Ransomware Profitability

Analyzing cryptocurrency data, a research group has estimated a lower-bound on 2020 ransomware revenue: $350 million, four times more than in 2019.

Based on the company’s data, among last year’s top earners, there were groups like Ryuk, Maze (now-defunct), Doppelpaymer, Netwalker (disrupted by authorities), Conti, and REvil (aka Sodinokibi).

Ransomware is now an established worldwide business.

Slashdot thread.

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What’s most interesting about the Florida water system hack? That we heard about it at all.

Stories about computer security tend to go viral when they bridge the vast divide between geeks and luddites, and this week’s news about a hacker who tried to poison a Florida town’s water supply was understandably front-page material. But for security nerds who’ve been warning about this sort of thing for ages, the most surprising aspect of the incident seems to be that we learned about it at all.

Spend a few minutes searching Twitter, Reddit or any number of other social media sites and you’ll find countless examples of researchers posting proof of being able to access so-called “human-machine interfaces” — basically web pages designed to interact remotely with various complex systems, such as those that monitor and/or control things like power, water, sewage and manufacturing plants.

And yet, there have been precious few known incidents of malicious hackers abusing this access to disrupt these complex systems. That is, until this past Monday, when Florida county sheriff Bob Gualtieri held a remarkably clear-headed and fact-filled news conference about an attempt to poison the water supply of Oldsmar, a town of around 15,000 not far from Tampa.

Gualtieri told the media that someone (they don’t know who yet) remotely accessed a computer for the city’s water treatment system (using Teamviewer) and briefly increased the amount of sodium hydroxide (a.k.a. lye used to control acidity in the water) to 100 times the normal level.

“The city’s water supply was not affected,” The Tampa Bay Times reported. “A supervisor working remotely saw the concentration being changed on his computer screen and immediately reverted it, Gualtieri said. City officials on Monday emphasized that several other safeguards are in place to prevent contaminated water from entering the water supply and said they’ve disabled the remote-access system used in the attack.”

In short, a likely inexperienced intruder somehow learned the credentials needed to remotely access Oldsmar’s water system, did little to hide his activity, and then tried to change settings by such a wide margin that the alterations would be hard to overlook.

“The system wasn’t capable of doing what the attacker wanted,” said Joe Weiss, managing partner at Applied Control Solutions, a consultancy for the control systems industry. “The system isn’t capable of going up by a factor of 100 because there are certain physics problems involved there. Also, the changes he tried to make wouldn’t happen instantaneously. The operators would have had plenty of time to do something about it.”

Weiss was just one of a half-dozen experts steeped in the cybersecurity aspects of industrial control systems that KrebsOnSecurity spoke with this week. While all of those interviewed echoed Weiss’s conclusion, most also said they were concerned about the prospects of a more advanced adversary.

Here are some of the sobering takeaways from those interviews:

  • There are approximately 54,000 distinct drinking water systems in the United States.
  • The vast majority of those systems serve fewer than 50,000 residents, with many serving just a few hundred or thousand.
  • Virtually all of them rely on some type of remote access to monitor and/or administer these facilities.
  • Many of these facilities are unattended, underfunded, and do not have someone watching the IT operations 24/7.
  • Many facilities have not separated operational technology (the bits that control the switches and levers) from safety systems that might detect and alert on intrusions or potentially dangerous changes.

So, given how easy it is to search the web for and find ways to remotely interact with these HMI systems, why aren’t there more incidents like the one in Oldsmar making the news? One reason may be that these facilities don’t have to disclose such events when they do happen.

NO NEWS IS GOOD NEWS?

The only federal law that applies to the cybersecurity of water treatment facilities in the United States is America’s Water Infrastructure Act of 2018, which requires water systems serving more than 3,300 people “to develop or update risk assessments and emergency response plans.”

There is nothing in the law that requires such facilities to report cybersecurity incidents, such as the one that happened in Oldsmar this past weekend.

“It’s a difficult thing to get organizations to report cybersecurity incidents,” said Michael Arceneaux, managing director of the Water ISAC, an industry group that tries to facilitate information sharing and the adoption of best practices among utilities in the water sector. The Water ISAC’s 450 members serve roughly 200 million Americans, but its membership comprises less than one percent of the overall water utility industry.

“Some utilities are afraid that if their vulnerabilities are shared the hackers will have some inside knowledge on how to hack them,” Arceneaux said. “Utilities are rather hesitant to put that information in a public domain or have it in a database that could become public.”

Weiss said the federal agencies are equally reluctant to discuss such incidents.

“The only reason we knew about this incident in Florida was that the sheriff decided to hold a news conference,” Weiss said. “The FBI, Department of Homeland Security, none of them want to talk about this stuff publicly. Information sharing is broken.”

By way of example, Weiss said that not long ago he was contacted by a federal public defender representing a client who’d been convicted of hacking into a drinking water system. The attorney declined to share his client’s name, or divulge many details about the case. But he wanted to know if Weiss would be willing to serve as an expert witness who could help make the actions of a client sound less scary to a judge at sentencing time.

“He was defending this person who’d hacked into a drinking water system and had gotten all the way to the pumps and control systems,” Weiss recalled. “He said his client had only been in the system for about an hour, and he wanted to know how much damage could his client really could have done in that short a time. He was trying to get a more lenient sentence for the guy.”

Weiss said he’s tried to get more information about the defendant, but suspects the details of the case have been sealed.

Andrew Hildick-Smith is a consultant who served nearly 20 years managing remote access systems for the Massachusetts Water Resources Authority. Hildick-Smith said his experience working with numerous smaller water utilities has driven home the reality that most are severely under-staffed and underfunded.

“A decent portion of small water utilities depend on their community or town’s IT person to help them out with stuff,” he said. “When you’re running a water utility, there are so many things to take care of to keep it all running that there isn’t really enough time to improve what you have. That can spill over into the remote access side, and they may not have a IT person who can look at whether there’s a better way to do things, such as securing remote access and setting up things like two-factor authentication.”

Hildick-Smith said most of the cybersecurity incidents that he’s aware of involving water facilities fall into two categories. The most common are compromises where the systems affected were collateral damage from more opportunistic intrusions.

“There’ve been a bunch of times where water systems have had their control system breached, but it’s most often just sort of by chance, meaning whoever was doing it used the computer for setting up financial transactions, or it was a computer of convenience,” Hildick-Smith siad. “But attacks that involved the step of actually manipulating things is pretty short list.”

The other, increasingly common reason, he said, is of course ransomware attacks on the business side of water utilities.

“Separate from the sort of folks who wander into a SCADA system by mistake on the water side are a bunch of ransomware attacks against the business side of the water systems,” he said. “But even then you generally don’t get to hear the details of the attack.”

Hildick-Smith recalled a recent incident at a fairly large water utility that got hit with the Egregor ransomware strain.

“Things worked out internally for them, and they didn’t need to talk to the outside world or the press about it,” he said. “They made contact with the Water ISAC and the FBI, but it certainly didn’t become a press event, and any lessons they learned haven’t been able to be shared with folks.”

AN INTERNATIONAL CHALLENGE

The situation is no different in Europe and elsewhere, says Marcin Dudek, a control systems security researcher at CERT Polska, the computer emergency response team which handles cyber incident reporting in Poland.

Marcin said if water facilities have not been a major target of profit-minded criminal hackers, it is probably because most of these organizations have very little worth stealing and usually no resources for paying extortionists.

“The access part is quite easy,” he said. “There’s no business case for hacking these types of systems. Quite rarely do they have a proper VPN [virtual private network] for secure remote connection. I think it’s because there is not enough awareness of the problems of cybersecurity, but also because they are not financed enough. This goes not only for the US. It’s very similar here in Poland and different countries as well.”

Many security professionals have sounded off on social media saying public utilities have no business relying on remote access tools like Teamviewer, which by default allows complete control over the host system and is guarded by a simple password.

But Marcin says Teamviewer would actually be an improvement over the types of remote access systems he commonly finds in his own research, which involves HMI systems designed to be used via a publicly-facing website.

“I’ve seen a lot of cases where the HMI was directly available from a web page, where you just log in and are then able to change some parameters,” Marcin said. “This is particularly bad because web pages can have vulnerabilities, and those vulnerabilities can give the attacker full access to the panel.”

According to Marcin, utilities typically have multiple safety systems, and in an ideal environment those are separated from control systems so that a compromise of one will not cascade into the other.

“In reality, it’s not that easy to introduce toxins into the water treatment so that people will get sick, it’s not as easy as some people say,” he said. Still, he worries about more advanced attackers, such as those responsible for multiple incidents last year in which attackers gained access to some of Israel’s water treatment systems and tried to alter water chlorine levels before being detected and stopped.

“Remote access is something we cannot avoid today,” Marcin said. “Most installations are unmanned. If it is a very small water or sewage treatment plant, there will be no people inside and they just login whenever they need to change something.”

SELF EVALUTION TIME

Many smaller water treatment systems may soon be reevaluating their approach to securing remote access. Or at least that’s the hope of the Water Infrastructure of 2018, which gives utilities serving fewer than 50,000 residents until the end of June 2021 to complete a cybersecurity risk and resiliency assessment.

“The vast majority of these utilities have yet to really even think about where they stand in terms of cybersecurity,” said Hildick-Smith.

The only problem with this process is there aren’t any consequences for utilities that fail to complete their assessments by that deadline.

Hildick-Smith said while water systems are required to periodically report data about water quality to the U.S. Environmental Protection Agency (EPA), the agency has no real authority to enforce the cybersecurity assessments.

“The EPA has made some kind of vague threats, but they have no enforcement ability here,” he said. “Most water systems are going to wait until close the deadline, and then hire someone to do it for them. Others will probably just self-certify, raise their hands and say, ‘Yeah, we’re good.’”

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Cyber Command Major Imprisoned for Sex Crime

Cyber Command Major Imprisoned for Sex Crime

A US Army Cyber Command major has been sentenced to 30 years in federal prison for producing child sexual abuse material (CSAM).

Jason Michael Musgrove, of Grovetown, Georgia, was arrested in December 2019. At the time of his apprehension by law enforcement officers, the 41-year-old was serving as an integrated threat operations officer with Top Secret/Sensitive Compartmentalized Information clearance, assigned to the Army Cyber Joint Headquarters at Fort Gordon in Augusta, Georgia.

According to court testimony and documents, Musgrove admitted that he had produced CSAM and attempted to share it with others over the internet. 

His crimes were uncovered by Federal Bureau of Investigation agent Tripp Godbee, who was monitoring online groups devoted to CSAM and discussions of engaging in sex with children. Godbee traced images depicting a nude teenage girl that were being shared via the mobile app Kik back to a computer in Musgrove’s residence.

The agent opened an online chat with the anonymous sharer of the illegal images, who identified himself as a US Army officer before detailing his plans to drug and then rape the girl. 

“I want to be prepared with the proper ingredients for a good night cocktail!” the man said, according to an affidavit from Godbee. “Right now, I’m looking at mixing some cherry NyQuil into a Dr. Pepper.”

After pleading guilty to Production of Child Pornography, Musgrove was sentenced to 360 months in prison by US District Court Chief Judge J. Randal Hall. 

Musgrove will be 71 when he is released, as parole is not offered in the federal prison system.

In addition, Musgrove was ordered to register as a sex offender and to pay $9,000 in restitution to his victims. 

“The disturbing and despicable nature of such predators only increases their danger to the community, and Musgrove’s long sentence immediately makes the community safer,” said US Attorney Bobby Christine. 

Musgrove is currently facing administrative separation from the US Army. 

“Obviously the chain of command is very concerned and we’re looking at what actions should be taken,” Major Kip Patterson, a Cyber Command spokesperson, told Army Times.

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Gaming Industry Is Fraudsters’ Prime Target

Gaming Industry Is Fraudsters’ Prime Target

New data released today by Arkose Labs shows increased fraud across all industries since Black Friday, with North America’s gaming industry being a primary target. 

As the popularity of online shopping continues under the ongoing COVID-19 pandemic, researchers observed a surge in credential stuffing, account takeover (ATO) attacks, and gift card fraud.

Credential-stuffing attacks more than doubled in Q4 of 2020 compared to Q3 and increased by nearly 90% compared to Q1.  

“2021 remains full of unknowns, however what’s certain is the frequency and severity of fraud will never return to pre-pandemic levels,” predicted Vanita Pandey, VP of Marketing and Strategy at Arkose Labs. 

“With digital channels serving as an invaluable lifeline for much of the world, the Arkose Labs network saw 4 times as many transactions compared to the year prior. This increased activity has created an ideal breeding ground for attacks as fraudsters work to blend in with trusted users, rendering typical models of good versus bad user behavior obsolete.”

While a sustained increase in fraud in the ecommerce industry between Black Friday and the end of the year is a normal part of cybercrime’s ebb and flow, researchers noted something different about 2020.

“Last year, this sustained increase in fraud occurred across all industries, even those not typically associated with Black Friday, such as social media, online dating and financial services,” wrote researchers.

“This could be attributed to fraudsters leveraging social media or cloud-based communications platforms to spread disinformation about deals. It’s likely also a result of attackers targeting payment platforms or financial accounts and blending in with traffic due to increased consumer usage.”

In North America, fraud attacks, specifically those originating in the United States, surged in Q4 of 2020. Bots drove the region’s 24.2% attack rate, with just 3.5% of attacks being carried out by humans. 

“Gaming was the top attacked industry, however social media and retail transactions also served as popular targets,” noted researchers. 

Pandey warned more fraud was to come. She said: “As more consumers engage with digital commerce, companies will offer more promotions to remain competitive, which in turn will lead to fraudsters opening even more new accounts at scale in order to take advantage of these promotional efforts.”

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Alison Partners with CODERED

Alison Partners with CODERED

Cybersecurity course publisher CODERED has formed a partnership with one of the world’s largest fee-free online learning platforms.

The publishing partnership between CODERED and Alison.com was announced earlier today. The first educational fruit to be born from this union is a certified online course titled Hands-On Android Security that takes approximately four to five hours to complete.

Students of the course will become acquainted with the core concepts of the Android operating system, hardware security components, and native applications. Users will also learn how to analyze existing Android apps, understand vulnerabilities, and test their work to ensure full security compliance within the Android environment. 

“With almost three-quarters of smartphones being Android devices, compared to 26% on IOS devices, this course will be a welcome learning resource for the Android developer community,” said a spokesperson for Alison.com. “It covers the tools and software needed to test and protect apps from hackers.”

The course focuses on the practical aspect of penetration testing and also details how attacks are executed, how to monitor threats, and how to mitigate them. 

To successfully complete the course and earn a certificate, students must achieve 80% or higher in each course assessment. 

The course was developed in partnership with CODERED and certified by the International Council of E-Commerce Consultants (also known as the EC-Council), the world’s largest cybersecurity technical certification body.

The EC-Council’s certification is trusted by seven of the top ten Fortune 500 companies, NATO, and more than 2,000 universities around the world. 

At the time of going to press, 664 students were already enrolled on the Hands-On Android Security course, which had received a rating of 5 out of 5 stars on Alison.com.

Other cybersecurity courses brought to life by the partnership include Black Hat Python: Python for Pentesters; Identity and Access Management; and Secure Full Stack MEAN Stack Developer.

Alison.com currently has more than 18 million learners and hosts over 2,000 courses on its free-to-use platform. In addition to courses, the site offers a way for subject-matter experts to publish their work and share their knowledge with a global community. 

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