Entries Tagged "cybercrime"

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"Cyber Crime Toolkits" Hit the News

On the BBC website:

“They are starting to pop up left and right,” said Tim Eades from security company Sana, of the sites offering downloadable hacking tools. “It’s the classic verticalisation of a market as it starts to mature.”

Malicious hackers had evolved over the last few years, he said, and were now selling the tools they used to use to the growing numbers of fledgling cyber thieves.

Mr Eades said some hacking groups offer boutique virus writing services that produce malicious programs that security software will not spot. Individual malicious programs cost up to £17 (25 euros), he said.

At the top end of the scale, said Mr Eades, were tools like the notorious MPack which costs up to £500.

The regular updates for the software ensure it uses the latest vulnerabilities to help criminals hijack PCs via booby-trapped webpages. It also includes a statistical package that lets owners know how successful their attack has been and where victims are based.

In one sense, there’s nothing new here. There have been rootkits and virus construction kits available on the Internet for years. The very definition of a “script kiddie” is someone who uses these tools without really understanding them. What is new is the market: these new tools aren’t for wannabe hackers, they’re for criminals. And with the new market comes a for-profit business model.

Posted on September 5, 2007 at 7:10 AM • View Comments

New German Hacking Law

There has been much written about the new German hacker-tool law, which went into effect earlier this month.

Dark Reading has the most interesting speculation:

Many security people say the law is so flawed and so broad and that no one can really comply with it. “In essence, the way the laws are phrased now, there is no way to ever comply… even as a non-security company,” says researcher Halvar Flake, a.k.a. Thomas Dullien, CEO and head of research at Sabre Security.

“If I walked into a store now and told the clerk that I wish to buy Windows XP and I will use it to hack, then the clerk is aiding me in committing a crime by [selling me] Windows XP,” Dullien says. “The law doesn’t actually distinguish between what the intended purpose of a program is. It just says if you put a piece of code in a disposition that is used to commit a crime, you’re complicit in that crime.”

Dullien says his company’s BinNavi tool for debugging and analyzing code or malware is fairly insulated from the law because it doesn’t include exploits. But his company still must ensure it doesn’t sell to “dodgy” customers.

Many other German security researchers, meanwhile, have pulled their proof-of-concept exploit code and hacking tools offline for fear of prosecution.

[…]

The German law has even given some U.S. researchers pause as well. It’s unclear whether the long arm of the German law could reach them, so some aren’t taking any chances: The exploit-laden Metasploit hacking tool could fall under German law if someone possesses it, distributes it, or uses it, for instance. “I’m staying out of Germany,” says HD Moore, Metasploit’s creator and director of security research for BreakingPoint Systems.

“Just about everything the Metasploit project provides [could] fall under that law,” Moore says. “Every exploit, most of the tools, and even the documentation in some cases.”

Moore notes that most Linux distros are now illegal in Germany as well, because they include the open-source nmap security scanner tool—and some include Metasploit as well.

The law basically leaves the door open to outlaw any software used in a crime, notes Sabre Security’s Dullien.

Zoller says the biggest problem with the new law is that it’s so vague that no one really knows what it means yet. “We have to wait for something to happen to know the limits.”

Posted on August 28, 2007 at 1:32 PM • View Comments

Cyberwar

I haven’t posted anything about the cyberwar between Russia and Estonia because, well, because I didn’t think there was anything new to say. We know that this kind of thing is possible. We don’t have any definitive proof that Russia was behind it. But it would be foolish to think that the various world’s militaries don’t have capabilities like this.

And anyway, I wrote about cyberwar back in January 2005.

But it seems that the essay never made it into the blog. So here it is again.


Cyberwar

The first problem with any discussion about cyberwar is definitional. I’ve been reading about cyberwar for years now, and there seem to be as many definitions of the term as there are people who write about the topic. Some people try to limit cyberwar to military actions taken during wartime, while others are so inclusive that they include the script kiddies who deface websites for fun.

I think the restrictive definition is more useful, and would like to define four different terms as follows:

Cyberwar—Warfare in cyberspace. This includes warfare attacks against a nation’s military—forcing critical communications channels to fail, for example—and attacks against the civilian population.

Cyberterrorism—The use of cyberspace to commit terrorist acts. An example might be hacking into a computer system to cause a nuclear power plant to melt down, a dam to open, or two airplanes to collide. In a previous Crypto-Gram essay, I discussed how realistic the cyberterrorism threat is.

Cybercrime—Crime in cyberspace. This includes much of what we’ve already experienced: theft of intellectual property, extortion based on the threat of DDOS attacks, fraud based on identity theft, and so on.

Cybervandalism—The script kiddies who deface websites for fun are technically criminals, but I think of them more as vandals or hooligans. They’re like the kids who spray paint buses: in it more for the thrill than anything else.

At first glance, there’s nothing new about these terms except the “cyber” prefix. War, terrorism, crime, even vandalism are old concepts. That’s correct, the only thing new is the domain; it’s the same old stuff occurring in a new arena. But because the arena of cyberspace is different from other arenas, there are differences worth considering.

One thing that hasn’t changed is that the terms overlap: although the goals are different, many of the tactics used by armies, terrorists, and criminals are the same. Just as all three groups use guns and bombs, all three groups can use cyberattacks. And just as every shooting is not necessarily an act of war, every successful Internet attack, no matter how deadly, is not necessarily an act of cyberwar. A cyberattack that shuts down the power grid might be part of a cyberwar campaign, but it also might be an act of cyberterrorism, cybercrime, or even—if it’s done by some fourteen-year-old who doesn’t really understand what he’s doing—cybervandalism. Which it is will depend on the motivations of the attacker and the circumstances surrounding the attack…just as in the real world.

For it to be cyberwar, it must first be war. And in the 21st century, war will inevitably include cyberwar. For just as war moved into the air with the development of kites and balloons and then aircraft, and war moved into space with the development of satellites and ballistic missiles, war will move into cyberspace with the development of specialized weapons, tactics, and defenses.

The Waging of Cyberwar

There should be no doubt that the smarter and better-funded militaries of the world are planning for cyberwar, both attack and defense. It would be foolish for a military to ignore the threat of a cyberattack and not invest in defensive capabilities, or to disregard the strategic or tactical possibility of launching an offensive cyberattack against an enemy during wartime. And while history has taught us that many militaries are indeed foolish and ignore the march of progress, cyberwar has been discussed too much in military circles to be ignored.

This implies that at least some of our world’s militaries have Internet attack tools that they’re saving in case of wartime. They could be denial-of-service tools. They could be exploits that would allow military intelligence to penetrate military systems. They could be viruses and worms similar to what we’re seeing now, but perhaps country- or network-specific. They could be Trojans that eavesdrop on networks, disrupt network operations, or allow an attacker to penetrate still other networks.

Script kiddies are attackers who run exploit code written by others, but don’t really understand the intricacies of what they’re doing. Conversely, professional attackers spend an enormous amount of time developing exploits: finding vulnerabilities, writing code to exploit them, figuring out how to cover their tracks. The real professionals don’t release their code to the script kiddies; the stuff is much more valuable if it remains secret until it is needed. I believe that militaries have collections of vulnerabilities in common operating systems, generic applications, or even custom military software that their potential enemies are using, and code to exploit those vulnerabilities. I believe that these militaries are keeping these vulnerabilities secret, and that they are saving them in case of wartime or other hostilities. It would be irresponsible for them not to.

The most obvious cyberattack is the disabling of large parts of the Internet, at least for a while. Certainly some militaries have the capability to do this, but in the absence of global war I doubt that they would do so; the Internet is far too useful an asset and far too large a part of the world economy. More interesting is whether they would try to disable national pieces of it. If Country A went to war with Country B, would Country A want to disable Country B’s portion of the Internet, or remove connections between Country B’s Internet and the rest of the world? Depending on the country, a low-tech solution might be the easiest: disable whatever undersea cables they’re using as access. Could Country A’s military turn its own Internet into a domestic-only network if they wanted?

For a more surgical approach, we can also imagine cyberattacks designed to destroy particular organizations’ networks; e.g., as the denial-of-service attack against the Al Jazeera website during the recent Iraqi war, allegedly by pro-American hackers but possibly by the government. We can imagine a cyberattack against the computer networks at a nation’s military headquarters, or the computer networks that handle logistical information.

One important thing to remember is that destruction is the last thing a military wants to do with a communications network. A military only wants to shut an enemy’s network down if they aren’t getting useful information from it. The best thing to do is to infiltrate the enemy’s computers and networks, spy on them, and surreptitiously disrupt select pieces of their communications when appropriate. The next best thing is to passively eavesdrop. After that, the next best is to perform traffic analysis: analyze who is talking to whom and the characteristics of that communication. Only if a military can’t do any of that do they consider shutting the thing down. Or if, as sometimes but rarely happens, the benefits of completely denying the enemy the communications channel outweigh all of the advantages.

Properties of Cyberwar

Because attackers and defenders use the same network hardware and software, there is a fundamental tension between cyberattack and cyberdefense. The National Security Agency has referred to this as the “equities issue,” and it can be summarized as follows. When a military discovers a vulnerability in a common product, they can either alert the manufacturer and fix the vulnerability, or not tell anyone. It’s not an easy decision. Fixing the vulnerability gives both the good guys and the bad guys a more secure system. Keeping the vulnerability secret means that the good guys can exploit the vulnerability to attack the bad guys, but it also means that the good guys are vulnerable. As long as everyone uses the same microprocessors, operating systems, network protocols, applications software, etc., the equities issue will always be a consideration when planning cyberwar.

Cyberwar can take on aspects of espionage, and does not necessarily involve open warfare. (In military talk, cyberwar is not necessarily “hot.”) Since much of cyberwar will be about seizing control of a network and eavesdropping on it, there may not be any obvious damage from cyberwar operations. This means that the same tactics might be used in peacetime by national intelligence agencies. There’s considerable risk here. Just as U.S. U2 flights over the Soviet Union could have been viewed as an act of war, the deliberate penetration of a country’s computer networks might be as well.

Cyberattacks target infrastructure. In this way they are no different than conventional military attacks against other networks: power, transportation, communications, etc. All of these networks are used by both civilians and the military during wartime, and attacks against them inconvenience both groups of people. For example, when the Allies bombed German railroad bridges during World War II, that affected both civilian and military transport. And when the United States bombed Iraqi communications links in both the First and Second Iraqi Wars, that affected both civilian and military communications. Cyberattacks, even attacks targeted as precisely as today’s smart bombs, are likely to have collateral effects.

Cyberattacks can be used to wage information war. Information war is another topic that’s received considerable media attention of late, although it is not new. Dropping leaflets on enemy soldiers to persuade them to surrender is information war. Broadcasting radio programs to enemy troops is information war. As people get more and more of their information over cyberspace, cyberspace will increasingly become a theater for information war. It’s not hard to imagine cyberattacks designed to co-opt the enemy’s communications channels and use them as a vehicle for information war.

Because cyberwar targets information infrastructure, the waging of it can be more damaging to countries that have significant computer-network infrastructure. The idea is that a technologically poor country might decide that a cyberattack that affects the entire world would disproportionately affect its enemies, because rich nations rely on the Internet much more than poor ones. In some ways this is the dark side of the digital divide, and one of the reasons countries like the United States are so worried about cyberdefense.

Cyberwar is asymmetric, and can be a guerrilla attack. Unlike conventional military offensives involving divisions of men and supplies, cyberattacks are carried out by a few trained operatives. In this way, cyberattacks can be part of a guerrilla warfare campaign.

Cyberattacks also make effective surprise attacks. For years we’ve heard dire warnings of an “electronic Pearl Harbor.” These are largely hyperbole today. I discuss this more in that previous Crypto-Gram essay on cyberterrorism, but right now the infrastructure just isn’t sufficiently vulnerable in that way.

Cyberattacks do not necessarily have an obvious origin. Unlike other forms of warfare, misdirection is more likely a feature of a cyberattack. It’s possible to have damage being done, but not know where it’s coming from. This is a significant difference; there’s something terrifying about not knowing your opponent—or knowing it, and then being wrong. Imagine if, after Pearl Harbor, we did not know who attacked us?

Cyberwar is a moving target. In the previous paragraph, I said that today the risks of an electronic Pearl Harbor are unfounded. That’s true; but this, like all other aspects of cyberspace, is continually changing. Technological improvements affect everyone, including cyberattack mechanisms. And the Internet is becoming critical to more of our infrastructure, making cyberattacks more attractive. There will be a time in the future, perhaps not too far into the future, when a surprise cyberattack becomes a realistic threat.

And finally, cyberwar is a multifaceted concept. It’s part of a larger military campaign, and attacks are likely to have both real-world and cyber components. A military might target the enemy’s communications infrastructure through both physical attack—bombings of selected communications facilities and transmission cables—and virtual attack. An information warfare campaign might include dropping of leaflets, usurpation of a television channel, and mass sending of e-mail. And many cyberattacks still have easier non-cyber equivalents: A country wanting to isolate another country’s Internet might find a low-tech solution, involving the acquiescence of backbone companies like Cable & Wireless, easier than a targeted worm or virus. Cyberwar doesn’t replace war; it’s just another arena in which the larger war is fought.

People overplay the risks of cyberwar and cyberterrorism. It’s sexy, and it gets media attention. And at the same time, people underplay the risks of cybercrime. Today crime is big business on the Internet, and it’s getting bigger all the time. But luckily, the defenses are the same. The countermeasures aimed at preventing both cyberwar and cyberterrorist attacks will also defend against cybercrime and cybervandalism. So even if organizations secure their networks for the wrong reasons, they’ll do the right thing.

Here’s my previous essay on cyberterrorism.

Posted on June 4, 2007 at 6:13 AM • View Comments

1933 Anti-Spam Doorbell

Here’s a great description of an anti-spam doorbell from 1933. A visitor had to deposit a dime into a slot to make the doorbell ring. If the homeowner appreciated the visit, he would return the dime. Otherwise, the dime became the cost of disturbing the homeowner.

This kind of system has been proposed for e-mail as well: the sender has to pay the receiver—or someone else in the system—a nominal amount for each e-mail sent. This money is returned if the e-mail is wanted, and forfeited if it is spam. The result would be to raise the cost of sending spam to the point where it is uneconomical.

I think it’s worth comparing the two systems—the doorbell system and the e-mail system—to demonstrate why it won’t work for spam.

The doorbell system fails for three reasons: the percentage of annoying visitors is small enough to make the system largely unnecessary, visitors don’t generally have dimes on them (presumably fixable if the system becomes ubiquitous), and it’s too easy to successfully bypass the system by knocking (not true for an apartment building).

The anti-spam system doesn’t suffer from the first two problems: spam is an enormous percentage of total e-mail, and an automated accounting system makes the financial mechanics easy. But the anti-spam system is too easy to bypass, and it’s too easy to hack. And once you set up a financial system, you’re simply inviting hacks.

The anti-spam system fails because spammers don’t have to send e-mail directly—they can take over innocent computers and send it from them. So it’s the people whose computers have been hacked into, victims in their own right, who will end up paying for spam. This risk can be limited by letting people put an upper limit on the money in their accounts, but it is still serious.

And criminals can exploit the system in the other direction, too. They could hack into innocent computers and have them send “spam” to their email addresses, collecting money in the process.

Trying to impose some sort of economic penalty on unwanted e-mail is a good idea, but it won’t work unless the endpoints are trusted. And we’re nowhere near that trust today.

Posted on May 10, 2007 at 5:57 AM • View Comments

Top 10 Internet Crimes of 2006

According to the Internet Crime Complaint Center and reported in U.S. News and World Report, auction fraud and non-delivery of items purchased are far and away the most common Internet crimes. Identity theft is way down near the bottom.

Although the number of complaints last year­207,492­fell by 10 percent, the overall losses hit a record $198 million. By far the most reported crime: Internet auction fraud, garnering 45 percent of all complaints. Also big was nondelivery of merchandise or payment, which notched second at 19 percent. The biggest money losers: those omnipresent Nigerian scam letters, which fleeced victims on average of $5,100 ­followed by check fraud at $3,744 and investment fraud at $2,694.

[…]

The feds caution that these figures don’t represent a scientific sample of just how much Net crime is out there. They note, for example, that the high number of auction fraud complaints is due, in part, to eBay and other big E-commerce outfits offering customers direct links to the IC3 website. And it’s tough to measure what may be the Web’s biggest scourge, child porn, simply by complaints. Still, the survey is a useful snapshot, even if it tells us what we already know: that the Internet, like the rest of life, is full of bad guys. Caveat emptor.

Posted on April 24, 2007 at 12:25 PM • View Comments

There Aren't That Many Serious Spammers Out There

Interesting analysis:

If there’s only a few large gangs operating—and other people are detecting these huge swings of activity as well—then that’s very significant for public policy. One can have sympathy for police officers and regulators faced with the prospect of dealing with hundreds or thousands of spammers; dealing with them all would take many (rather boring and frustrating) lifetimes. But if there are, say, five, big gangs at most—well that’s suddenly looking like a tractable problem.

Spam is costing us [allegedly] billions (and is a growing problem for the developing world), so there’s all sorts of economic and diplomatic reasons for tackling it. So tell your local spam law enforcement officials to have a look at the graph of Demon Internet’s traffic. It tells them that trying to do something about the spammers currently makes a lot of sense—and that by just tracking down a handful of people, they will be capable of making a real difference!

Posted on April 11, 2007 at 6:41 AM • View Comments

Stealing and Reselling Phone Minutes

Interesting new variation of phone fraud:

For the telecoms, the profit is in using VoIP to deliver calls from one phone to another. That requires a “gateway” server to connect a carrier’s phone network to the Net. Phreakers break into these gateways, steal “voice minutes” and sell them to other, usually smaller, telecoms. Many of these firms then sell printed phone cards or operate call centers. “It’s a great racket,” says Justin Newman, CEO of BinFone Telecom of Baltimore, which has been stung by phreakers.

Posted on March 21, 2007 at 11:20 AM • View Comments

The Problem with "Hiring Hackers"

The Communications Director for Montana’s Congressman Denny Rehberg solicited “hackers” to break into the computer system at Texas Christian University and change his grades (so they would look better when he eventually ran for office, I presume). The hackers posted the email exchange instead. Very funny:

First, let’s be clear. You are soliciting me to break the law and hack into a computer across state lines. That is a federal offense and multiple felonies. Obviously I can’t trust anyone and everyone that mails such a request, you might be an FBI agent, right?

So, I need three things to make this happen:

1. A picture of a squirrel or pigeon on your campus. One close-up, one with background that shows buildings, a sign, or something to indicate you are standing on the campus.

2. The information I mentioned so I can find the records once I get into the database.

3. Some idea of what I get for all my trouble.

Posted on December 27, 2006 at 1:40 PM • View Comments

Cybercrime Hype Alert

It seems to be the season for cybercrime hype. First, we have this article from CNN, which seems to have no actual news:

Computer hackers will open a new front in the multi-billion pound “cyberwar” in 2007, targeting mobile phones, instant messaging and community Web sites such as MySpace, security experts predict.

As people grow wise to email scams, criminal gangs will find new ways to commit online fraud, sell fake goods or steal corporate secrets.

And next, this article, which claims that criminal organizations are paying student members to get IT degrees:

The most successful cyber crime gangs were based on partnerships between those with the criminals skills and contacts and those with the technical ability, said Mr Day.

“Traditional criminals have the ability to move funds and use all of the background they have,” he said, “but they don’t have the technical expertise.”

As the number of criminal gangs looking to move into cyber crime expanded, it got harder to recruit skilled hackers, said Mr Day. This has led criminals to target university students all around the world.

“Some students are being sponsored through their IT degree,” said Mr Day. Once qualified, the graduates go to work for the criminal gangs.

[…]

The aura of rebellion the name conjured up helped criminals ensnare children as young as 14, suggested the study.

By trawling websites, bulletin boards and chat rooms that offer hacking tools, cracks or passwords for pirated software, criminal recruiters gather information about potential targets.

Once identified, young hackers are drawn in by being rewarded for carrying out low-level tasks such as using a network of hijacked home computers, a botnet, to send out spam.

The low risk of being caught and the relatively high-rewards on offer helped the criminal gangs to paint an attractive picture of a cyber criminal’s life, said Mr Day.

As youngsters are drawn in the stakes are raised and they are told to undertake increasingly risky jobs.

Criminals targeting children—that’s sure to peg anyone’s hype-meter.

To be sure, I don’t want to minimize the threat of cybercrime. Nor do I want to minimize the threat of organized cybercrime. There are more and more criminals prowling the net, and more and more cybercrime has gone up the food chain—to large organized crime syndicates. Cybercrime is big business, and it’s getting bigger.

But I’m not sure if stories like these help or hurt.

Posted on December 14, 2006 at 2:36 PM • View Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.