Fooling a Voice Authentication System with an AI-Generated Voice
A reporter used an AI synthesis of his own voice to fool the voice authentication system for Lloyd’s Bank.
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A reporter used an AI synthesis of his own voice to fool the voice authentication system for Lloyd’s Bank.
Someone in the UK is stealing smartphones and credit cards from people who have stored them in gym lockers, and is using the two items in combination to commit fraud:
Phones, of course, can be made inaccessible with the use of passwords and face or fingerprint unlocking. And bank cards can be stopped.
But the thief has a method which circumnavigates those basic safety protocols.
Once they have the phone and the card, they register the card on the relevant bank’s app on their own phone or computer. Since it is the first time that card will have been used on the new device, a one-off security passcode is demanded.
That verification passcode is sent by the bank to the stolen phone. The code flashes up on the locked screen of the stolen phone, leaving the thief to tap it into their own device. Once accepted, they have control of the bank account. They can transfer money or buy goods, or change access to the account.
Zelle is rife with fraud:
Zelle’s immediacy has also made it a favorite of fraudsters. Other types of bank transfers or transactions involving payment cards typically take at least a day to clear. But once crooks scare or trick victims into handing over money via Zelle, they can siphon away thousands of dollars in seconds. There’s no way for customers—and in many cases, the banks themselves—to retrieve the money.
It’s not clear who is legally liable for such losses. Banks say that returning money to defrauded customers is not their responsibility, since the federal law covering electronic transfers—known in the industry as Regulation E —requires them to cover only “unauthorized” transactions, and the fairly common scam that Mr. Faunce fell prey to tricks people into making the transfers themselves. Victims say because they were duped into sending the money, the transaction is unauthorized. Regulatory guidance has so far been murky.
When swindled customers, already upset to find themselves on the hook, search for other means of redress, many are enraged to find out that Zelle is owned and operated by banks.
The Zelle network is operated by Early Warning Services, a company created and owned by seven banks: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo. Early Warning, based in Scottsdale, Ariz., manages the system’s technical infrastructure. But the 1,425 banks and credit unions that use Zelle can customize the app and add their own security settings.
Bizarro is a new banking trojan that is stealing financial information and crypto wallets.
…the program can be delivered in a couple of ways—either via malicious links contained within spam emails, or through a trojanized app. Using these sneaky methods, trojan operators will implant the malware onto a target device, where it will install a sophisticated backdoor that “contains more than 100 commands and allows the attackers to steal online banking account credentials,” the researchers write.
The backdoor has numerous commands built in to allow manipulation of a targeted individual, including keystroke loggers that allow for harvesting of personal login information. In some instances, the malware can allow criminals to commandeer a victim’s crypto wallet, too.
This is a longish video that describes a profitable computer banking scam that’s run out of call centers in places like India. There’s a lot of fluff about glitterbombs and the like, but the details are interesting. The scammers convince the victims to give them remote access to their computers, and then that they’ve mistyped a dollar amount and have received a large refund that they didn’t deserve. Then they convince the victims to send cash to a drop site, where a money mule retrieves it and forwards it to the scammers.
I found it interesting for several reasons. One, it illustrates the complex business nature of the scam: there are a lot of people doing specialized jobs in order for it to work. Two, it clearly shows the psychological manipulation involved, and how it preys on the unsophisticated and vulnerable. And three, it’s an evolving tactic that gets around banks increasingly flagging blocking suspicious electronic transfers.
I can’t believe that check washing is still a thing:
“Check washing” is a practice where thieves break into mailboxes (or otherwise steal mail), find envelopes with checks, then use special solvents to remove the information on that check (except for the signature) and then change the payee and the amount to a bank account under their control so that it could be deposited at out-state-banks and oftentimes by a mobile phone.
The article suggests a solution: stop using paper checks.
The US Cybersecurity and Infrastructure Security Agency (CISA) published a long and technical alert describing a North Korea hacking scheme against ATMs in a bunch of countries worldwide:
This joint advisory is the result of analytic efforts among the Cybersecurity and Infrastructure Security Agency (CISA), the Department of the Treasury (Treasury), the Federal Bureau of Investigation (FBI) and U.S. Cyber Command (USCYBERCOM). Working with U.S. government partners, CISA, Treasury, FBI, and USCYBERCOM identified malware and indicators of compromise (IOCs) used by the North Korean government in an automated teller machine (ATM) cash-out scheme—referred to by the U.S. Government as “FASTCash 2.0: North Korea’s BeagleBoyz Robbing Banks.”
The level of detail is impressive, as seems to be common in CISA’s alerts and analysis reports.
South Africa’s Postbank experienced a catastrophic security failure. The bank’s master PIN key was stolen, forcing it to cancel and replace 12 million bank cards.
The breach resulted from the printing of the bank’s encrypted master key in plain, unencrypted digital language at the Postbank’s old data centre in the Pretoria city centre.
According to a number of internal Postbank reports, which the Sunday Times obtained, the master key was then stolen by employees.
One of the reports said that the cards would cost about R1bn to replace. The master key, a 36-digit code, allows anyone who has it to gain unfettered access to the bank’s systems, and allows them to read and rewrite account balances, and change information and data on any of the bank’s 12-million cards.
The bank lost $3.2 million in fraudulent transactions before the theft was discovered. Replacing all the cards will cost an estimated $58 million.
Kaspersky is reporting on a series of bank hacks—called DarkVishnya—perpetrated through malicious hardware being surreptitiously installed into the target network:
In 2017-2018, Kaspersky Lab specialists were invited to research a series of cybertheft incidents. Each attack had a common springboard: an unknown device directly connected to the company’s local network. In some cases, it was the central office, in others a regional office, sometimes located in another country. At least eight banks in Eastern Europe were the targets of the attacks (collectively nicknamed DarkVishnya), which caused damage estimated in the tens of millions of dollars.
Each attack can be divided into several identical stages. At the first stage, a cybercriminal entered the organization’s building under the guise of a courier, job seeker, etc., and connected a device to the local network, for example, in one of the meeting rooms. Where possible, the device was hidden or blended into the surroundings, so as not to arouse suspicion.
The devices used in the DarkVishnya attacks varied in accordance with the cybercriminals’ abilities and personal preferences. In the cases we researched, it was one of three tools:
- netbook or inexpensive laptop
- Raspberry Pi computer
- Bash Bunny, a special tool for carrying out USB attacks
Inside the local network, the device appeared as an unknown computer, an external flash drive, or even a keyboard. Combined with the fact that Bash Bunny is comparable in size to a USB flash drive, this seriously complicated the search for the entry point. Remote access to the planted device was via a built-in or USB-connected GPRS/3G/LTE modem.
There are some good lessons in this article on financial fraud:
That’s how we got it so wrong. We were looking for incidental breaches of technical regulations, not systematic crime. And the thing is, that’s normal. The nature of fraud is that it works outside your field of vision, subverting the normal checks and balances so that the world changes while the picture stays the same. People in financial markets have been missing the wood for the trees for as long as there have been markets.
Trust—particularly between complete strangers, with no interactions beside relatively anonymous market transactions—is the basis of the modern industrial economy. And the story of the development of the modern economy is in large part the story of the invention and improvement of technologies and institutions for managing that trust.
And as industrial society develops, it becomes easier to be a victim. In The Wealth of Nations, Adam Smith described how prosperity derived from the division of labour—the 18 distinct operations that went into the manufacture of a pin, for example. While this was going on, the modern world also saw a growing division of trust. The more a society benefits from the division of labour in checking up on things, the further you can go into a con game before you realise that you’re in one.
Libor teaches us a valuable lesson about commercial fraud—that unlike other crimes, it has a problem of denial as well as one of detection. There are very few other criminal acts where the victim not only consents to the criminal act, but voluntarily transfers the money or valuable goods to the criminal. And the hierarchies, status distinctions and networks that make up a modern economy also create powerful psychological barriers against seeing fraud when it is happening. White-collar crime is partly defined by the kind of person who commits it: a person of high status in the community, the kind of person who is always given the benefit of the doubt.
Fraudsters don’t play on moral weaknesses, greed or fear; they play on weaknesses in the system of checks and balances—the audit processes that are meant to supplement an overall environment of trust. One point that comes up again and again when looking at famous and large-scale frauds is that, in many cases, everything could have been brought to a halt at a very early stage if anyone had taken care to confirm all the facts. But nobody does confirm all the facts. There are just too bloody many of them. Even after the financial rubble has settled and the arrests been made, this is a huge problem.
Sidebar photo of Bruce Schneier by Joe MacInnis.