Entries Tagged "bitcoin"

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Building Smarter Ransomware

Matthew Green and students speculate on what truly well-designed ransomware system could look like:

Most modern ransomware employs a cryptocurrency like Bitcoin to enable the payments that make the ransom possible. This is perhaps not the strongest argument for systems like Bitcoin — and yet it seems unlikely that Bitcoin is going away anytime soon. If we can’t solve the problem of Bitcoin, maybe it’s possible to use Bitcoin to make “more reliable” ransomware.

[…]

Recall that in the final step of the ransom process, the ransomware operator must deliver a decryption key to the victim. This step is the most fraught for operators, since it requires them to manage keys and respond to queries on the Internet. Wouldn’t it be better for operators if they could eliminate this step altogether?

[…]

At least in theory it might be possible to develop a DAO that’s funded entirely by ransomware payments — and in turn mindlessly contracts real human beings to develop better ransomware, deploy it against human targets, and…rinse repeat. It’s unlikely that such a system would be stable in the long run ­ humans are clever and good at destroying dumb things ­ but it might get a good run.

One of the reasons society hasn’t destroyed itself is that people with intelligence and skills tend to not be criminals for a living. If it ever became a viable career path, we’re doomed.

Posted on March 7, 2017 at 8:15 AMView Comments

IoT Ransomware against Austrian Hotel

Attackers held an Austrian hotel network for ransom, demanding $1,800 in bitcoin to unlock the network. Among other things, the locked network wouldn’t allow any of the guests to open their hotel room doors.

I expect IoT ransomware to become a major area of crime in the next few years. How long before we see this tactic used against cars? Against home thermostats? Within the year is my guess. And as long as the ransom price isn’t too onerous, people will pay.

EDITED TO ADD: There seems to be a lot of confusion about exactly what the ransomware did. Early reports said that hotel guests were locked inside their rooms, which is of course ridiculous. Now some reports are saying that no one was locked out of their rooms.

EDITED TO ADD (2/13): More information.

Posted on January 31, 2017 at 8:49 AMView Comments

Tracking the Owner of Kickass Torrents

Here’s the story of how it was done. First, a fake ad on torrent listings linked the site to a Latvian bank account, an e-mail address, and a Facebook page.

Using basic website-tracking services, Der-Yeghiayan was able to uncover (via a reverse DNS search) the hosts of seven apparent KAT website domains: kickasstorrents.com, kat.cr, kickass.to, kat.ph, kastatic.com, thekat.tv and kickass.cr. This dug up two Chicago IP addresses, which were used as KAT name servers for more than four years. Agents were then able to legally gain a copy of the server’s access logs (explaining why it was federal authorities in Chicago that eventually charged Vaulin with his alleged crimes).

Using similar tools, Homeland Security investigators also performed something called a WHOIS lookup on a domain that redirected people to the main KAT site. A WHOIS search can provide the name, address, email and phone number of a website registrant. In the case of kickasstorrents.biz, that was Artem Vaulin from Kharkiv, Ukraine.

Der-Yeghiayan was able to link the email address found in the WHOIS lookup to an Apple email address that Vaulin purportedly used to operate KAT. It’s this Apple account that appears to tie all of pieces of Vaulin’s alleged involvement together.

On July 31st 2015, records provided by Apple show that the me.com account was used to purchase something on iTunes. The logs show that the same IP address was used on the same day to access the KAT Facebook page. After KAT began accepting Bitcoin donations in 2012, $72,767 was moved into a Coinbase account in Vaulin’s name. That Bitcoin wallet was registered with the same me.com email address.

Another article.

Posted on July 26, 2016 at 6:42 AMView Comments

Tracking Bitcoin Scams

Interesting paper: “There’s No Free Lunch, Even Using Bitcoin: Tracking the Popularity and Profits of Virtual Currency Scams,” by Marie Vasek and Tyler Moore.

Abstract: We present the first empirical analysis of Bitcoin-based scams: operations established with fraudulent intent. By amalgamating reports gathered by
voluntary vigilantes and tracked in online forums, we identify 192 scams and categorize them into four groups: Ponzi schemes, mining scams, scam wallets and fraudulent exchanges. In 21% of the cases, we also found the associated Bitcoin addresses, which enables us to track payments into and out of the scams. We find that at least $11 million has been contributed to the scams from 13 000 distinct victims. Furthermore, we present evidence that the most successful scams depend on large contributions from a very small number of victims. Finally, we discuss ways in which the scams could be countered.

News article.

Posted on February 4, 2015 at 7:02 AMView Comments

The Problem with EULAs

Some apps are being distributed with secret Bitcoin-mining software embedded in them. Coins found are sent back to the app owners, of course.

And to make it legal, it’s part of the end-user license agreement (EULA):

COMPUTER CALCULATIONS, SECURITY: as part of downloading a Mutual Public, your computer may do mathematical calculations for our affiliated networks to confirm transactions and increase security. Any rewards or fees collected by WBT or our affiliates are the sole property of WBT and our affiliates.

This is a great example of why EULAs are bad. The stunt that resulted in 7,500 people giving Gamestation.co.uk their immortal souls a few years ago was funny, but hijacking users’ computers for profit is actually bad.

Posted on December 5, 2013 at 6:58 AMView Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.