Ashley Madison Blackmail Campaigns Prowling Again

If you were involved in the Ashley Madison service, or know someone who was, it might be time to discuss the continuing issues of ongoing blackmail campaigns stemming from the breach. This article appeared this week in SC Magazine, reporting on just such a campaign, that has been potentially identified.

Please be aware that this is happening, and can represent a significant threat, especially for organizations associated with critical infrastructure, IP protection and/or government agencies. 

If you, or someone you know, is being harassed or targeted by black mailers, here are some resources:

General council advice.

Contacting the FBI.

WikiHow Advice from the public.

Stay safe out there!

3 Things I Learned Talking to InfoSec People About Crime

Over the last several years, I have given many many talks about the behavior of criminal rings, how the criminal underground operates and black market economics. I wanted to share with my audiences some of the lessons I have learned about crime. Many people responded well and were interested in the content. Some replied with the predictable, “So what does this have to do with my firewall?” kind of response. One older security auditor even went so far as to ask me point blank “Why do you pay attention to the criminals? Shouldn’t you be working on helping people secure their networks?”  I tried to explain that understanding bad actors was a part of securing systems, but she wouldn’t hear of it…

That’s OK. I expected some of that kind of push back. Often, when I ask people what they want to hear about, or where my research should go, the responses I get back fall into two categories: “more of the same stuff” and “make x cheaper”, where x is some security product or tool. Neither is what I had in mind… 🙂 

Recently, I announced that I was taking this year off from most public speaking. I don’t think I will be attending as many events or speaking beyond my podcast and webinars. Mostly, this is to help me recover some of my energy and spend more time focused on new research and new projects at MicroSolved. However, I do want to close out the previous chapter of my focus on Operation Aikido and crime with 3 distinct lessons I think infosec folks should focus on and think about.

1. Real world – i.e.” “offline” crime – is something that few infosec professionals pay much attention to. Many of them are unaware of how fraud and black markets work, how criminals launder money/data around the world. They should pay attention to this, because “offline” crime and “online” crime are often strongly correlated and highly related in many cases. Sadly, when approached with this information – much of the response was – “I don’t have time for this, I have 156,926 other things to do right now.”

2. Infosec practitioners still do not understand their foes. There is a complete disconnect between the way most bad guys think and operate and the way many infosec folks think and operate. So much so, that there is often a “reality gap” between them. In a world of so many logs, honeypots, new techniques and data analysis, the problem seems to be getting worse instead of better. Threat intelligence has been reduced to lists of IOCs by most vendors, which makes it seem like knowledge of a web site URL, hash value or IP address is “knowing your enemy”. NOTHING could be farther from the truth….

3. Few infosec practitioners can appreciate a global view of crime and see larger-scale impacts in a meaningful way. Even those infosec practitioners who do get a deeper view of crime seem unable to formulate global-level impacts or nuance influences. When asked how geo-political changes would impact various forms of crime around the world, more than 93% of those I polled could only identify “increases in crime” as an impact. Only around 7% of those polled could identify specific shifts in the types of crime or criminal actors when asked about changes in the geo-political or economic landscapes. Less than 2% of the respondents could identify or correlate accurate trends in response to a geo-political situation like the conflict in Ukraine. Clearly, most infosec folks are focused heavily ON THIER OWN STUFF and not on the world and threats around them.

I’m not slamming infosec folks. I love them. I want them to succeed and have devoted more than 20 years of my life to helping them. I will continue to do so. But, before I close my own chapter on this particular research focus, I think it is essential to level set. This is a part of that. I hope the conversation continues. I hope folks learn more and more about bad actors and crime. I hope to see more people doing this research. I hope to dig even deeper into it in the future.

Until then, thanks for reading, stay safe out there, and I will see you soon – even if I won’t be on stage at most events for a while. 😉

PS _ Thanks to all of the wonderful audiences I have had the pleasure to present to over the years. I appreciate and love each and every one of you! Thanks for all the applause, questions and, most of all, thanks for being there!  

Podcast Episode 2 is Now Available

In this episode we sit down with Mark Tomallo, from Panopticon Labs, and RSA’s Kevin Flanagan. We discuss mentoring, online crime, choosing infosec as a career and even dig out some tidbits from Mark about online gaming fraud and some of the criminal underground around the gaming industry. I think this is a very interesting and fun episode, so check it out and let us know what you think on Twitter (@microsolved, or @lbhuston). Thanks for listening! 

Listen Here:

Data Breaches are a Global Problem

For those of you who maybe just thought that data breaches were only happening against US companies, and only by a certain country as the culprit, we wanted to remind you that this certainly isn’t so.

In fact, just in the last several weeks, breaches against major companies in the UK, Australia, Japan, Kenya, Korea, China and others have come to light. Sources of attacks show evidence of criminal groups working from the US, Brazil, Northern Africa, the Middle East, Russia and Asia among others. Just follow the data for a few weeks, and it quickly becomes clear that this is a GLOBAL problem and is multi-directional.

Even loose alliances seem to come and go amongst these criminal groups. They often steal data, talent, techniques, tools and resources from each other. They work together on one deal, while treating each other as competitors in other deals simultaneously. The entire underground is dynamic, shifting in players, goals and techniques on almost moment by moment basis. What works now spreads, and then gets innovated.

This rapidly changing landscape makes it hard for defenders to fight against the bleeding edge. So much so, in fact, that doing the basics of information security and doing them well, seems to be far more effective than trying to keep up with the latest 0-day or social engineering techniques.

That said, next time you read a report that seems to cast the data breach problem as a US issue versus the big red ghost, take a breath. Today, everyone is hacking everyone. That’s the new normal…

Accepting Identity Theft

I can recall a time when I wasn’t concerned about data theft. Eventually, buzz words such as “breach” and “identity theft” became a regular part of my vocabulary.  I began to wonder if I would ever be affected by a data breach. In 2003, I received a letter in the mail informing me that my personal data had been stolen. I remember asking myself, “when will this happen next?” In 2004, I once again became a victim of a data breach. Despite my young age at the time, I had already started to think of identity theft in the cynical terms of “not if but when”. It then became apparent to me that I could no longer think in terms of “if” or “when” but I should focus on “how often”.

I find it helpful to compare identity theft to personal health care. Eating the right foods, taking all the trendy vitamins and getting the recommended amount of exercise isn’t enough to guarantee perfect health. You are still susceptible to diseases that you can’t detect on your own. This is why you typically see a doctor for checkups on a regular basis. You should use the same thought process when considering the possibility of identity theft. Regardless of how much effort you put into securing your identity, your personal data will be stolen. This is why I feel strongly that we should focus on monitoring and preparing for identity theft with the same time and energy that we devote to trying to prevent it.

Just like your health care, it’s also worthwhile to take a proactive approach to handling identity theft. It’s important to have multiple methods of discovering if you are a victim of fraud. This can be as simple as checking your debit/credit card statements and using an automated solution (such as LifeLock) to monitor for irregularities in your credit report. Don’t just wait to receive a notice in the mail or find out about the latest hack on the news. It can take the companies that handle your personal data and process your credit cards months before they realize that they have been hacked. This gives the attackers ample time to take advantage of your stolen data.

It’s also worthwhile to prepare yourself for how to handle an incident when it occurs. This can be as simple as keeping a list of the contact information for all of your financial institutions so that you can notify them as soon as you detect suspicious activity. Also, a majority of the aforementioned credit monitoring solutions include assistance services in the event that a criminal begins using your identity. Be sure to take advantage of these resources as these organizations have the necessary institutional knowledge to help assist you.

In short, continue doing what you can to prevent your identity from being stolen. Simple things like setting complex passwords and avoiding the reuse of your passwords between different services can go a long way to prevent you from becoming a victim of identity theft. However, the next time you’re configuring a lengthy password, be sure to ask yourself “Am I prepared for identity theft?”

This article courtesy of Adam Luck – @adamjluck.

MSI Contributes to Criminal Underground Report

MSI is proud to announce that a Rand report that we contributed to is now available. The report details the underground economy and provides insights into the operation, intelligence and flow of the underground markets.

You can download a free copy of the report here.

We are happy to support research projects such as these and they represent yet another way that MSI fulfills our promise to give back to the security community. If you have questions about this project or about our other contributions, please reach out to me on Twitter (@lbhuston).