Entries Tagged "hacking"

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Attack Trends: 2004 and 2005

Counterpane Internet Security, Inc., monitors more than 450 networks in 35 countries, in every time zone. In 2004 we saw 523 billion network events, and our analysts investigated 648,000 security “tickets.” What follows is an overview of what’s happening on the Internet right now, and what we expect to happen in the coming months.

In 2004, 41 percent of the attacks we saw were unauthorized activity of some kind, 21 percent were scanning, 26 percent were unauthorized access, 9 percent were DoS (denial of service), and 3 percent were misuse of applications.

Over the past few months, the two attack vectors that we saw in volume were against the Windows DCOM (Distributed Component Object Model) interface of the RPC (remote procedure call) service and against the Windows LSASS (Local Security Authority Subsystem Service). These seem to be the current favorites for virus and worm writers, and we expect this trend to continue.

The virus trend doesn’t look good. In the last six months of 2004, we saw a plethora of attacks based on browser vulnerabilities (such as GDI-JPEG image vulnerability and IFRAME) and an increase in sophisticated worm and virus attacks. More than 1,000 new worms and viruses were discovered in the last six months alone.

In 2005, we expect to see ever-more-complex worms and viruses in the wild, incorporating complex behavior: polymorphic worms, metamorphic worms, and worms that make use of entry-point obscuration. For example, SpyBot.KEG is a sophisticated vulnerability assessment worm that reports discovered vulnerabilities back to the author via IRC channels.

We expect to see more blended threats: exploit code that combines malicious code with vulnerabilities in order to launch an attack. We expect Microsoft’s IIS (Internet Information Services) Web server to continue to be an attractive target. As more and more companies migrate to Windows 2003 and IIS 6, however, we expect attacks against IIS to decrease.

We also expect to see peer-to-peer networking as a vector to launch viruses.

Targeted worms are another trend we’re starting to see. Recently there have been worms that use third-party information-gathering techniques, such as Google, for advanced reconnaissance. This leads to a more intelligent propagation methodology; instead of propagating scattershot, these worms are focusing on specific targets. By identifying targets through third-party information gathering, the worms reduce the noise they would normally make when randomly selecting targets, thus increasing the window of opportunity between release and first detection.

Another 2004 trend that we expect to continue in 2005 is crime. Hacking has moved from a hobbyist pursuit with a goal of notoriety to a criminal pursuit with a goal of money. Hackers can sell unknown vulnerabilities—”zero-day exploits”—on the black market to criminals who use them to break into computers. Hackers with networks of hacked machines can make money by selling them to spammers or phishers. They can use them to attack networks. We have started seeing criminal extortion over the Internet: hackers with networks of hacked machines threatening to launch DoS attacks against companies. Most of these attacks are against fringe industries—online gambling, online computer gaming, online pornography—and against offshore networks. The more these extortions are successful, the more emboldened the criminals will become.

We expect to see more attacks against financial institutions, as criminals look for new ways to commit fraud. We also expect to see more insider attacks with a criminal profit motive. Already most of the targeted attacks—as opposed to attacks of opportunity—originate from inside the attacked organization’s network.

We also expect to see more politically motivated hacking, whether against countries, companies in “political” industries (petrochemicals, pharmaceuticals, etc.), or political organizations. Although we don’t expect to see terrorism occur over the Internet, we do expect to see more nuisance attacks by hackers who have political motivations.

The Internet is still a dangerous place, but we don’t foresee people or companies abandoning it. The economic and social reasons for using the Internet are still far too compelling.

This essay originally appeared in the June 2005 issue of Queue.

Posted on June 6, 2005 at 1:02 PMView Comments

Holding Computer Files Hostage

This one has been predicted for years. Someone breaks into your network, encrypts your data files, and then demands a ransom to hand over the key.

I don’t know how the attackers did it, but below is probably the best way. A worm could be programmed to do it.

1. Break into a computer.

2. Generate a random 256-bit file-encryption key.

3. Encrypt the file-encryption key with a common RSA public key.

4. Encrypt data files with the file-encryption key.

5. Wipe data files and file-encryption key.

6. Wipe all free space on the drive.

7. Output a file containing the RSA-encrypted, file encryption key.

8. Demand ransom.

9. Receive ransom.

10. Receive encrypted file-encryption key.

11. Decrypt it and send it back.

In any situation like this, step 9 is the hardest. It’s where you’re most likely to get caught. I don’t know much about anonymous money transfer, but I don’t think Swiss bank accounts have the anonymity they used to.

You also might have to prove that you can decrypt the data, so an easy modification is to encrypt a piece of the data with another file-encryption key so you can prove to the victim that you have the RSA private key.

Internet attacks have changed over the last couple of years. They’re no longer about hackers. They’re about criminals. And we should expect to see more of this sort of thing in the future.

Posted on May 30, 2005 at 8:18 AMView Comments

Paris Hilton Cellphone Hack

The inside story behind the hacking of Paris Hilton’s T-Mobile cell phone.

Good paragraph:

“This was all done not by skilled ‘hackers’ but by kids who managed to ‘social’ their way into a company’s system and gain access to it within one or two phone calls,” said Hallissey, who asked that her current place of residence not be disclosed. “Major corporations have made social engineering way too easy for these kids. In their call centers they hire low-pay employees to man the phones, give them a minimum of training, most of which usually dwells on call times, canned scripts and sales. This isn’t unique to T-Mobile or AOL. This has become common practice for almost every company.

How right she is.

EDITED TO ADD (11/11): Everyone, please stop asking me for Paris Hilton’s—or anyone else’s, for that matter—cellphone number or e-mail adress. I don’t have them.

Posted on May 23, 2005 at 12:41 PM

Police Foil Bank Electronic Theft

From the BBC:

Police in London say they have foiled one of the biggest attempted bank thefts in Britain.

The plan was to steal £220m ($423m) from the London offices of the Japanese bank Sumitomo Mitsui.

Computer experts are believed to have tried to transfer the money electronically after hacking into the bank’s systems.

Not a lot of detail here, but it seems that the thieves got in using a keyboard recorder. It’s the simple attacks that you have to worry about….

Posted on April 4, 2005 at 12:51 PMView Comments

Student Hacks System to Alter Grades

This is an interesting story:

A UCSB student is being charged with four felonies after she allegedly stole the identity of two professors and used the information to change her own and several other students’ grades, police said.

The Universty of California Santa Barbara has a custom program, eGrades, where faculty can submit and alter grades. It’s password protected, of course. But there’s a backup system, so that faculty who forget their password can reset it using their Social Security number and date of birth.

A student worked for an insurance company, and she was able to obtain SSN and DOB for two faculty members. She used that information to reset their passwords and change grades.

Police, university officials and campus computer specialists said Ramirez’s alleged illegal access to the computer grading system was not the result of a deficiency or flaw in the program.

Sounds like a flaw in the program to me. It’s even one I’ve written about: a primary security mechanism that fails to a less-secure secondary mechanism.

Posted on April 1, 2005 at 2:36 PMView Comments

Melbourne Water-Supply Security Risk

Here’s a scary hacking target: the remote-control system for Melbourne’s water supply. According to TheAge:

Remote access to the Brooklyn pumping station and the rest of the infrastructure means the entire network can be controlled from any of seven main Melbourne Water sites, or by key staff such as Mr Woodland from home via a secure internet connection using Citrix’s Metaframe or a standard web browser.

SCADA systems are hard to hack, but SSL connections—at least, that’s what I presume they mean by “secure internet connection”—are much easier.

(Seen on Benambra.)

Posted on March 11, 2005 at 9:17 AMView Comments

Hacking a Bicycle Rental System

CallABike offers bicycles to rent in several German cities. You register with the company, find a bike parked somewhere, and phone the company for an unlock key. You enter the key, use the bike, then park it wherever you want and lock it. The bike displays a code, and you phone the company once again, telling them this code. Thereafter, the bike is available for the next person to use it. You get charged for the time between unlock and lock.

Clever system.

Now read this site, from a group of hackers who claim to have changed the code in 10% of all the bikes in Berlin, which they now can use for free.

Posted on February 21, 2005 at 8:00 AMView Comments

Bank Sued for Unauthorized Transaction

This story is interesting:

A Miami businessman is suing Bank of America over $90,000 he says was stolen from his online banking account in a case that highlights the thorny question of who is responsible when a customer’s computer is hacked into.

The typical press coverage of this story is along the lines of “Bank of America sued because customer’s PC was hacked.” But that’s not it. Bank of America is being sued because they allowed an unauthorized transaction to occur, and they’re not making good on that mistake. The transaction happened to occur because the customer’s PC was hacked.

I know nothing about the actual suit and its merits, but this is a problem that is not going away. And while I think that banks should not be held responsible for what’s on their customers’ machines, they should be held responsible for allowing unauthorized transactions to occur. The bank’s internal systems, however set up, for whatever reason, permitted the fraudulent transaction.

There is a simple economic incentive problem here. As long as the banks are not responsible for financial losses from fraudulent transactions over the Internet, banks have no incentive to improve security. But if banks are held responsible for these transactions, you can bet that they won’t allow such shoddy security.

Posted on February 9, 2005 at 8:00 AMView Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.