Whistleblower: DOGE Siphoned NLRB Case Data

A security architect with the National Labor Relations Board (NLRB) alleges that employees from Elon Musk‘s Department of Government Efficiency (DOGE) transferred gigabytes of sensitive data from agency case files in early March, using short-lived accounts configured to leave few traces of network activity. The NLRB whistleblower said the unusual large data outflows coincided with multiple blocked login attempts from an Internet address in Russia that tried to use valid credentials for a newly-created DOGE user account.

The allegations came in an April 14 letter to the Senate Select Committee on Intelligence, signed by Daniel J. Berulis, a 38-year-old security architect at the NLRB.

NPR, which was the first to report on Berulis’s whistleblower complaint, says NLRB is a small, independent federal agency that investigates and adjudicates complaints about unfair labor practices, and stores “reams of potentially sensitive data, from confidential information about employees who want to form unions to proprietary business information.”

The complaint documents a one-month period beginning March 3, during which DOGE officials reportedly demanded the creation of all-powerful “tenant admin” accounts in NLRB systems that were to be exempted from network logging activity that would otherwise keep a detailed record of all actions taken by those accounts.

Berulis said the new DOGE accounts had unrestricted permission to read, copy, and alter information contained in NLRB databases. The new accounts also could restrict log visibility, delay retention, route logs elsewhere, or even remove them entirely — top-tier user privileges that neither Berulis nor his boss possessed.

Berulis writes that on March 3, a black SUV accompanied by a police escort arrived at his building — the NLRB headquarters in Southeast Washington, D.C. The DOGE staffers did not speak with Berulis or anyone else in NLRB’s IT staff, but instead met with the agency leadership.

“Our acting chief information officer told us not to adhere to standard operating procedure with the DOGE account creation, and there was to be no logs or records made of the accounts created for DOGE employees, who required the highest level of access,” Berulis wrote of their instructions after that meeting.

“We have built in roles that auditors can use and have used extensively in the past but would not give the ability to make changes or access subsystems without approval,” he continued. “The suggestion that they use these accounts was not open to discussion.”

Berulis found that on March 3 one of the DOGE accounts created an opaque, virtual environment known as a “container,” which can be used to build and run programs or scripts without revealing its activities to the rest of the world. Berulis said the container caught his attention because he polled his colleagues and found none of them had ever used containers within the NLRB network.

Berulis said he also noticed that early the next morning — between approximately 3 a.m. and 4 a.m. EST on Tuesday, March 4  — there was a large increase in outgoing traffic from the agency. He said it took several days of investigating with his colleagues to determine that one of the new accounts had transferred approximately 10 gigabytes worth of data from the NLRB’s NxGen case management system.

Berulis said neither he nor his co-workers had the necessary network access rights to review which files were touched or transferred — or even where they went. But his complaint notes the NxGen database contains sensitive information on unions, ongoing legal cases, and corporate secrets.

“I also don’t know if the data was only 10gb in total or whether or not they were consolidated and compressed prior,” Berulis told the senators. “This opens up the possibility that even more data was exfiltrated. Regardless, that kind of spike is extremely unusual because data almost never directly leaves NLRB’s databases.”

Berulis said he and his colleagues grew even more alarmed when they noticed nearly two dozen login attempts from a Russian Internet address (83.149.30,186) that presented valid login credentials for a DOGE employee account — one that had been created just minutes earlier. Berulis said those attempts were all blocked thanks to rules in place that prohibit logins from non-U.S. locations.

“Whoever was attempting to log in was using one of the newly created accounts that were used in the other DOGE related activities and it appeared they had the correct username and password due to the authentication flow only stopping them due to our no-out-of-country logins policy activating,” Berulis wrote. “There were more than 20 such attempts, and what is particularly concerning is that many of these login attempts occurred within 15 minutes of the accounts being created by DOGE engineers.”

According to Berulis, the naming structure of one Microsoft user account connected to the suspicious activity suggested it had been created and later deleted for DOGE use in the NLRB’s cloud systems: “DogeSA_2d5c3e0446f9@nlrb.microsoft.com.” He also found other new Microsoft cloud administrator accounts with nonstandard usernames, including “Whitesox, Chicago M.” and “Dancehall, Jamaica R.”

On March 5, Berulis documented that a large section of logs for recently created network resources were missing, and a network watcher in Microsoft Azure was set to the “off” state, meaning it was no longer collecting and recording data like it should have.

Berulis said he discovered someone had downloaded three external code libraries from GitHub that neither NLRB nor its contractors ever use. A “readme” file in one of the code bundles explained it was created to rotate connections through a large pool of cloud Internet addresses that serve “as a proxy to generate pseudo-infinite IPs for web scraping and brute forcing.” Brute force attacks involve automated login attempts that try many credential combinations in rapid sequence.

The complaint alleges that by March 17 it became clear the NLRB no longer had the resources or network access needed to fully investigate the odd activity from the DOGE accounts, and that on March 24, the agency’s associate chief information officer had agreed the matter should be reported to US-CERT. Operated by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA), US-CERT provides on-site cyber incident response capabilities to federal and state agencies.

But Berulis said that between April 3 and 4, he and the associate CIO were informed that “instructions had come down to drop the US-CERT reporting and investigation and we were directed not to move forward or create an official report.” Berulis said it was at this point he decided to go public with his findings.

Tim Bearese, the NLRB’s acting press secretary, told NPR that DOGE neither requested nor received access to its systems, and that “the agency conducted an investigation after Berulis raised his concerns but ‘determined that no breach of agency systems occurred.'” The NLRB did not respond to questions from KrebsOnSecurity.

Nevertheless, Berulis has shared a number of supporting screenshots showing agency email discussions about the unexplained account activity attributed to the DOGE accounts, as well as NLRB security alerts from Microsoft about network anomalies observed during the timeframes described.

As CNN reported last month, the NLRB has been effectively hobbled since President Trump fired three board members, leaving the agency without the quorum it needs to function.

“Despite its limitations, the agency had become a thorn in the side of some of the richest and most powerful people in the nation — notably Elon Musk, Trump’s key supporter both financially and arguably politically,” CNN wrote.

Both Amazon and Musk’s SpaceX have been suing the NLRB over complaints the agency filed in disputes about workers’ rights and union organizing, arguing that the NLRB’s very existence is unconstitutional. On March 5, a U.S. appeals court unanimously rejected Musk’s claim that the NLRB’s structure somehow violates the Constitution.

Berulis shared screenshots with KrebsOnSecurity showing that on the day the NPR published its story about his claims (April 14), the deputy CIO at NLRB sent an email stating that administrative control had been removed from all employee accounts. Meaning, suddenly none of the IT employees at the agency could do their jobs properly anymore, Berulis said.

Berulis shared a screenshot of an agency-wide email dated April 16 from NLRB director Lasharn Hamilton saying DOGE officials had requested a meeting, and reiterating claims that the agency had no prior “official” contact with any DOGE personnel. The message informed NLRB employees that two DOGE representatives would be detailed to the agency part-time for several months.

Berulis told KrebsOnSecurity he was in the process of filing a support ticket with Microsoft to request more information about the DOGE accounts when his network administrator access was restricted. Now, he’s hoping lawmakers will ask Microsoft to provide more information about what really happened with the accounts.

“That would give us way more insight,” he said. “Microsoft has to be able to see the picture better than we can. That’s my goal, anyway.”

Berulis’s attorney told lawmakers that on April 7, while his client and legal team were preparing the whistleblower complaint, someone physically taped a threatening note to Mr. Berulis’s home door with photographs — taken via drone — of him walking in his neighborhood.

“The threatening note made clear reference to this very disclosure he was preparing for you, as the proper oversight authority,” reads a preface by Berulis’s attorney Andrew P. Bakaj. “While we do not know specifically who did this, we can only speculate that it involved someone with the ability to access NLRB systems.”

Berulis said the response from friends, colleagues and even the public has been largely supportive, and that he doesn’t regret his decision to come forward.

“I didn’t expect the letter on my door or the pushback from [agency] leaders,” he said. “If I had to do it over, would I do it again? Yes, because it wasn’t really even a choice the first time.”

For now, Mr. Berulis is taking some paid family leave from the NLRB. Which is just as well, he said, considering he was stripped of the tools needed to do his job at the agency.

“They came in and took full administrative control and locked everyone out, and said limited permission will be assigned on a need basis going forward” Berulis said of the DOGE employees. “We can’t really do anything, so we’re literally getting paid to count ceiling tiles.”

Further reading: Berulis’s complaint (PDF).

Infrastructure Laundering: Blending in with the Cloud

In an effort to blend in and make their malicious traffic tougher to block, hosting firms catering to cybercriminals in China and Russia increasingly are funneling their operations through major U.S. cloud providers. Research published this week on one such outfit — a sprawling network tied to Chinese organized crime gangs and aptly named “Funnull” — highlights a persistent whac-a-mole problem facing cloud services.

In October 2024, the security firm Silent Push published a lengthy analysis of how Amazon AWS and Microsoft Azure were providing services to Funnull, a two-year-old Chinese content delivery network that hosts a wide variety of fake trading apps, pig butchering scams, gambling websites, and retail phishing pages.

Funnull made headlines last summer after it acquired the domain name polyfill[.]io, previously the home of a widely-used open source code library that allowed older browsers to handle advanced functions that weren’t natively supported. There were still tens of thousands of legitimate domains linking to the Polyfill domain at the time of its acquisition, and Funnull soon after conducted a supply-chain attack that redirected visitors to malicious sites.

Silent Push’s October 2024 report found a vast number of domains hosted via Funnull promoting gambling sites that bear the logo of the Suncity Group, a Chinese entity named in a 2024 UN report (PDF) for laundering millions of dollars for the North Korean Lazarus Group.

In 2023, Suncity’s CEO was sentenced to 18 years in prison on charges of fraud, illegal gambling, and “triad offenses,” i.e. working with Chinese transnational organized crime syndicates. Suncity is alleged to have built an underground banking system that laundered billions of dollars for criminals.

It is likely the gambling sites coming through Funnull are abusing top casino brands as part of their money laundering schemes. In reporting on Silent Push’s October report, TechCrunch obtained a comment from Bwin, one of the casinos being advertised en masse through Funnull, and Bwin said those websites did not belong to them.

Gambling is illegal in China except in Macau, a special administrative region of China. Silent Push researchers say Funnull may be helping online gamblers in China evade the Communist party’s “Great Firewall,” which blocks access to gambling destinations.

Silent Push’s Zach Edwards said that upon revisiting Funnull’s infrastructure again this month, they found dozens of the same Amazon and Microsoft cloud Internet addresses still forwarding Funnull traffic through a dizzying chain of auto-generated domain names before redirecting malicious or phishous websites.

Edwards said Funnull is a textbook example of an increasing trend Silent Push calls “infrastructure laundering,” wherein crooks selling cybercrime services will relay some or all of their malicious traffic through U.S. cloud providers.

“It’s crucial for global hosting companies based in the West to wake up to the fact that extremely low quality and suspicious web hosts based out of China are deliberately renting IP space from multiple companies and then mapping those IPs to their criminal client websites,” Edwards told KrebsOnSecurity. “We need these major hosts to create internal policies so that if they are renting IP space to one entity, who further rents it to host numerous criminal websites, all of those IPs should be reclaimed and the CDN who purchased them should be banned from future IP rentals or purchases.”

Reached for comment, Amazon referred this reporter to a statement Silent Push included in a report released today. Amazon said AWS was already aware of the Funnull addresses tracked by Silent Push, and that it had suspended all known accounts linked to the activity.

Amazon said that contrary to implications in the Silent Push report, it has every reason to aggressively police its network against this activity, noting the accounts tied to Funnull used “fraudulent methods to temporarily acquire infrastructure, for which it never pays. Thus, AWS incurs damages as a result of the abusive activity.”

“When AWS’s automated or manual systems detect potential abuse, or when we receive reports of potential abuse, we act quickly to investigate and take action to stop any prohibited activity,” Amazon’s statement continues. “In the event anyone suspects that AWS resources are being used for abusive activity, we encourage them to report it to AWS Trust & Safety using the report abuse form. In this case, the authors of the report never notified AWS of the findings of their research via our easy-to-find security and abuse reporting channels. Instead, AWS first learned of their research from a journalist to whom the researchers had provided a draft.”

Microsoft likewise said it takes such abuse seriously, and encouraged others to report suspicious activity found on its network.

“We are committed to protecting our customers against this kind of activity and actively enforce acceptable use policies when violations are detected,” Microsoft said in a written statement. “We encourage reporting suspicious activity to Microsoft so we can investigate and take appropriate actions.”

Richard Hummel is threat intelligence lead at NETSCOUT. Hummel said it used to be that “noisy” and frequently disruptive malicious traffic — such as automated application layer attacks, and “brute force” efforts to crack passwords or find vulnerabilities in websites — came mostly from botnets, or large collections of hacked devices.

But he said the vast majority of the infrastructure used to funnel this type of traffic is now proxied through major cloud providers, which can make it difficult for organizations to block at the network level.

“From a defenders point of view, you can’t wholesale block cloud providers, because a single IP can host thousands or tens of thousands of domains,” Hummel said.

In May 2024, KrebsOnSecurity published a deep dive on Stark Industries Solutions, an ISP that materialized at the start of Russia’s invasion of Ukraine and has been used as a global proxy network that conceals the true source of cyberattacks and disinformation campaigns against enemies of Russia. Experts said much of the malicious traffic  traversing Stark’s network (e.g. vulnerability scanning and password brute force attacks) was being bounced through U.S.-based cloud providers.

Stark’s network has been a favorite of the Russian hacktivist group called NoName057(16), which frequently launches huge distributed denial-of-service (DDoS) attacks against a variety of targets seen as opposed to Moscow. Hummel said NoName’s history suggests they are adept at cycling through new cloud provider accounts, making anti-abuse efforts into a game of whac-a-mole.

“It almost doesn’t matter if the cloud provider is on point and takes it down because the bad guys will just spin up a new one,” he said. “Even if they’re only able to use it for an hour, they’ve already done their damage. It’s a really difficult problem.”

Edwards said Amazon declined to specify whether the banned Funnull users were operating using compromised accounts or stolen payment card data, or something else.

“I’m surprised they wanted to lean into ‘We’ve caught this 1,200+ times and have taken these down!’ and yet didn’t connect that each of those IPs was mapped to [the same] Chinese CDN,” he said. “We’re just thankful Amazon confirmed that account mules are being used for this and it isn’t some front-door relationship. We haven’t heard the same thing from Microsoft but it’s very likely that the same thing is happening.”

Funnull wasn’t always a bulletproof hosting network for scam sites. Prior to 2022, the network was known as Anjie CDN, based in the Philippines. One of Anjie’s properties was a website called funnull[.]app. Loading that domain reveals a pop-up message by the original Anjie CDN owner, who said their operations had been seized by an entity known as Fangneng CDN and ACB Group, the parent company of Funnull.

“After I got into trouble, the company was managed by my family,” the message explains. “Because my family was isolated and helpless, they were persuaded by villains to sell the company. Recently, many companies have contacted my family and threatened them, believing that Fangneng CDN used penetration and mirroring technology through customer domain names to steal member information and financial transactions, and stole customer programs by renting and selling servers. This matter has nothing to do with me and my family. Please contact Fangneng CDN to resolve it.”

In January 2024, the U.S. Department of Commerce issued a proposed rule that would require cloud providers to create a “Customer Identification Program” that includes procedures to collect data sufficient to determine whether each potential customer is a foreign or U.S. person.

According to the law firm Crowell & Moring LLP, the Commerce rule also would require “infrastructure as a service” (IaaS) providers to report knowledge of any transactions with foreign persons that might allow the foreign entity to train a large AI model with potential capabilities that could be used in malicious cyber-enabled activity.

“The proposed rulemaking has garnered global attention, as its cross-border data collection requirements are unprecedented in the cloud computing space,” Crowell wrote. “To the extent the U.S. alone imposes these requirements, there is concern that U.S. IaaS providers could face a competitive disadvantage, as U.S. allies have not yet announced similar foreign customer identification requirements.”

It remains unclear if the new White House administration will push forward with the requirements. The Commerce action was mandated as part of an executive order President Trump issued a day before leaving office in January 2021.

Patch Tuesday, March 2024 Edition

Apple and Microsoft recently released software updates to fix dozens of security holes in their operating systems. Microsoft today patched at least 60 vulnerabilities in its Windows OS. Meanwhile, Apple’s new macOS Sonoma addresses at least 68 security weaknesses, and its latest update for iOS fixes two zero-day flaws.

Last week, Apple pushed out an urgent software update to its flagship iOS platform, warning that there were at least two zero-day exploits for vulnerabilities being used in the wild (CVE-2024-23225 and CVE-2024-23296). The security updates are available in iOS 17.4, iPadOS 17.4, and iOS 16.7.6.

Apple’s macOS Sonoma 14.4 Security Update addresses dozens of security issues. Jason Kitka, chief information security officer at Automox, said the vulnerabilities patched in this update often stem from memory safety issues, a concern that has led to a broader industry conversation about the adoption of memory-safe programming languages [full disclosure: Automox is an advertiser on this site].

On Feb. 26, 2024, the Biden administration issued a report that calls for greater adoption of memory-safe programming languages. On Mar. 4, 2024, Google published Secure by Design, which lays out the company’s perspective on memory safety risks.

Mercifully, there do not appear to be any zero-day threats hounding Windows users this month (at least not yet). Satnam Narang, senior staff research engineer at Tenable, notes that of the 60 CVEs in this month’s Patch Tuesday release, only six are considered “more likely to be exploited” according to Microsoft.

Those more likely to be exploited bugs are mostly “elevation of privilege vulnerabilities” including CVE-2024-26182 (Windows Kernel), CVE-2024-26170 (Windows Composite Image File System (CimFS), CVE-2024-21437 (Windows Graphics Component), and CVE-2024-21433 (Windows Print Spooler).

Narang highlighted CVE-2024-21390 as a particularly interesting vulnerability in this month’s Patch Tuesday release, which is an elevation of privilege flaw in Microsoft Authenticator, the software giant’s app for multi-factor authentication. Narang said a prerequisite for an attacker to exploit this flaw is to already have a presence on the device either through malware or a malicious application.

“If a victim has closed and re-opened the Microsoft Authenticator app, an attacker could obtain multi-factor authentication codes and modify or delete accounts from the app,” Narang said. “Having access to a target device is bad enough as they can monitor keystrokes, steal data and redirect users to phishing websites, but if the goal is to remain stealth, they could maintain this access and steal multi-factor authentication codes in order to login to sensitive accounts, steal data or hijack the accounts altogether by changing passwords and replacing the multi-factor authentication device, effectively locking the user out of their accounts.”

CVE-2024-21334 earned a CVSS (danger) score of 9.8 (10 is the worst), and it concerns a weakness in Open Management Infrastructure (OMI), a Linux-based cloud infrastructure in Microsoft Azure. Microsoft says attackers could connect to OMI instances over the Internet without authentication, and then send specially crafted data packets to gain remote code execution on the host device.

CVE-2024-21435 is a CVSS 8.8 vulnerability in Windows OLE, which acts as a kind of backbone for a great deal of communication between applications that people use every day on Windows, said Ben McCarthy, lead cybersecurity engineer at Immersive Labs.

“With this vulnerability, there is an exploit that allows remote code execution, the attacker needs to trick a user into opening a document, this document will exploit the OLE engine to download a malicious DLL to gain code execution on the system,” Breen explained. “The attack complexity has been described as low meaning there is less of a barrier to entry for attackers.”

A full list of the vulnerabilities addressed by Microsoft this month is available at the SANS Internet Storm Center, which breaks down the updates by severity and urgency.

Finally, Adobe today issued security updates that fix dozens of security holes in a wide range of products, including Adobe Experience Manager, Adobe Premiere Pro, ColdFusion 2023 and 2021, Adobe Bridge, Lightroom, and Adobe Animate. Adobe said it is not aware of active exploitation against any of the flaws.

By the way, Adobe recently enrolled all of its Acrobat users into a “new generative AI feature” that scans the contents of your PDFs so that its new “AI Assistant” can  “understand your questions and provide responses based on the content of your PDF file.” Adobe provides instructions on how to disable the AI features and opt out here.