North America throughout 2018.

Insecurity of Things: The new campaign from GRU compromised popular internet of things devices including a VOIP (voice over internet protocol) phone, a connected office printer, and a video decoder in order to gain access to corporate networks. Microsoft has some of the best visibility into corporate networks on earth because so many organizations are using Windows machines. Microsoft’s Threat Intelligence Center spotted Fancy Bear’s new work starting in April 2019.

The password is password: Although things like smartphones and desktop computers are often top of mind when it comes to security, it’s often the printer, camera, or decoder that leaves a door open for a hacker to exploit.

In multiple cases, Microsoft saw Fancy Bear get access to targeted networks because the IoT devices were deployed with default passwords. In another case, the latest security update was not applied. Using those devices as a starting point, the hackers established a beachhead and looked for further access.

“Once the actor had successfully established access to the network, a simple network scan to look for other insecure devices allowed them to discover and move across the network in search of higher-privileged accounts that would grant access to higher-value data,” Microsoft warned in a blog post published on Monday.

The hackers moved from one device to another, establishing persistence and mapping the network as they went, communicating with command and control servers all the while.

Global targets: Microsoft has been closely watching this group over the last year.

Of the 1,400 notifications the company delivered to those targeted or compromised by Fancy Bear, 20% have been to global non-governmental organizations, think tanks, or politically affiliated organizations. The remaining 80% have been to various sectors including government, technology, military, medicine, education, and engineering.

“We have also observed and notified STRONTIUM attacks against Olympic organizing committees, anti-doping agencies, and the hospitality industry,” Microsoft’s blog warned.

Last year, the FBI took disruptive action against a Fancy Bear campaign known as “VPNFilter” which targeted routers and network storage devices with malware with destructive capabilities of “bricking” a device by deleting firmware and rendering the device unusable. That campaign especially targeted Ukraine, a favorite target of Fancy Bear.